Mr. Ian Robertson reports

ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES ADDITIONAL 10MW SOLAR GENERATION PROJECT

Algonquin Power & Utilities Corp. intends to proceed with a 10-megawatt project adjacent to its 20 MW Bakersfield I Solar project in Kern county, California, which is currently under construction.

The 10 MW Bakersfield II Solar project executed a 20-year power purchase agreement on Sept. 22, 2014, with a large California-based electric utility. The project will be located on 64 acres of land adjacent to the 20 MW Bakersfield I Solar project. Construction of Bakersfield I Solar is nearing completion, with commercial operations expected to occur in the first quarter of 2015.

The total project cost for Bakersfield II Solar of approximately $27-million (U.S.) will be financed with a combination of senior debt, common equity and contributions from tax equity investors. Consistent with financing structures utilized for U.S.-based renewable energy projects including Bakersfield I Solar, it is anticipated that Bakersfield II Solar will source financing in the amount of approximately 40 per cent of the capital costs from certain tax equity investors.

"We are pleased to announce the continued growth of our solar power generation portfolio through a commitment to the 10 MW Bakersfield II Solar facility," commented APUC chief executive officer Ian Robertson. "The low annual production variability associated with solar electrical generation continues to contribute to derisking and diversifying our portfolio. The Bakersfield II Solar project confirms our ability to grow organically as we expand our presence within the United States and specifically in the state of California."

Construction of Bakersfield II Solar is anticipated to commence in mid-2015 following receipt of local permits and finalization of necessary construction contracts, subject to approval by the APUC board of directors. Commercial operation is targeted to occur in the first quarter of 2016.