Northland Power Inc.

Northland Power Inc.
Northland Power Income Fund

Northland Power Income Fund

February 25, 2005 17:29 ET

Northland Power: Power Purchase Agreements Executed For Quebec Wind Power Projects


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTHLAND POWER INC.

AND NORTHLAND POWER INCOME FUND

TSX SYMBOL: NPI.UN

FEBRUARY 25, 2005 - 17:29 ET

Northland Power: Power Purchase Agreements Executed
For Quebec Wind Power Projects

TORONTO, ONTARIO--(CCNMatthews - Feb. 25, 2005) - Not for distribution
to U.S. newswire services or for dissemination in the United States. Any
failure to comply with this restriction may constitute a violation of
U.S. securities law.

Northland Power Inc. ("NPI") and Northland Power Income Fund (the
"Fund") (TSX:NPI.UN) are pleased to announce today that long-term power
purchase agreements have been signed with Hydro-Quebec for the
electricity to be delivered from two previously announced wind power
projects located in the Gaspesie region of Quebec. NPI is the parent
company of the Fund's Manager.

The first project, with an operations start date of 2007 is for 150 MW
in the St-Ulric/St-Leandre area. The second project of 100.5 MW is
proposed to start operations in 2010 in the Mont-Louis area.

The projects will be using modern wind turbines produced by GE Energy
for the North American market and the specific wind regime of the region.

John Brace, CEO of Northland Power Inc. and the Fund's Manager says: "We
are pleased to have successfully concluded arrangements with
Hydro-Quebec for the sale of electricity from renewable resources that
will be generated from these two projects. We look forward to long-term
relationships not only with Hydro-Quebec and GE Energy, but also with
other businesses and people within the Province of Quebec. We will
continue our efforts in Quebec and elsewhere to develop other power
generation opportunities, including wind and other renewable generation
technologies, beyond these two new projects and the Fund's existing 54
MW Mont Miller Wind Farm in the Gaspesie region."

Northland Power Inc. has and will continue to undertake the development
of these two projects. Any investment by the Fund is subject to the
prior approval of a committee of the Fund's independent trustees, which
management expects to seek for the first project during 2006.

About Northland Power Income Fund

Northland Power Income Fund indirectly owns interests in four power
projects: three combined-cycle cogeneration power plants that
efficiently and cleanly produce electricity and steam for sale and one
wind power project. Two cogeneration plants are located in Ontario: the
120 megawatt (MW) Iroquois Falls Facility that has been wholly-owned by
the Fund since its inception in 1997, and the 110 MW Kingston Facility
of which the Fund now owns 50%. Through its 19% equity interest in PEC
and loan to a PEC subsidiary, the Fund has an interest in the 230 MW
Panda-Brandywine cogeneration power plant located just outside
Washington, D.C. Electricity and steam sales from the cogeneration
plants are made under long-term contracts with creditworthy entities to
ensure revenue stability, and long-term contracts assure the supply and
price of natural gas, which is the Fund's largest cost. The Fund is
currently constructing a 54 MW wind power project on Mont Miller near
Murdochville in the Gaspesie region of Quebec. It is anticipated that
this project will commence deliveries of electricity to Hydro-Quebec in
March 2005 under the terms of a power purchase agreement that will
expire in 2026.

The Fund's trust units and convertible debentures trade on the Toronto
Stock Exchange under the symbols NPI.UN and NPI.DB respectively. The
units and debentures are qualified investments, and are not considered
foreign property for RRSPs and DPSPs under the Canadian Income Tax Act.

FORWARD LOOKING STATEMENTS

The above disclosure contains certain forward-looking statements.
Although these forward-looking statements are based upon current
expectations and assumptions, they are subject to numerous risks and
uncertainties, certain of which are beyond the Fund's control. No
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do
so, what benefits, including the amount of distributions, the Fund and
unitholders will derive therefrom.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Northland Power Income Fund Management Inc.
    Barb Bokla
    (416) 962-6262 x156
    or
    Northland Power Income Fund Management Inc.
    John Brace
    President
    (416) 962-6262 x115
    (416) 962-6266 (FAX)
    E-Mail: info@NPIFund.com
    Website: www.NPIFund.com