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 with Valos Solar Ventures LLC to purchase and
complete construction of a 20 MWac Solar Facility ("Bakersfield Solar")
located near Bakersfield, California.
Following commissioning, scheduled for Q4 2014, Bakersfield Solar is
expected to generate 53.3 GWh of energy per year and will have 20 year
warranties on panels and inverters. Bakersfield Solar, located in Kern
County, California will sell its energy to PG&E pursuant to a 20 year
power purchase contract. Consideration for the acquisition of the
development rights from the original developer of the Bakersfield Solar
project is approximately $2.2 million. Total capital cost to construct
the project, including the acquisition of the land on which the project
is located, is expected to be approximately $58.5 million.
Permanent financing of the Bakersfield Solar project is expected to be
consistent with APUC's targeted investment grade consolidated capital
structure. Consistent with financing structures utilized for U.S. based
renewable energy projects, it is anticipated that approximately 45% of
the construction costs of Bakersfield Solar will be funded by certain
tax equity investors.
"We are very pleased to announce our second solar generation facility as
we continue to execute on our stated plan to expand our investment in
this modality of power generation," commented Chief Executive Officer
Ian Robertson. "We believe that solar power generation is emerging as
an important part of the electrical generation mix for the years to
come and from a diversification perspective, its low year-over-year
production volatility and low variability correlation with our other
generation technologies is a key element in continuing to further
de-risk our portfolio."
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