A Utility Trust is an Income Trust where the principal business of the underlying corporation or other entity derives its income from operating public utilities that provide regulated services such as pipelines, telecommunications, light, power and water. Utility Trusts tend to have stable
cash flow and distributions. The amounts of distributions paid by Utility Trusts varies with the market demand for transportation of product on their distribution systems. While they are generally not as commodity price sensitive as Resource Trusts, they may be affected by fluctuations in commodity prices in the longer term. In some Utility Trusts fluctuations in water flow can impact generators that provide the bulk of their electricity from single basin hydroelectric facilities.