Algonquin Power & Utilities Corp. Announces Closing of Acquisition of Further
Investment in U.S. Wind Generation
OAKVILLE, ON, March 31, 2014
OAKVILLE, ON, March 31, 2014 /PRNewswire/ - Algonquin Power & Utilities Corp.
("APUC") (TSX: AQN) today announced the closing of the acquisition of 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$115 million.
Prior to today, APUC owned 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
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.
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.
"With little additional overhead costs anticipated, we expect investment in
the full ownership of this portfolio of high quality wind assets to contribute
accretive, low risk earnings and cash flow to APUC", commented Chief Executive
Officer Ian Robertson. "We are very pleased to be the sole owner of these
assets and we see tremendous opportunity to grow our portfolio by leveraging
the expertise we have gained in the U.S. power markets in which these wind
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified$3.5
billionportfolio of regulated and non-regulated utilities inNorth America.
The regulated utility business provides water, electricity and natural gas
utility services to over 470,000 customers through a portfolio of regulated
generation, transmission and distribution utility systems. The 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, AQN.PR.A, and AQN.PR.D. 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.
Contact: Kelly Castledine, Algonquin Power & Utilities Corp., 2845 Bristol
Circle, Oakville, Ontario, L6H 7H7, Telephone: (905) 465-4500, Website:
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