Algonquin Power announces the successful re-powering of its California natural gas fired generating station

    Significant reduction in fuel and maintenance costs expected

    OAKVILLE, ON, Dec. 11 /CNW/ - Algonquin Power is pleased to announce the
successful commissioning of its 42MW natural gas powered generating station
located in Sanger, California (the "Sanger" facility) following the major
re-powering project that commenced in October 2006. The start-up and
commissioning was completed on time and on budget with a total cost of
approximately US$23 million.
    The Sanger generating station is a natural gas combined cycle electrical
generating station that has been successfully retrofitted with a General
Electric LM6000 turbine. The re-powered Sanger facility achieved Commercial
Operation on December 5, 2007, demonstrating Algonquin's continuing commitment
to the global environment and investment in technologies that reduce overall
greenhouse gas emissions and reliance on fossil fuels.
    "While the facility has demonstrated a very successful operating history
since its original commissioning in 1991, advances in turbine technology
provided an opportunity to substantially improve the fuel efficiency of the
facility", commented Chris Jarratt, executive director of Algonquin Power.
"The facility is expected to see an annual fuel requirement reduction of 23%
or approximately $2 million in savings. In addition, the facility is expected
to benefit from lower maintenance costs given the broad industry support for
the LM6000 turbine. This coupled with the potential to expand generating
capacity by 14 MW to 56 MW results in a very successful growth project for
Algonquin Power."
    The 14 MW generating capacity expansion project is currently under review
by Algonquin Power. Such capacity could be sold to Pacific Gas and Electric
Company ("PG&E") or to the market.
    Electrical energy and capacity currently produced by the facility are
sold to PG&E pursuant to a long term agreement ending in 2021. Payments under
the power purchase agreement consist of a monthly capacity payment and an
energy payment related to the cost of natural gas.

    About Algonquin Power Income Fund

    Algonquin Power is an open-ended investment trust that owns and has
interests in a diverse portfolio of renewable power generation and sustainable
infrastructure assets across North America, including 48 renewable energy
facilities, 12 thermal energy facilities, and 17 water distribution and
waste-water facilities. Algonquin Power was established in 1997 to provide
investors with sustainable, highly stable cash flows through a diversified
portfolio of renewable energy assets. Algonquin Power's units and convertible
debentures are traded on the Toronto Stock Exchange under the symbols APF.UN,
APF.DB & APF.DB.A and units are included in the S&P/TSX Composite Index.

For further information:

For further information: Ms. Kelly Castledine, Algonquin Power Income
Fund, 2845 Bristol Circle, Oakville, Ontario, L6H 7H7, Telephone: (905)
465-4500, E-mail:, Web Page:

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