The Canada Revenue Agency has ruled that PEI Energy Savings Bonds are a qualified investment for self-directed registered retirement savings plans (RRSPs). Minister of Environment, Energy and Forestry Jamie Ballem said the Province received the ruling Tuesday.
“This certainly enhances the appeal of the bonds for investors,” said Minister Ballem. “Many people have been waiting for the ruling on RRSP eligibility so we expect sales will be very strong over the coming weeks as the March 1 RRSP deadline approaches.”
The PEI Energy Savings Bonds program provides an opportunity for Islanders to invest in the Eastern Kings Wind Farm and a green energy future for Prince Edward Island. The wind farm will supply 7.5% of PEI’s total energy needs – enough wind energy to power about 12,000 homes. That will reduce greenhouse gas emissions that contribute to climate change by 75,000 tonnes annually which is the equivalent of taking 16,000 cars off the road. The other significant benefit is that $8 million of annual energy spending that is now leaving the province will stay in PEI as Maritime Electric purchases energy from the Eastern Kings Wind Farm.
“All of these economic and environmental benefits make PEI Energy Savings Bonds popular for people who want their investment dollars to not only earn them money, but also to support something they believe in,” said Minister Ballem. “The bonds are a safe, secure investment that allows Islanders to plan for their future while keeping their investment money in PEI to support a project that will benefit this province for years to come.”
PEI Energy Savings Bonds have a guaranteed return of 5% annually for five years. Either the purchaser or the owner of the bond must be a Prince Edward Island resident, business or organization. The minimum purchase is $500 and the ownership limit is $10,000 per calendar year.
PEI Energy Savings Bonds are available at Credit Unions across the province and at Provincial Treasury, 2nd Floor South, Shaw Building, 95 Rochford Street, Charlottetown. However, people buying bonds for a self-directed RRSP must do so through their financial advisor. For more information, call 1-877-6-BONDS-0 or visit the website at www.peienergysavings.pe.ca