OAKVILLE, ON, Nov. 28, 2013 /CNW/ - Algonquin Power & Utilities Corp. ("APUC") (TSX: AQN) today announced
that a subsidiary of APUC's renewable power generation business
Algonquin Power Co. ("APCo") has entered into an agreement to acquire
the remaining 40% of the 400 MW wind power portfolio (the "Projects")
in the United States from Gamesa Wind US, LLC ("Gamesa") for total
consideration of approximately US$117 million.
APUC currently holds a 60% controlling interest in the Projects which
were originally acquired through a newly formed partnership whose
original members included APCo, Gamesa and certain tax equity
investors. The 400 MW wind portfolio consists of three facilities,
Minonk (200MW), Senate (150MW), and Sandy Ridge (50MW) located in the
states of Illinois, Texas, and Pennsylvania, respectively.
APUC has been the majority owner and manager of the Projects since 2012
when commercial operation was achieved, therefore no additional ongoing
management or administrative costs are expected to be incurred. Gamesa
will continue to provide operations, warranty and maintenance services
for the wind turbines and balance of plant facilities under 20 year
Funding of the acquisition is expected to be consistent with APUC's
targeted investment grade consolidated capital structure of
approximately 50% equity, 50% debt. The acquisition is expected to
close early in 2014 following regulatory approvals.
Substantially all of the energy from the Projects is sold under fixed
price power sales contracts including long term hedge agreements with a
remaining weighted average life of 11 years; ancillary services
including capacity and renewable energy credits are contracted into the
energy markets in which the facilities are located.
"The U.S. power markets provide tremendous opportunities for further
growth in our power generation portfolio as our investment in these
wind farms has demonstrated", commented Chief Executive Officer Ian
Robertson. "We have been pleased with the performance of these assets
over the past year and the acquisition of the balance of these three
wind generating facilities adds additional accretive, low risk earnings
and cash flow to APUC".
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified $3.2
billion portfolio of regulated and non-regulated utilities in North
America. The company's regulated utility business is committed to
provide water, electricity and natural gas utility services to over
470,000 customers through a nationwide portfolio of regulated
generation, transmission and distribution utility systems. The
company's non-regulated electric generation subsidiary owns or has
interests in renewable energy and thermal energy facilities
representing more than 1,100 MW of installed capacity. Algonquin Power
& Utilities Corp. delivers 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 preferred shares are traded on the
Toronto Stock Exchange under the symbols AQN and AQN.PR.A respectively.
Visit Algonquin Power and Utilities at www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.
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, 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.
For further information:
Algonquin Power & Utilities Corp.
2845 Bristol Circle, Oakville, Ontario, L6H 7H7
Telephone: (905) 465-4500