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Emera Inc. and Algonquin Power Income Fund Announce Strategic Partnership

HALIFAX, April 23, 2009 /PRNewswire-FirstCall via COMTEX/ -- (EMA-TSX): Emera Inc. ("Emera") and Algonquin Power Income Fund ("APIF") (TSX:APF.UN) announced today that they have entered into a strategic partnership that will have the companies collaborate on select utility infrastructure and renewable generation investments. This partnership will capitalize on the complementary skills of both parties.

Emera has agreed to acquire a 9.9% interest in APIF through a private placement of 8.5 million APIF units at a price of $3.25 per unit and Chris Huskilson, President and CEO, Emera Inc., will be invited to join the Board of Trustees of APIF. Emera also has rights to acquire up to 5% of APIF over the next 2 years.

As a first step in the partnership, Emera and APIF have committed to acquire the California-based electricity distribution and related generation assets of Sierra Pacific Power Company from NV Energy for approximately USD $116 million subject to certain working capital and other closing adjustments. This utility currently provides electric distribution service to approximately 47,000 customers in the Lake Tahoe region. Under the terms of the agreement, Emera and Algonquin will jointly own and operate the utility through a newly formed entity, California Pacific Electric Company (Calpeco). Emera's 50% equity investment in Calpeco is USD $27 million. This transaction is subject to approval by the California Public Utilities Commission (CPUC) which is expected in 2010.

The purchase of the 8.5 million units of APIF will happen concurrently with the closing of the Calpeco transaction. The transactions will be immediately accretive to Emera.

"This partnership positions Emera to increase our holdings of renewable energy in North America and introduces us to a new market" said Chris Huskilson, President and CEO, Emera Inc. "It also allows us to increase value to jointly-owned energy infrastructure assets with Algonquin Power. We look forward to working with Algonquin to build on our portfolio in the utilities and renewable energy sectors".

"The acquisition of the California Utility assets represents an important element in the strategic expansion of Algonquin Power's low-risk utility infrastructure portfolio and the highly predictable, long-term regulated returns from these assets will contribute to the stability of our earnings for years to come", commented Ian Robertson, Executive Director of Algonquin Power.

Forward Looking Information

This news release contains forward looking information. Actual future results may differ materially. Additional financial and operational information is filed electronically with various securities commissions in Canada through the System for Electronic Document Analysis and Retrieval (SEDAR).

Teleconference Call

The company will be hosting a teleconference at 12:00 pm Atlantic time today (11:00 am Toronto/Montreal/New York; 10:00 am Winnipeg; 8:00 am Vancouver) to discuss the announcement.

Analysts and other interested parties wanting to participate in the call should dial 1-888-789-9572 (in Toronto 416-695-7806), pass code: 6080202 at least 10 minutes prior to the start of the call. The teleconference will be recorded. If you are unable to join the teleconference live, you can dial for playback toll-free at 1-800-408-3053 (in Toronto 416-695-5800), access code #3175438 (available until midnight, Wednesday, May 20th). The teleconference will also be webcast live at www.emera.com and available for playback for one year.

About Emera

Emera Inc. (EMA-TSX) is an energy and services company with $5.3 billion in assets. Electricity is Emera's core business. The company has two wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company, which together serve 600,000 customers. Emera also owns 19% of St. Lucia Electricity Services Limited, which serves more than 50,000 customers on the Caribbean island of St. Lucia and 25% of Grand Bahama Power Company which serves 19,000 customers on the Caribbean island of Grand Bahama. In addition to its electric utility investments, Emera owns the Brunswick Pipeline, a 145km gas pipeline in New Brunswick; has a joint venture interest in Bear Swamp, a 600 megawatt pumped storage hydro-electric facility in northern Massachusetts; a 12.9% interest in the Maritimes & Northeast Pipeline; a 7.4% interest in Open Hydro and Emera Energy Services which manages energy assets on behalf of third parties. Visit Emera on the web at www.emera.com.

About Algonquin Power

Algonquin Power owns and operates a diverse portfolio of approximately $1 billion of clean, renewable power generation and sustainable utility infrastructure assets across North America. Algonquin Power's generation portfolio includes 42 renewable energy facilities and 11 thermal energy facilities representing more than 400MW of installed capacity and Algonquin Power provides regulated utility services to more than 70,000 customers through its portfolio of 18 water distribution and wastewater treatment utility companies. Algonquin Power's trust units and convertible debentures are traded on the Toronto Stock Exchange under the symbols APF.UN, APF.DB & APF.DB.A. Visit Algonquin Power on the web at www.AlgonquinPower.com.

SOURCE Emera Inc.