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Algonquin Agrees to Path Forward on Kentucky Power Acquisition

OAKVILLE, ON, Liberty Utilities Co. ("Liberty"), the indirect subsidiary of Algonquin Power & Utilities Corp. ("AQN" or the "Company") (TSX: AQN) (NYSE: AQN), and American Electric Power (NASDAQ: AEP) ("AEP") entered into an amendment (the "Amendment") to the stock purchase agreement dated October 26, 2021 pursuant to which Liberty agreed to purchase Kentucky Power Company and AEP Kentucky Transmission Company, Inc. (the "Transaction").

The Amendment provides a path to complete the Transaction at a revised purchase price of $2.646 billion, including the assumption of approximately $1.221 billion in debt. The Transaction remains subject to approval of the U.S. Federal Energy Regulatory Commission and is expected to close in January 2023 if such approval has been received.

"We look forward to welcoming the employees of Kentucky Power into the Algonquin-Liberty family," said Arun Banskota, President and Chief Executive Officer of AQN. "We are excited about the Kentucky Power acquisition and adding to our regulated footprint in the United States, as well as leveraging our operational experience for the customers and communities of Kentucky."

The Transaction is aligned with the Company's disciplined growth in its Regulated Services Group given the compelling valuation and opportunities to deliver customer benefits and work with stakeholders on the energy transition in Kentucky. The Company plans to utilize its local customer-centric operational model and expertise at Kentucky Power.

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