SOURCE: Northland Power Inc.

Northland Power Inc.

May 21, 2015 10:48 ET

Cochrane Power Ceases Power Generation

Current Agreement to Supply Electricity to Ontario's Power Grid Ends

COCHRANE, ON--(Marketwired - May 21, 2015) - (TSX: NPI) (TSX: NPI.PR.A) (TSX: NPI.PR.C) (TSX: NPI.DB.B) (TSX: NPI.DB.C) At midnight on May 11th, Cochrane Power ceased generating electricity for Ontario's power grid. After 25 years of generating electricity from the wood waste of local lumber mills and natural gas, its turbines have stopped.

The facility's power purchase agreement expired on May 11th. Late last year, Cochrane Power was granted an extension to that date from the agreement's original end date in January 2015, to allow sufficient time for Cochrane Power and the Independent Electricity System Operator (IESO) to negotiate a new long-term agreement. However, concurrent with that extension, the Minister of Energy directed the IESO to suspend all negotiations until the IESO had developed a strategy for power generators such as Cochrane Power across the province. The strategy is expected to be delivered in September 2015.

"We have been seeking a further extension that would allow us to negotiate a new agreement," said John Brace, CEO of Northland Power. "We will continue our efforts, and will keep our people on staff as long as we can; but without an agreement, we cannot operate. Eventually we will have to completely shutter the plant."

"We are very grateful for the outpouring of support from the community and local industry," added Gary Huizing, the Cochrane-based Regional Manager of Northland Power. "They're not giving up and neither are we."

ABOUT NORTHLAND
Northland is an independent power producer founded in 1987, and publicly traded since 1997. Northland develops, builds, owns and operates facilities that produce 'clean' (natural gas) and 'green' (wind, solar, and hydro) energy, providing sustainable long-term value to shareholders, stakeholders, and host communities.

The Company owns or has a net economic interest in 1,345 MW of operating generating capacity and 972 MW (682 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW offshore wind project, an 85% equity stake in Nordsee One, a 332 MW offshore wind project, both located in the North Sea; as well as a 100 MW onshore wind farm in Grand Bend, Ontario. Northland's cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.

Northland's common shares, Series 1 and Series 3 preferred shares and Series B and Series C convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.C, NPI.DB.B, and NPI.DB.C, respectively.

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