OAKVILLE, ON, Dec. 10, 2012 /PRNewswire/ - Algonquin Power & Utilities Corp. ("APUC" or the "Company") (TSX: AQN) today announced that AlgonquinPower Co. ("APCo"), the Company's renewable power generation subsidiary, has completed the acquisition of a 60% interest in both the 200 MW Minonk Wind Project ("Minonk") in Illinois and 150 MW Senate Wind Project ("Senate") in Texas, from Gamesa Corporación Tecnológica, S.A. ("Gamesa"). As an element of the closing of the interest in Senate and Minonk, APCo has also increased its interest in the Pennsylvaniabased 50MW Sandy Ridge Wind Project ("Sandy Ridge") to 60% from 58.75%.
Minonk, which achieved commercial operation ("COD") in December 2012 is comprised of 100 Gamesa G9X-2.0 MW wind generating turbines and has a 10 year power sales contract with J.P. Morgan Energy Ventures Corporation. Total expected energy production from the facility is approximately 673.7 GW-hrs per year.
Senate, which also achieved COD in December 2012 is comprised of 75 Gamesa G9X-2.0 MW wind generating turbines and has a 15 year power sales contract with J.P. Morgan Energy Ventures Corporation. Total expected energy production from the facility is approximately 520.4 GW-hrs per year.
Gamesa has been contracted to provide operations, warranty and maintenance services for the wind turbines and balance of plant facilities for both Minonk and Senate pursuant to 20 year agreements.
Total consideration paid by APCo for the acquisition of its interest in Minonk and Senate, and the increased interest in Sandy Ridge is approximately US$238 million. Minonk, Senate and Sandy Ridge are owned through a partnership whose members include APCo (holding a 60% controlling interest), Gamesa (holding a 40% interest) and certain tax equity investors. APCo will fund its interest in Senate and Minonk, and increased interest in Sandy Ridge using approximately $123 million in proceeds from the recent $150 million senior unsecured private placement bond offering that closed on December 3, 2012, together with proceeds of $45 million from 7.84 million subscription receipts previously issued to Emera Inc., and $70 million of the proceeds received from the recent preferred share offering that closed on November 9, 2012.
"The closing of the acquisition of our interest in the Minonk and Senate wind facilities demonstrates our continuing commitment to create value through the ownership of long-term, stable assets with risk-return profiles in line with our shareholders' expectations", commented Ian Robertson, Chief Executive Officer of APUC. "Our investment in these facilities expands our wind portfolio in the U.S. and provides further diversification of wind regimes, which enhances the stable and predictable nature of APUC's cash-flows and earnings."
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified
portfolio of $1.9 billion of regulated and non-regulated utilities in
North America. The company's regulated utility business provides water,
electricity and natural gas utility services to more than 335,000
customers through its nationwide portfolio of regulated generation,
transmission and distribution utility systems. The company's
non-regulated electric generation subsidiary owns or has interest in
renewable energy and thermal energy facilities representing more than
1,000 MW of installed capacity. Algonquin 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 symbol 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 and 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.
