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

Northland Power Income Fund

February 13, 2009 20:41 ET

Northland Power Income Fund Announces 2008 Results

TORONTO, ONTARIO--(Marketwire - Feb. 13, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OR ITS POSSESSIONS. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Northland Power Income Fund (the "Fund") (TSX:NPI.UN)(TSX:NPI.DB) reported its financial results today for the quarter and year ended December 31, 2008. Total distributions declared to Unitholders for the year amounted to $1.12/unit representing a payout ratio of 82% of distributable cash.

FINANCIAL AND OPERATING HIGHLIGHTS



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3 Months Ended 12 Months Ended
Dec. 31 Dec. 31

2008 2007 2008 2007
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FINANCIAL (thousands,
except per unit amounts)
Sales $50,581 $48,628 $192,160 $184,294
Net income $22,933 $31,293 $ 64,557 $(27,190)

Standardized
distributable cash $20,499 $33,814 $102,654 $ 98,540
Distributable cash $21,198 $29,908 $ 84,833 $ 90,882

Distributions declared
to Unitholders $19,329 $16,835 $ 69,835 $ 67,334

Units Outstanding at
Quarter End 62,353 62,352 62,353 62,352
Average Number of Units
Outstanding - basic 62,353 62,352 62,353 62,345
Average Number of Units
Outstanding - diluted 65,224 64,815 65,224 62,345

Per Unit - basic
Standardized
distributable cash $0.3288 $0.5423 $1.6463 $1.5806
Distributable cash $0.3400 $0.4797 $1.3605 $1.4577
Distributions declared
to Unitholders $0.3100 $0.2700 $1.1200 $1.0800
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OPERATIONS
Electricity sales
volume
(megawatthours) 349,971 390,641 1,311,545 1,410,423
Steam sales volume
(thousands of pounds) 322,556 366,453 1,254,460 1,358,312
Fuel consumption
(thousands of
gigajoules) 2,671 3,124 10,598 11,344
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Fourth Quarter Results

Total sales revenue in the fourth quarter of 2008 was up from 2007 in spite of voluntary curtailment of electricity production at the Iroquois Falls and Kingston facilities that negatively affected sales. Increased TransCanada PipeLines Limited ("TCPL") tariffs continued to adversely affect the cost of sales. Nonetheless, gross margin, in aggregate, was comparable to 2007. Net income and distributable cash compared unfavourably to 2007 which included the $15.3 million one-time impact of a settlement with Calpine Corporation related to a gas contract.

Sales of $50.6 million in the quarter increased by $2.0 million, while distributable cash of $21.2 million was down by $8.7 million compared to the fourth quarter of 2007.

Electricity revenue under the Iroquois Falls power purchase agreement ("PPA") was down $1.3 million from the fourth quarter of the previous year as production was curtailed during lower-priced off-peak periods (nights, weekends and statutory holidays); affordably priced market gas allowed for additional quantities of gas to be purchased to enhance 2007 fourth quarter production. Non-contracted revenue earned from sales of electricity and operating reserves into the wholesale market decreased by $0.2 million. Steam sales were up compared to the same quarter last year due to a higher price, while sales of natural gas were up $1.0 million as more market gas was purchased and resold to mitigate fixed transportation costs under the plant's gas transportation contract compared to the fourth quarter of 2007. Cost of sales was $0.9 million higher than last year as a decrease in the quantity of gas consumed, commensurate with lower consumption, was offset by a significant increase in firm transportation tolls from TCPL and a higher cost of gas resold associated with increased mitigation of fixed transportation costs. Plant operating costs of $2.4 million were up $0.5 million largely due to a retroactive true-up of costs with General Electric related to the preceding five-year period of the gas turbine maintenance agreement.

Electricity revenue at the Kingston facility decreased from the fourth quarter of last year due to additional off-peak plant curtailment to allow for extra gas resales. Steam revenue was down as lower demand was only partially offset by an increase in the average selling price of steam. Revenue from the resale of natural gas was up $2.1 million from the previous year due to a combination of higher volumes and gas market prices. The cost of natural gas consumed was higher in the fourth quarter of 2008 compared to the same period last year, primarily due to a significant increase in firm transportation tolls from TCPL partially offset by lower production. The cost of gas resold was up largely due to higher volumes and an escalation of contracted gas prices. Plant operating costs in the fourth quarter of 2008 approximated 2007's expenditures.

During the fourth quarter, INVISTA (Canada) Company ("INVISTA") informed Kingston LP that it intended to shut down its facility indefinitely starting sometime in mid-2009. INVISTA will give Kingston LP six months notice once a shut down date has been determined. The shut down will only be avoided if INVISTA finds a third party to purchase and operate its facility. Lost steam revenue is expected to be largely off-set by additional gas sales. However, the extent of this off-set is contingent on the market prices of gas.

Mont Miller's electricity production was 5% higher than the same period last year as the wind farm achieved a 40% capacity factor. The turbines continued to perform well, with quarterly equipment reliability of 98% and only minimal downtime for Vestas to complete the final Metso gearbox replacement; all associated costs were covered under Mont Miller's warranty, maintenance and service agreement. Mont Miller continues to surpass the 95% annual equipment reliability guaranteed under the WMS agreement. Plant operating expenses were consistent with 2007.

Revenue from electricity sales at the German wind farms was up 22% during the fourth quarter as a result of the weakening of the Canadian dollar versus the euro and a 3% increase in production. The turbines continued to perform very well as the farms achieved an overall reliability of 97% and a capacity factor of 19%.

The Fund's management and administration costs were up $1.8 million in the quarter largely due to the management incentive fee to the Manager ($1.6 million versus $nil in 2007). The Manager did not earn a fee last year as it received a one-time gas management incentive fee in connection with the Calpine settlement.

The Fund's investment in Panda Energy Corporation ("PEC") generated investment income of $2.6 million this quarter through a combination of interest and dividend payments, higher than the same period last year by $0.7 million commensurate with higher dividends and interest income, mainly due to a weakening of the Canadian dollar. Fourth quarter investment income also includes $0.5 million of fees and interest earned on the Fund's advances to Thorold CoGen LP ("Thorold LP") and $0.2 million in commitment fees from the loan associated with the Jardin d'Eole project, compared to $0.1 million in fees and interest from Thorold LP in 2007.

Included in the fourth quarter results for 2007 was the $15.3 million settlement of the claim associated with Calpine's default on January 1, 2006 in delivering natural gas to the Iroquois Falls facility under a long-term supply contract.

During the fourth quarter, the Fund recorded the following non-cash adjustments: (i) a foreign exchange gain of $10.1 million on the translation of the PEC senior loan balance to the quarter-end Canadian dollar/U.S. dollar exchange rate, (ii) a $3.0 million foreign exchange loss on the Fund's U.S. and euro foreign exchange contracts not designated as a part of a hedging relationship, and (iii) a $5.3 million loss on the change in fair value of interest rate swaps associated with the debt at the Kingston facility. These non-cash amounts were the result of the continued weakening of the Canadian dollar versus the U.S. dollar and euro during the fourth quarter and the decline in variable interest rates. During the fourth quarter of 2008, the Kingston facility recorded a $1.4 million loss on the disposal of its property, plant and equipment related to the dismantling of its Dowtherm system that had been used to transfer heat to its steam host but from which no revenue had been received since 2000.

A $4.5 million current tax charge had been recorded in the fourth quarter of 2007 by Iroquois Falls Power Corp. related to the Calpine settlement, compared to $0.2 million in 2008.

The above factors combined with a future tax recovery of $11.0 million resulted in net income for the fourth quarter of 2008 being $8.4 million lower than the fourth quarter of 2007, with the majority of the decrease being associated with the one-time income in 2007 arising from the settlement of the Calpine claim.

During the quarter, cash and cash equivalents increased by $0.4 million as operating results provided $20.6 million of cash, which was partially offset by $3.4 million used for investing activities, including the funding of the loan to Thorold LP, and $17.1 million of cash used for financing activities, which includes Unitholder distributions and scheduled principal repayments on the long-term loans.

Full Year 2008 Results

Gross profit in 2008 was in line with 2007 while income from operations was down $10.0 million as the one-time increase in investment income related to the restructuring of the Panda-Brandywine power purchase agreement was more than offset by the Calpine settlement received in 2007. Income before taxes was $1.9 million (4%) higher than in the previous year primarily due to a non-cash foreign exchange gain of $11.5 million. Net income was up $91.7 million in 2008 as 2007's financial results included a one-time non-cash charge of $74.0 million arising from the Federal Government's substantively enacted changes to the Income Tax Act in respect of income trusts and other Specified Investment Flow-Through entities under which the Fund will become taxable in 2011.

Distributable cash at $84.8 million was $6.0 million (7%) lower than that of 2007 but was $15.0 million higher than total distributions declared to Unitholders. Per unit cash distributions were $1.12 per unit - representing $1.08 of regular distributions plus a special distribution of $0.04 per unit in the fourth quarter to ensure that cash distributions for the year at least equal the taxable income to be allocated to Unitholders in 2008. Distributions to Unitholders in 2008 were 100% taxable. The payout ratio of distributions to distributable cash was 82%, providing the Fund with the flexibility for future acquisitions, funding of the loan commitments for the Thorold and Jardin d'Eole projects and as a cushion against potential future tax obligations commencing in 2011.

Annual audited financial statements and MD&A are expected to be filed February 20, 2009 at www.SEDAR.com and posted on the Fund's website at www.NPIFund.com.

Taxation of Prior Year Distributions to Unitholders

The Fund has been in discussions with the federal Department of Finance ("DoF") and the Canada Revenue Agency ("CRA") concerning the application of the specified energy property rules in the Canadian Income Tax Act in 2005, 2006 and 2007. Discussions with the DoF and CRA are ongoing; it is CRA's current position that the Fund should re-file its trust income tax returns for these years resulting in the following changes to the taxable proportion of Unitholder distributions:



Taxable portion Taxable portion
of distributions, of distributions,
as originally filed as recalculated
2005 58.0% 75.2%
2006 62.9% 87.4%
2007 91.9%(1) 100.0%(1)

(1) of which 7.4% is taxable as an eligible dividend


The Fund's Consolidated Statements of Income (Loss) and Deficit for the three months and year ended December 31, 2008 show a recovery of future taxes of $11.0 million and $11.6 million respectively, of which $9.1 million specifically relates to the ongoing discussions with DoF and CRA.

Should the Fund re-file its trust returns, any increase in taxable income for 2005, 2006 and 2007 would be offset by reduced taxability in future years.

Outlook

It is anticipated that selling prices under the Iroquois Falls PPA, which are indirectly related to the wholesale cost of electricity in Ontario, will be subject to upwards pressure in the long term due to the entry into commercial operation of new power plants and wind farms contracted by the Ontario Power Authority as well as Ontario Power Generation's success in having its administered rates increase. Selling prices under Kingston's PPA will also be subject to upward pressure as, among other factors, TCPL's transportation tariff increases during 2008 will be partially passed through to Kingston's 2009 rates.

Margins on natural gas sales at Kingston should improve in 2009 due to the higher gas prices in early 2008 that allowed the Manager to enter into new forward contracts - approximately 55% of projected 2009 sales are subject to forward contracts.

Management expects the Fund's 2009 distributable cash to be lower than 2008's, which included the one-time payments arising as a result of the Panda-Brandywine transaction.

The Fund's strong financial position allows it to continue to seek acquisition opportunities that meet its criteria for increasing distributions while also protecting the Fund's current risk profile.

Distributions to Unitholders in 2009 are expected to be at the level of $1.08 per unit, lower than 2008 which included a special distribution of $0.04 per unit.

In light of the federal government's decision to tax publicly traded flow-through entities, the Fund's Manager continues to receive questions from Unitholders and others in the investment community with regard to the future of Northland Power Income Fund. Management and the Board of Trustees are considering the Fund's strategic alternatives in advance of 2011. In the meantime, management sees no reason to change the Fund's current legal status as a trust based on the benefit of the tax-free interim period that extends until 2011, which supports the Fund's business model of generating strong, stable cash flows that are secured by long-life assets and contracts.

ABOUT THE FUND

Northland Power Income Fund is a Canadian income trust that indirectly owns equity interests in six power projects, which efficiently and cleanly produce electricity and steam for sale under long-term contracts. The Fund's combined-cycle cogeneration power plants and wind farms are located in Canada, the United States and Germany. The Fund is also providing $30 million as subordinated debt to Northland Power Inc.'s 265 MW Thorold Cogeneration Project that is under construction near Thorold, Ontario and $35 million as subordinated debt to the Jardin d'Eole wind project under construction near Matane, Quebec.

The Fund's trust units and convertible debentures, which trade on the Toronto Stock Exchange under the symbols NPI.UN and NPI.DB 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.

FORWARD LOOKING STATEMENTS

Certain statements in this News Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Fund's and its subsidiaries' current expectations. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Fund's and its subsidiaries' for the current fiscal year and subsequent periods. 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". This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, 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 the Fund's Manager's current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties, including those set out in the management's discussion and analysis section of the Fund's 2007 annual report and in the Fund's Annual Information Form dated March 28, 2008, certain of which are beyond the Manager's control. The Fund'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, or what benefits, including the amount of distributions, the Fund and Unitholders will derive therefrom.

The forward-looking statements contained in this press release are made as of the date hereof for the purpose of providing readers with the Fund's expectations for the coming year. The forward-looking statements may not be appropriate for other purposes. Other than as specifically required by law, the Fund undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.



NORTHLAND POWER INCOME FUND
Consolidated Balance Sheets
(stated in thousands)
ASSETS

Dec. 31, 2008 Dec. 31, 2007
Current
Cash and cash equivalents $45,512 $28,311
Cash reserves 3,727 2,630
Accounts and other receivables 18,186 32,073
Inventories 4,697 9,619
Prepaid expenses 2,119 2,789
Current portion of Panda senior loan 3,509 2,557
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Total current assets 77,750 77,979
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Deferred charges 1,827 1,932
Property, plant and equipment 382,735 405,744
Contracts 114,925 128,827
Investment in Panda Energy Corporation 6,050 7,946
Panda senior loan 74,610 64,659
Loan receivable from Thorold CoGen LP 16,510 3,113
Future income tax asset 1,124 590
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$675,531 $690,790
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LIABILITIES AND UNITHOLDERS' EQUITY

Current
Accounts payable and accrued liabilities $12,683 $16,233
Current portion of KCLP term loans 9,082 8,539
Current portion of Mont Miller term loan 1,276 1,108
Distribution payable to Unitholders 8,106 5,612
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Total current liabilities 31,147 31,492

KCLP term loans 67,413 76,494
Mont Miller term loan 35,857 37,133
Other long term liabilities 3,435 2,475
Asset retirement obligation 2,438 2,275
Convertible debentures 29,035 29,044
Future income tax liability 63,025 73,850
Derivative financial instruments 22,229 10,767
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254,579 263,530
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Trust Units 670,431 670,422
Accumulated other comprehensive income 1,086 151
Deficit (250,565) (243,313)
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Total Unitholders' equity 420,952 427,260
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$675,531 $690,790
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NORTHLAND POWER INCOME FUND
Consolidated Statements of Income (Loss) and Deficit
(stated in thousands except per unit amounts)

3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
2008 2007 2008 2007
Sales
Electricity $39,966 $41,201 $148,492 $149,147
Steam 2,419 2,325 8,931 8,547
Natural gas 8,196 5,102 34,621 26,600
Emission allowances - - 116 -
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Total sales 50,581 48,628 192,160 184,294

Cost of sales 20,764 18,892 81,994 73,932
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Gross profit 29,817 29,736 110,166 110,362
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Expenses
Plant operating costs 4,689 4,288 16,393 15,942
Amortization 6,897 6,781 27,763 27,369
Loss on disposal
of property, plant
and equipment 1,432 - 1,432 -
Management and
administration costs 3,405 1,622 6,900 5,531
Accretion expense 37 47 147 187
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16,460 12,738 52,635 49,029
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Settlement of claim - 15,343 - 15,343
Investment income 3,324 2,013 18,108 8,981
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Income from operations 16,681 34,354 75,639 85,657
Foreign exchange (7,138) 275 (11,460) 10,774
Amortization of
deferred charges 26 26 105 105
Amortization of contracts 3,476 2,672 13,902 13,902
Change in fair
value of interest rate swaps 5,286 288 5,912 (3,205)
Write down in
PEC investment to fair value - - 1,896 -
Interest income (241) (237) (1,197) (950)
Interest expense
and bank fees 3,226 3,348 13,100 13,513
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Income before
income taxes 12,046 27,982 53,381 51,518
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Provision for
(recovery of) income taxes
Current 153 4,529 406 4,441
Future (11,040) (7,840) (11,582) 74,267
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(10,887) (3,311) (11,176) 78,708
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Net income (loss)
for the period $22,933 $31,293 $ 64,557 $(27,190)
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Deficit, beginning
of period -
as previously stated (254,169) (257,771) $ (243,313) $(139,269)
Cumulative effect
of adopting new
accounting standards - - (1,974) (9,520)
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Deficit, beginning
of period - as adjusted (254,169) (257,771) (245,287) (148,789)
Distributions
declared to Unitholders (19,329) (16,835) (69,835) (67,334)
Net income (loss) for period 22,933 31,293 64,557 (27,190)
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Deficit, end of period $(250,565) $(243,313) $ (250,565) $(243,313)
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Average number of
units outstanding
- basic 62,353 62,352 62,353 62,345
Average number
of units outstanding
- diluted 65,224 64,815 65,224 62,343
Net income (loss)
per trust unit- basic $0.3678 $0.5019 $1.0353 $(0.4361)
Net income (loss)
per trust unit - diluted $0.3592 $0.4904 $1.0201 $(0.4361)




NORTHLAND POWER INCOME FUND
Consolidated Statement of Comprehensive Income (Loss)
(stated in thousands except per unit amounts)

3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
2008 2007 2008 2007
Net income (loss)
for the period $22,933 31,293 $64,557 $(27,190)
Other comprehensive
income (loss):
Change in translation
of net investment
in foreign operations 2,130 292 2,808 (1,300)
Change in fair value
of hedged foreign
currency forward contracts (1,957) (180) (2,232) 1,306
Future income tax
affect of above 290 - 359 -
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Total other
comprehensive income (loss) 463 112 935 6
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Total comprehensive
income (loss) $23,396 $31,405 $65,492 $(27,184)
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NORTHLAND POWER INCOME FUND
Consolidated Statements of Cash Flows
(stated in thousands except per unit amounts)

3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
2008 2007 2008 2007
Operating activities
Net income (loss)
for the period $22,933 $31,293 $64,557 $(27,190)
Items not involving cash:
Amortization 6,897 6,781 27,763 27,369
Amortization of contracts 3,476 2,672 13,902 13,902
Other (712) (95) (1,736) (59)
Loss on disposal of
property, plant
and equipment 1,432 - 1,432 -
Change in fair value
of interest rate swaps 5,286 288 5,912 (3,205)
Write down in PEC
investment to fair value - - 1,896 -
Foreign exchange (7,138) 275 (11,460) 10,774
Accretion expense 37 47 147 187
Other long term liabilities 234 408 675 1,133
Future income taxes (11,040) (7,840) (11,582) 74,267
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21,405 33,829 91,506 97,178
Net change in non-cash
working capital balances
related to operations (850) - 11,253 1,509
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Cash provided by
operating activities 20,555 33,829 102,759 98,687
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Investing activities
Cash reserves utilization
(funding) (586) (28) (1,097) (966)
Loan to Thorold CoGen LP (3,493) (2,777) (12,014) (4,112)
Restructuring fee - - - -
Thorold CoGen LP
financing and
commitment fees - 675 1,362 1,165
Receipts of principal
on Panda senior loan 735 - 2,914 2,701
Purchase of property,
plant and equipment (56) (15) (105) (147)
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Cash (used in) provided
by investing activities (3,400) (2,145) (8,940) (1,359)
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Financing activities
Repayment of Mont
Miller term loan (277) (237) (1,108) (951)
Bank Indebtedness - (1,765) - -
Repayment of KCLP term loans - (4,293) (8,538) (8,008)
Credit facility decrease - - - (5,000)
Distributions to Unitholders (16,835) (16,835) (67,341) (68,423)
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Cash used in
financing activities (17,112) (23,130) (76,987) (82,382)
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Effect of exchange rate
differences on cash and
cash equivalents 307 59 369 (119)
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Net change in cash
and cash equivalents 350 8,613 17,201 14,827
Cash and cash equivalents,
beginning of the period 45,162 19,698 28,311 13,484
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Cash and cash equivalents
end of period $45,512 $28,311 $45,512 $28,311
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PER UNIT
Distributions declared
to Unitholders $0.3100 $0.2700 $1.1200 $0.8100

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NORTHLAND POWER INCOME FUND
DISTRIBUTIONS TO UNITHOLDERS AND DISTRIBUTABLE CASH
(stated in thousands except per unit amounts)

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3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
(unaudited, stated in
thousands except
per unit amounts) 2008 2007 2008 2007
---------------------------------------------------------------------------
Cash provided by
operating activities $20,555 $33,829 $ 102,759 $98,687
Capital expenditures (56) (15) (105) (147)
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Standardized
distributable cash $20,499 $33,814 $ 102,654 $98,540
Northland Power Income
Fund adjustments:
Net change in non-cash
working capital balances
related to operations 850 - (11,253) (1,509)
Scheduled receipts of
principal on Panda
senior loan 735 675 2,914 2,701
PEC restructuring fee - - 1,362 -
Thorold CoGen LP financing
and commitment fees - - - 1,165
Scheduled repayment of Mont
Miller term loan (277) (237) (1,108) (951)
Scheduled repayment of
KCLP term loans - (4,293) (8,538) (8,008)
KCLP cash reserve funding (586) (28) (1,097) (966)
Funds set aside for
future maintenance (23) (23) (101) (90)
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Distributable cash $21,198 $29,908 $84,833 $90,882

Distributions paid
to Unitholders $16,835 $16,835 $67,341 $68,423

Standardized distributable
cash payout ratio 82% 50% 66% 69%
Distributable cash payout
ratio 79% 56% 79% 75%
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Cumulative - since inception
Standardized distributable
cash $461,965 $359,311
Distributable cash $563,407 $478,574
Distributions paid
to Unitholders $501,322 $433,981
Standardized distributable
cash payout ratio 109% 121%
Distributable cash
payout ratio 89% 91%
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Average number of trust
units - basic (thousands of
units) 62,353 62,352 62,353 62,345
Average number of trust
units - fully diluted
(thousands of units) 65,224 64,815 65,224 62,345
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Per unit ($/unit)
Standardized distributable
cash - basic $0.3288 $0.5423 $1.6463 $1.5806
Standardized distributable
cash - fully diluted $0.3143 $0.5217 $1.5739 $1.5806
Distributable cash - basic $0.3400 $0.4797 $1.3605 $1.4577
Distributable cash
- fully diluted $0.3250 $0.4614 $1.3006 $1.4577
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NORTHLAND POWER INCOME FUND
Supplemental Facility Information
(unaudited, stated in thousands except per unit amounts)

Iroquois Falls Facility
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3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
(in thousands of dollars
except as indicated) 2008 2007 2008 2007
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Sales Volume
Electricity (MWh) 183,593 202,963 689,021 713,687
Steam (000 lb.) 259,021 293,001 995,195 1,075,154
Fuel Consumption (000 GJs) 1,695 1,861 6,457 6,685


Sales
Electricity 18,672 20,134 68,857 68,469
Steam 1,909 1,794 7,157 6,800
Natural gas 1,238 227 7,406 4,064
Emission allowances
and credits - - 116 -
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21,819 22,155 83,536 79,333

Cost of sales
Gas consumed 8,477 8,598 31,842 30,157
Gas re-sold 1,301 252 7,439 4,168
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9,778 8,850 39,281 34,325

Gross profit 12,041 13,305 44,255 45,008
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Plant operating costs 2,382 1,845 7,393 6,575
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Capital expenditures 57 15 106 139
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NORTHLAND POWER INCOME FUND
Supplemental Facility Information
(unaudited, stated in thousands except per unit amounts)


Kingston Facility
---------------------------------------------------------------------------
3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
(in thousands of dollars
except as indicated) 2008 2007 2008 2007
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Sales Volume
Electricity (MWh) 109,902 133,547 434,057 489,976
Steam (000 lb.) 63,535 73,452 259,265 283,158
Fuel consumption (000 GJs) 976 1,263 4,141 4,659

Sales
Electricity 16,849 17,060 64,854 65,007
Steam 510 531 1,774 1,747
Natural gas 6,958 4,875 27,215 22,536
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24,317 22,466 93,843 89,290

Cost of sales
Gas consumed 8,101 7,964 31,367 30,148
Gas re-sold 2,885 2,078 11,346 9,459
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10,986 10,042 42,713 39,607

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Gross profit 13,331 12,424 51,130 49,683
---------------------------------------------------------------------------

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Plant operating costs 1,468 1,543 6,030 6,343
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Capital expenditures - - - -
---------------------------------------------------------------------------


Mont Miller Facility
---------------------------------------------------------------------------
3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
(in thousands of dollars
except as indicated) 2008 2007 2008 2007
---------------------------------------------------------------------------

Sales Volume
Electricity (MWh) 47,100 44,995 153,136 168,402

Sales
Electricity 2,993 2,820 9,672 10,482
---------------------------------------------------------------------------
2,993 2,820 9,672 10,482

---------------------------------------------------------------------------
Gross profit 2,993 2,820 9,672 10,482
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Plant operating costs 478 549 1,879 2,074
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Capital expenditures - - - 8
---------------------------------------------------------------------------




NORTHLAND POWER INCOME FUND
Supplemental Facility Information
(unaudited, stated in thousands except per unit amounts)


Germany Facility
---------------------------------------------------------------------------
3 Months Ended 12 Months Ended
Dec. 31 Dec. 31
(in thousands of dollars
except as indicated) 2008 2007 2008 2007
---------------------------------------------------------------------------

Sales Volume
Electricity (MWh) 9,376 9,136 35,331 38,358

Sales
Electricity 1,452 1,187 5,109 5,189
---------------------------------------------------------------------------
1,452 1,187 5,109 5,189

---------------------------------------------------------------------------
Gross profit 1,452 1,187 5,109 5,189
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Plant operating costs 361 351 1,091 950
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Capital expenditures - - - -
---------------------------------------------------------------------------

Investment Income
---------------------------------------------------------------------------
3 months ended Dec. 31 12 months ended Dec. 31
(in thousands of dollars) 2008 2007 2008 2007
---------------------------------------------------------------------------

Panda Energy
Corporation ("PEC"):
Dividends 233 55 8,228 815
Interest income 2,379 1,837 8,074 8,002
---------------------------------------------------------------------------
2,612 1,892 16,302 8,817
Thorold CoGen LP
interest and fees 539 121 1,384 164
Jardin d'Eole fees 173 - 422 -
---------------------------------------------------------------------------
Total investment income 3,324 2,013 18,108 8,981
---------------------------------------------------------------------------


Contact Information

  • Northland Power Income Fund Management Inc.
    Barb Bokla
    Manager, Investor Relations
    (416) 962-6262 x156
    (416) 962-6266 (FAX)
    or
    Northland Power Income Fund Management Inc.
    Boris Balan
    Director of Communications
    (416) 962-6262 x116
    (416) 962-6266 (FAX)
    Email: info@NPIFund.com
    Website: www.NPIFund.com