Expands Liberty Energy and Provides Synergies with Existing Utilities

OAKVILLE, ON, May 13 /PRNewswire-FirstCall/ – Algonquin Power & Utilities Corp. (“APUC”)
(TSX: AQN) today announced that Liberty Energy Utilities Co. (“Liberty
Energy”), APUC’s regulated electricity and natural gas distribution
utility subsidiary, has entered into an agreement with Atmos Energy
Corporation (“Atmos Energy”) (NYSE: ATO) to acquire their regulated
natural gas distribution utility assets (the “Utilities”) located in
Missouri, Iowa, and Illinois. Total purchase price for the Utilities is
approximately U.S. $124 million, subject to certain working capital and
other closing adjustments. Liberty Energy expects to acquire assets for
rate making purposes of approximately $112 million, representing a
purchase price multiple of 1.106x.

The Utilities currently provide natural gas local distribution service
to approximately 84,000 customers (57,000 in Missouri, 23,000 in
Illinois, and 4,000 in Iowa). The Utilities have capable and
experienced work forces and Liberty Energy intends to make offers of
continuing employment to all current employees of the Utilities.

Closing of the transaction is subject to certain conditions including
state and federal regulatory approval, and is expected to occur in
2012. Financing of the acquisitions is expected to occur simultaneously
with the closing of the transaction. Liberty Energy will not be
assuming any existing indebtedness with this transaction.

“The acquisition of these well maintained, high quality utility assets
is consistent with our growth strategy and provides Liberty Energy a
great opportunity to accretively expand its regulated utility
operations in Missouri and Illinois, both States with which we are
familiar through our existing utility businesses.” commented Ian
Robertson, Chief Executive Officer of Algonquin Power & Utilities Corp.
“We are confident in our ability to continue Atmos Energy’s history of
providing reliable, safe and cost effective customer service in these
territories.” he continued.

A summary fact sheet on the Utilities being acquired can be found on
APUC’s web site at www.algonquinpower.com.

Algonquin Power will address questions regarding the acquisition during
the conference call being held for the first quarter 2011 results at
9:00 a.m. eastern time on Friday, May 13, 2011, hosted by Chief
Executive Officer Ian Robertson and Chief Financial Officer David
Bronicheski.

Conference call details are as follows:

Date: Friday, May 13, 2011
Start Time: 9:00 a.m. eastern
Phone Number: Toll free within North America: 1-800-814-4859 or Local 416-644-3414.
Conference ID#: 4433621

For those unable to attend the live call, a digital recording will be
available for replay two hours after the call by dialing 1-877-289-8525
or 416-640-1917 access code 4433621# from May 13, 2011 until May 27,
2011.

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, and EnergyNorth Natural Gas Inc., a regulated
natural gas distribution utility, which together serve approximately
130,000 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, 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 section of APUC’s most recent 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.