Emera Increases Investment in Algonquin Power & Utilities Corp.

Emera has agreed not to acquire any additional securities of Algonquin except in accordance with such agreements.

HALIFAX, Nova Scotia--Emera Inc. (TSX: EMA) announced today that it has exchanged certain previously acquired subscription receipts into 4.790 million common shares of Algonquin Power & Utilities Corp. ("Algonquin") (TSX: AQN), at a price of C$4.72 per common share.


The subscription receipts were acquired on September 12, 2011, in connection with the previously announced sale to Algonquin of the 49.999% interest held by Emera in California Pacific Electric Company, LLC ("Calpeco"). The Calpeco sale was completed on December 21, 2012.

In addition to the 4.790 million common shares acquired today, Emera owns 30.114 million previously acquired common shares of Algonquin, representing a current ownership position of 34.903 million common shares or approximately 19.9% of Algonquin's issued and outstanding shares.

In addition to the 34.903 million common shares Emera currently holds, Emera holds 3.421 million subscription receipts (the "Calpeco Subscription Receipts (Second Tranche)") which are exchangeable for additional common shares in connection with the Calpeco sale. The Calpeco Subscription Receipts (Second Tranche) are exchangeable for common shares of Algonquin on a one-for-one basis following completion of Calpeco's first rate case, which is expected to be completed in 2013.

Emera also holds 7.842 million subscription receipts at a purchase price of $5.74 per receipt (the "2012 Subscription Receipts"), in connection with the previously announced acquisition by Algonquin's power generation subsidiary of a 51% interest in a 480 MW U.S. wind power portfolio.

In the event that all of the 7.842 million common shares that may be issued pursuant to the 2012 Subscription Receipts and the 3.421 million common shares issuable pursuant to the Calpeco Subscription Receipts (Second Tranche) are issued, together with the 34.903 million common shares currently held by Emera, Emera would own approximately 24.8% of Algonquin's issued and outstanding shares. The acquisition of Algonquin shares is subject to regulatory approval from the Maine Public Utilities Commission ("MPUC"), which has limited Emera's ownership in Algonquin to 20%, with additional investment requiring specific approval. On June 25, 2012, Emera requested MPUC approval to increase its ownership in Algonquin to 25%.

The common shares acquired today have been acquired for investment purposes only. Emera has no intention of acquiring control of Algonquin. Depending upon relevant economic, market or business conditions prevailing from time to time, Emera may determine to acquire or to dispose of common shares of Algonquin in TSX traded or privately negotiated transactions or otherwise. Under certain agreements previously entered into with Algonquin, Emera has agreed not to acquire any additional securities of Algonquin except in accordance with such agreements.

About Emera

Emera Inc. is an energy and services company with $7.4 billion in assets and 2011 revenues of $2.1 billion. The company invests in electricity generation, transmission and distribution, as well as gas transmission and utility energy services. Emera's strategy is focused on the transformation of the electricity industry to cleaner generation and the delivery of that clean energy to market. Emera has interests throughout northeastern North America and in three Caribbean countries. More than 80% of the company's earnings come from regulated investments. Emera common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, and EMA.PR.C. Additional information can be accessed at www.emera.com or at www.sedar.com.

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