Emera Increases Investment in Algonquin Power & Utilities Corp.

  Emera Increases Investment in Algonquin Power & Utilities Corp.

Business Wire

HALIFAX, Nova Scotia -- December 27, 2012

Emera Inc. (TSX: EMA) announced today that it has exchanged certain previously
acquired subscription receipts into 4.790 million common shares of Algonquin
Power & Utilities Corp. (“Algonquin”) (TSX: AQN), at a price of C$4.72 per
common share.

The subscription receipts were acquired on September 12, 2011, in connection
with the previously announced sale to Algonquin of the 49.999% interest held
by Emera in California Pacific Electric Company, LLC (“Calpeco”). The Calpeco
sale was completed on December 21, 2012.

In addition to the 4.790 million common shares acquired today, Emera owns
30.114 million previously acquired common shares of Algonquin, representing a
current ownership position of 34.903 million common shares or approximately
19.9% of Algonquin’s issued and outstanding shares.

In addition to the 34.903 million common shares Emera currently holds, Emera
holds 3.421 million subscription receipts (the “Calpeco Subscription Receipts
(Second Tranche)”) which are exchangeable for additional common shares in
connection with the Calpeco sale. The Calpeco Subscription Receipts (Second
Tranche) are exchangeable for common shares of Algonquin on a one-for-one
basis following completion of Calpeco’s first rate case, which is expected to
be completed in 2013.

Emera also holds 7.842 million subscription receipts at a purchase price of
$5.74 per receipt (the “2012 Subscription Receipts”), in connection with the
previously announced acquisition by Algonquin’s power generation subsidiary of
a 51% interest in a 480 MW U.S. wind power portfolio.

In the event that all of the 7.842 million common shares that may be issued
pursuant to the 2012 Subscription Receipts and the 3.421 million common shares
issuable pursuant to the Calpeco Subscription Receipts (Second Tranche) are
issued, together with the 34.903 million common shares currently held by
Emera, Emera would own approximately 24.8% of Algonquin’s issued and
outstanding shares. The acquisition of Algonquin shares is subject to
regulatory approval from the Maine Public Utilities Commission (“MPUC”), which
has limited Emera’s ownership in Algonquin to 20%, with additional investment
requiring specific approval. On June 25, 2012, Emera requested MPUC approval
to increase its ownership in Algonquin to 25%.

The common shares acquired today have been acquired for investment purposes
only. Emera has no intention of acquiring control of Algonquin. Depending upon
relevant economic, market or business conditions prevailing from time to time,
Emera may determine to acquire or to dispose of common shares of Algonquin in
TSX traded or privately negotiated transactions or otherwise. Under certain
agreements previously entered into with Algonquin, Emera has agreed not to
acquire any additional securities of Algonquin except in accordance with such

Forward Looking Information

This news release contains forward looking information. Actual future results
may differ materially. Additional information related to Emera, including the
company’s Annual Information Form, can be found on SEDAR at www.sedar.com or
on EDGAR at www.sec.gov.

About Emera

Emera Inc. is an energy and services company with $7.4 billion in assets and
2011 revenues of $2.1 billion. The company invests in electricity generation,
transmission and distribution, as well as gas transmission and utility energy
services. Emera’s strategy is focused on the transformation of the electricity
industry to cleaner generation and the delivery of that clean energy to
market. Emera has interests throughout northeastern North America and in three
Caribbean countries. More than 80% of the company’s earnings come from
regulated investments. Emera common and preferred shares are listed on the
Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A,
and EMA.PR.C. Additional information can be accessed at www.emera.com or at


Emera Inc.
Jill MacDonald, CA , 902-428-6486
Manager, Investor Relations
Sasha Irving, 902-229-5104
Director, Corporate Communications
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