HALIFAX, April 23 /CNW/ - (EMA-TSX): Emera Inc. ("Emera") and Algonquin
Power Income Fund ("APIF") (TSX:APF.UN) announced today that they have entered
into a strategic partnership that will have the companies collaborate on
select utility infrastructure and renewable generation investments. This
partnership will capitalize on the complementary skills of both parties.
Emera has agreed to acquire a 9.9% interest in APIF through a private
placement of 8.5 million APIF units at a price of $3.25 per unit and Chris
Huskilson, President and CEO, Emera Inc., will be invited to join the Board of
Trustees of APIF. Emera also has rights to acquire up to 5% of APIF over the
next 2 years.
As a first step in the partnership, Emera and APIF have committed to
acquire the California-based electricity distribution and related generation
assets of Sierra Pacific Power Company from NV Energy for approximately USD
$116 million subject to certain working capital and other closing adjustments.
This utility currently provides electric distribution service to approximately
47,000 customers in the Lake Tahoe region. Under the terms of the agreement,
Emera and Algonquin will jointly own and operate the utility through a newly
formed entity, California Pacific Electric Company (Calpeco). Emera's 50%
equity investment in Calpeco is USD $27 million. This transaction is subject
to approval by the California Public Utilities Commission (CPUC) which is
expected in 2010.
The purchase of the 8.5 million units of APIF will happen concurrently
with the closing of the Calpeco transaction. The transactions will be
immediately accretive to Emera.
"This partnership positions Emera to increase our holdings of renewable
energy in North America and introduces us to a new market" said Chris
Huskilson, President and CEO, Emera Inc. "It also allows us to increase value
to jointly-owned energy infrastructure assets with Algonquin Power. We look
forward to working with Algonquin to build on our portfolio in the utilities
and renewable energy sectors".
"The acquisition of the California Utility assets represents an important
element in the strategic expansion of Algonquin Power's low-risk utility
infrastructure portfolio and the highly predictable, long-term regulated
returns from these assets will contribute to the stability of our earnings for
years to come", commented Ian Robertson, Executive Director of Algonquin
Forward Looking Information
This news release contains forward looking information. Actual future
results may differ materially. Additional financial and operational
information is filed electronically with various securities commissions in
Canada through the System for Electronic Document Analysis and Retrieval
The company will be hosting a teleconference at 12:00 pm Atlantic time
today (11:00 am Toronto/Montreal/New York; 10:00 am Winnipeg; 8:00 am
Vancouver) to discuss the announcement.
Analysts and other interested parties wanting to participate in the call
should dial 1-888-789-9572 (in Toronto 416-695-7806), pass code: 6080202 at
least 10 minutes prior to the start of the call. The teleconference will be
recorded. If you are unable to join the teleconference live, you can dial for
playback toll-free at 1-800-408-3053 (in Toronto 416-695-5800), access code
#3175438 (available until midnight, Wednesday, May 20th). The teleconference
will also be webcast live at www.emera.com and available for playback for one
Emera Inc. (EMA-TSX) is an energy and services company with $5.3 billion
in assets. Electricity is Emera's core business. The company has two
wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc.
and Bangor Hydro-Electric Company, which together serve 600,000 customers.
Emera also owns 19% of St. Lucia Electricity Services Limited, which serves
more than 50,000 customers on the Caribbean island of St. Lucia and 25% of
Grand Bahama Power Company which serves 19,000 customers on the Caribbean
island of Grand Bahama. In addition to its electric utility investments, Emera
owns the Brunswick Pipeline, a 145km gas pipeline in New Brunswick; has a
joint venture interest in Bear Swamp, a 600 megawatt pumped storage
hydro-electric facility in northern Massachusetts; a 12.9% interest in the
Maritimes & Northeast Pipeline; a 7.4% interest in Open Hydro and Emera Energy
Services which manages energy assets on behalf of third parties. Visit Emera
on the web at www.emera.com.
About Algonquin Power
Algonquin Power owns and operates a diverse portfolio of approximately $1
billion of clean, renewable power generation and sustainable utility
infrastructure assets across North America. Algonquin Power's generation
portfolio includes 42 renewable energy facilities and 11 thermal energy
facilities representing more than 400MW of installed capacity and Algonquin
Power provides regulated utility services to more than 70,000 customers
through its portfolio of 18 water distribution and wastewater treatment
utility companies. Algonquin Power's trust units and convertible debentures
are traded on the Toronto Stock Exchange under the symbols APF.UN, APF.DB &
APF.DB.A. Visit Algonquin Power on the web at www.AlgonquinPower.com.
For further information:
For further information: Nancy Tower, FCA, Chief Financial Officer,
(902) 428-6991; Jennifer Nicholson, CA, Director Investor Relations and
Strategic Development, (902) 428-6347