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Emera Inc. and Algonquin Power Income Fund Announce Strategic Partnership
HALIFAX, April 23 /CNW/ - (EMA-TSX): Emera Inc. ("Emera") and Algonquin Power Income Fund ("APIF"...
About this update from Emera Incorporated
[{"type":"text","content":"\n\n\n\nHALIFAX, April 23 /CNW/ - (EMA-TSX): Emera Inc. ("Emera") and Algonquin\nPower Income Fund ("APIF") (TSX:APF.UN) announced today that they have entered\ninto a strategic partnership that will have the companies collaborate on\nselect utility infrastructure and renewable generation investments. This\npartnership will capitalize on the complementary skills of both parties.\n\n\nEmera has agreed to acquire a 9.9% interest in APIF through a private\nplacement of 8.5 million APIF units at a price of $3.25 per unit and Chris\nHuskilson, President and CEO, Emera Inc., will be invited to join the Board of\nTrustees of APIF. Emera also has rights to acquire up to 5% of APIF over the\nnext 2 years.\n\n\nAs a first step in the partnership, Emera and APIF have committed to\nacquire the California-based electricity distribution and related generation\nassets of Sierra Pacific Power Company from NV Energy for approximately USD\n$116 million subject to certain working capital and other closing adjustments.\nThis utility currently provides electric distribution service to approximately\n47,000 customers in the Lake Tahoe region. Under the terms of the agreement,\nEmera and Algonquin will jointly own and operate the utility through a newly\nformed entity, California Pacific Electric Company (Calpeco). Emera's 50%\nequity investment in Calpeco is USD $27 million. This transaction is subject\nto approval by the California Public Utilities Commission (CPUC) which is\nexpected in 2010.\n\n\nThe purchase of the 8.5 million units of APIF will happen concurrently\nwith the closing of the Calpeco transaction. The transactions will be\nimmediately accretive to Emera.\n\n\n"This partnership positions Emera to increase our holdings of renewable\nenergy in North America and introduces us to a new market" said Chris\nHuskilson, President and CEO, Emera Inc. "It also allows us to increase value\nto jointly-owned energy infrastructure assets with Algonquin Power. We look\nforward to working with Algonquin to build on our portfolio in the utilities\nand renewable energy sectors".\n\n\n"The acquisition of the California Utility assets represents an important\nelement in the strategic expansion of Algonquin Power's low-risk utility\ninfrastructure portfolio and the highly predictable, long-term regulated\nretur...