Northland Power Income Fund
TSX : NPI.UN
TSX : NPI.DB
TSX : NPI.DB.A

Northland Power Income Fund

June 21, 2010 15:49 ET

Northland Power Income Trust to Convert to Corporation

TORONTO, ONTARIO--(Marketwire - June 21, 2010) - Unitholders at today's Annual General Meeting have overwhelmingly approved a reorganization that will convert Northland Power Income Fund ("Northland") (TSX:NPI.UN)(TSX:NPI.DB)(TSX:NPI.DB.A) from an income trust into a corporation. It is expected that the conversion will be completed December 31, 2010 and the new corporation will continue operating as Northland Power Inc. effective January 1, 2011.

"We are very pleased that the Unitholders have shown such support for this conversion," said Northland's President and CEO, John Brace. "While this reorganization was in part necessitated by changes to the taxation system, which will see income trusts taxed at the same rate as corporations beginning in 2011, we also think it provides us tremendous opportunity to grow our business in the future. As a corporation, we can more easily access the capital necessary to fund our pipeline of development projects, two of which are already in construction, with several more in very advanced stages of development. Beyond that, we plan to continue adding to our portfolio of 'clean and green' development projects, to help ensure steady growth prospects for a long time to come."

Following this reorganization, the new corporation will benefit from a large tax pool which should enable the corporation to defray the payment of income taxes for several years. As a result, management anticipates that the corporation will continue the $1.08 annual distribution paid by the Fund as a dividend to shareholders.

In other business, V. Peter Harder, Linda Bertoldi and Gordon Cheesbrough were elected as trustees, joining returning trustees James Temerty (Chairman), the Hon. John Turner, Pierre Gloutney, and Dr. Marie Bountrogianni.

ABOUT NORTHLAND

Northland is a Canadian income trust that has ownership or economic interests in 10 power projects totaling over 1,100 megawatts ("MW") (net 872 MW). Northland's assets comprise natural-gas-fired plants which efficiently and cleanly produce electricity and steam as well as facilities generating renewable energy from wind and biomass. Sales are made almost entirely under long-term contracts with a current average duration of 13 years. Northland's plants are located in Canada, the United States and Germany. In addition, Northland has the 86 MW Spy Hill project, 260 MW North Battleford project and 216 MW of wind, solar and run-of-river hydro projects awarded under the Ontario Power Authority's Feed-in-Tariff program in advanced stages of development. Northland also has a diverse development portfolio of high-quality 'Clean and Green' energy projects, including wind, solar, natural gas, and hydro assets that supports its strategy of sustainable growth primarily through internally developed opportunities. The Fund's trust units and two series of convertible debentures, which trade on the Toronto Stock Exchange under the symbols NPI.UN, NPI.DB and NPI.DB.A respectively, are qualified investments for RRSPs and DPSPs under the Canadian Income Tax Act. The Fund has in place a distribution re-investment plan that allows Unitholders who are residents of Canada to automatically have their monthly cash distributions reinvested in additional units. Participants do not pay any costs associated with the plan, including brokerage commissions. For further information or to join the plan, contact your financial advisor or broker.

Contact Information

  • Northland Power Income Fund
    John Brace
    President & Chief Executive Officer
    416-962-6262 x 115
    or
    Northland Power Income Fund
    Boris Balan
    Director, Communications & Business Development
    416-962-6262 x 116
    or
    Northland Power Income Fund
    Barb Bokla
    Manager, Investor Relations
    416-962-6262 x156
    416-962-6266 (FAX)
    info@NPIFund.com
    www.NPIFund.com