Algonquin Power & Utilities Corp 6-K, filed Nov 12, 2021

Algonquin Power & Utilities Corp. (AQN)

6-K 2021-11-12 For: 2021-11-11

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Added on April 09, 2026

About this 6-K

Algonquin Power & Utilities Corp filed this 6-K on November 12, 2021.

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Exhibit			Description
99.1			Unaudited Financial Statements for the quarter ended September 30, 2021
99.2			Management's Discussion & Analysis for quarter ended September 30, 2021
99.3			Certification of Chief Executive Officer
99.4			Certification of Chief Financial Officer
99.5			Earnings Press Release for the quarter ended September 30, 2021
99.6			Q4 2021 Common Share & Preferred Dividend Press Release




			ALGONQUIN POWER & UTILITIES CORP.
			(registrant)


Date: November 11, 2021			By: (signed) "Arthur Kacprzak"
			Name: Arthur Kacprzak
			Title: Chief Financial Officer


	Three months ended				Nine months ended
(thousands of U.S. dollars, except per share amounts)	September 30				September 30
	2021		2020		2021		2020
Revenue
Regulated electricity distribution	$	308,116	$	218,667	$	922,100	$	562,961
Regulated gas distribution	62,584		55,286		353,909		317,765
Regulated water reclamation and distribution	64,008		39,354		176,600		102,076
Non-regulated energy sales	73,595		56,053		182,268		182,288
Other revenue	20,272		7,121		55,763		20,646
	528,575		376,481		1,690,640		1,185,736
Expenses
Operating expenses	177,204		116,037		528,343		364,405
Regulated electricity purchased	94,435		58,106		382,726		158,154
Regulated gas purchased	14,497		13,254		113,983		96,174
Regulated water purchased	3,888		3,747		10,036		9,234
Non-regulated energy purchased	11,898		4,969		25,887		11,714
Administrative expenses	15,165		14,534		48,930		50,557
Depreciation and amortization	96,553		71,528		292,153		226,075
Loss (gain) on foreign exchange	1,267		(936)		3,412		(5,630)
	414,907		281,239		1,405,470		910,683
Operating income	113,668		95,242		285,170		275,053
Interest expense	(51,654)		(45,560)		(159,416)		(136,626)
Income (loss) from long-term investments (note 6)	(114,242)		(3,067)		(104,243)		168,365
Other net losses (note 16)	(889)		(16,928)		(11,086)		(44,758)
Pension and other post-employment non-service costs (note 8)	(3,875)		(2,369)		(11,420)		(9,342)
Gain (loss) on derivative financial instruments (note 21(b)(iv))	(1,817)		301		(2,082)		1,747

Earnings (loss) before income taxes	(58,809)		27,619		(3,077)		254,439
Income tax recovery (expense) (note 15)
Current	(3,755)		524		(10,994)		(5,585)
Deferred	23,143		19,179		56,215		(7,927)
	19,388		19,703		45,221		(13,512)


Net earnings (loss)	(39,421)		47,322		42,144		240,927
Net effect of non-controlling interests (note 14)
Non-controlling interests	14,087		11,294		54,989		47,270
Non-controlling interests held by related party	(2,588)		(2,765)		(7,886)		(9,924)
	$	11,499	$	8,529	$	47,103	$	37,346
Net earnings (loss) attributable to shareholders of Algonquin Power & Utilities Corp.	$	(27,922)	$	55,851	$	89,247	$	278,273
Series A and D Preferred shares dividend (note 12)	2,267		2,102		6,757		6,259
Net earnings (loss) attributable to common shareholders of Algonquin Power & Utilities Corp.	$	(30,189)	$	53,749	$	82,490	$	272,014
Basic net earnings (loss) per share (note 17)	$	(0.05)	$	0.09	$	0.13	$	0.50
Diluted net earnings (loss) per share (note 17)	$	(0.05)	$	0.09	$	0.13	$	0.49


	Three months ended				Nine months ended
(thousands of U.S. dollars)	September 30				September 30
	2021		2020		2021		2020
Net earnings (loss)	$	(39,421)	$	47,322	$	42,144	$	240,927
Other comprehensive income (loss) (“OCI”):
Foreign currency translation adjustment, net of tax expense of $291 and tax recovery of $1,068 (2020 - tax recovery of $954 and tax expense of $1,828), respectively (notes 21(b)(iii) and 21(b)(iv))	(28,904)		10,812		(32,172)		(17,245)
Change in fair value of cash flow hedges, net of tax recovery of $12,062 and $22,346 (2020 - tax recovery of $1,821 and $9,210, respectively (note 21(b)(ii))	(31,599)		(4,761)		(55,746)		(25,062)

Change in pension and other post-employment benefits, net of tax expense of $97 and $432 (2020 - tax expense of $81 and $72), respectively (note 8)	321		196		2,486		175
OCI, net of tax	(60,182)		6,247		(85,432)		(42,132)
Comprehensive income (loss)	(99,603)		53,569		(43,288)		198,795
Comprehensive loss attributable to the non-controlling interests	(12,801)		(7,055)		(46,476)		(39,986)
Comprehensive income (loss) attributable to shareholders of Algonquin Power & Utilities Corp.	$	(86,802)	$	60,624	$	3,188	$	238,781


(thousands of U.S. dollars)
	September 30, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	190,835	$	101,614

Accounts receivable, net (note 4)	325,582		325,887
Fuel and natural gas in storage	67,796		30,567
Supplies and consumables inventory	100,035		104,078
Regulatory assets (note 5)	140,661		63,042
Prepaid expenses	69,047		49,640
Derivative instruments (note 21)	9,017		13,106
Other assets	14,835		7,266
	917,808		695,200
Property, plant and equipment, net	11,098,380		8,241,838
Intangible assets, net	107,408		114,913
Goodwill	1,204,728		1,208,390
Regulatory assets (note 5)	1,024,687		782,429
Long-term investments (note 6)
Investments carried at fair value	1,787,295		1,839,212

Other long-term investments	419,859		214,583
Derivative instruments (note 21)	16,958		39,001
Deferred income taxes	34,179		21,880

Other assets	87,650		66,703
	$	16,698,952	$	13,224,149


(thousands of U.S. dollars) For the three months ended September 30, 2021

	Algonquin Power & Utilities Corp. Shareholders
	Common shares		Preferred shares		Additional paid-in capital		Deficit		AOCI		Non- controlling interests		Total
Balance, June 30, 2021	$	5,251,808	$	184,299	$	—	$	(205,764)	$	(56,057)	$	1,474,761	$	6,649,047

Net loss	—		—		—		(27,922)		—		(11,499)		(39,421)
Effect of redeemable non-controlling interests not included in equity (note 14)	—		—		—		—		—		(874)		(874)
OCI	—		—		—		—		(58,880)		(1,302)		(60,182)
Dividends declared and distributions to non-controlling interests	—		—		—		(86,208)		—		(6,246)		(92,454)
Dividends and issuance of shares under dividend reinvestment plan	23,288		—		—		(23,288)		—		—		—



Common shares issued upon public offering, net of tax effected cost	104,326		—		—		—		—		—		104,326

Common shares issued under employee share purchase plan	1,267		—		—		—		—		—		1,267
Share-based compensation	—		—		3,675		—		—		—		3,675
Common shares issued pursuant to share-based awards	1,629		—		(1,716)		(792)		—		—		(879)

Balance, September 30, 2021	$	5,382,318	$	184,299	$	1,959	$	(343,974)	$	(114,937)	$	1,454,840	$	6,564,505


(thousands of U.S. dollars) For the nine months ended September 30, 2021

	Algonquin Power & Utilities Corp. Shareholders
	Common shares		Preferred shares		Additional paid-in capital		Retained earnings (deficit)		AOCI		Non- controlling interests		Total
Balance, December 31, 2020	$	4,935,304	$	184,299	$	60,729	$	45,753	$	(22,507)	$	458,612	$	5,662,190

Net earnings (loss)	—		—		—		89,247		—		(47,103)		42,144
Effect of redeemable non-controlling interests not included in equity (note 14)	—		—		—		—		—		(2,747)		(2,747)
OCI	—		—		—		—		(86,059)		627		(85,432)
Dividends declared and distributions to non-controlling interests	—		—		—		(244,812)		—		(19,613)		(264,425)
Dividends and issuance of shares under dividend reinvestment plan	69,496		—		—		(69,496)		—		—		—
Contributions received from non-controlling interests (note 3), net of cost	—		—		6,919		—		(6,371)		1,035,923		1,036,471

Common shares issued upon conversion of convertible debentures	16		—		—		—		—		—		16
Common shares issued upon public offering, net of tax effected cost	365,554		—		—		—		—		—		365,554
Contract adjustment payments (note 7(a))	—		—		(62,240)		(160,138)		—		—		(222,378)
Common shares issued under employee share purchase plan	3,839		—		—		—		—		—		3,839
Share-based compensation	—		—		8,749		—		—		—		8,749
Common shares issued pursuant to share-based awards	8,109		—		(12,198)		(4,528)		—		—		(8,617)
Non-controlling interest assumed on asset acquisition (note 3(b))	—		—		—		—		—		29,141		29,141
Balance, September 30, 2021	$	5,382,318	$	184,299	$	1,959	$	(343,974)	$	(114,937)	$	1,454,840	$	6,564,505


(thousands of U.S. dollars)	Three months ended September 30				Nine months ended September 30
	2021		2020		2021		2020
Cash provided by (used in):
Operating Activities
Net earnings (loss)	$	(39,421)	$	47,322	$	42,144	$	240,927
Adjustments and items not affecting cash:
Depreciation and amortization	96,553		71,528		292,153		226,075
Deferred taxes	(23,143)		(19,179)		(56,215)		7,927
Unrealized gain on derivative financial instruments	(11,884)		(2,015)		(11,686)		(4,194)
Share-based compensation expense	3,414		6,588		7,800		18,228
Cost of equity funds used for construction purposes	(275)		134		(406)		(1,903)
Change in value of investments carried at fair value	139,050		23,394		183,452		(95,690)
Pension and post-employment expense in excess of (lower than) contributions	(1,477)		(214)		(7,525)		2,570
Distributions received from equity investments, net of income	6,676		1,494		13,587		3,566
Others	(1,000)		16,075		5,300		14,051
Net change in non-cash operating items (note 20)	6,221		(23,695)		(437,648)		(80,324)
	174,714		121,432		30,956		331,233
Financing Activities
Increase in long-term debt	1,824,449		1,450,979		9,175,714		2,787,634
Repayments of long-term debt	(1,535,152)		(1,639,150)		(8,392,109)		(2,712,318)

Issuance of common shares, net of costs	105,229		699,888		367,991		820,145
Cash dividends on common shares	(82,151)		(63,847)		(222,928)		(186,415)
Dividends on preferred shares	(2,267)		(2,102)		(6,757)		(6,259)

Contributions from non-controlling interests and redeemable non-controlling interests (note 3(b), (d) and (e))	—		—		1,032,204		2,649
Production-based cash contributions from non-controlling interest	—		—		4,832		3,371
Distributions to non-controlling interests, related party (note 13(b) and (c))	(5,233)		(4,710)		(19,191)		(20,622)
Distributions to non-controlling interests	(3,449)		(2,462)		(7,447)		(9,687)

Payments upon settlement of derivatives	—		—		(33,782)		—
Shares surrendered to fund withholding taxes on exercised share options	(1,120)		—		(2,984)		(4,644)
Repurchase of non-controlling interest	—		(1,935)		—		(1,935)
Increase in other long-term liabilities	4,986		3,581		61,202		10,782
Decrease in other long-term liabilities	(21,742)		(1,266)		(25,046)		(6,292)
	283,550		438,976		1,931,699		676,409
Investing Activities

Additions to property, plant and equipment and intangible assets	(348,050)		(182,662)		(1,051,182)		(524,971)
Increase in long-term investments	(118,764)		(118,031)		(787,149)		(223,198)
Acquisitions of operating entities	—		354		—		(2,697)

Increase in other assets	(9,728)		(7,651)		(37,580)		(15,415)
Receipt of principal on development loans receivable	834		2,789		834		13,743


Proceeds from sale of long-lived assets	1,616		—		5,960		415
	(474,092)		(305,201)		(1,869,117)		(752,123)
Effect of exchange rate differences on cash and restricted cash	(1,276)		3,923		(749)		2,173
Increase (decrease) in cash, cash equivalents and restricted cash	(17,104)		259,130		92,789		257,692
Cash, cash equivalents and restricted cash, beginning of period	239,911		85,834		130,018		87,272
Cash, cash equivalents and restricted cash, end of period	$	222,807	$	344,964	$	222,807	$	344,964



Algonquin Power & Utilities Corp. Unaudited Interim Consolidated Statements of Cash Flows (continued)

(thousands of U.S. dollars)	Three months ended September 30				Nine months ended September 30
	2021		2020		2021		2020
Supplemental disclosure of cash flow information:
Cash paid during the period for interest expense	$	50,349	$	43,666	$	162,674	$	143,254
Cash paid during the period for income taxes	$	1,687	$	2,367	$	3,362	$	4,291
Cash received during the period for distributions from equity investments	$	28,139	$	22,200	$	90,779	$	72,541
Non-cash financing and investing activities:
Property, plant and equipment acquisitions in accruals	$	120,640	$	73,117	$	120,640	$	73,117
Issuance of common shares under dividend reinvestment plan and share-based compensation plans	$	26,184	$	21,093	$	81,444	$	67,104

Property, plant and equipment, intangible assets and accrued liabilities in exchange of note receivable	$	3,089	$	—	$	90,821	$	—


Algonquin Power & Utilities Corp.
Notes to the Unaudited Interim Consolidated Financial Statements
September 30, 2021 and 2020
(in thousands of U.S. dollars, except as noted and per share amounts)


	Mid-West Wind
Working capital	$	(28,630)
Property, plant and equipment	1,137,713
Long-term debt	(789,804)
Asset retirement obligation	(27,053)
Deferred tax liability	(3,284)
Other liabilities	(104,129)
Non-controlling interest (tax equity investors)	(29,141)
Total net assets acquired	155,672
Cash and cash equivalents	15,860
Net assets acquired, net of cash and cash equivalents	$	139,812


	Altavista Solar
Working capital	$	870
Property, plant and equipment	138,598
Long-term debt	(122,024)
Deferred tax liability	(676)
Asset retirement obligation	(3,332)
Total net assets acquired	13,436
Cash and cash equivalents	33
Net assets acquired, net of cash and cash equivalents	$	13,403


	Maverick Creek and Sugar Creek
Working capital	$	(15,557)
Property, plant and equipment	1,062,818
Long-term debt	(855,409)
Asset retirement obligation	(23,402)
Deferred tax liability	(542)
Derivative instruments	7,575
Total net assets acquired	175,483
Cash and cash equivalents	4,241
Net assets acquired, net of cash and cash equivalents	$	171,242


Utility	State, province or country	Regulatory proceeding type	Details
BELCO	Bermuda	General rate review	On May 7, 2021, the regulator issued a final decision, approving a weighted average cost of capital ("WACC") of 7.5% and authorizing $211,432 in revenue with $13,426 in deferred revenue to be collected over 5 years at a minimum WACC of 7.5%. The new rates were effective June 1, 2021.
EnergyNorth Gas System	New Hampshire	General rate review	On July 30, 2021, EnergyNorth Gas System received an order approving an increase of $1,300 in distribution revenues effective August 1, 2021 in excess of the previously authorized temporary increase (total increase of $7,600), a step increase of $3,200 effective August 1, 2022, and a property tax reconciliation mechanism. Additional information requested by the regulator regarding a $4,000 step adjustment for 2021 was filed on August 31, 2021 and will be the subject of an upcoming supplemental hearing. Recovery of Granite Bridge feasibility costs, which were included in a supplemental filing in November 2020, were separately litigated in hearings in June 2021. An order denying recovery of litigated Granite Bridge costs was received in October 2021. In that order, the New Hampshire Public Utilities Commission denied recovery of the costs related to the Granite Bridge Project based on a legal interpretation of a New Hampshire statute that prohibits recovery of construction work in progress. The Company intends to request rehearing of the matter.
Various	Various	General rate review	Approval of approximately $800 in rate increases for a natural gas and wastewater utility.


	September 30, 2021		December 31, 2020
Regulatory assets
Fuel and commodity cost adjustments (a)	306,127		18,094
Retired generating plant	187,871		194,192
Pension and post-employment benefits	169,646		178,403
Rate adjustment mechanism	118,649		99,853
Environmental remediation	83,398		87,308
Income taxes	81,184		77,730
Deferred capitalized costs	51,681		34,398
Wildfire mitigation and vegetation management	34,942		22,736
Debt premium	32,701		35,688
Asset retirement obligation	26,498		26,546
Clean energy and other customer programs	26,208		26,400
Long-term maintenance contract	10,577		14,405
Rate review costs	8,192		8,054
Other	27,674		21,664
Total regulatory assets	$	1,165,348	$	845,471
Less: current regulatory assets	(140,661)		(63,042)
Non-current regulatory assets	$	1,024,687	$	782,429

Regulatory liabilities
Income taxes	$	304,239	$	322,317
Cost of removal	196,564		200,739
Pension and post-employment benefits	34,903		26,311
Clean energy and other customer programs	15,129		10,440
Fuel and commodity costs adjustments	12,783		20,136
Rate adjustment mechanism	3,758		5,214
Rate base offset	5,518		6,874
Other	10,306		9,487
Total regulatory liabilities	$	583,200	$	601,518
Less: current regulatory liabilities	(44,349)		(38,483)
Non-current regulatory liabilities	$	538,851	$	563,035


	September 30, 2021		December 31, 2020
Long-term investments carried at fair value
Atlantica (a)	$	1,689,711	$	1,706,900
Atlantica share subscription agreement (a)	—		20,015
Atlantica Yield Energy Solutions Canada Inc.	94,962		110,514
Other	2,622		1,783
	$	1,787,295	$	1,839,212

Other long-term investments
Equity-method investees (b)	$	378,267	$	186,452
Development loans receivable from equity-method investees (b)	10,908		22,912
Other (c)	30,684		5,219
	$	419,859	$	214,583


	September 30, 2021		December 31, 2020
Total assets	$	1,807,456	$	3,201,967
Total liabilities	727,017		2,913,188
Net assets	$	1,080,439	$	288,779
AQN's ownership interest in the entities	272,589		141,666
Difference between investment carrying amount and underlying equity in net assets(a)	105,678		44,786
AQN's investment carrying amount for the entities	$	378,267	$	186,452


	September 30, 2021		December 31, 2020
AQN's maximum exposure in regards to VIEs
Carrying amount	$	21,654	$	174,685
Development loans receivable	10,794		21,804
Performance guarantees and other commitments on behalf of VIEs	164,256		965,291
	$	196,704	$	1,161,780


Borrowing type	Weighted average coupon		Maturity	Par value		September 30, 2021		December 31, 2020
Senior unsecured revolving credit facilities	—		2021-2024	N/A		$	858,814	$	223,507
Senior unsecured bank credit facilities (a)	—		2022-2031	N/A		149,735		152,338
Commercial paper	—		2021	N/A		499,000		122,000
U.S. dollar borrowings
Senior unsecured notes (Green Equity Units) (b)	1.18	%	2026	$	1,150,000	1,140,281		—
Senior unsecured notes	3.46	%	2022-2047	$	1,700,000	1,689,427		1,688,390
Senior unsecured utility notes	6.34	%	2023-2035	$	142,000	155,982		157,212
Senior secured utility bonds	4.71	%	2026-2044	$	556,222	559,007		561,494

Canadian dollar borrowings
Senior unsecured notes (c)	3.81	%	2022-2050	C$	1,400,669	1,093,778		899,710
Senior secured project notes	10.21	%	2027	C$	23,936	18,787		20,315
Chilean Unidad de Fomento borrowings
Senior unsecured utility bonds	4.24	%	2028-2040	CLF 1,811		83,434		92,183
						$	6,248,245	$	3,917,149
Subordinated U.S. dollar borrowings
Subordinated unsecured notes	6.50	%	2078-2079	$	637,500	621,802		621,321
						$	6,870,047	$	4,538,470
Less: current portion						(516,712)		(139,874)
						$	6,353,335	$	4,398,596


	Pension benefits
	Three months ended September 30				Nine months ended September 30
	2021		2020		2021		2020
Service cost	$	3,987	$	3,607	$	12,323	$	11,310
Non-service costs
Interest cost	4,909		3,808		15,126		12,711
Expected return on plan assets	(8,890)		(6,279)		(26,670)		(18,789)
Amortization of net actuarial loss	2,431		1,782		7,243		4,072
Amortization of prior service credits	(407)		(403)		(1,220)		(1,207)

Impact of regulatory accounts	5,653		3,169		16,662		11,476
	$	3,696	$	2,077	$	11,141	$	8,263
Net benefit cost	$	7,683	$	5,684	$	23,464	$	19,573


	OPEB
	Three months ended September 30				Nine months ended September 30
	2021		2020		2021		2020
Service cost	$	1,942	$	1,626	$	5,486	$	4,559
Non-service costs
Interest cost	2,097		2,307		6,149		5,881
Expected return on plan assets	(2,518)		(2,176)		(7,539)		(6,561)
Amortization of net actuarial loss (gain)	643		409		1,516		382
Amortization of prior service credits	18		—		18		—

Impact of regulatory accounts	(61)		(248)		135		1,377
	$	179	$	292	$	279	$	1,079
Net benefit cost	$	2,121	$	1,918	$	5,765	$	5,638


	2021
Risk-free interest rate	1.1		%
Expected volatility	23		%
Expected dividend yield	4.1		%
Expected life	5.50 years
Weighted average grant date fair value per option	$	2.46


	Foreign currency cumulative translation		Unrealized gain on cash flow hedges		Pension and post-employment actuarial changes		Total
Balance, January 1, 2020	$	(68,822)	$	75,099	$	(16,038)	$	(9,761)
OCI	25,643		(13,418)		(20,964)		(8,739)
Amounts reclassified from AOCI to the unaudited interim consolidated statements of operations	2,763		(10,864)		3,403		(4,698)
Net current period OCI	$	28,406	$	(24,282)	$	(17,561)	$	(13,437)
OCI attributable to the non-controlling interests	691		—		—		691
Net current period OCI attributable to shareholders of AQN	$	29,097	$	(24,282)	$	(17,561)	$	(12,746)
Balance, December 31, 2020	$	(39,725)	$	50,817	$	(33,599)	$	(22,507)

OCI	(34,186)		(94,490)		—		(128,676)
Amounts reclassified from AOCI to the unaudited interim consolidated statements of operations	2,014		38,744		2,486		43,244
Net current period OCI	$	(32,172)	$	(55,746)	$	2,486	$	(85,432)
OCI attributable to the non-controlling interests	(6,998)		—		—		(6,998)
Net current period OCI attributable to shareholders of AQN	$	(39,170)	$	(55,746)	$	2,486	$	(92,430)
Balance, September 30, 2021	$	(78,895)	$	(4,929)	$	(31,113)	$	(114,937)


	Three months ended September 30, 2021
	Regulated Services Group		Renewable Energy Group		Corporate		Total
Revenue (1)(2)	$	449,198	$	78,989	$	388	$	528,575
Fuel, power and water purchased	112,820		11,898		—		124,718
Net revenue	336,378		67,091		388		403,857
Operating expenses	150,934		26,270		—		177,204
Administrative expenses	7,547		6,026		1,592		15,165
Depreciation and amortization	71,430		24,858		265		96,553
Loss on foreign exchange	—		—		1,267		1,267
Operating income (loss)	106,467		9,937		(2,736)		113,668
Interest expense	(22,300)		(17,461)		(11,893)		(51,654)


Income (loss) from long-term investments	4,470		22,126		(140,838)		(114,242)
Other expenses (recovery)	(3,462)		(4,770)		1,651		(6,581)
Earnings (loss) before income taxes	$	85,175	$	9,832	$	(153,816)	$	(58,809)
Capital expenditures	$	263,711	$	84,339	$	—	$	348,050


	Three months ended September 30, 2020
	Regulated Services Group		Renewable Energy Group		Corporate		Total
Revenue (1)(2)	$	316,696	$	59,419	$	366	$	376,481
Fuel, power and water purchased	75,107		4,969		—		80,076
Net revenue	241,589		54,450		366		296,405
Operating expenses	97,524		18,513		—		116,037
Administrative expenses (recovery)	9,922		7,085		(2,473)		14,534
Depreciation and amortization	51,520		18,885		1,123		71,528
Gain on foreign exchange	—		—		(936)		(936)
Operating income	82,623		9,967		2,652		95,242
Interest expense	(25,224)		(12,077)		(8,259)		(45,560)


Income (loss) from long-term investments	300		21,324		(24,691)		(3,067)
Other expenses	(11,209)		(2,291)		(5,496)		(18,996)
Earnings (loss) before income taxes	$	46,490	$	16,923	$	(35,794)	$	27,619
Capital expenditures	$	161,285	$	10,636	$	10,741	$	182,662


	Nine months ended September 30, 2021
	Regulated Services Group		Renewable Energy Group		Corporate		Total
Revenue (1)(2)	$	1,492,665	$	196,804	$	1,171	$	1,690,640
Fuel, power and water purchased	506,745		25,887		—		532,632
Net revenue	985,920		170,917		1,171		1,158,008
Operating expenses	448,844		79,499		—		528,343
Administrative expenses	26,648		19,512		2,770		48,930
Depreciation and amortization	206,517		84,805		831		292,153
Loss on foreign exchange	—		—		3,412		3,412
Operating income (loss)	303,911		(12,899)		(5,842)		285,170
Interest expense	(73,715)		(54,206)		(31,495)		(159,416)


Income (loss) from long-term investments	14,937		70,531		(189,711)		(104,243)
Other expenses	(16,108)		(8,424)		(56)		(24,588)
Earnings (loss) before income taxes	$	229,025	$	(4,998)	$	(227,104)	$	(3,077)
Property, plant and equipment	$	7,238,320	$	3,829,641	$	30,419	$	11,098,380
Investments carried at fair value	2,622		1,784,673		—		1,787,295
Equity-method investees	11,156		366,846		265		378,267
Total assets	10,349,178		6,218,144		131,630		16,698,952
Capital expenditures	$	817,661	$	225,968	$	7,553	$	1,051,182


	Nine months ended September 30, 2020
	Regulated Services Group		Renewable Energy Group		Corporate		Total
Revenue (1)(2)	$	992,214	$	192,440	$	1,082	$	1,185,736
Fuel, power and water purchased	263,562		11,714		—		275,276
Net revenue	728,652		180,726		1,082		910,460
Operating expenses	309,774		54,631		—		364,405
Administrative expenses (recovery)	29,791		21,149		(383)		50,557
Depreciation and amortization	157,159		67,316		1,600		226,075
Gain on foreign exchange	—		—		(5,630)		(5,630)
Operating income	231,928		37,630		5,495		275,053
Interest expense	(74,161)		(40,174)		(22,291)		(136,626)


Income from long-term investments	5,910		68,928		93,527		168,365
Other expenses	(35,901)		(2,340)		(14,112)		(52,353)
Earnings before income taxes	$	127,776	$	64,044	$	62,619	$	254,439
Capital expenditures	$	458,558	$	55,672	$	10,741	$	524,971
	December 31, 2020
Property, plant and equipment	$	5,757,532	$	2,451,706	$	32,600	$	8,241,838
Investments carried at fair value	—		1,839,212		—		1,839,212
Equity-method investees	74,673		110,414		1,365		186,452
Total assets	8,528,415		4,586,878		108,856		13,224,149


	Year 1		Year 2		Year 3		Year 4		Year 5		Thereafter		Total
Power purchase (i)	$	44,508	$	30,079	$	29,794	$	30,028	$	17,675	$	158,216	$	310,300
Gas supply and service agreements (ii)	80,472		69,493		46,502		43,917		25,532		139,043		404,959
Service agreements	61,959		58,754		57,728		55,126		51,823		356,231		641,621
Capital projects	86,865		—		—		—		—		—		86,865
Land easements and others	12,913		12,995		13,164		13,343		13,511		474,918		540,844
Total	$	286,717	$	171,321	$	147,188	$	142,414	$	108,541	$	1,128,408	$	1,984,589


September 30, 2021	Carrying amount		Fair value		Level 1		Level 2		Level 3
Long-term investments carried at fair value	$	1,787,295	$	1,787,295	$	1,692,333	$	—	$	94,962
Development loans and other receivables	10,908		12,112		—		12,112		—
Derivative instruments:
Energy contracts designated as a cash flow hedge	15,487		15,487		—		—		15,487
Energy contracts not designated as cash flow hedge	202		202		—		—		202

Interest rate swap designated as a hedge	2,981		2,981		—		2,981		—


Commodity contracts for regulated operations	7,305		7,305		—		7,305		—


Total derivative instruments	25,975		25,975		—		10,286		15,689
Total financial assets	$	1,824,178	$	1,825,382	$	1,692,333	$	22,398	$	110,651
Long-term debt	$	6,870,047	$	7,255,724	$	2,437,402	$	4,818,322	$	—

Convertible debentures	277		412		412		—		—
Preferred shares, Series C	13,386		14,653		—		14,653		—
Derivative instruments:
Energy contracts designated as a cash flow hedge	52,333		52,333		—		—		52,333
Energy contracts not designated as a cash flow hedge	4,129		4,129		—		—		4,129


Cross-currency swap designated as a net investment hedge	60,540		60,540		—		60,540		—

Interest rate swaps designated as a hedge	8,134		8,134		—		8,134		—

Total derivative instruments	125,136		125,136		—		68,674		56,462
Total financial liabilities	$	7,008,846	$	7,395,925	$	2,437,814	$	4,901,649	$	56,462


			September 30, 2021
Financial contracts: Swaps			2,956,308
Options			193,619

			3,149,927


	September 30, 2021		December 31, 2020
Regulatory assets:
Swap contracts	$	—	$	228
Option contracts	$	—	$	50
Forward contracts	$	—	$	693
Regulatory liabilities:
Swap contracts	$	7,087	$	271
Option contracts	$	279	$	76
Forward contracts	$	—	$	—


Notional quantity (MW-hrs)	Expiry	Receive average prices (per MW-hr)	Pay floating price (per MW-hr)
2,479,234	December 2031	$23.50	NI HUB
4,729,287	September 2030	$24.54	Illinois Hub
560,010	December 2028	$32.72	PJM Western HUB
2,611,114	December 2027	$24.04	NI HUB
2,097,657	December 2027	$36.46	ERCORT North HUB


Caution Concerning Forward-Looking Statements, Forward-Looking Information and non-GAAP Measures			2
Overview and Business Strategy			6
Significant Updates			9
2021 Third Quarter Results From Operations			11
2021 Year-to-Date Results from Operations			13
2021 Adjusted EBITDA Summary			16
Regulated Services Group			17
Renewable Energy Group			26
AQN: Corporate and Other Expenses			31
Non-GAAP Financial Measures			33
Corporate Development Activities			35
Summary of Property, Plant and Equipment Expenditures			36
Liquidity and Capital Reserves			38
Share-Based Compensation Plans			41
Related Party Transactions			42
Enterprise Risk Management			43
Quarterly Financial Information			48
Disclosure Controls and Internal Controls Over Financial Reporting			49
Critical Accounting Estimates and Policies			49



Algonquin Power & Utilities Corp. - Management Discussion & Analysis			1


(all dollar amounts in $ millions except per share information)	Three months ended September 30
	2021	2020	Change
Net earnings (loss) attributable to shareholders	$(27.9)	$55.9	(150)%
Adjusted Net Earnings1	$97.6	$88.1	11%
Adjusted EBITDA1	$252.0	$197.9	27%
Net earnings (loss) per common share	$(0.05)	$0.09	(156)%
Adjusted Net Earnings per common share1	$0.15	$0.15	—%


	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Total
U.S. dollar dividend	$	0.1551	$	0.1706	$	0.1706	$	0.1706	$0.6669
Canadian dollar equivalent	$	0.1959	$	0.2094	$	0.2134	$	0.2124	$0.8311


Key Financial Information	Three months ended September 30
(all dollar amounts in $ millions except per share information)	2021		2020
Revenue	$	528.6	$	376.5

Net earnings (loss) attributable to shareholders	(27.9)		55.9
Cash provided by operating activities	174.7		121.4
Adjusted Net Earnings1	97.6		88.1
Adjusted EBITDA1	252.0		197.9
Adjusted Funds from Operations1	170.2		148.0
Dividends declared to common shareholders	107.2		92.8
Weighted average number of common shares outstanding	621,405,413		585,403,736
Per share

Basic net earnings (loss)	$	(0.05)	$	0.09
Diluted net earnings (loss)	$	(0.05)	$	0.09
Adjusted Net Earnings1,2	$	0.15	$	0.15
Dividends declared to common shareholders	$	0.17	$	0.16


1			See Non-GAAP Financial Measures.
2			AQN uses per share Adjusted Net Earnings to enhance assessment and understanding of the performance of AQN.


(all dollar amounts in $ millions)	Three months ended September 30
Comparative Prior Period Revenue	$	376.5
REGULATED SERVICES GROUP
Existing Facilities
Electricity: Increase is primarily due to higher pass through commodity costs and higher consumption driven by more cooling degrees days at the Empire Electric System.	23.8
Gas: Increase is primarily due to higher pass through commodity costs at the New England, EnergyNorth and St. Lawrence Gas Systems.	5.6
Water: Increase is due to higher consumption and organic growth at the Beardsley and Litchfield Park Water Systems and higher pass through commodity costs at the Park Water System.	1.5

	30.9
New Facilities
Electricity: Acquisition of Liberty Group Limited (formerly Ascendant Group Limited ("Ascendant")) (November 2020) and the Empire Wind Facilities (2021).	78.8

Water: Acquisition of Empresa de Servicios Sanitarios de Los Lagos S.A.("ESSAL") (October 2020).	21.8

	100.6
Rate Reviews
Electricity: Decrease is primarily due to one-time revenues in the third quarter of 2020 from a rate increase with recoupment to the first quarter of 2019, partially offset by the implementation of rate increases related to the Post-Test Year Adjustment Mechanism at the CalPeco Electric System.	(6.2)
Gas: Increase is primarily due to the implementation of new rates at the EnergyNorth and Peach State Gas Systems.	1.7
Water: Increase is due to implementation of new rates at the Park Water and Apple Valley Water Systems.	1.5
	(3.0)


Estimated Impact of COVID-19 on comparative period results1	4.0

RENEWABLE ENERGY GROUP
Existing Facilities
Hydro: Decrease is primarily due to lower production in the Ontario and Quebec Regions, partially offset by favourable pricing in the Western Region.	(0.3)

Wind U.S.: Increase is primarily due to favourable energy pricing and renewable energy credit ("REC") revenue, partially offset by lower production across the U.S. Wind Facilities.	1.2
Solar: Increase is primarily due to favourable REC rates at the Great Bay I Solar Facility.	0.5

Thermal: Increase is primarily due to higher production, partially offset by unfavourable capacity pricing at the Sanger Thermal Facility.	1.8
Other: Decrease is primarily due to non-recurring lease income received in 2020 from the Sugar Creek Wind Facility prior to achieving commercial operation ("COD").	(0.7)
	2.5
New Facilities
Wind U.S.: Sugar Creek Wind Facility (full COD in November 2020) and Maverick Creek Wind Facility (full COD in April 2021).	12.4
Solar: Great Bay II Solar Facility (full COD in August 2020) and Altavista Solar Facility (full COD in June 2021)	2.9
Other: Increase is due to Congestion Revenue Rights (CRRs) from Texas Coastal Wind Facilities.	0.6
	15.9
Foreign Exchange	1.2

Current Period Revenue	$	528.6


1			The impacts of COVID-19 were estimated by normalizing sales in both periods for changes in weather and attributing the remaining variances to COVID-19.