Monday, March 21, 2011

Algonquin Power to buy Kineticor wind farms in Saskatchewan

Algonquin Power & Utilities Corp. ("APUC") just announced this morning that it has executed an asset purchase agreement (the "Agreement") with Kineticor Renewables Inc. ("Kineticor"), to acquire all of the assets related to two proposed adjacent 10 MW wind energy development projects (the "Projects") in Saskatchewan.

Upon SaskPower's approval and execution of the PPAs, Kineticor will assign the PPAs to Algonquin Power Co. ("APCo"), APUC's electric generation subsidiary. The Projects will be developed with support from Kineticor during the development phase, which is expected to be completed in late 2013.

While equipment selection and construction details remain to be finalized, it is expected that the capital cost to construct the Projects will be approximately $55-$60 million, inclusive of acquisition costs. The first year PPA rate is set at $101.98 per MW-hr for the first full year of operations, which APCo expects to occur in 2014, with an annual escalation provision of 2% over the expected 20 year term.

The Projects are to be constructed near Morse, Saskatchewan, approximately 180 km west of Regina and 400 km west of the Phase I Red Lily Wind Project already owned by APUC. It is contemplated that the Projects will be situated on 1,120 acres of private lands, with additional land under lease or option in order to facilitate future expansion of the Projects.

"We are very pleased that we are able to continue to grow our wind energy footprint in the province of Saskatchewan with this latest acquisition", commented Ian Robertson, Chief Executive Officer of APUC. "Saskatchewan has one of the best wind regimes in Canada which will once again contribute to our growing portfolio of successful wind energy projects and reinforce our strategic focus on renewable energy investment."

Source: Algonquin Power & Utilities Corp. Press Release dated March 21, 2011


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