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• Like NextEra Energy, but with a broader portfolio of regulated utilities that includes electric, natural gas, and water, alongside its renewable energy generation.
• Similar to a large utility like Duke Energy or Southern Company, but with a stronger focus on developing and acquiring renewable energy projects.
• Think of it as a diversified utility like Dominion Energy, but with an even more pronounced shift towards renewable power generation.

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• Renewable Energy Generation: Produces electricity from sustainable sources, primarily wind, solar, and hydro, for sale to utilities and industrial customers.
• Electric Utility Services: Provides generation, transmission, and distribution of electricity to residential, commercial, and industrial customers within regulated service territories.
• Natural Gas Utility Services: Distributes natural gas to residential, commercial, and industrial customers within regulated service territories.
• Water and Wastewater Utility Services: Delivers potable water and provides wastewater collection and treatment services to residential, commercial, and industrial customers within regulated service territories.

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Algonquin Power & Utilities (AQN) operates a diversified business with two primary segments: Regulated Utilities and Renewable Energy. While its Renewable Energy segment sells power under long-term contracts to other utility companies or large industrial off-takers, its Regulated Utility segment directly provides electric, natural gas, and water distribution services to approximately 1.2 million customer connections in the U.S. and Canada.

Given that a significant portion of its business involves direct sales to end-users via its regulated utility operations, Algonquin Power & Utilities primarily serves the following categories of customers:

• Residential Customers: Individual households and private residences that consume electricity, natural gas, and water for personal use. These customers form a large base for the company's utility services.
• Commercial Customers: Businesses, offices, retail establishments, and institutions (such as schools and hospitals) that utilize utility services for their operations. This category includes a wide range of small to large commercial enterprises.
• Industrial Customers: Large-scale manufacturing facilities, factories, and other industrial operations that require substantial amounts of electricity, natural gas, and water for their production processes. These customers typically have high energy demands.

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• Siemens Energy AG (Frankfurt: ENR.DE) - Major supplier of wind turbines through its Siemens Gamesa Renewable Energy subsidiary for AQN's wind power projects.
• First Solar, Inc. (NASDAQ: FSLR) - Major supplier of solar panels for AQN's solar power projects.
• Mortenson Construction - Major Engineering, Procurement, and Construction (EPC) contractor for AQN's renewable energy projects (private company).
• TC Energy Corporation (NYSE: TRP) - Major supplier of natural gas and/or natural gas transportation services for AQN's regulated natural gas utilities.
• Enbridge Inc. (NYSE: ENB) - Major supplier of natural gas and/or natural gas transportation services for AQN's regulated natural gas utilities.

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Rod West, Chief Executive Officer
Rod West became the Chief Executive Officer of Algonquin Power & Utilities Corp. on March 7, 2025. Prior to joining Algonquin, Mr. West had a distinguished 25-year career at Entergy Corp., where he most recently served as Group President of Utility Operations, overseeing the operational and financial performance of its five operating companies. His responsibilities at Entergy included electric and natural gas distribution, customer service operations, engagement with federal, state, and local regulators, shared services functions, and regulated retail commercial development and innovation. Notably, he led Entergy New Orleans' rebuilding efforts after Hurricane Katrina. Mr. West was also involved in transitioning Entergy from a hybrid power generator to a pure-play utility operator. He previously held roles as Executive Vice President and Chief Administrative Officer at Entergy from 2010-2017, and as President and CEO of Entergy New Orleans from 2007-2010.

Robert J. Stefani, Chief Financial Officer (effective January 5, 2026)
Robert J. Stefani is appointed as the Chief Financial Officer, effective January 5, 2026. He joins Algonquin from Southwest Gas Holdings, Inc., where he served as Senior Vice President and Chief Financial Officer for three years. During his tenure at Southwest Gas, he was instrumental in transforming the company into a fully regulated natural gas business through significant financial transactions, including the $1.5 billion divestiture of the MountainWest pipeline, the initial public offering of Centuri Holdings, Inc., and subsequent secondary sell-downs and private placements of Centuri stock leading to a full exit from Centuri. Before Southwest Gas, Mr. Stefani spent four years as Senior Vice President, Chief Financial Officer, and Treasurer at PECO Energy, an Exelon Corporation subsidiary, where he managed a substantial annual budget, led financial strategy, and managed capital markets activity. His career also includes leadership roles in corporate development and M&A at Exelon, where he executed transactions such as the $6.8 billion acquisition of Pepco Holdings. He also held strategic investment roles at Caterpillar Inc. and investment banking positions at Marathon Capital and Citigroup, specializing in the energy and industrial sectors. Mr. Stefani began his career as an officer in the United States Navy.

Brian Chin, Interim Chief Financial Officer
Brian Chin serves as the Interim Chief Financial Officer, a role he assumed effective March 7, 2025. He will continue in this capacity until Robert J. Stefani's arrival in January 2026, after which he will remain with the company as a key investor-facing leader. Mr. Chin joined Algonquin in 2021 and brings over two decades of utilities experience. His expertise includes senior executive positions at Algonquin and American Water Works, where he headed Investor Relations, Treasury, and Strategic Financial Planning. He also served as a lead utility equity analyst at Bank of America Merrill Lynch and Citigroup, and previously worked in Audit at KPMG.

Jennifer Tindale, Chief Legal Officer
Jennifer Tindale is the Chief Legal Officer and Secretary of Algonquin Power & Utilities Corp. She has held this position since 2017. Prior to joining Algonquin, Ms. Tindale was Executive Vice President, General Counsel, and Secretary at Granite, a cross-listed Real Estate Investment Trust, from July 2011 to February 2017. She also served as Vice President, Associate General Counsel, and Corporate Secretary at Biovail Corporation from June 2006 to October 2010. Earlier in her career, she was a Partner at Blake, Cassels and Graydon LLP from May 1995 to June 2006.

Noel Black, Chief Regulatory and External Affairs Officer
Noel Black was appointed Chief Regulatory and External Affairs Officer, effective June 30, 2025. In this newly created role, Mr. Black is responsible for leading the company's regulatory strategy, government and stakeholder relations, and external communications functions. He reports directly to the Chief Executive Officer. Mr. Black brings over three decades of experience in the utility sector, having most recently served as Senior Vice President of Federal Regulatory Affairs at Southern Company, one of the largest U.S. utilities. Throughout his career at Southern Company and its affiliates, he held a wide range of leadership roles across regulatory policy, governmental affairs, and strategic planning. His expertise includes navigating complex federal and state regulatory matters and building relationships with policymakers, communities, and customers.

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The key risks to Algonquin Power & Utilities (AQN) are:

1. Regulatory Delays and Adverse Outcomes: Algonquin Power & Utilities operates across numerous jurisdictions (17 different regulatory agencies in 13 U.S. states, one Canadian province, Bermuda, and Chile), exposing it to significant regulatory lag and complexity. Delays in rate case approvals can impact cash flow and cost recovery, while customer service issues, such as those seen in Missouri, can negatively influence regulatory decisions and potentially lead to fines or credits. The company's core business is highly dependent on favorable and timely regulatory outcomes.
2. High Debt Load and Dividend Sustainability: Despite efforts to deleverage through asset sales, AQN maintains a significant debt load. The company's dividend sustainability has been a concern, evidenced by a high payout ratio that raises questions about its long-term viability without further asset sales or substantial earnings growth. While the company aims to fund capital expenditures through debt and retained earnings without new common equity issuance through 2027, the overall debt level and associated interest payments remain a key financial risk.
3. Execution Risk of Strategic Transition: Algonquin is undergoing a major strategic shift to focus exclusively on regulated utilities, having divested its renewable energy business. While this "Back to Basics" plan aims for more stable revenue and a deleveraged balance sheet, it removes a high-growth component from its portfolio, potentially limiting upside in a decarbonizing world. The success of this transition hinges on the company's ability to deliver consistent earnings growth in a low-margin utility environment through grid modernization, regulatory rate increases, and operational efficiency.

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Proliferation of Distributed Energy Resources (DERs) and Grid Defection: As the costs of residential and commercial solar generation and battery storage continue to decline, there is an increasing risk that utility customers will generate a larger portion of their own electricity and reduce their reliance on grid-supplied power. This trend threatens to decrease the volumetric sales and load growth for Algonquin's regulated electric utilities, potentially impacting their traditional revenue streams and requiring significant adjustments to rate structures and business models to maintain grid viability and cost recovery. While not full grid defection, reduced consumption impacts regulated asset utilization and profitability.

Sustained Regulatory and Operational Execution Challenges: Algonquin Power & Utilities has faced a period of significant and ongoing regulatory scrutiny, project execution issues, and leadership transitions. These challenges, including cost overruns, unfavorable regulatory outcomes in certain jurisdictions (e.g., Kansas), and investor concerns regarding management stability and strategic direction, pose an emerging threat to the company's ability to secure timely rate approvals, achieve projected rate base growth, and maintain investor confidence. A prolonged period of these specific internal and external headwinds can increase the cost of capital and constrain the company's financial flexibility and growth prospects.

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Algonquin Power & Utilities Corp. (AQN) primarily operates in two main segments: Regulated Services and Renewable Energy, though it is strategically transitioning to focus solely on regulated utility operations. The company provides regulated electricity, natural gas, and water distribution utility services, largely across North America, Bermuda, and Chile. AQN's renewable energy segment focuses on power generation facilities, including hydroelectric, wind, solar, and thermal, but it is in the process of divesting its non-hydro renewable energy assets, retaining its Canadian hydroelectric facilities.

Addressable Markets for Algonquin Power & Utilities (AQN) Main Products and Services:

• Regulated Electricity Utilities
  • United States: The U.S. power market, which includes generation, transmission, distribution, and sale of electricity, was valued at approximately USD 363.6 billion in 2024 and is projected to reach USD 517 billion by 2032, with a compound annual growth rate (CAGR) of 4.5% from 2026 to 2032. A significant portion of this market operates under a traditional regulated model where a single utility handles all aspects of electricity provision.
  • Canada: The Canada power market, in terms of installed base, is expected to grow from 158.34 gigawatts in 2025 to 189 gigawatts by 2030, at a CAGR of 3.60%. Many Canadian provinces have large government-owned integrated public utilities playing a leading role in the generation, transmission, and distribution of electricity.
  • Bermuda: null
  • Chile: null
• Regulated Natural Gas Utilities
  • United States: The U.S. natural gas distribution market was valued at USD 170.0 billion in 2024 and is expected to increase to USD 186.0 billion by 2032, growing at a CAGR of 1.0% between 2025 and 2032. The broader U.S. natural gas market was valued at USD 454.5 billion in 2024 and is projected to reach USD 577.9 billion by 2032, at a CAGR of 3.2% from 2025 to 2032.
  • Canada: The market size of the Natural Gas Distribution industry in Canada is estimated at $17.1 billion in 2025, having grown at a CAGR of 2.3% over the past five years.
  • Bermuda: null
  • Chile: null
• Regulated Water and Wastewater Utilities
  • United States: The U.S. water utilities industry recorded revenues of $563.7 billion in 2024, representing a CAGR of 7.4% between 2019 and 2024. Investor-owned utilities currently serve approximately 5% of the U.S. population in this fragmented landscape. The global water utility services market was valued at around USD 72.86 billion in 2024 and is projected to reach approximately USD 108.37 billion by 2034, with North America holding a major share.
  • Canada: The market size of the Water Supply & Irrigation Systems industry in Canada is $7.8 billion in 2025. The Canada Water and Wastewater Treatment Market is anticipated to hold a significant share by 2033, growing at a CAGR of 6.5% from 2023 to 2033.
  • Bermuda: null
  • Chile: null
• Hydroelectric Generation Facilities
  • Canada: Renewables, including hydroelectricity, supplied 81% of Canada's installed power capacity in 2024. Hydroelectricity accounted for 60% of all electric generation in Canada in 2018. While a specific market size for "hydroelectric generation" in Canada is not readily available as a standalone figure, its contribution is substantial within the broader Canadian power market.

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Algonquin Power & Utilities Corp. (AQN) is focusing on its regulated utility businesses following the sale of its non-regulated renewable energy assets. The expected drivers of future revenue growth for AQN over the next 2-3 years primarily stem from its "Back to Basics" strategy, concentrating on its core regulated operations.

Here are 4 expected drivers of future revenue growth:

1. Increased Capital Expenditures and Rate Base Growth: Algonquin Power & Utilities plans significant capital investments of approximately $2.5 billion from 2025 to 2027 to enhance its regulated electric, natural gas, and water utility infrastructure. These investments are projected to expand the company's rate base, aiming for approximately $9.1 billion by the end of 2027, up from less than $8 billion in 2024, which directly underpins future revenue generation in its regulated segments.
2. Favorable Regulatory Outcomes and Rate Case Settlements: A key driver of revenue growth for regulated utilities like AQN is the successful negotiation and approval of rate cases. Positive outcomes in these regulatory proceedings allow the company to implement new rates, contributing to increased net earnings in its Regulated Services Group. Several rate cases are currently pending, with successful settlements expected to bolster revenue in the near term.
3. Strategic Transmission Infrastructure Development: Algonquin is undertaking substantial investments in transmission projects, notably an allocation of $750 million to $800 million for strengthening the Empire District Electric service area within the Southwest Power Pool. These large-scale infrastructure projects expand the asset base on which the company can earn a regulated return, thereby driving future revenue growth.
4. Organic Customer Growth and Demand in Regulated Territories: As a pure-play regulated utility, Algonquin serves over 1 million customer connections across North America. Future revenue will be influenced by organic growth in its customer base and increasing demand for electricity, natural gas, and water services within its existing regulated service territories, supported by the company's focus on customer-centric operations and operational efficiency.

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Share Issuance

• In July 2020, Algonquin Power & Utilities Corp. completed a bought deal public offering and a concurrent direct registered offering, selling 57,465,500 common shares for total gross proceeds of $983 million.
• In June 2021, AQN priced an upsized underwritten public offering of 20,000,000 equity units for total gross proceeds of $1 billion.
• An Employee Share Purchase Plan (ESPP) saw 4,061,597 common shares issued as of March 31, 2025. The company does not expect a need for common equity financings through 2027.

Outbound Investments

• In 2020, AQN completed the acquisitions of two international utilities, ESSAL in Chile and Ascendant in Bermuda.
• In 2021, AQN completed the acquisition of the North Fork Ridge, Kings Point, and Neosho Ridge Wind Facilities, adding 600 MW of new wind energy generation.
• Algonquin completed the acquisition of New York American Water Company, Inc. (renamed Liberty Utilities (New York Water) Corp.) for approximately $609 million, effective January 1, 2022.
• In December 2024, AQN completed the sale of its 42.2% ownership stake in Atlantica Sustainable Infrastructure plc, with net proceeds intended for debt reduction.
• On January 8, 2025, AQN completed the sale of its non-regulated renewable energy business (excluding its hydro fleet) to a wholly-owned subsidiary of LS Power. This sale was for $2.5 billion.

Capital Expenditures

• Algonquin's capital expenditures were $786 million in 2020, peaked at $1.345 billion in 2021, and decreased to $872.4 million in 2024.
• The company expects approximately $2.5 billion in utility capital expenditures for 2025-2027, with a focus on organic capital investment, improving customer experience, driving operational efficiencies, and achieving constructive regulatory outcomes.
• A five-year capital expenditure plan from 2022 through 2026 was announced for $12.4 billion, with approximately 70% allocated to the Regulated Services Group and 30% to the Renewable Energy Group.