OAKVILLE, ON, July 2, 2012 /PRNewswire/ – Algonquin Power & Utilities Corp.
(“APUC” or the “Company”) (TSX: AQN) today announced that an entity
owned by Algonquin Power Co. (“APCo”), APUC’s renewable power
generation subsidiary, has completed the acquisition of an interest in
the Sandy Ridge Project, the first of four projects comprising a 480MW
portfolio of wind power facilities under construction by Gamesa
Corporación Tecnológica, S.A. (“Gamesa”) in the United States.

Phase I of the acquisition originally contemplated the acquisition of an
interest in both the Pocahontas Prairie (80 MW) and Sandy Ridge (50 MW)
facilities in Iowa and Pennsylvania, respectively. While the interest
in Sandy Ridge has now been acquired, in keeping with APCo’s strategy
to maintain a portfolio of assets with primarily long term contracted
energy sales, APCo and Gamesa have agreed to defer the acquisition of
any interest in Pocahontas Prairie pending Gamesa satisfactorily
contracting the output of the facility on terms that meet APCo’s
risk-return profile.

Sandy Ridge, which achieved commercial operation (“COD”) in February
2012, is comprised of 25 Gamesa G9X-2.0 MW wind generating turbines and
has a 10 year power sales contract with J.P. Morgan Ventures Energy
Corporation. Total expected energy production from the facility is
approximately 158.3 GW-hrs per year. Sandy Ridge has entered into a 20
year contract with Gamesa to provide operations, warranty and
maintenance services for the wind turbines and balance of plant
facilities.

Total consideration paid for the acquisition of the interest in Sandy
Ridge is approximately US$29.7 million. The interest in Sandy Ridge is
being acquired through a partnership whose members include APCo’s
subsidiary (holding a 51% controlling interest) and Gamesa (holding a
49% interest). APCo will fund its subsidiary’s portion of the
acquisition with approximately 40% debt and 60% equity, with the equity
portion primarily funded through proceeds of $15 million from 2.614
million subscription receipts previously issued to Emera Inc.

Closing of the interest in the Minonk (200 MW) and Senate (150 MW)
facilities in Illinois and Texas, respectively, is expected to occur
following the CODs of these projects, both targeted for Q4 2012. In
the event the Pocahontas Prairie facility remains un-contracted, APCo’s
subsidiary would not acquire an interest in Pocahontas Prairie but
would instead expect to increase its ownership interest in the three
contracted projects (Sandy Ridge, Minonk, and Senate) to maintain an
overall investment of approximately $270 million.

“We are very pleased to be bringing the first of these contracted wind
power projects into APCo’s renewable power portfolio and entering the
U.S. wind energy generation market with such a high quality asset”,
commented Ian Robertson, Chief Executive Officer of APUC. “We are
confident that this acquisition is in keeping with our commitment to a
strategy of creating shareholder value through expansion and
acquisition of long term stable assets in line with the risk-return
expectations of our shareholders.”

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 46
renewable energy facilities and 12 thermal energy facilities
representing more than 480 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.