Algonquin Power & Utilities Corp. Reports Second Quarter 2026 Financial Results

• Following improvements to customer performance metrics, on July 15, 2026, the Missouri Public Service Commission issued an order for implementation of a $97.0 million revenue adjustment effective August 3, 2026 for Empire Electric Missouri. The revenue adjustment is to be phased in over three years and reflects the significant progress made to improve customer service and billing performance while advancing investments that enhance reliability and service for Missouri customers. The Company also has the ability to earn an additional $13.7 million annually if it meets additional customer performance metrics agreed to and filed with the Commission. The Company filed interim metrics on May 30, 2026 and is currently tracking performance against those metrics.
• On June 22, 2026, the California Public Utilities Commission (“California PUC”) issued a Proposed Decision in CalPeco’s Wildfire Expense Management Account (“WEMA”) cost recovery proceeding associated with the November 17, 2020 wildfire in California (the “Mountain View Fire”). The Proposed Decision, which remains subject to final California PUC approval, would authorize recovery of approximately $58.1 million, or 75%, of requested costs.
• Received confirmation that the Expedited Resource Adequacy 250 MW generation project qualifies as an eligible asset for treatment under Missouri’s Construction Work in Progress (“CWIP”) framework allowing for Allowance for Funds Used During Construction recovery and partially reducing regulatory lag. The Company expects to seek CWIP treatment for the project in its next Missouri rate case.
• On July 21, 2026, the Kansas Public Service Commission approved a settlement in the Empire Electric Kansas rate case, with new rates in effect August 1, 2026. The settlement includes an $8.8 million annual rate adjustment, phased in over two years, plus the right to retain 50% of wind revenues sold into the Southwest Power Pool in the first year of the phase-in.
• In Arizona, the assigned Administrative Law Judge issued a Recommended Opinion and Order on July 24, 2026 in the Litchfield Park Water & Sewer rate case including a formula rate proposal approval, combined rate adjustment of $15.0 million with a 9.75% return on equity (“ROE”), and 54.0% equity layer with a commission decision expected in August 2026.
• Filed requests with FERC to modify transmission formula rates for Empire Electric to a projected formula from historical, along with incentive requests related to CWIP.
• On May 29, 2026, New York Water filed an application with the New York Public Service Commission requesting a revenue adjustment of $38.1 million, based on an ROE of 10.0% and an equity ratio of 48.0%.
• On July 30, 2026, EnergyNorth filed with the New Hampshire Public Utilities Commission for a rate adjustment of $35.8 million with a 10.25% ROE and a 52.0% equity ratio.
• On May 15, 2026, Empire Electric filed an application with the Arkansas Public Service Commission requesting a rate adjustment of $8.4 million. The request is based on an ROE of 10.0% and an equity ratio of approximately 53.4%.
• On May 14, 2026, the California PUC issued orders authorizing revenue decreases for Apple Valley Water and Park Water of approximately $2.4 million and $0.3 million, respectively, for the 2025 test year.

• A one-time write-off of $17.2 million related to the WEMA proposed decision;
• Approved rates at CalPeco of $12.1 million, offset by higher wildfire insurance expenses of $5.7 million;
• Approved rates across multiple other utility systems, customer growth, and favourable weather as compared to the prior year of $7.5 million partially offset by a rate reduction at Apple Valley Water and Park Water retroactive to July 2025 of $3.1 million;
• Increased operating expenses including increased gas safety and excellence costs of $3.3 million; and
• Increased interest expense of $7.7 million due to the impact of new financings and higher commercial paper usage.

• A one-time write-off of $17.2 million related to the WEMA proposed decision;
• Implementation of $72.8 million of approved rates at CalPeco, including retroactive revenues of $48.6 million, offset by higher wildfire insurance expenses recovered in rates of $34.2 million;
• Approved rates across multiple other utility systems and customer growth totaling $11.0 million, offset by a rate reduction at Apple Valley Water and Park Water retroactive to July 2025 of $3.1 million;
• The non-recurrence of certain 2025 items including favourable depreciation deferrals and pension adjustments totaling $9.8 million;
• Increased operating expenses consisting of increased gas safety and excellence costs of $6.3 million and higher labour, benefits, maintenance costs, and property taxes of $14.1 million;
• Unfavourable weather versus prior year of $9.9 million; and
• Increased interest expense due to the impact of new financings and higher commercial paper usage.

The Hydro Group recorded net earnings of $3.1 million in the second quarter of 2026, compared to net earnings of $8.9 million in the second quarter of 2025, and recorded net earnings of $5.2 million for the six months ended June 30, 2026 compared to $25.5 million for the same period in 2025. For both the second quarter and year-to-date, the decrease in net earnings was primarily due to prior year income tax recoveries resulting from a tax basis step-up from a reorganization in connection with the Company’s sale of its renewable energy business (excluding hydro) of $2.5 million and $15.9 million, respectively. Corporate Group – Second Quarter and Year-to-Date 2026 The Corporate Group recorded a net loss of $28.2 million in the second quarter of 2026, compared to a net loss of $38.0 million for the same period in 2025, and recorded a net loss of $66.6 million for the six months ended June 30, 2026, compared to a net loss of $85.4 million in the same period in 2025. For the second quarter, the decrease in net loss was primarily due to foreign exchange losses resulting from favourable foreign exchange revaluation and higher income tax recoveries, both in the current period. For the year-to-date period, the decrease in net losses was primarily related to lower foreign exchange losses resulting from favourable foreign exchange revaluation, higher income tax recoveries, and a prior year settlement of a foreign exchange forward contract used to hedge underlying debt from the Company’s former renewable energy group (excluding hydro). Additionally, during the quarter, Liberty Utilities Co. issued $1.15 billion aggregate principal amount of unsecured Senior Notes, the proceeds of which were used to repay Canadian holding company debt of $1.15 billion that matured on June 15, 2026, supporting the Company’s tax optimization initiatives. Intention to Redomicile to the United States AQN is announcing its intention to redomicile the incorporation of the Company to the United States. The redomicile is expected to deliver several strategic and financial benefits, including:

• Better aligning AQN’s corporate structure with its asset footprint, as over 80% of the Company’s operations are in the United States, with less than 5% in Canada;
• Reducing cross-border tax inefficiencies and supporting a stronger long-term financial profile; and
• Broadening access to capital and creating a potential path for inclusion in certain United States equity indices and funds over time.

AQN expects the redomicile to strengthen its long-term profile while supporting the continued delivery of local utility operations, regulatory obligations and customer service. The Company expects to maintain its significant presence in Oakville, Ontario and establish its headquarters in Chicago, Illinois where AQN senior executive leadership would be based.