SOURCE: Northland Power Inc.

Northland Power Inc.

March 13, 2015 15:04 ET

Northland Power Inc.: Ontario Superior Court Decision Announced in Global Adjustment Case

TORONTO, ON--(Marketwired - March 13, 2015) - Northland Power Inc. ("Northland" or "the Company") (TSX: NPI) (TSX: NPI.PR.A) (TSX: NPI.PR.C) (TSX: NPI.DB.B) (TSX: NPI.DB.C) today announced that the Ontario Superior Court of Justice issued a decision on March 12, 2015, in relation to Northland's dispute with the Ontario Electricity Financial Corporation ("OEFC"). As previously disclosed, Northland's wholly-owned subsidiary, Iroquois Falls Power Corp. ("Iroquois Falls") and Northland's managed facilities, Cochrane Power Corporation and Kirkland Lake Power Corporation (collectively, with Iroquois Falls, "the Entities") along with a number of other power producers in Ontario, applied to the Court in relation to the interpretation of their power purchase agreements with the OEFC as it related to the price escalator for power sold under the agreements. The Court ruled in favour of the power producers in its decision.

In its original application, Northland estimated that its potential lost revenue over the life of the relevant agreements was in the range of $200 million. Northland is currently assessing the implication of the decision in relation to possible retroactive recoveries and future payments which may be payable to the Entities. The decision requires OFEC to recalculate the amounts payable under the agreements and is also subject to the OEFC's right to appeal until April 13, 2015.

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; 640 MW (400 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW (360 MW net to Northland) offshore wind project in the North Sea near the Netherlands; and 432 MW (332 MW net to Northland) of projects with awarded power contracts under advanced development, including an 85% equity stake in Nordsee One. 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.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements which are provided for the purpose of presenting information about management's current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects," "anticipates," "plans," "believes," "estimates," "intends," "targets," "projects," "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may," "will," "should," "would" and "could." These statements may include, without limitation, statements regarding the implications of the Court's decision and the estimated potential lost revenue over the life of the above noted agreements. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the provisions of contracts to which Northland or a subsidiary is a party, management's current plans, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management's current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, construction risks, counterparty risks, operational risks, foreign exchange rates, regulatory risks, maritime risks for construction and operation, and the variability of revenues from generating facilities powered by intermittent renewable resources and the other factors described in the "Risks and Uncertainties" section of Northland's 2014 Annual Report and Annual Information Form, both of which can be found at www.sedar.com under Northland's profile and on Northland's website www.northlandpower.ca. Northland's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur.

The forward-looking statements contained in this release are based on assumptions that were considered reasonable on March 13, 2015. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

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