Algonquin Power Income Fund announces update on offer to acquire Clean Power Income Fund



    Agreement reached for increased Wind Power Production Incentive

    TORONTO, April 11 /CNW/ - Algonquin Power Income Fund ("Algonquin Power")
today announced that Clean Power Income Fund ("Clean Power") has reached an
agreement with the Department of Natural Resources regarding the eligibility
of Clean Power's Erie Shores Wind Farm to receive an increase in the Wind
Power Production Incentive ("WPPI") payment of $2 per mega watt hour ("MWh")
to $10 per MWh. The WPPI payment is provided by the Canadian federal
government in support of the development of renewable energy projects under
the recently announced ecoEnergy Renewable Initiative, and the increase is
retroactive to the date of commissioning of the facility which occurred in
May 2006.
    The increased WPPI payment is a component of the contingency value
receipt ("CVR") outlined in the offer dated March 16, 2007 by Algonquin Power
(the "Offer"). This component represents the right by unitholders that tender
units under the Offer to receive 80% of the balance (after deduction of all
claims and costs) of $3.436 million in the event the Erie Shores Wind Farm
qualifies for an increase in WPPI payments of $2 per MWh. In respect of the
WPPI payment component of the CVR, holders of the CVRs under the Offer will
receive a cash payment, after deductions, of approximately $0.07 per unit, to
be paid following receipt by Clean Power of the first payment of the increased
WPPI from Natural Resources Canada.
    "Algonquin Power is pleased that an agreement has been reached with
respect to the WPPI component of the contingency value receipt that Clean
Power unitholders will receive under the Offer," stated Dave Kerr, a senior
manager of Algonquin Power. "The contingency value receipt represents an
important component of the Offer for Clean Power and this agreement brings us
closer to realizing the combined strength of the Algonquin Power/Clean Power
entity backed by high quality, long-lived assets that generate stable and
sustainable cash flows."
    There is currently no additional information with respect to the CVR
component that represents the US$7.593 million reserve fund established by
Clean Power for claims made in connection with the sale of Gas Recovery
Systems, LLC.

    About Algonquin Power

    Algonquin Power Income Fund is an open-ended investment trust that owns
and has interests in a diverse portfolio of power generating and
infrastructure assets across North America, including 47 hydroelectric
facilities, five natural gas-fired cogeneration facilities, 17 alternative
fuels facilities and 17 water supply and waste-water facilities. Algonquin
Power Income Fund was established in 1997 to provide unitholders with
sustainable, highly stable cash flows through a diversified portfolio of
energy and infrastructure assets. Algonquin Power Income Fund's units and
convertible debentures are traded on the Toronto Stock Exchange under the
symbols APF.UN and APF.DB/APF.DB.A respectively, and units are included in the
S&P/TSX Composite Index. More information about Algonquin Power Income Fund
can be found at www.AlgonquinPower.com.

    About Clean Power

    Clean Power Income Fund is an open-ended investment trust that is
invested in 15 power generating facilities located in Québec, Ontario,
Alberta, British Columbia and four U.S. states with a total capacity of
303 MW. Three environmentally preferred technologies - windpower, waterpower
and biomass - deliver electricity almost exclusively under long-term sales
contracts and at minimal to zero fuel cost. Clean Power Income Fund is the
first income fund to be certified under the Government of Canada's
Environmental ChoiceM Program. Clean Power Income Fund's units and convertible
debentures are listed and posted for trading on the Toronto Stock Exchange
under the symbols "CLE.UN" and "CLE.DB", respectively. More information about
Clean Power Income Fund can be found at www.cleanpowerincomefund.com.

    Forward Looking Statements

    Certain statements contained in the information herein are
forward-looking and reflect the views of the Fund and Algonquin Power
Management Inc. (the "Manager") with respect to future events. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Forward-looking
statements are not guarantees of the Fund's future performance or results and
are subject to various factors, including, but not limited to, assumptions
such as those relating to: the performance of the Fund's assets, commodity
market prices, interest rates, and environmental and other regulatory
requirements. Although the Fund and its Manager believe that the assumptions
inherent in these forward-looking statements are reasonable, undue reliance
should not be placed on these statements, which apply only as of the dates
hereof. The Fund and its Manager are not obligated nor do either of them
intend to update or revise any forward-looking statements, whether as a result
of new information, future developments or otherwise.

    %SEDAR: 00009265E




For further information:

For further information: Kelly Castledine, Algonquin Power Income Fund,
2845 Bristol Circle, Oakville, Ontario, L6H 7H7, (905) 465-4500, Fax (905)
465-4514, APIF@AlgonquinPower.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890