OAKVILLE, ON, April 19 /CNW/ - Algonquin Power & Utilities Corp.
("APUC") (TSX: AQN), today announced that its wholly owned subsidiary
Liberty Water Co. ("Liberty Water") has entered into agreements to
acquire three additional regulated water utility assets in the United
States. These acquisitions, Louisiana Land and Water Co. ("LLW"), Noel
Water Company ("Noel"), and KMB Utilities Company ("KMB"), will add
approximately 7,400 customer connections to the Liberty Water family.
Total consideration for the three acquisitions is US$8.3 million.
LLW, the largest of the three utilities serving approximately 6,000
customers near Monroe, LA, and KMB located in Missouri, both own and
operate regulated water distribution and waste-water collection and
treatment utility systems; Noel participates solely in the regulated
water distribution utility business in Missouri.
LLW, Noel, and KMB are anticipated to have net regulatory assets for
rate making purposes at closing of approximately US$6.5 million, US$0.7
million, and US$0.3 million respectively, representing a consolidated
purchase price multiple of net regulatory assets of approximately
1.09x. With the consent of the Louisiana regulator, LLW will file a
rate case promptly after closing of the acquisition with recent rate
cases in Louisiana providing return on equity of approximately 9.5-11%.
At the Missouri facilities, recent rate cases have provided return on
equity of 9.5% and 11.3% for Noel and KMB respectively.
"The acquisition of these attractive water and waste-water utilities
businesses represents the continuation of APUC's regulated utility
growth strategy and Liberty Water's objective to acquire assets in
states with supportive regulatory environments", commented Chief
Executive Officer Ian Robertson. "These facilities, which increase
Liberty Water's customer count by approximately 10%, will be able to
benefit from operation and administration synergies with our other
nearby facilities in Texas and Missouri."
Closings of the acquisitions are subject to certain conditions including
state regulatory approval, and are expected to occur in the fall of
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., 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, AQN.DB, AQN.DB.A and AQN.DB.B. Visit
Algonquin Power & Utilities Corp. on the web 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. The company 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 the company's most recent annual report, quarterly
report and the 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, the company undertakes no obligation to update any
forward-looking statements or information to reflect new information,
subsequent or otherwise.
SOURCE Algonquin Power
For further information:
Algonquin Power & Utilities Corp.
2845 Bristol Circle, Oakville, Ontario, L6H 7H7
Telephone: (905) 465-4500