MW Coast Mountain Power Corp

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


Northland Power Income Fund ("Northland Power" or the "Fund'") (TSX:NPI.UN)
announced today that Northland Power Preferred Equity Inc. (the "Corporation"),
an indirect wholly-owned subsidiary of the Fund, will issue in Canada a total of
4 million Cumulative Rate Reset Preferred Shares, Series 1 (the "Series 1
Preferred Shares") guaranteed by the Fund, at a price of $25.00 per share, for
aggregate gross proceeds of $100 million, on a bought deal basis to a syndicate
of underwriters in Canada led by CIBC.


The holders of Series 1 Preferred Shares will be entitled to receive fixed
cumulative dividends at an annual rate of $1.3125 per share, payable quarterly,
as and when declared by the Board of Directors of the Corporation. The Series 1
Preferred Shares will yield 5.25% annually at the issue price, for the initial
five-year period ending September 30, 2015 with the first dividend payment date
scheduled for September 30, 2010, based on an anticipated closing date of July
28, 2010. The dividend rate will reset on September 30, 2015 and every five
years thereafter at a rate equal to the then five-year Government of Canada Bond
yield plus 2.80%. The Series 1 Preferred Shares are redeemable on or after
September 30, 2015.


The holders of Series 1 Preferred Shares will have the right to convert their
shares into Cumulative Floating Rate Preferred Shares, Series 2 (the "Series 2
Preferred Shares"), subject to certain conditions, on September 30, 2015 and on
September 30 of every fifth year thereafter. The holders of Series 2 Preferred
Shares will be entitled to receive quarterly floating rate cumulative dividends,
as and when declared by the Board of Directors, at a rate equal to the then
three month Government of Canada Treasury Bill yield plus 2.80%.


The Corporation has granted the underwriters an over-allotment option
exercisable up to 30 days after closing to purchase up to an additional 600,000
Series 1 Preferred Shares at the issue price on the same terms, for additional
gross proceeds of up to $15 million.


The Corporation intends to lend the net proceeds of the offering to NPIF
Holdings L.P., a subsidiary of the Fund, which will use the funds in the
construction of advanced development projects of the Fund, to repay certain debt
and for general corporate purposes.


The Fund's proposed conversion to a corporation has received unitholder approval
and the approval of the Ontario Superior Court of Justice and is expected to be
completed on January 1, 2011. Under the terms of the conversion as approved, the
Corporation will amalgamate with the successor of the Fund and the Series 1
Preferred Shares will become an equal number of preferred shares having the same
attributes as the successor to the Fund, which will be called "Northland Power
Inc.". If the Corporation does not amalgamate with, or otherwise become, the
successor, the successor entity will assume all the obligations of the Fund
under the guarantee of the Series 1 and Series 2 Preferred Shares.


The Series 1 and Series 2 Preferred Shares will be offered to the public in
Canada pursuant to a short form prospectus that will be filed with securities
regulatory authorities in each of the provinces of Canada. The securities
referred to herein have not been and will not be registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements.


This news release does not constitute an offer to sell or the solicitation of
any offer to buy, nor will there be any sale of these securities, in any
province, state or jurisdiction in which such offer, solicitation or sale would
be unlawful prior to the registration or qualification under the securities laws
of any such province, state or jurisdiction.


ABOUT THE FUND

Northland is a Canadian income trust that has ownership or economic interests in
10 power projects totaling over 1,100 megawatts ("MW") (net 872 MW). Northland's
assets comprise natural-gas-fired plants which efficiently and cleanly produce
electricity and steam as well as facilities generating renewable energy from
wind and biomass. Sales are made almost entirely under long-term contracts with
a current average duration of 13 years. Northland's plants are located in
Canada, the United States and Germany. In addition, Northland has the 86 MW Spy
Hill project, 260 MW North Battleford project and 216 MW of wind, solar and
run-of-river hydro projects awarded under the Ontario Power Authority's
Feed-in-Tariff program in advanced stages of development. Northland also has a
diverse development portfolio of high-quality 'Clean and Green' energy projects,
including wind, solar, natural gas, and hydro assets that supports its strategy
of sustainable growth primarily through internally developed opportunities. The
Fund's trust units and two series of convertible debentures, which trade on the
Toronto Stock Exchange under the symbols NPI.UN, NPI.DB and NPI.DB.A
respectively, are qualified investments for RRSPs and DPSPs under the Income Tax
Act (Canada). The Fund has in place a distribution re-investment plan that
allows its 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 management'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 2009 annual report and the Fund's Annual
Information Form dated March 31, 2010 certain of which are beyond management'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 its unitholders will derive therefrom.


The forward-looking statements contained in this news 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.

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