2. Forward Looking Statements
Certain written and oral statements contained in this presentation and information release are forward-
looking within the meaning of certain securities laws and reflect the views of Algonquin Power & Utilities
Corp. (the “Company”) and its manager with respect to future events, based upon assumptions relating
to,
to among others the performance of the Company's assets, the business realities facing the Company
others, assets Company,
the impact of laws and regulations and the state of financial and credit markets. These forward looking
statements include, among others, statements with respect to the expected performance of the
Company, its future plans and its dividends to shareholders. Statements containing expressions such as
"believes", "anticipates", "continues", "could", "expect", "may", "will", "project", "estimates", "intend",
"plan" and similar expressions generally constitute forward-looking statements.
Since forward-looking statements relate to future events and conditions, by their very nature they require
us to make assumptions and involve inherent risks and uncertainties. We caution that although we
believe our assumptions are reasonable in the circumstances these risks and uncertainties give rise to
circumstances,
the possibility that our actual results may differ materially from the expectations set out in the forward-
looking statements. Material risk factors include the continued volatility of world financial markets; the
impact of movements in exchange rates and interest rates; the effects of changes in environmental and
other laws and regulatory policy applicable to the energy and utilities sectors; decisions taken by
regulators on monetary policy and taxation; and the state of the Canadian and the US economy and
accompanying business climate. We caution that this list is not exhaustive, and other factors could
adversely affect our results. Given these risks, undue reliance should not be placed on these forward-
looking statements, which apply only as of their dates. Except as required by law, the Company and its
manager do not intend to update or revise any forward-looking statements, whether as a result of new
forward looking
information, future developments or otherwise.
2
3. Agenda
Corporate Organization
Business Strategy
Overview and History
Recent Developments
Recent Acquisitions
Our Businesses
Algonquin Power Co.
Liberty Water Co
Co.
Liberty Electric Co.
Financial Information
Performance
Capital Structure
Credit Facilities
Analyst Targets
Algonquin Power Positioned for Growth
3
4. Corporate Organization
Algonquin Power & Utilities Corp.
A Sustainable Power and Utilities Company
Liberty Electric
Renewable focused
portfolio of
tf li f Stable d
St bl and predictable
di t bl Stable d
St bl and predictable
di t bl
independent power earnings from earnings from
projects providing regulated water and regulated electric
attractive absolute wastewater utilities distribution utilities
returns
80 % EBITDA 20 % EBITDA nil % EBITDA
60% by 2H 2010 20% by 2H 2010 20% by 2H 2010
50% Canada / 50% US 100% US 100% US
4
5. Business Strategy
Under the new dividend paying, growth oriented corporate
structure Algonquin will strive to:
g q
Maximize long term shareholder value
Deliver t t l shareholder return th
D li total h h ld t through
h
dividends and capital appreciation
Focus on growth in earnings and dividend
growth based on increasing earnings
Medium-term planning horizon targets future
annualized per share earnings growth
exceeding 5%
5
6. Overview and History
One of the largest Canadian renewable power and utility companies with
more than 480 MW of generation and 70,000+ utility customers
EBITDA of $80 million annually
Enterprise value grown from $100 million to $800 million
Traded
T d d on th T
the Toronto Stock Exchange:
t St k E h
AQN, AQN.DB, AQN.DB.A, AQN.DB.B
1988 1997
199 2009
Private Hydro Algonquin Power Algonquin Power
Development Co
Co. IPO
Income Fund & Utilities Corp.
Corp
Algonquin Power Co.: 22 years
Liberty Water: Nine years
Liberty Electric: One year
6
7. Recent Developments
Red Lily Wind Project – Phase 1
26.4MW wind project near Moosomin, Saskatchewan consisting of 16 Vestas V82 wind turbine
generators (WTG)–expected capacity factor of 38.1%
Target COD early 2011. All electricity sold to SaskPower under a 25 y PPA with annual escalation of 2%
g y y yr
APCo providing $17.5 million in debt and will provide development and construction oversight services -
~2.5MM in 2010, and operations and management oversight under 25 year agreement
Option to subscribe for a 75% equity interest in the project in exchange for its subordinated debt
commitment, exercisable in 2016.
Water Utility Acquisition – Galveston
Water distribution and waste water collection utility near Galveston, TX serving approximately 260
connections (expaning to 470 connections)
Assets include lift stations, pumping equipment, storage tanks, pressure tanks, a supplemental water
chlorination system and water distribution and wastewater collection lines
Purchase price for the system is US$2,000,000, representing a rate base multiple of 1.0x.
Strategic Partnership with Emera
Emera agreed to a treasury subscription of approximately 8.5 million shares for gross proceeds of ~$27
million - Closing concurrent with CalPeco closing in latter half of 2010
Strengthens Algonquin’s low-risk utility infrastructure portfolio at an attractive valuation and leverages
Emera s long term
Emera’s long-term utility expertise
Positions Emera to increase renewable energy holdings in North America and leverages Algonquin’s
renewable energy operation and development expertise
7
8. Recent Acquisitions
Eastern Canada/US Hydroelectric Facilities
Transaction closed January 12, 2010
37 MW hydroelectric generating capacity in Maine and
New Brunswick
New Brunswick Public Utilities Board regulated
transmission lines
Long operating life, experienced management, long-term
long term
employees
Expands Algonquin’s geographical diversification
Allows access to multiple electricity markets
California Pacific Electric Company (CalPeco)
Local Electrical Distribution Company
Closing expected in Q3 2010
CPUC regulated utility serving Lake Tahoe, CA area
More than 47,000 customers in 7 counties
Well maintained assets including 12 MW generation
Strong customer/rate base and a supportive regulatory
environment
Strong economy provides for additional growth in rate base
To be jointly owned with Emera: 50%/50%
8
9. Renewable and Clean Energy
Generates attractive returns and strong cash flow from renewable
and clean energy g
gy generation facilities while delivering g
g growth from
an expanding pipeline of renewable power projects
Clean, renewable assets producing environmentally acceptable
electricity sourced from water, wind, natural gas, and municipal
solid waste
75% of generation under long term power purchase contracts with
inflation escalators
56 facilities, 453
Growth MW,
MW average PPA of f
12 yrs, ~80% of
Greenfield Growth Total EBITDA
Phase II Red Lily Wind Project: up to 120MW EBITDA %
Ontario Green Energy Act: Wind projects totaling approx. 40 MW Thermal
Hydro
awaiting Economic Connection Test 34%
37%
Organic Growth
St. Leon Wind Energy: 20 MW Expansion, 66 MW adjacent farm Wind
29%
Energy-from-waste: 40,000 to 100,000 tonne expansion
9
10. Water Distribution and Waste-Water Treatment
Water distribution and waste-water treatment facilities in the
United States providing predictable cash flows and return
protection
Generates stable returns as a provider of safe, high quality,
reliable water and wastewater services to over 70,000
customers, with continued growth provided by organic expansion
of its service territories and the aggressive pursuit of accretive
acquisition opportunities
19 facilities,
,
Growth over 70,000
connections
Organic Growth ~20% of Total
Rate Cases: $18 million in revenue increases requested (expect $7
EBITDA
million realized in 2H 2010)
Expansion of existing service area for nearby developments
Waste-water
Water
Acquisitions
q 48%
52%
Actively seeking acquisitions in regulated water utilities
10
11. Liberty Electric
Electric Utility
Closing expected in latter half of 2010
Will deliver predictable earnings through the provision of
regulated electric generation and distribution services to over
47,000 customers following the completion of the acquisition of
the California Pacific utility operations
Regulated utility in a supportive regulatory environment serving
the affluent Lake Tahoe area Pending
approval of
Growth CA Electricity
Distribution
Organic Growth
Utility, over
Strong local economy provides for additional growth i rate b
St l l id f dditi l th in t base 47,000
Acquisitions connections
Actively seeking acquisitions of regulated electricity distribution utilities
11
12. Financial Performance
in CDN$ millions 2006 2007 2008 2009 Q1
(except per unit) 2010
Assets $1,048 $954 $977 $1,013 $966
Revenue $193.2 $186.2 $213.8 $187.3 $45.9
Adjusted EBITDA1 $81.1
$ $85.1
$ $90.0
$ $79.4
$ $17.9
$
2009 results Q1 2010
Algonquin felt the effects of the 08/09 Q1 2010 results affected by two main items
recession in three areas Energy From Waste facility unplanned
lower merchant power rates in the US outage
lower steam demand at co-generation Return t full production expected July 2010
R t to f ll d ti t dJ l
facilities Unusually low North American wind regime
lower natural gas prices result in lower affecting St. Leon production
spark spreads at cogeneration facilities Early Q2 results indicate return to more normal
wind regime
g
1
Adjusted EBITDA assesses the operating performance without the effects of depreciation and amortization expense which are derived
from a number of non-operating factors, accounting methods and assumptions.
12
13. Capital Structure
Algonquin’s objectives when
managing capital are:
Capital structure managed around
investment grade credit metrics CDs
Investment grade credit rating of
g g 21%
BBB- (stable) from Standard &
Poor’s
Equity
Maintain debt and equity levels
49%
appropriate t each operating
i t to h ti
subsidiary and consistent with its
investment grade credit rating Sr. Debt
30%
13
14. Credit Facilities
Algonquin has access to sufficient
cash flow, credit and capital to fund
its growth objectives :
ensure cash from operations grows
to allow for a growing dividend over
time to shareholders while retaining
cash for growth
Fixed Variable
have credit facilities available for
50% 50%
investment gro th
in estment in growth and
development opportunities
Strong banking syndicate of four
Canadian Banks
Strong liquidity position of $54.7 Interest rate swaps are
in place for 80% of the
million at the end of Q1 2010 variable interest rate
debt
14
15. Analyst Targets
12 Month Price Targets
8 7.50
7
5.50
6 Average
5.00 5.35
$5.19 5.25 5.25
5.00 5.00
5
4.50
($)4 3.50
3
2
1
0
BMO Canaccord Clarus Cormark Fraser Macquarie National Bank Mackie Salman Scotia Capital
Adams Mackenzie Research Partners
Capital
15
16. Well Positioned for Growth
Financial Demonstrated Experienced
Flexibility Achievements Management Team
• $70 available annually • 55 acquisitions in 12 years • Over 60 years of combined
• Strong cash flow • 12 greenfield projects in experience in
• Strong balance sheet 15 years > Feasibility studies
• Capex requirements > Environmental assessments
funded with cash flow > Permitting
from operations > Financing
> Acquisitions
q
> Engineering
Opportune Time:
current market conditions f
t k t diti favor attractive
tt ti
valuations for power & utility assets
16
17. Ian Robertson
Chief Executive Officer
905-465-4510
Ian.Robertson@AlgonquinPower.com
David Bronicheski
Chief Financial Officer
905-465-4512
David.Bronicheski@AlgonquinPower.com
Kelly Castledine
Manager, Investor Relations
905-465-4576
Kelly.Castledine@AlgonquinPower.com
