OAKVILLE, ON, Aug. 1, 2012 /PRNewswire/ – Algonquin Power & Utilities Corp.
(“APUC”) (TSX: AQN) announced today that Liberty Utilities, APUC’s
regulated distribution utility, has closed the acquisition of the
regulated natural gas distribution utility assets located in Illinois,
Iowa and Missouri from Atmos Energy Corporation. The acquisition was
originally announced in May 2011 and final regulatory approvals were
received in June 2012.

Consideration for the utility asset purchase was approximately U.S.
$127.7 million representing a multiple of regulatory assets of 1.102x,
plus working capital and closing adjustments. The regulated natural gas
distribution utilities provide natural gas service to approximately
83,000 customers in Missouri, Illinois and Iowa.

The acquisition was funded through existing working capital, proceeds of
$45 million from 6.977 subscription receipts that were previously
issued to Emera Inc., and from a portion of Liberty Utilities’
previously announced U.S. $225 million private placement debt
financing. The notes are senior unsecured with an average life maturity
of over ten years and a weighted average coupon of 4.38%. The notes
have been assigned a rating of “BBB high” by DBRS Limited.

“We are very pleased to have further extended our utilities footprint
into the U.S. markets of Illinois, Missouri, and Iowa, and look forward
to the continued positive relationship with Atmos during the transition
period”, commented Ian Robertson, Chief Executive Officer of APUC.
“These well maintained, high quality utility assets provide additional
diversification to our utilities business and further strengthen our
financial profile with long term stable utility cash flows and
earnings.”

About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified
portfolio of $1.7 billion of clean renewable electric generation and
sustainable utility distribution businesses in North America. Liberty
Utilities Co., the company’s regulated distribution utility business,
provides regulated water, electricity and natural gas utility services
to more than 335,000 customers with a portfolio of 27 distribution
utility systems. Algonquin Power Co. (APCo), the company’s electric
generation subsidiary, includes 46 renewable energy facilities and 12
thermal energy facilities representing more than 480 MW of installed
capacity. Algonquin Power & Utilities Corp. and its operating
subsidiaries deliver 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 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.