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Abstract
Innergex Power Income Fund (TSX:IEF.UN)(the "Fund") announced today that it has reached an agreement with Innergex II Income Fund ("Innergex II") to acquire the Rutherford Creek hydroelectric power station located in British Columbia for a total consideration of $100.4 million from Innergex II and the other owners of the facility. This acquisition is subject to usual closing conditions for transactions of this nature, including regulatory and third parties approvals. Upon closing of the acquisition, the Fund expects that the acquisition will be immediately accretive to the distributable cash per unit. The Fund has authorized an increase in monthly cash distribution per Trust Unit equivalent to $0.02 per annum effective as of the first day of the month following the closing of the Rutherford Creek acquisition.
"The acquisition of the Rutherford Creek power station is in keeping with the Fund's strategy to maintain and increase its distributable cash per unit. The qualities of the facility and of its long-term PPA with British Columbia Hydro and Power Authority, as well as the addition of an eighth watershed are expected to reinforce the Fund's long-term stability. In addition, this acquisition shows the successful business relationship between Innergex Power Income Fund and Innergex II", remarked Gilles Lefrancois, President and Chief Executive Officer of Innergex Management Inc., the Manager of the Fund.