Wind deal looks like a winner

Article Excerpt

ALGONQUIN POWER & UTILITIES CORP. $10.09 (Toronto symbol AQN; Shares outstanding: 240.5 million; Market cap: $2.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.0%; www.algonquinpower.com) has agreed to jointly develop the 150-megawatt Deerfield wind project in central Michigan with Renewable Energy Systems Americas Inc. In all, Deerfield will cost $303 million U.S. to build. Wind farms are often risky because they rely on uncertain government subsidies. However, Algonquin only invests in renewable energy projects that have presold their power under long-term guaranteed contracts. Deerfield already has a 20-year power purchase agreement in place with a local electric utility serving 260,000 customers in Michigan. Algonquin Power & Utilities is still a buy. buy…