OAKVILLE, ON and HALIFAX, NS, April
29 /PRNewswire/ - (TSX: AQN) Algonquin Power and Utilities
Corp (Algonquin) and (TSX: EMA) Emera Inc. (Emera) announced today
that they have entered into a strategic investment agreement (The
Agreement) which establishes how Algonquin and Emera will work
together to pursue specific strategic investments of mutual
benefit. The Agreement builds on the strategic partnership
effectively established between the two companies in April 2009.
The Agreement outlines "areas of pursuit" for each of Algonquin
and Emera. For Algonquin, these include investment opportunities
relating to unregulated renewable generation, small electric
utilities and gas distribution utilities. For Emera, these include
investment opportunities related to regulated renewable projects
within its service territories and large electric utilities. In
respect of opportunities encountered by either Algonquin or Emera
that fit within the other's business development "areas of
pursuit", they are committed to working together on such
opportunities.
Consistent with the framework established by the Agreement,
Emera has agreed to sell its 49.999% direct ownership in the
California Pacific Electric Company ("CalPeco") to Algonquin,
subject to California regulatory
approval. As consideration Emera will receive 8.211 million
Algonquin shares in two tranches. Approximately half of the shares
will be issued following regulatory approval of the Calpeco
ownership transfer and the balance of the shares will be issued
following completion of Calpeco's first rate case which is expected
to be completed in the first half of 2012.
As an element of the Agreement, Emera's allowed common equity
interest in Algonquin will be increased from 15% to 25%. Algonquin
will seek shareholder approval at its upcoming annual and special
general meeting currently scheduled for June
21, 2011.
"This agreement provides clarity and transparency to a business
relationship which has existed between Algonquin and Emera for the
past two years and is intended to maximize shareholder value for
both parties by capitalizing on our respective strengths,"
commented Ian Robertson, Chief
Executive Officer of Algonquin. "The acquisition by Algonquin of
100% of the CalPeco utility business is consistent with these
themes and builds upon the successes achieved to date between
Algonquin and Emera."
"Emera and Algonquin have worked well together since 2009," said
Chris Huskilson, President and Chief
Executive Officer, Emera Inc. "Given
Algonquin's successful independent power history and expertise, it
makes good sense for Emera to focus its investments in the
development, ownership and operation of unregulated renewable
electric generating facilities through Algonquin."
Cautionary Statement
This news release contains forward looking information. Actual
future results may differ materially. Additional financial and
operational information regarding Emera and Algonquin is filed
electronically with various securities commissions in Canada through the System for Electronic
Document Analysis and Retrieval (SEDAR).
About Emera Inc.
Emera Inc. is a growing energy and services company with
$6.3 billion in assets and revenues
of $1.6 billion. The company invests
in electricity generation, transmission and distribution, as well
as gas transmission and utility energy services. Emera's strategy
is focused on the transformation of the electricity industry to
cleaner generation and the delivery of that clean energy to market.
Emera operates throughout northeastern North America, in three Caribbean countries and in California. More than 80% of the company's
earnings come from regulated investments. Emera common and
preferred shares are listed on the Toronto Stock Exchange and trade
under the symbols EMA and EMA.PR.A respectively. Additional
information can be accessed at www.emera.com, www.sedar.com or
www.sec.gov.
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 Water Co., APUC's water
utility subsidiary, provides regulated water utility services to
more than 73,000 customers with a portfolio of 19 water
distribution and wastewater treatment utility systems and has
entered into agreements to acquire additional utility systems
serving 7,400 customers. Through its wholly owned subsidiary
Liberty Energy Utilities Co., APUC provides regulated electricity
and natural gas distribution services, currently serving more than
47,000 electric customers in the Lake Tahoe, CA area. Pursuant to
previously announced agreements, Liberty Energy Utilities Co. is
committed to acquiring Granite State Electric Company, a
New Hampshire electric
distribution company, and EnergyNorth Natural Gas Inc., a regulated
natural gas distribution utility, which together serve
approximately 130,000 customers. Algonquin Power Co., APUC's
electric generation subsidiary, includes 45 renewable energy
facilities and 12 thermal energy facilities representing more than
460 MW of installed capacity. 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, AQN.DB.A and AQN.DB.B. Visit
Algonquin Power & Utilities Corp. on the web at
www.AlgonquinPowerandUtilities.com and www.sedar.com.
SOURCE EMERA INC.