Algonquin Power & Utilities to Withdraw from First Wind Holdings Investment

Algonquin Power & Utilities Corp. said that it plans not to proceed with the previously announced investment in First Wind Holdings, LLC's wind portfolio in the Northeast United States, citing the ongoing regulatory review in Maine.

Algonquin Power's investment in First Wind was initially in concert with Emera Inc., which were to partner to own 49% of the First Wind portfolio. Algonquin Power's overall stake would have been 12.5% of the portfolio, representing an approximate $83 million investment

As Emera owns Bangor Hydro-Electric and Maine Public Service, the transaction is subject to Maine PUC review. A hearing examiners' report would deny the transaction, citing risks to both ratepayers and the competitive market from a T&D affiliate owning in-state generation, including vertical market power and potential preferential treatment of affiliates.

"Although First Wind is a developer of high quality wind projects, the longer than anticipated regulatory process in Maine, together with the transactions we have announced since April 2011 have contributed to our decision not to proceed with the First Wind investment", said Ian Robertson, Chief Executive Officer of Algonquin Power.

Although Algonquin Power will not continue with the First Wind investment, it will continue with a broader strategic investment agreement with Emera, with covers a rage of activities and developments. This agreement also requires PUC approval.

Emera remains fully committed to the First Wind transaction.