North American Windpower: CPIF Receives Production Incentive Increase

by NAW Staff on Thursday 12 April 2007

The Clean Power Income Fund (CPIF), a trust that has invested in wind farms in both Canada and the U.S., has reached an agreement with the Department of Natural Resources regarding the fund's Erie Shores Wind Farm's eligibility to receive an increase in wind power production incentive (WPPI) payments of C$2 to C$10 per MWh. The WPPI payment is provided by the federal government in support of the development of renewable energy projects under Canada's new ecoEnergy renewable power program.

The payment is a component of the contingency value receipt (CVR) outlined in the take-over offer by Algonquin Power Income Fund. The Algonquin Power Income Fund represents the right by unit holders of CPIF to receive 80% of the balance (after deduction of all claims and costs) of both the US$7.593 million reserve fund established by CPIF for claims made in connection with the sale of Gas Recovery Systems LLC and C$3.436 million in the event the Erie Shores Wind Farm qualifies for an increase in WPPI payments of C$2/MWh. In respect to the WPPI payment component of the CVR, holders of the CVRs will receive a cash payment - after deductions - of approximately C$0.07 per unit, to be paid following receipt of the first payment of the increased WPPI from Natural Resources Canada.

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