Algonquin Power Acquires Congeneration Facility

On March 10, 2003, Algonquin Power Income Fund, through its related entity, Algonquin Windsor Locks LLC, acquired a cogeneration facility located in Windsor Locks, Connecticut. The transaction included the purchase of certain assets from and the entering into of a long-term ground lease with Ahlstrom Windsor Locks for aggregate consideration of approximately $43.4 million. Algonquin Windsor Locks also entered into a long-term energy services agreement with Ahlstrom under which the facility delivers thermal steam energy and a portion of its electrical generation to the Ahlstrom-owned specialty fibre composites mill on site. The balance of the electrical energy produced by the facility is sold under a long-term power purchase agreement to The Connecticut Light and Power Company. The purchase price was financed in part under the fund’s credit facility with the National Bank of Canada and TD Bank, and through the use of proceeds of previous trust unit offerings by Algonquin.

Blake, Cassels & Graydon LLP represented the fund and Algonquin Windsor Locks, with a team led by Ken Pearce and assisted by Kim Harle and Jennifer Allen. James Maher and Ann Catino of Halloran & Sage LLP in Hartford acted as Connecticut special counsel.

Ahlstrom was represented by Pillsbury Winthrop LLP in Los Angeles, Stamford and San Francisco, with a team comprised of Marshall Taylor, Kent Nevins and Carmela Nicholas, and Michael Hindus (energy regulatory). Robert Wax and Stephen Humes of LeBoeuf, Lamb, Green & MacRae, LLP in Hartford advised Ahlstrom on Connecticut regulatory matters.

National Bank and TD Bank were represented by Bruce Bell of Cassels Brock & Blackwell LLP. Ahlstrom was also advised by Pacific Capital Resources, LLC in Norwalk, Connecticut.