OAKVILLE, ON, Nov. 27, 2011 /CNW/ - Algonquin Power & Utilities Corp.
("APUC") (TSX: AQN) is pleased to announce that Algonquin Power Co.
("APCo"), APUC's power generation subsidiary, has entered into a share
purchase agreement with EffiSolar Energy Corporation ("EffiSolar"), to
acquire all of the issued and outstanding shares of Cornwall Solar Inc.
("Cornwall Solar"), based upon achievement of specific milestones and
subject to approval by the Ontario Power Authority. Cornwall Solar
owns the rights to develop a 10 MWac solar project located near
Cornwall, Ontario (the "Project"). In addition to the Project, APCo
has acquired an option to acquire 10 additional Ontario based solar
projects ("FIT Pipeline"). Projects in the FIT Pipeline have submitted
Feed-in-Tarriff applications for an additional 100MWac.
The Project has been granted an Ontario Feed-in-Tarriff contract by the
Ontario Power Authority, with a 20 year term and a rate of $443/MWhr,
resulting in expected initial annual revenues of approximately $6.2
million. The Project contemplates the use of a ground-mounted PV array
system, with expected annual generation of approximately 13,400 MWh,
enough to provide electricity to approximately 1,000 homes.
Following the completion of all regulatory submissions and approvals,
construction of the project is expected to begin in the second half of
2012, with a Commercial Operation Date estimated in early 2013. The
Project is being developed on two parcels of land totaling
approximately 138 acres.
Total capital cost of the project is targeted at approximately $45
million, which amount includes the consideration to be paid for the
acquisition of the Project. Funding for the project will be arranged
and announced when all required permitting and all other
pre-construction conditions have been satisfied.
"We have been actively pursuing the expansion of our renewable energy
portfolio into the solar sector and are very pleased with the
announcement of this first solar project", commented Ian Robertson,
Chief Executive Officer of APUC. "This acquisition reinforces our
strategic focus on continued investment in renewable energy in North
America, and will add a stable and predictable source of earnings and
cash flow to our power generation fleet."
The acquisition is subject to certain regulatory approvals and other
closing conditions. Closing of the transaction is expected to occur by
the end of 2011.
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 Utilities Co., APUC's regulated distribution utility
business, provides regulated water and electric utility services to
more than 120,000 customers with a portfolio of 22 water and electric
utility systems. Pursuant to previously announced agreements, Liberty
Utilities Co. is committed to acquiring Granite State Electric Company,
a New Hampshire electric distribution company, EnergyNorth Natural Gas
Inc., a regulated natural gas distribution utility and certain
regulated natural gas distribution assets in Missouri, Illinois and
Iowa, which together serve approximately 213,000 customers. Algonquin
Power Co. (APCo), APUC's electric generation subsidiary, includes 45
renewable energy facilities and 12 thermal energy facilities
representing more than 460 MW of installed capacity. Pursuant to a
previously announced agreement APCo will be acquiring a partial
interest in an existing 370MW portfolio of New England and New York
wind projects and development opportunities representing an additional
1,200MW of wind generation projects. 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.A and AQN.DB.B. Visit Algonquin Power &
Utilities Corp. 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. 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
For further information:
Telephone: (905) 465-4500
Algonquin Power & Utilities Corp.
2845 Bristol Circle
Oakville, Ontario L6H 7H7