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Algonquin Power & Utilities Corp. Executes Power Purchase Agreement with Manitoba Hydro

July 26, 2011

OAKVILLE, ON, July 26, 2011 /PRNewswire/ – Algonquin Power & Utilities Corp.
(“APUC”) (TSX: AQN) today announced the execution of a 25-year power
purchase agreement with Manitoba Hydro in respect of a 16.5MW expansion
of APUC’s existing St. Leon wind energy project located in the Province
of Manitoba.

In the first full year of production following commissioning, APUC
anticipates generating annual gross revenues of $3.8 million. Rates
paid under the power purchase agreement are subject to a partial
inflation adjustment that will be applied annually. The expansion will
be comprised of 10 Vestas V82-1.65 MW wind turbines, which already have
been manufactured and are awaiting shipment to the site from a U.S.
storage location. Permitting for the expansion project was completed in
2010 with construction expected to commence in the third quarter of
2011; commissioning of the expansion project is expected to occur in
first quarter of 2012 with total forecast capital costs of $29.5
million.

“We are very pleased to announce this next phase in the expansion of our
St. Leon Wind Energy facility and our continued involvement with the
St. Leon community” commented Ian Robertson, Chief Executive Officer of
APUC. “The local support in the town of St. Leon has been tremendous
and we look forward to continuing the close-knit relationship we have
developed since the original commissioning in 2006. We are pleased with
the continuing growth of our wind energy portfolio in the Province of
Manitoba and the benefits of its excellent wind regime.”

About Algonquin Power & Utilities Corp. 

Through its distinct operating subsidiaries, APUC owns and operates a
diversified portfolio of $1.1 billion of clean renewable electric
generation and sustainable utility distribution businesses in North
America. Liberty Water Co., APUC’s water utility subsidiary, provides
regulated water utility services to more than 73,000 customers with a
portfolio of 19 water distribution and wastewater treatment utility
systems and has entered into agreements to acquire additional utility
systems serving 7,400 customers. Through its wholly owned subsidiary
Liberty Energy Utilities Co., APUC provides regulated electricity and
natural gas distribution services, currently serving more than 47,000
electric customers in the Lake Tahoe, CA area. Pursuant to previously
announced agreements, Liberty Energy Utilities Co. is committed to
acquiring Granite State Electric Company, a New Hampshire electric
distribution company, EnergyNorth Natural Gas Inc., a regulated natural
gas distribution utility and certain regulated natural gas distribution
assets in Missouri, Illinois and Iowa, which together serve
approximately 213,000 customers. Algonquin Power Co. (APCo), APUC’s
electric generation subsidiary, includes 45 renewable energy facilities
and 12 thermal energy facilities representing more than 460 MW of
installed capacity. Pursuant to a previously announced agreement APCo
will be acquiring a partial interest in an existing 370MW portfolio of
New England and New York wind projects and development opportunities
representing an additional 1,200MW of wind generation projects. APUC
and its operating subsidiaries deliver continuing growth through an
expanding pipeline of greenfield and expansion renewable power and
clean energy projects, organic growth within its regulated utilities
and the pursuit of accretive acquisition opportunities. APUC’s common
shares and convertible debentures are traded on the Toronto Stock
Exchange under the symbols AQN, AQN.DB.A and AQN.DB.B. Visit Algonquin
Power & Utilities Corp. on the web at www.AlgonquinPowerandUtilities.com and www.sedar.com.

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 in the most recently published annual report and 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.


Source: newswire



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