Algonquin Power & Utilities Corp. Announces Further Investment in U.S. Wind
OAKVILLE, ON, Nov. 28, 2013 /CNW/ - Algonquin Power & Utilities Corp. ("APUC")
(TSX: AQN) today announced that a subsidiary of APUC's renewable power
generation business Algonquin Power Co. ("APCo") has entered into an agreement
to acquire the remaining 40% of the 400 MW wind power portfolio (the
"Projects") in the United States from Gamesa Wind US, LLC ("Gamesa") for total
consideration of approximately US$117 million.
APUC currently holds a 60% controlling interest in the Projects which were
originally acquired through a newly formed partnership whose original members
included APCo, Gamesa and certain tax equity investors. The 400 MW wind
portfolio consists of three facilities, Minonk (200MW), Senate (150MW), and
Sandy Ridge (50MW) located in the states of Illinois, Texas, and Pennsylvania,
APUC has been the majority owner and manager of the Projects since 2012 when
commercial operation was achieved, therefore no additional ongoing management
or administrative costs are expected to be incurred. Gamesa will continue to
provide operations, warranty and maintenance services for the wind turbines
and balance of plant facilities under 20 year contracts.
Funding of the acquisition is expected to be consistent with APUC's targeted
investment grade consolidated capital structure of approximately 50% equity,
50% debt. The acquisition is expected to close early in 2014 following
Substantially all of the energy from the Projects is sold under fixed price
power sales contracts including long term hedge agreements with a remaining
weighted average life of 11 years; ancillary services including capacity and
renewable energy credits are contracted into the energy markets in which the
facilities are located.
"The U.S. power markets provide tremendous opportunities for further growth in
our power generation portfolio as our investment in these wind farms has
demonstrated", commented Chief Executive Officer Ian Robertson. "We have been
pleased with the performance of these assets over the past year and the
acquisition of the balance of these three wind generating facilities adds
additional accretive, low risk earnings and cash flow to APUC".
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified$3.2
billionportfolio of regulated and non-regulated utilities inNorth America.
The company's regulated utility business is committed to provide water,
electricity and natural gas utility services to over 470,000 customers through
a nationwide portfolio of regulated generation, transmission and distribution
utility systems. The company's non-regulated electric generation subsidiary
owns or has interests in renewable energy and thermal energy facilities
representing more than 1,100 MW of installed capacity. Algonquin Power &
Utilities Corp. delivers continuing growth through an expanding pipeline of
renewable power and clean energy projects, organic growth within its regulated
utilities and the pursuit of accretive acquisition opportunities. Common
shares and preferred shares are traded on the Toronto Stock Exchange under the
symbols AQN and AQN.PR.A respectively. Visit Algonquin Power and Utilities
atwww.AlgonquinPowerandUtilities.comand follow us on
Caution Regarding Forward-Looking Information
Certain statements included in this news release contain information that is
forward-looking within the meaning of certain securities laws, including
information and statements regarding prospective results of operations,
financial position or cash flows. These statements are based on factors or
assumptions that were applied in drawing a conclusion or making a forecast or
projection, including assumptions based on historical trends, current
conditions and expected future developments. Since forward-looking statements
relate to future events and conditions, by their very nature they require
making assumptions and involve inherent risks and uncertainties. APUC cautions
that although it is believed that the assumptions are reasonable in the
circumstances, these risks and uncertainties give rise to the possibility that
actual results may differ materially from the expectations set out in the
forward-looking statements. Material risk factors include those set out in the
management's discussion and analysis section of APUC's most recent annual
report, quarterly report, and APUC's Annual Information Form. Given these
risks, undue reliance should not be placed on these forward-looking
statements, which apply only as of their dates. Other than as specifically
required by law, APUC undertakes no obligation to update any forward-looking
statements or information to reflect new information, subsequent or otherwise.
SOURCE Algonquin Power & Utilities Corp.
Kelly Castledine Algonquin Power & Utilities Corp. 2845 Bristol Circle,
Oakville, Ontario, L6H 7H7 Telephone: (905) 465-4500
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