Algonquin Power & Utilities Corp. · TSX:AQN

Algonquin Power & Utilities — Investor Day (November 2014)

70 slides from Algonquin Power & Utilities's investor day presentation, Nov 25, 2014

  1. Slide 1: Generation. Transmission. Distribution. Investor Day - November 25, 2014

    Generation. Transmission. Distribution. Investor Day - November 25, 2014

  2. Slide 2: Contents

    Contents Agenda Page 1 Caution Regarding Forward-Looking Information Page 2 Key Selected Financial Information Page 5 Biographies Page 6 Presentation Slides Page 12

  3. Slide 3: Slide 3

  4. Slide 4: Agenda: Algonquin Power & Utilities Investor Morning

    Agenda: Algonquin Power & Utilities Investor Morning Tuesday, November 25, 2014 8:00 – 8:30 a.m. Registration Coffee and Continental Breakfast 8:30 – 8:35 a.m. Welcome and Opening Remarks Kelly Castledine, Director, Investor Relations 8:35 – 9:30 a.m. Algonquin Power & Utilities Executive Panel Ian

  5. Slide 5: Caution Concerning Forward-Looking Statements and Non-GAAP Measures

    CAUTION CONCERNING FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Forward-looking statements Certain statements included herein contain forward-looking information within the meaning of certain securities laws. These statements reflect the views of APUC with respect to future events, based upon as

  6. Slide 6: Use of Non-GAAP Financial Measures

    companies and therefore may not be comparable to similar measures presented by other companies. A calculation and analysis of “adjusted net earnings”, Adjusted EBITDA, “adjusted funds from operations”, “per share adjusted net earnings”, “per share cash provided by adjusted funds from operations”, “p

  7. Slide 7: Non-GAAP Measures: Adjusted Net Earnings and Adjusted Funds from Operations

    infrequent items unrelated to normal operations as these are not reflective of the performance of the underlying business of APUC. APUC believes that analysis and presentation of net earnings or loss on this basis will enhance an investor’s understanding of the operating performance of its businesse

  8. Slide 8: Financial Summary

    Financial Summary Nine months ended Year ended September 30 December 31 2014 2013 2013 2012 Revenue $ 684.2 $ 470.0 $ 675.3 $ 348.8 1 Adjusted EBITDA 206.2 159.6 226.9 88.1 Cash provided by operating activities 96.3 70.5 98.9 63.0 Adjusted funds from operations1 140.6 107.1 153.5 66.8 Net earnings a

  9. Slide 9: Algonquin Power & Utilities: Biographies

    Algonquin Power & Utilities: Biographies Ian Robertson, Chief Executive Officer Ian Robertson serves as Chief Executive Officer of Algonquin Power & Utilities Corp. (APUC). He is a founder and principal of Algonquin Power Corporation Inc., an independent power developer, which was formed in 1988 and

  10. Slide 10: David Bronicheski, Chief Financial Officer

    David Bronicheski, Chief Financial Officer David joined Algonquin Power & Utilities Corp. in 2007 and is responsible for all aspects of planning, directing, implementing, evaluating, and reporting on the company’s financial performance. David has over 26 years of senior management experience includi

  11. Slide 11: Mike Snow, President, Generation

    Mike Snow, President, Generation Mike joined Algonquin Power & Utilities Corp. in 2011 as President of Algonquin Power Co. and is responsible for all aspects of strategy, business development, operations, asset management, human resources, and evaluating and reporting on growth and operational activ

  12. Slide 12: Todd Mooney, Vice President, Finance & Administration

    Todd Mooney, Vice President, Finance & Administration Todd joined Algonquin Power Co. in 2012 and has overall accountability for financial operations, including the Financial Planning & Analysis, Accounting, Production Reporting, and Administration. Todd previously spent 11 years in the mobile compu

  13. Slide 13: David Pasieka, President, Distribution

    David Pasieka, President, Distribution David joined Algonquin Power & Utilities Corp. in 2010 as President of Liberty Utilities. As its President, David is focused on acquiring and managing a portfolio of regulated Water, Natural Gas and Electrical distribution companies throughout the United States

  14. Slide 14: Gerald Tremblay, Vice President, Finance & Administration

    Gerald Tremblay, Vice President, Finance & Administration Gerald joined Algonquin Power & Utilities Corp. in 2000. He has overall accountability for the financial operations of Liberty Utilities, including the Accounting, Finance, and Administration departments. Gerald has over 20 years of experienc

  15. Slide 15: Investor Day 2014: Focused Growth - Executive Panel

    INVESTOR DAY 2014 Generation Transmission Distribution FOCUSED GROWTH Ian Robertson Chief Executive Officer Chris Jarratt Vice Chair EXECUTIVE PANEL David Bronicheski Chief Financial Officer 12

  16. Slide 16: Our Vision

    VISION The utility company most admired by customers, Our Vision communities and investors for our people, passion and performance Capital A must-hold investment security in the portfolio of every long Markets minded investor Impact 3 13

  17. Slide 17: What Has Changed? Algonquin Power & Utilities

    WHAT HAS CHANGED? 5 ALGONQUIN POWER & UTILITIES A GROWTH FOCUSED GENERATION, TRANSMISSON AND DISTRIBUTION UTILITY COMPANY G E N E R AT I O N TRANSMISSION DISTRIBUTION Attractive and growing Attractive risk-adjusted Predictable and growing returns from renewable returns from regulated earnings as a n

  18. Slide 18: Evolution of the Board of Directors

    EVOLUTION OF THE BOARD OF DIRECTORS Masheed Saidi Former Chief Operating Officer and Executive Vice President of U.S. Transmission for National Grid USA. Dilek Samil Former Executive Vice President and Chief Operating Officer of NV Energy 7 15

  19. Slide 19: 2014 By The Numbers

    2014 BY THE NUMBERS TARGET DELIVERED LTM ~15% GROWTH IN ASSETS 21% ~15% GROWTH IN ADJUSTED EBITDA 29% GROWTH IN ADJUSTED NET 7‐10% 31% EARNINGS TOTAL SHAREHOLDER >10% 46% RETURN 9 TOTAL SHAREHOLDER RETURN SHAREHOLDER VALUE TRIPLED SINCE 2008 TOTAL RETURN PERFORMANCE Algonquin Power & Utilities S&P/T

  20. Slide 20: Cost of Capital; Forecast Growth in Assets and EBITDA

    COST OF CAPITAL 8.00% 7.50% 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% AQN Canadian IPP U.S. Yield Peers Cos. 1 Ranges based on independent estimates of cost of capital using CAPM and Dividend Growth models 2 Canadian IPP Peers include: BEP.UN, NPI, INE, BLX, RNW 3 U.S. Yield Cos include: NYLD, TERP,

  21. Slide 21: Administration Costs

    ADMINISTRATION COSTS $35,000 22.22% 25% $30,000 20% $25,000 $20,000 15% 10.36% 9.17% $15,000 10% $10,000 5% $5,000 $0 0% 2012 2013 2014 Administration expenses Centralization of services As a percent of EBITDA 13 18

  22. Slide 22: Executive Compensation vs. Performance; Sources & Uses of Capital

    EXECUTIVE COMPENSATION VS. PERFORMANCE 500 Value of $100 invested in January 2009 400 300 200 100 0 1-Jan-09 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 15 SOURCES & USES OF CAPITAL Uses of Capital Sources of Capital Common Equity Preferred Shares Park Water Tax Equity Cash from Ops Odell Wind Dist

  23. Slide 23: Capital Structure; Shareholder Value Creation

    CAPITAL STRUCTURE September 30, 2014 000's Long term liabilities 1,413,473 46.7% S&P: BBB Preferred shares 213,807 7.1% Equity 1,400,261 46.3% Total capitalization 3,027,541 100.0% INVESTMENT GRADE DEBT PLATFORMS:  APCo bond platform  Canadian debt capital market public bond  Liberty Utilities bo

  24. Slide 24: Questions

    ALGONQUIN POWER & UTILITIES A GROWTH FOCUSED GENERATION, DISTRIBUTION AND TRANSMISSION UTILITY COMPANY G E N E R AT I O N TRANSMISSION DISTRIBUTION Attractive and Attractive risk- Predictable and growing returns adjusted returns growing earnings from renewable from regulated as a national US power g

  25. Slide 25: Investor Day 2014: Generation

    INVESTOR DAY 2014 Generation FOCUSED GROWTH Mike Snow President Generation Jeff Norman Vice President, Business Development Generation Todd Mooney Vice President, Finance & Administration Generation 22

  26. Slide 26: Generation Agenda

    GENERATION Mike Snow President AGENDA  Value creation  Market dynamics  Portfolio diversification  Generation strategy  Development plans  Financial indicators 24 23

  27. Slide 27: Proven Track Record in Value Creation

    PROVEN TRACK RECORD IN VALUE CREATION Capital Efficiency Increasing with Growth 16.0 13.6x 12.4x 12.3x 14.0 11.1x 2010 – 2013 12.0 10.0 • EBITDA growth from $67M - $129M 8.0 6.0 • $600M capital spend across 4.0 five wind projects 2.0 • St. Leon II, Sandy Ridge, 0.0 Minonk, Senate, Shady Oaks 2010 20

  28. Slide 28: Wind Technology Positively Impacts LCOE

    WIND TECHNOLOGY POSITIVELY IMPACTS LCOE Significant decline in LCOE in 5 years  Larger rotors improve 160 net capacity factor 140 $135  Higher towers in use: 120 $124 future - 140m in Europe LCOE ($/MWh) 100 80 $71 $70 $70  Deep arrays software $37- $81 improves yield 60 40  Emerging technology

  29. Slide 29: Positive Outlook for North American Renewables

    POSITIVE OUTLOOK FOR NORTH AMERICAN RENEWABLES Wind & Solar Drive Renewable Growth Key Market Drivers  Wind / Solar LCOE at or near grid parity  Continued U.S. renewable demand  RPS step grows availability of utility PPAs  EPA measures on reducing GHG  U.S. wind growth at 8 GW / yr without PTCs

  30. Slide 30: Wind Diversification Improves Portfolio Certainty

    WIND DIVERSIFICATION IMPROVES PORTFOLIO CERTAINTY Variability of  Portfolio effect improves production of Variability as a individual portfolio production stability projects  P90 portfolio energy is 5.6% > P90 13 Sites  Further diversification:  5 technologies  8 creditworthy offtakers  Season

  31. Slide 31: Expand Overall Portfolio to 2,500 MW+ by 2019

    EXPAND OVERALL PORTFOLIO TO 2,500 MW + BY 2019  On Shore Wind: Expand current 656 MW portfolio to 1,600 MW  Pipeline of 6 contracted projects will grow wind to 1,175MW  Greenfield development in U.S. and Canada  Acquire development opportunities  Utility Scale Solar: Increase solar portfolio fr

  32. Slide 32: North American Wind Market Current Status

    NORTH AMERICAN WIND MARKET CURRENT STATUS CANWEA, Wind Energy Markets: Installed Capacity AWEA, U.S. Wind Industry Annual Market Report, Year Ending 2013 35 AWEA, U.S. Wind Industry Third Quarter 2014 Market Report NORTH AMERICAN SOLAR MARKET CURRENT STATUS CANSIA: 2013 Solar Report NREL: 2012 Renew

  33. Slide 33: Development Team; Efficient Growth

    DEVELOPMENT TEAM Organized for Maximum Efficiency Origination 5 FTEs Development 10 FTEs Construction 20 FTEs SEIA, 2014 37 EFFICIENT GROWTH High Algonquin Financial Investors Risk Adjusted Returns Low Early Late Construction Operating Development Development Project Status 38 30

  34. Slide 34: Current Development Campaign Focus; Development Pipeline

    CURRENT DEVELOPMENT CAMPAIGN FOCUS Strategic Campaigns  Southeast US Wind  QF Solar Regional Campaigns  Ontario Wind & Solar  Saskatchewan Wind  Nevada Solar 39 DEVELOPMENT PIPELINE Project Status CapEx EBITDA Morse, SK Construction $81 Million $9.9 million Bakersfield I, CA Construction $66 Mi

  35. Slide 35: Development Pipeline; Recently Completed Construction - Saint Damase

    DEVELOPMENT PIPELINE Bakersfield Origination II Odell Amherst Development Island Val Eo Morse Construction Chaplin Operation Cornwal Saint l Solar Damase 41 RECENTLY COMPLETED CONSTRUCTION – SAINT DAMASE St. Damase Wind: 24 MW  Hydro Quebec 20 year off take agreement  Final Capital Cost = $49 mill

  36. Slide 36: Update on Construction Status - Morse and Bakersfield I

    UPDATE ON CONSTRUCTION STATUS – MORSE Morse Wind: 23 MW  SaskPower 20 year off take agreement  Final Capital Cost = $81 million  Roads and foundations complete  Expected annual EBITDA $9.9 million SK  COD Q1 2015  Seasonality:  Q1: 28%  Q2: 24%  Q3: 19%  Q4: 29% 43 UPDATE ON CONSTRUCTION S

  37. Slide 37: Update on Construction Status - Bakersfield II and Odell

    UPDATE ON CONSTRUCTION STATUS – BAKERSFIELD II Bakersfield II Solar: 10 MW AC  SCE 20 year off-take agreement  Capital Cost = $30 million / $18 million (net of Tax Equity)  Expected annual EBITDA $1.8 million CA  COD Q1 2016  Seasonality:  Q1: 9%  Q2: 36%  Q3: 47%  Q4: 8% 45 UPDATE ON CONST

  38. Slide 38: Update on Development Status - Val-Éo and Amherst

    UPDATE ON DEVELOPMENT STATUS – VAL-ÉO Val Éo Wind: 24 MW Off-take Agreement  Hydro Quebec, 20 years Resource Analysis QC  Data from four 60m towers (2006 – 2010)  Additional tower installed September 2014.  Data from SODAR (2012) Permitting Status  Decree from Environment Ministry expected Dece

  39. Slide 39: Update on Development Status - Chaplin

    UPDATE ON DEVELOPMENT STATUS – CHAPLIN Chaplin Wind: 177 MW Off-take Agreement  SaskPower, 25 years Resource Analysis  May 2009 – Present SK  Two additional towers added in 2014 Permitting Status  Final EA package submission Q4 2014 Construction  CapEx $340 million  COD Q4 2016 49 GENERATION T

  40. Slide 40: CapEx Drives EBITDA Growth; Expected EBITDA Mix

    CAPEX DRIVES EBITDA GROWTH Cumulative CAPEX 400 EBITDA 11.0 1,400 350 10.1 1,200 10.0 300 9.4 1,000 250 8.8 $ Millions 9.0 $ Millions 8.6 8.4 800 200 600 8.0 150 400 100 7.0 200 50 - - 6.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 EBITDA EV:EBITDA 51 EXPECTED EBITDA MIX: 2014 – 2018 Investme

  41. Slide 41: Wind Geographic Diversification; 2015 EBITDA Seasonality

    WIND – GEOGRAPHIC DIVERSIFICATION 2018 EBITDA - WIND 2014 EBITDA - WIND SK QC 3% MN 5% PA IL 8% 11% 25% TX 18% IL ON 47% 13% MB MB 10% 24% SK TX 21% PA 10% 5% Geographic diversification of wind almost doubles by 2018 53 2015 EBITDA SEASONALITY 30% 25% 20% % of Annual EBITDA 21% 20% 17% 15% 12% 10% 5

  42. Slide 42: Tax Equity - HLBV Income; 2015 in Brief

    TAX EQUITY - HLBV INCOME Wind Solar HLBV Income ‐ Cumulative  HLBV income is recognized over the first 5 years of the project  For Bakersfield this represents approximately $18 million from 2015 to 2019 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Tax Equity Investment Balance Years 1‐5: MAC

  43. Slide 43: Summary: Generation Key Messages

    SUMMARY GENERATION KEY MESSAGES  Existing $500 million portfolio is:  proceeding as planned, on time, on budget  Projects are EPS and FFOPS accretive  Continue to find accretive opportunities  Increased focus on 2 modalities  On Shore Wind,  Solar – Utility scale  Portfolio diversification i

  44. Slide 44: Investor Day 2014: Distribution

    QUESTIONS Generation INVESTOR DAY 2014 Distribution FOCUSED GROWTH 41

  45. Slide 45: Distribution

    David Pasieka President Distribution Peter Eichler Director, Strategic Initiatives Distribution Gerald Tremblay Vice President, Finance & Administration Distribution DISTRIBUTION David Pasieka President 42

  46. Slide 46: Agenda; North American Utility Dynamics

    AGENDA  Market dynamics  State prosperity  ROE trends  Achieving returns  Growth strategies  Financial summary 63 NORTH AMERICAN UTILITY DYNAMICS  Abundance of “Made in America” natural gas  Aging infrastructure creates investment opportunity  Cost of capital facilitates M&A activity  Cust

  47. Slide 47: Our Distribution Business Continues to Evolve

    OUR DISTRIBUTION BUSINESS CONTINUES TO EVOLVE  National utility footprint  Diversified by commodity and regulatory jurisdiction  Opportunities for continued investment  Delivered on our growth commitments U.S. utility sector provides a robust opportunity for investment 65 IMPROVING ECONOMIC COND

  48. Slide 48: ROE Award Trends; Regulatory Mechanisms

    ROE AWARD TRENDS 16.0 Average U.S. Utility ROE (%) 14.0 12.0 10.0 8.0 6.0 4.0 2.0 ‐ ROE’s are leveling out between 9-10% across modalities 67 REGULATORY MECHANISMS STRATEGICALLY IMPORTANT Mechanism AR AZ CA GA IL MA MO MT NH Decoupling Mechanism Memorandum Accounts Commodity Pass Through Accelerated

  49. Slide 49: Distribution Operating Philosophy; California - A Success Story

    DISTRIBUTION OPERATING PHILOSOPHY  Decentralized model allows for local focus on the things that matter:  Rate case outcomes  Growth initiatives  Stakeholder relations  Customers engagement  Community presence Centralized strategy executed locally 69 CALIFORNIA – A SUCCESS STORY  Original 200

  50. Slide 50: Park Water Acquisition

    PARK WATER ACQUISITION  Acquisition criteria  Accretive  Attractive regulatory  Favourable demographics  Opportunity to invest  74,000 customers in Montana and California  $327 million purchase price  Closing in 2015 Our competitive cost of capital allows us to acquire and still be accretive

  51. Slide 51: Utility Growth Strategy Overview

    UTILITY GROWTH STRATEGY OVERVIEW  System improvements  Rate base investments with reduced lag  Minimize rate impacts  Customer growth  “On Network” and “Off Network” System Customer Acquisitions Improvements Growth  System improvements and customer growth represent $740 million in investment 

  52. Slide 52: System Improvements - Targeted Infrastructure

    SYSTEM IMPROVEMENTS – TARGETED INFRASTRUCTURE  Targeted infrastructure programs allow for replacement of:  Gas pipe (MA, MO, NH, GA) Targeted Replacement Programs  Water and sewer infrastructure $35 (AZ) $30  Electric projects above $4 million $25 (CA) $ millions $20  Recovery is granted throug

  53. Slide 53: Organic Growth - Customer Growth Example; Acquisition Growth

    ORGANIC GROWTH – CUSTOMER GROWTH EXAMPLE  Virtual pipelines  Seek out large use customers and clusters of smaller customers for delivered natural gas  Typically requires load of 50,000 dth and up to be economic  Mother station constructed on distribution gas system  Increases throughput on the

  54. Slide 54: 2015 EBITDA Mix and Rate Filings

    DISTRIBUTION Gerald Tremblay Vice President, Finance & Administration 2015 EBITDA MIX  Authorized weighted ROE of 9.9% Water  Earnings to reflect rate 19% filings: State Rate Request Expected GA US $3.9M Q1 2015 Gas 59% MO US $7.6M Q1 2015 Electric 22% IL US $5.7M Q1 2015 AR US $2.5M Q2 2015 NH US

  55. Slide 55: 2015 EBITDA Seasonality; Decoupling Reduces Volumetric Risk

    2015 EBITDA SEASONALITY 45% 40%  74% of gas commodity Q1 and Q4 35% 30%  38% of EBITDA in Q1 25% 29% 20%  Electric/water even 15% 15% 11% 5% across quarters 10% 6% 6% 5% 5% 5% 4% 5% 5% 5% 0% Q1 Q2 Q3 Q4 Water Electric Gas 81 DECOUPLING REDUCES VOLUMETRIC RISK Decoupling by Commodity as a  Reduci

  56. Slide 56: Expected EBITDA Mix 2014-2018; Capital Expenditures

    EXPECTED EBITDA MIX: 2014 - 2018 2018 EBITDA ~ $284 million 2014 EBITDA - $159 million* Water Water 19% 32% Gas Gas 47% 56% Electric 25% Electric 21% *Consensus estimate 83 CAPITAL EXPENDITURES Cumulative CapEx EBITDA 1,400 300 1,200 250 1,000 200 $ Millions 800 $ Millions 150 600 100 400 200 50 0 -

  57. Slide 57: Test Year Rate Filings

    TEST YEAR RATE FILINGS 2015 NH, GA, AZ, TX 2016 NH, GA, AR, AZ 2017 CA, GA, MO, IL 2018 NH, MA, GA 85 SUMMARY 54

  58. Slide 58: Distribution: Focused Growth

    DISTRIBUTION: FOCUSED GROWTH  $1.1 billion program to capitalize on utility dynamics  Focused growth  System improvements and customer growth  $740 million from 2015 - 2018  Acquisitions  Park Water - $360 million Results in $125 million of additional run rate EBITDA by 2018 87 QUESTIONS Distr

  59. Slide 59: Investor Day 2014: Transmission

    INVESTOR DAY 2014 Transmission FOCUSED GROWTH Ian Robertson Chief Executive Officer Algonquin Power & Utilities Corp. Dick Leehr President, Pipelines & Transmission Transmission 56

  60. Slide 60: Transmission Agenda

    TRANSMISSION Ian Robertson Chief Executive Officer Algonquin Power & Utilities Corp. AGENDA  Rationale for sector  Transmission investment strategy  U.S. electric transmission market dynamics  Electric transmission initiatives  Natural gas pipeline market dynamics  Transmission market focus 

  61. Slide 61: Rationale for Sector; Liberty Investment Strategy

    RATIONALE FOR SECTOR  Strategic alignment  Asset alignment  Business and regulatory alignment  Operational alignment 93 LIBERTY INVESTMENT STRATEGY  Leverage our utility footprint  Growth through development  $450M portfolio CapEx 94 58

  62. Slide 62: US Electric Transmission Market Dynamics; Transmission Opportunities

    US ELECTRIC TRANSMISSION MARKET DYNAMICS  Socialized asset business model  FERC ROE >10%  Non-volumetric business model  FERC Order 1000  Incumbent interstate transmission advantage downplayed  Intended to create more transparent process for selection of transmission initiatives  Focus near o

  63. Slide 63: Shale Gas - Foundation Fuel for North America

    TRANSMISSION Dick Leehr President, Pipelines & Transmission SHALE GAS - FOUNDATION FUEL FOR NORTH AMERICA 2014 98 60

  64. Slide 64: Natural Gas Pipeline Environment

    NATURAL GAS PIPELINE ENVIRONMENT  Natural gas pipelines serve a variety of loads for North America  Utilities, generation, industrial feedstock, commercial, LNG exports, producers - all drive demand  Pipeline business model  FERC or state regulated  Long term bilateral contracts with creditwort

  65. Slide 65: Why the Northeast Focus; Northeast Energy Direct Project

    WHY THE NORTHEAST FOCUS Northeast will account for 30% of U.S. production by 2019 101 Source: Bentek Presentation ‐ November 2014 NORTHEAST ENERGY DIRECT PROJECT: MARKET PATH PROJECT DETAILS PROJECT BENEFITS  30”/36” line, 176 miles through NY, MA, NH  Brings low cost Marcellus/Utica supply  Brin

  66. Slide 66: Attractive Supply Alternative; Partnership for Northeast Energy Direct

    ATTRACTIVE SUPPLY ALTERNATIVE  Subscribed for 115,000 Avg. Monthly NH Residential Gas Dth/day capacity on NED Customer Commodity Cost Electric  New capacity will lower gas $140 $126 prices in the entire region $120 $120  Provides reliable second $103 $100 route for NH gas delivery at $83 Concord

  67. Slide 67: Summary - Transmission

    SUMMARY SUMMARY – TRANSMISSION  A logical investment  Consistent asset, business and risk profile  Growing investment pipeline  Partnership with global leader for Northeast Energy Direct 106 64

  68. Slide 68: Questions; 2014 Investor Morning Summary

    QUESTIONS Transmission 2014 INVESTOR MORNING SUMMARY Commitment to strong capital structure Conservative balance sheet leading with equity Able to deliver financial results EBITDA growth consistent with targets Robust EPS/FFOPS growth supporting dividend $2.8B focused, accretive growth Generation: $

  69. Slide 69: Appendix: Simplified HLBV Estimation

    APPENDIX SIMPLIFIED HLBV ESTIMATION Wind Simple Regression: y = mx + b HLBV Income = m x Production + b 2015 2016 2017 MK, MK, MK, SN, SR SN, SR Odell SN, SR Odell Production (MWh) “x” 1,309,300 1,309,300 810,800* 1,309,300 810,800* Slope ($/MWh) “m” 0.032 0.033 0.076 0.033 0.076 Constant ($) “b” ($

  70. Slide 70: 2015 EBITDA - Distribution

    2015 EBITDA - DISTRIBUTION 2015 EBITDA Mix  Authorized weighted ROE of 9.9%  Expected Net Revenue:  $49.47/GW-hr Water 19%  $9.89/Dcth  $3.85/1000 Gallons Sold Gas  $11.74/1000 Gallons Treated 59% Electric 22%  Rates do not include rate increases for 2015 with exception of EN with expected in

Algonquin Power & Utilities — Investor Day (November 2014) on 6ix