OAKVILLE, March 9, 2012 /PRNewswire/ – Algonquin Power & Utilities Corp.
(“APUC”) (TSX: AQN) today announced that Algonquin Power Co. (“APCo”),
APUC’s renewable power generation subsidiary, has entered into an
agreement to acquire a 480 MW portfolio of four wind power projects in
the United States from Gamesa Corporación Tecnológica, S.A. (“Gamesa”)
for total consideration of approximately US$888 million.

The 480 MW wind portfolio consists of four facilities (the “Projects”),
Minonk (200MW), Senate (150MW), Pocahontas Prairie (80MW) and Sandy
Ridge (50MW) located in the states of Illinois, Texas, Iowa and
Pennsylvania, respectively. Pocahontas Prairie and Sandy Ridge have
recently reached their commercial operation dates (“COD”) in February
2012, and Senate and Minonk are in construction with COD anticipated in
Q4 2012. Total annual energy production from the four facilities is
expected to be 1,644 GW-hrs per year. The Projects are comprised of 240
Gamesa G9X-2.0 MW wind turbines which are well suited to the wind
regimes and have been proven through the installation of over 3,200 MW
of G90 turbines to date worldwide. Significant operational benefits
will be achieved from using the same wind turbine generator for all
four projects. The Projects each have entered into a 20 year contract
with Gamesa to provide operations, warranty and maintenance services
for the wind turbines and balance of plant facilities.

The Projects will be acquired through American Wind Portfolio Holdings
LLC. (“AWPH”), a newly formed partnership whose members include APCo
(holding a 51% controlling interest), Gamesa (holding a 49% interest)
and certain tax equity investors. Closing of the acquisition of the
Projects is contemplated to occur in two stages; closing of the
acquisition of Pocahontas Prairie and Sandy Ridge is expected to occur
promptly following receipt of regulatory approval (expected within 45
days) and the acquisition of Senate and Minonk will occur following
their respective CODs, expected in Q4 2012.

APCo intends to contribute ~US$269MM to AWPH to partially fund the
acquisition of the Projects; tax assisted equity investors will
contribute $US360MM. APCo intends to finance its investment with
approximately 45% debt and 55% equity. With respect to APUC’s equity
financing plans, Emera, Inc. (“Emera”) has recently reaffirmed its
support for the Strategic Investment Agreement with APUC; up to $100
million of the equity financing required for the transaction may be
provided by Emera pursuant to this agreement, which agreement is
currently the subject of a regulatory approval process.

J.P. Morgan Energy Ventures Corporation (“JPMVEC”), the wholly owned
subsidiary of J.P. Morgan, has provided AWPH a commitment for long
term, fixed price power sales contracts (the “Power Sales Contracts”)
with a weighted average life of 11.8 years (Minonk and Sandy Ridge 10
years, Senate 15 years). Based on the JPMVEC purchase volume
commitments, approximately 73% of energy revenues would be earned under
the Power Sales Contracts. All energy produced in excess of that sold
under the Power Sales Contracts, together with ancillary services
including capacity and renewable energy credits, will be sold into the
energy markets in which the facilities are located.

APCo believes that the earnings and cashflows meet our return
expectations for projects of this nature. The consolidation of AWPH is
expected to be accretive to earnings per share and cash flows per
share.

“The acquisition of 480 MW of additional wind generation doubles APUC’s
independent power generation portfolio”, commented Ian Robertson, Chief
Executive Officer of APUC. “This substantial investment in our
independent power business is a continuation of the successful strategy
to create shareholder value through accretive growth. This acquisition
and the relationship established with Gamesa provide APCo with a
significant foothold in the U.S. wind energy market and APCo will
benefit from APUC’s existing geographic presence through Liberty
Utilities.”

In addition to the agreement for the acquisition of the Projects, Gamesa
and APCo have entered into a joint development agreement pursuant to
which they will jointly pursue additional wind power development
opportunities in the United States and Canada. Under the terms of the
joint development agreement, APCo will be provided visibility into
Gamesa’s pipeline of 2,700MW of near and medium term wind power
development opportunities in the United States and Gamesa will have the
opportunity to work with APCo to advance and expand APCo’s 325MW
pipeline of contracted development projects.

“Our partnership with Algonquin Power has already been a great success
that has surpassed our expectations. We expect significant and
successful accomplishments in our joint activity over the next few
years and are truly proud and privileged to be working with them”,
commented Jorge Calvet, Chairman and Chief Executive Officer for
Gamesa.

Robertson continued, “We believe that working with Gamesa, a top global
manufacturer of wind turbine generators, will maximize the strengths of
both companies, provide opportunities for Algonquin to invest
responsibly and profitably in wind power generation assets and to
maximize returns to both Gamesa’s and Algonquin’s shareholders.”

TD Securities Inc. acted as financial advisor to APUC with respect to
the transaction.

A discussion of this transaction will take place as part of APUC’s
earnings conference call scheduled for 10:00 a.m. Toronto time today.
The dial in number for the call is 1-800-814-4859 or 416-644-3414. In
addition, a web-based slide presentation will accompany the discussion
of the transaction. To access the slide portion of the presentation
please visit the following web address: http://event.on24.com/r.htm?e=413433&s=1&k=D0A15E38189E76621F14460AECB0509B

About Algonquin Power & Utilities Corp.

Through its distinct operating subsidiaries, APUC owns and operates a
diversified portfolio of $1.2 billion of clean renewable electric
generation and sustainable utility distribution businesses in North
America. Liberty Utilities Co., APUC’s regulated distribution utility
business, provides regulated water and electric utility services to
more than 120,000 customers with a portfolio of 22 water and electric
utility systems. Pursuant to previously announced agreements, Liberty
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. 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 and AQN.DB.B. Visit Algonquin Power & Utilities Corp.
at www.AlgonquinPowerandUtilities.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.