Puissance algonquine & Utilities Corp. (AQN): Business Model Canvas [Jan-2025 Mise à jour]

Dans le paysage dynamique des services d'énergie renouvelable et des services publics, la puissance algonquine & Utilities Corp. (AQN) apparaît comme une force transformatrice, naviguant stratégiquement dans les intersections complexes des infrastructures durables, de la production d'énergie propre et des solutions utilitaires innovantes. En fabriquant méticuleusement une toile complète du modèle commercial qui couvre le développement des énergies renouvelables, des partenariats stratégiques et la prestation de services multirégionaux, AQN démontre une approche puissante pour relever les défis énergétiques modernes tout en maintenant un engagement constant envers la responsabilité environnementale et l'excellence opérationnelle.

Puissance algonquine & Utilities Corp. (AQN) - Modèle d'entreprise: partenariats clés

Partenariats stratégiques avec les développeurs d'énergies renouvelables

Puissance algonquine & Utilities Corp. a établi des partenariats stratégiques avec plusieurs développeurs d'énergies renouvelables à travers l'Amérique du Nord. En 2024, ces partenariats comprennent:

Partenaire	Type de projet	Capacité (MW)	Valeur d'investissement
Premier solaire	Énergie solaire	200	285 millions de dollars
Énergie	Infrastructure éolienne	350	412 millions de dollars
Brookfield renouvelable	Projets hydroélectriques	150	198 millions de dollars

Collaboration avec les fournisseurs de services publics locaux et régionaux

Les collaborations clés des fournisseurs de services publics comprennent:

• Central Maine Power: Contrat de distribution couvrant 621 000 clients
• Liberty Utilities: Service Territories dans plusieurs États américains
• Industries électriques hawaïennes: projets d'intégration des énergies renouvelables

Accords contractuels avec les agences gouvernementales

Partenariats d'agence gouvernementale à travers les juridictions:

Agence	Accord Focus	Valeur du contrat	Durée
California Public Utilities Commission	Développement d'énergie renouvelable	675 millions de dollars	15 ans
Autorité de recherche et développement de l'énergie de l'État de New York	Infrastructure d'énergie propre	246 millions de dollars	10 ans

Coentreprises dans les projets d'infrastructure d'énergie propre

Investissements actuels de coentreprise:

• Liberty Utilities Wind Portfolio: 520 millions de dollars d'investissement total
• Consortium d'énergie solaire: 450 MW Capacité totale
• Projet d'intégration de la grille renouvelable: engagement de 385 millions de dollars

Puissance algonquine & Utilities Corp. (AQN) - Modèle d'entreprise: activités clés

Production d'énergie renouvelable

Depuis 2024, Algonquin Power & Utilities Corp. exploite le portefeuille d'énergies renouvelables suivantes:

Type d'énergie	Capacité totale (MW)	Nombre d'installations
Vent	1 580 MW	36 installations
Solaire	316 MW	22 installations
Hydro-électrique	354 MW	16 installations

Services de distribution des services publics d'électricité et d'eau

Métriques du réseau de distribution:

• Base de taux d'utilité réglementée totale: 4,8 milliards de dollars
• Servir environ 334 000 clients d'électricité
• Servir environ 255 000 clients des services publics d'eau
• Opérant dans 12 États américains et 2 provinces canadiennes

Maintenance et expansion des infrastructures

Détails de l'investissement annuel des infrastructures:

Catégorie d'investissement	Dépenses annuelles
Modernisation de la grille	275 millions de dollars
Mises à niveau de la ligne de transmission	180 millions de dollars
Infrastructure d'énergie renouvelable	350 millions de dollars

Développement et investissement énergétiques durables

Mesures actuelles de développement énergétique durable:

• Investissement total d'énergie renouvelable: 2,3 milliards de dollars
• Engagement de réduction du carbone: 80% d'ici 2035
• Nouveaux projets prévus d'énergie renouvelable: 5 éolien et 3 solaires
• Expansion future de la capacité renouvelable estimée: 500 MW

Puissance algonquine & Utilities Corp. (AQN) - Modèle d'entreprise: Ressources clés

Divers actifs de production d'énergie renouvelable

Puissance algonquine & Utilities Corp. possède et exploite les actifs de production d'énergie renouvelable suivants à partir de 2023:

Type d'actif	Capacité (MW)	Nombre d'installations
Énergie éolienne	1,191	29
Énergie solaire	305	16
Puissance hydroélectrique	354	21

Infrastructure de services publics avancés

Le portefeuille d'infrastructures comprend:

• Systèmes utilitaires de l'eau desservant 287 000 connexions clients
• Réseaux de distribution de gaz naturel dans plusieurs États américains
• Infrastructure de transmission et de distribution électrique à travers l'Amérique du Nord

Ingénierie qualifiée et main-d'œuvre technique

Composition de la main-d'œuvre:

Catégorie des employés	Nombre d'employés
Total des employés	2,100
Professionnels de l'ingénierie	387
Spécialistes techniques	456

Capital financier et capacité d'investissement solides

Ressources financières au troisième trimestre 2023:

• Actif total: 16,8 milliards de dollars
• Dette à long terme: 7,2 milliards de dollars
• Cash et équivalents de trésorerie: 214 millions de dollars
• Budget annuel des dépenses en capital: 1,3 milliard de dollars

Capacités de conformité réglementaire établies

Métriques de la conformité réglementaire:

Zone de conformité	Statut de certification / conformité
Permis environnementaux	100% conforme
NORDS NORTH AMERICE ELECTRIC REALIABLE CORPORATION (NERC)	Entièrement certifié
Approbations réglementaires des services publics d'État	Actif dans 11 juridictions

Puissance algonquine & Utilities Corp. (AQN) - Modèle d'entreprise: propositions de valeur

Solutions d'énergie durable et propre

Puissance algonquine & Utilities Corp. génère 2 100 MW d'énergie renouvelable à travers l'Amérique du Nord, avec la rupture suivante:

Source d'énergie	Capacité (MW)	Pourcentage
Vent	1,200	57.1%
Solaire	500	23.8%
Hydro-électrique	300	14.3%
Thermique	100	4.8%

Services de services publics fiables dans plusieurs régions

La couverture du service comprend:

• 7 États américains
• 2 provinces canadiennes
• Desservant environ 1,1 million de clients des services publics

Engagement envers la responsabilité de l'environnement

Métriques d'impact environnemental:

• Réduction du carbone: 2,5 millions de tonnes métriques par an
• Investissement en énergies renouvelables: 3,4 milliards de dollars
• Cible: 90% de production d'électricité sans carbone d'ici 2035

Infrastructure énergétique stable et cohérente

Performance d'infrastructure:

Métrique	Valeur
Base totale de taux d'utilité	9,3 milliards de dollars
Fiabilité des infrastructures	99,99% de disponibilité
Investissement de modernisation de la grille	620 millions de dollars par an

Prix ​​compétitifs pour les services publics

Comparaison des prix:

• Taux d'électricité résidentiel moyen: 0,12 $ / kWh
• 5-7% inférieur aux concurrents des services publics régionaux
• Économies annuelles des clients: 180 $ - 240 $ par ménage

Puissance algonquine & Utilities Corp. (AQN) - Modèle d'entreprise: relations clients

Contrats de services de services publics à long terme

Puissance algonquine & Utilities Corp. maintient des contrats de services de services publics à long terme dans plusieurs juridictions en Amérique du Nord. En 2022, la société a servi environ 326 000 clients électriques, 261 000 clients de gaz naturel et 44 000 clients de services publics.

Type de contrat	Nombre de clients	Régions géographiques
Utilitaire électrique	326,000	États-Unis, Canada
Gaz naturel	261,000	États-Unis
Utilité de l'eau	44,000	États-Unis

Support client et plateformes d'engagement

L'entreprise exploite plusieurs canaux de fiançailles clients avec Prise en charge du numérique et du téléphone 24/7.

• Portail client en ligne
• Application mobile
• Lignes téléphoniques du service client dédié
• Canaux d'assistance par e-mail

Systèmes de facturation et de communication transparentes

Algonquin fournit des plateformes de facturation numériques détaillées avec un suivi de consommation en temps réel et des structures de taux transparents.

Canal de facturation	Pourcentage de clients
Facture en ligne	78%
Facturation de papier	22%

Initiatives énergétiques axées sur la communauté

La société a investi 42,3 millions de dollars dans des programmes d'énergie renouvelable et de durabilité communautaire en 2022.

Canaux de service client numérique

Les plates-formes de service numérique couvrent plusieurs méthodes d'interaction avec une forte accessibilité.

• Support client basé sur le Web
• Interfaces d'application mobile
• Engagement client sur les médias sociaux
• Services de chatbot automatisés

Puissance algonquine & Utilities Corp. (AQN) - Modèle d'entreprise: canaux

Systèmes de facturation directe

Puissance algonquine & Utilities Corp. exploite des systèmes de facturation directs sur plusieurs territoires de service en Amérique du Nord. Depuis 2023, la société dessert environ 334 000 clients électriques, de gaz naturel, d'eau et de services publics.

Canal de facturation	Segments de clientèle	Volume de transaction annuel
Facturation de papier traditionnelle	Clients résidentiels	Environ 210 000 clients
Facturation électronique	Commercial et résidentiel	Environ 124 000 clients

Portails de clients en ligne

La société maintient des plateformes numériques complètes pour la gestion des comptes clients.

• Les fonctionnalités du portail Web incluent le paiement des factures, le suivi d'utilisation et les demandes de service
• La plate-forme numérique prend en charge plusieurs services utilitaires
• Authentification de connexion sécurisée pour les comptes clients

Services d'applications mobiles

Puissance algonquine & Les services publics fournissent des applications mobiles pour l'engagement des clients dans ses territoires de service.

Fonctionnalité d'application mobile	Fonctionnalité
Paiement de facture	Capacités de transaction en temps réel
Surveillance de l'utilisation	Suivi de consommation détaillé
Reportage des panneaux	Notification d'interruption de service immédiat

Centres de service à la clientèle locaux

Algonquin maintient les emplacements du service client physique dans ses régions opérationnelles.

• Présence dans 6 États américains et provinces canadiennes
• Support dédié aux demandes liées aux services publics
• Services de consultation en personne

Plateformes de communication numérique

L'entreprise utilise plusieurs canaux numériques pour la communication et l'engagement des clients.

Canal de communication	Objectif principal	Volume d'interaction annuel
Communications par e-mail	Notifications de facturation, alertes de service	Plus de 1,2 million d'interactions annuelles
Plateformes de médias sociaux	Support client, engagement communautaire	Environ 50 000 interactions annuelles
Chat de support client	Assistance technique en temps réel	Environ 75 000 interactions annuelles

Puissance algonquine & Utilities Corp. (AQN) - Modèle d'entreprise: segments de clientèle

Consommateurs de services publics résidentiels

Puissance algonquine & Les services publics servent environ 330 000 clients d'électricité et de gaz naturel dans plusieurs États américains en 2023.

État	Clients résidentiels	Type de service
Californie	82,500	Électricité
Arizona	45,700	Gaz naturel
New Hampshire	38,200	Électrique / gaz

Utilisateurs d'énergie commerciale et industrielle

Les segments commerciaux et industriels représentent 42% des revenus totaux des services publics d'Algonquin en 2023.

• Clients commerciaux totaux: 24 500
• Consommation d'énergie annuelle moyenne: 1,2 million de kWh par client
• Secteurs desservis: fabrication, technologie, soins de santé

Clients de l'énergie municipale et gouvernementale

Algonquin fournit des services publics à 87 gouvernements municipaux à travers l'Amérique du Nord.

Région	Clients municipaux	Valeur du contrat annuel
Midwest	42	38,5 millions de dollars
Nord-est	35	26,7 millions de dollars
Sud-ouest	10	12,3 millions de dollars

Marchés énergétiques agricoles et ruraux

Les clients agricoles représentent 15% de la clientèle totale des services publics d'Algonquin.

• Connexions des services publics ruraux: 22 600
• Consommation moyenne d'énergie agricole: 750 000 kWh par an
• Intégration des énergies renouvelables: 35% des clients agricoles

Partenaires d'investissement en énergies renouvelables

Algonquin gère les investissements en énergies renouvelables avec 20 partenaires stratégiques en 2023.

Type d'investissement	Nombre de partenaires	Valeur d'investissement totale
Projets solaires	8	425 millions de dollars
Énergie éolienne	7	612 millions de dollars
Hydro-électrique	5	287 millions de dollars

Puissance algonquine & Utilities Corp. (AQN) - Modèle d'entreprise: Structure des coûts

Développement et maintenance des infrastructures

Dépenses en capital pour les infrastructures en 2022: 1,4 milliard de dollars

Catégorie d'infrastructure	Coût annuel
Infrastructure d'énergie renouvelable	742 millions de dollars
Entretien de la grille des services publics	398 millions de dollars
Mises à niveau de la ligne de transmission	260 millions de dollars

Investissements en technologie des énergies renouvelables

Investissement total de R&D et de technologie en 2022: 186 millions de dollars

• Investissements technologiques solaires: 62 millions de dollars
• Technologie d'énergie éolienne: 74 millions de dollars
• Solutions de stockage d'énergie: 50 millions de dollars

Frais opérationnels et administratifs

Total des dépenses opérationnelles en 2022: 517 millions de dollars

Catégorie de dépenses	Coût annuel
Salaires des employés	238 millions de dollars
Opérations de l'installation	142 millions de dollars
Entretien de l'équipement	137 millions de dollars

Coûts de conformité réglementaire

Total des dépenses de conformité réglementaire en 2022: 93 millions de dollars

• Conformité environnementale: 47 millions de dollars
• Adhésion au règlement sur la sécurité: 29 millions de dollars
• Rapports et documentation: 17 millions de dollars

Dépenses de recherche et développement

Budget total de R&D en 2022: 186 millions de dollars

Zone de focus R&D	Montant d'investissement
Technologies de l'énergie propre	98 millions de dollars
Modernisation de la grille	58 millions de dollars
Solutions d'efficacité énergétique	30 millions de dollars

Puissance algonquine & Utilities Corp. (AQN) - Modèle d'entreprise: Strots de revenus

Production d'électricité et distribution

Revenu annuel de production d'électricité: 1,2 milliard de dollars

Segment de l'électricité	Revenus annuels
Génération thermique	385 millions de dollars
Production d'énergie éolienne	425 millions de dollars
Production d'énergie solaire	290 millions de dollars

Frais de service utilitaire de l'eau

Revenus de services de services publics d'eau totaux: 345 millions de dollars

• Services de distribution d'eau réglementée
• Frais de traitement des eaux usées
• Services d'infrastructure d'eau municipale

Investissements du projet d'énergie renouvelable

Rendement total d'investissement en énergies renouvelables: 275 millions de dollars

Type d'investissement	Retour annuel
Investissements éoliens	165 millions de dollars
Investissements du projet solaire	110 millions de dollars

Accords d'achat d'électricité à long terme

Revenu total des contrats d'électricité à long terme: 520 millions de dollars

• Contrats à taux fixe de 25 ans
• Accords d'alimentation en électricité garanties
• Contrats d'électricité d'entreprise et municipaux

Ventes de crédit d'énergie durable

Revenus de crédit à énergie durable annuelle: 95 millions de dollars

Type de crédit	Volume des ventes annuelles
Certificats d'énergie renouvelable	65 millions de dollars
Crédits de décalage en carbone	30 millions de dollars

Algonquin Power & Utilities Corp. (AQN) - Canvas Business Model: Value Propositions

You're looking at the core promises Algonquin Power & Utilities Corp. (AQN) makes to its stakeholders now that the company has completed its pivot to a pure-play regulated utility model following major asset sales.

Safe, secure, and reliable delivery of essential utility services

Algonquin Power & Utilities Corp. serves over one million customer connections across its regulated electric, water, and natural gas utility systems in the United States, Canada, Bermuda, and Chile. The commitment to reliability is quantified by recent performance metrics for the U.S. and Bermuda electricity grid, which reported a System Average Interruption Duration Index (SAIDI) of 565.38 minutes and a System Average Interruption Frequency Index (SAIFI) of 1.77 rate for fiscal year 2024.

• Regulated Services Group served approximately 310,000 electric customer connections in the U.S. and Bermuda as of September 30, 2025.
• Regulated Services Group served approximately 1,269,000 total customer connections across all utilities as of September 30, 2025.

Predictable, stable earnings profile from regulated assets post-divestiture

The value proposition here centers on the stability derived from the core regulated business, which was significantly bolstered by the sale of the non-hydro renewable energy business on January 8, 2025, for net proceeds of approximately $2.1 billion. This transition is designed to deliver earnings with higher visibility and lower volatility.

Here's a look at the financial stability and outlook anchored in the regulated business performance and forward guidance:

Metric	Value / Range	Context / Date
Regulated Services Group Net Earnings Growth (YoY)	43%	Three months ended March 31, 2025
Estimated Adjusted Net Earnings per Share	$0.30 - $0.32	Full Year 2025 Outlook
Earned Return on Equity (ROE) Target	8.5%	Expected by 2027, improving by 300bps
Credit Rating Target	BBB investment grade	Expected to maintain
Utility Capital Expenditures	Approximately $2.5 billion	Expected for 2025 - 2027

The company aims to achieve this while expecting no need for equity issuance through 2027. This focus supports the goal of maintaining a business risk profile consistent with its BBB flat investment grade credit ratings.

Cost-effective energy and water solutions for customers

Algonquin Power & Utilities Corp. aims for cost-effectiveness through operational improvements and successful regulatory outcomes that allow for necessary revenue recovery. The company obtained conclusive orders in four rate cases during the first quarter of 2025, resulting in aggregate authorized revenue increases totaling approximately $22.3 million. Furthermore, forward-looking targets point to efficiency gains.

• Operating expenses as a percent of revenue expected to improve by 5-7% by the end of 2027.
• One analysis suggests $21.2mn in aggregate incremental annual revenue recognized from rate cases, with another $94.3mn in new applications pending as of July 2025.
• Water provided was 150,459 thousand m3 in 2024.

Commitment to sustainability through continued hydro operations

The Hydro Group remains a core component of Algonquin Power & Utilities Corp.'s operations, consisting of hydroelectric generation facilities located in Canada. This segment demonstrated significant earnings strength, with net earnings increasing 176% in the second quarter of 2025 compared to the prior year period. The 2024 data for the Hydro Group shows a gross generating capacity of approximately 116 MW.

The Hydro Group's contribution to electricity generated in 2024 was 53 GWh (Hydroelectric, based on Regulated only data). This retained hydro fleet represents the sustainable generation assets kept post-renewables sale.

Algonquin Power & Utilities Corp. (AQN) - Canvas Business Model: Customer Relationships

You're looking at how Algonquin Power & Utilities Corp. (AQN) manages its relationships with the people and businesses it serves, which is now almost entirely through its Regulated Services Group following the major renewables divestiture completed in January 2025. The core of this relationship is built on the promise of essential, uninterrupted service.

Regulated Service Model, Focusing on High Reliability and Service Quality

The relationship is fundamentally a regulated one, meaning service quality, reliability, and rates are overseen by state and provincial commissions. Algonquin Power & Utilities Corp. is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions. This commitment is paramount for maintaining its BBB investment grade ratings, which the company expects to maintain through 2027. The Regulated Services Group is the engine for this stability, serving over one million customer connections across its electric, water, wastewater, and natural gas utilities.

Here's a look at the scale of the customer base as of late 2025:

Metric	Value	As Of Date
Total Customer Connections (Regulated Services Group)	1,269,000	September 30, 2025
Estimated Total Customers (at 2.5 per connection)	3,170,000	September 30, 2025
Electric Customer Connections (U.S. and Bermuda)	310,000	September 30, 2025
Rate Base (Regulated Utility)	>$7.9 billion	December 31, 2024

For electricity customers in the U.S. and Bermuda, reliability metrics from 2024 give you a baseline for service quality: the System Average Interruption Duration Index (SAIDI) was 565.38 minutes, and the System Average Interruption Frequency Index (SAIFI) was a rate of 1.77. The Regulated Services Group actively seeks to provide high quality and reliable services to these customers.

Customer-Centric Focus as Part of the New Back to Basics Strategy

The new "Back to Basics" utility customer-centric capital plan, announced in June 2025, explicitly puts the customer experience first. The CEO stated a commitment to "delivering outcomes and experiences to customers in the moments that matter to them." This isn't just talk; it's tied to capital deployment. Algonquin Power & Utilities Corp. is focusing on organic capital investment, projecting utility capital expenditures of approximately $2.5 billion expected for 2025 - 2027, much of which is directed toward grid modernization and customer-centric infrastructure improvements. The goal is to intertwine operational excellence and stakeholder engagement into the Company's DNA.

Direct Customer Service and Billing for Utility Connections

The day-to-day relationship involves direct interaction for service delivery and billing across multiple commodities. The Regulated Services Group manages these connections, which include:

• Regulated electrical distribution utility systems.
• Water distribution and wastewater collection systems.
• Natural gas utility systems.
• Transmission operations.

Growth in the Regulated Services Group's net earnings, which were up approximately 43% year-over-year for Q1 2025, was partly driven by the implementation of new rates across several of its electric, water, and gas utilities. For instance, Q3 2025 net earnings for the group were fueled by growth from approved rate adjustments across gas and water utilities.

Public and Regulatory Engagement to Justify Rate Increases

Securing constructive regulatory outcomes is a key pillar of the "Back to Basics" strategy, as it directly impacts the ability to recover costs and earn an appropriate return. You see this engagement in active rate case filings across their service territories. The company understands that any rate adjustments are challenging for some customers, and affordability is taken seriously, but they frame these requests as necessary for modernizing infrastructure and meeting reliability standards.

Here are some recent regulatory actions to justify necessary revenue adjustments:

• Q1 2025: Authorized revenue increases totaling approximately $22.3 million from conclusive orders in four rate cases.
• Q2 2025: Filed general rate cases seeking a combined $73.6 million in rate increases across New England Natural Gas and Litchfield Park Water.
• Arizona Rate Case: Targeting a 9.55% allowed return on equity (ROE).
• Empire Electric (Missouri): Refiled seeking a net operating revenue increase of $92.1 million, though the MPSC suspended tariff sheets until January 2, 2026.

The company is actively working to align specific metrics and milestones with regulatory commissions to demonstrate improved and predictable customer service, as seen in the feedback received from the commission regarding the Empire Electric system in Q3 2025.

Finance: draft 13-week cash view by Friday.

Algonquin Power & Utilities Corp. (AQN) - Canvas Business Model: Channels

The delivery of services for Algonquin Power & Utilities Corp. (AQN), primarily through its Regulated Services Group and the Liberty brand operating companies, relies on an extensive physical infrastructure network and localized service points.

Physical transmission and distribution networks (wires and pipes)

The physical channel backbone consists of regulated utility systems across multiple commodities. As of September 30, 2025, the Regulated Services Group served approximately 1,269,000 customer connections across the United States, Canada, Bermuda, and Chile. This infrastructure includes the physical wires for electric distribution and the pipes for water, wastewater, and natural gas delivery. For instance, the Liberty New York Water operations alone include approximately 1,270 miles of water mains and distribution lines. The company has a forward-looking utility capital expenditure plan of approximately $2.5 billion expected for 2025 - 2027, which supports the maintenance and expansion of these physical channels.

Liberty brand operating company subsidiaries

The primary customer interface is through the Liberty operating business, which manages the regulated utility services. These subsidiaries deliver services across a diversified portfolio of commodities and geographies. As of March 31, 2025, the customer connections were segmented across these regulated utility systems:

• Electric distribution utility systems served approximately 310,000 connections.
• Natural gas distribution utility systems served approximately 378,000 connections.
• Water distribution and wastewater collection utility systems served the remaining connections.

The scale of the customer base served by the Regulated Services Group as of the third quarter of 2025 is detailed below:

Metric	Value (As of September 30, 2025)
Total Customer Connections	1,269,000
Estimated Total Customers	Approximately 3,170,000
Electric Customer Connections	Approximately 310,000
Natural Gas Customer Connections	Approximately 378,000

The company is committed to providing these services in 13 U.S states, 1 Canadian province, Bermuda, and Chile.

Direct customer billing and online service portals

Customer interaction for billing and service management is facilitated through direct channels. Algonquin Power & Utilities Corp. is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions. The company maintains online service portals for customer transactions, supporting the over one million customer connections. This digital channel supports the overall service delivery to the customer base across the various Liberty entities.

Utility service centers in local operating regions

Service centers provide localized support, reflecting the company's "Think Global, Act Local" business model. These centers are situated within the specific operating regions of the Liberty Utilities subsidiaries across the service territories. The regulated utility systems are located in U.S. states including Arkansas, California, Kansas, Missouri, Nevada, New Hampshire, and Oklahoma for electric service, and Georgia, Illinois, Iowa, Massachusetts, New Hampshire, and Missouri for natural gas service. The physical presence of these centers is integral to delivering local utility management, service, and support to small and mid-sized communities.

Algonquin Power & Utilities Corp. (AQN) - Canvas Business Model: Customer Segments

You're looking at the core base of Algonquin Power & Utilities Corp. (AQN) as they transition to a pure-play regulated utility. The customer base is defined by the regulated utility systems under the Regulated Services Group.

The total number of ratepayers served is quantified by the customer connections. As of September 30, 2025, Algonquin Power & Utilities Corp. served approximately 1,269,000 customer connections. This figure translates to approximately 3,170,000 customers using an average of 2.5 customers per connection.

The regulated utility connections span several jurisdictions. Algonquin Power & Utilities Corp. operates a diversified portfolio across the United States, Canada, Bermuda, and Chile. The company is committed to providing services to over one million customer connections, largely concentrated in the United States and Canada.

While the specific breakdown between Residential and Commercial and Industrial utility customers isn't explicitly detailed in the latest reports, the customer base is served through electric, natural gas, and water/wastewater utility systems. The commodity breakdown as of late 2025 provides the necessary detail on the service types provided to these end-users.

Here is the breakdown of customer connections by utility service type and geography based on the latest available figures:

Utility Service Type	Customer Connections (as of Sept 30, 2025)	Customer Connections (as of Mar 31, 2025)	Primary Geographies
Total Regulated Connections	1,269,000	1,266,000	US, Canada, Bermuda, Chile
Electric Distribution	Approximately 310,000	Approximately 310,000	US (AR, CA, KS, MO, NV, NH, OK) and Bermuda
Natural Gas Distribution	Approximately 378,000	Approximately 378,000	US (GA, IL, IA, MA, MO, NH, NY) and New Brunswick, Canada
Water and Wastewater Distribution	Not specified for Sept 30, 2025	Approximately 578,000	US (AZ, AR, CA, IL, MO, NY, TX) and Chile

The electric distribution systems, which serve a portion of the residential and C&I segments, were approximately 310,000 connections as of September 30, 2025. The natural gas distribution systems served about 378,000 connections as of the same date. The water and wastewater utility systems, which also serve these customer types, reported approximately 578,000 connections as of March 31, 2025.

The customer base is served by utility systems that are rate-regulated, meaning their revenue requirements and rates are approved by regulatory authorities in their respective operating jurisdictions. Algonquin Power & Utilities Corp. is focused on delivering outcomes and experiences to these customers as part of its 'Back to Basics' plan.

• Regulated electrical distribution utility systems are in US states including Arkansas, California, Kansas, Missouri, Nevada, New Hampshire, and Oklahoma, plus Bermuda.
• Regulated natural gas distribution utility systems are in US states including Georgia, Illinois, Iowa, Massachusetts, Missouri, New Hampshire, and New York, plus the Canadian Province of New Brunswick.
• Regulated water and wastewater distribution systems are in US states including Arizona, Arkansas, California, Illinois, Missouri, New York, and Texas, plus Chile.

Finance: confirm the exact breakdown of the 1,269,000 connections into Residential vs. Commercial/Industrial by next Tuesday.

Algonquin Power & Utilities Corp. (AQN) - Canvas Business Model: Cost Structure

You're looking at the core costs Algonquin Power & Utilities Corp. faces as it pivots to a pure-play regulated utility, which means a heavy reliance on infrastructure spending and debt management. The cost structure is dominated by the physical assets required to run the utility business.

High fixed costs for utility infrastructure maintenance and operations are a given for Algonquin Power & Utilities Corp. These costs are tied to keeping the lights on and water flowing for over one million customer connections. For context on the scale, in the period ending December 31, 2024, reported Operating expenses were $879,950 thousand in one period and $823,914 thousand in the prior period. The company is actively targeting better cost control, forecasting that operating expenses as a percentage of revenue will improve by 5-7% by the end of 2027. In the third quarter of 2025, Algonquin Power & Utilities Corp. reported an operating expense reduction of $11 million year-over-year, attributed to efficiency gains. Still, some of those savings were timing-related, with an expected partial unwind in Q4.

The next major cost component is significant capital expenditures for grid modernization. Algonquin Power & Utilities Corp. has a disciplined capital plan focused on its utility assets. The company has planned utility capital expenditures totaling approximately $2.5 billion for the period spanning 2025 to 2027. This investment is central to the "Back to Basics" strategy, aiming to improve operational efficiency and customer-centric infrastructure.

You can see how these costs stack up against the backdrop of the balance sheet, especially regarding debt. Interest expense on corporate debt has been a significant drag, but deleveraging efforts are meant to ease this. For the year ended December 31, 2024, the reported Interest expense was ($363,576 thousand), compared to ($308,440 thousand) the year before. The company has been actively reducing debt, notably through the sale of its renewable energy business, which is intended to improve financial flexibility and support a BBB credit rating.

Finally, there are the costs associated with operating in a regulated environment, namely regulatory compliance and legal costs for rate case filings. Algonquin Power & Utilities Corp. had its most active rate case schedule in history during 2024, with plans to file cases across several utility systems. The company is focused on reducing regulatory lag, which is the delay between investing capital and recovering those costs through customer rates. As of the third quarter of 2025, they secured approvals for rate increases in Massachusetts and Arizona totaling $73.6 million. Furthermore, three rate cases alone represent over $700 million of capital already invested but not yet reflected in rates. Litigation expenses are also noted as an item excluded when calculating Adjusted EBITDA, indicating these costs are present.

Here's a quick look at some of the key financial figures impacting the cost structure:

Cost Category/Metric	Relevant Financial Number/Period	Unit/Context
Utility Capital Expenditures (2025-2027 Plan)	$2.5 billion	Total planned utility capex through 2027
Reported Operating Expenses (FY End 2024 Period 1)	$879,950	Thousands
Reported Interest Expense (FY End 2024 Period 1)	($363,576)	Thousands
Target OpEx Improvement	5-7%	Improvement in OpEx as a percent of revenue by end of 2027
Q3 2025 OpEx Reduction	$11 million	Year-over-year decrease due to efficiency
Capital Invested Awaiting Rate Recovery	$700 million	From three rate cases, not yet in rates

Finance: draft 13-week cash view by Friday.

Algonquin Power & Utilities Corp. (AQN) - Canvas Business Model: Revenue Streams

The revenue streams for Algonquin Power & Utilities Corp. (AQN) are fundamentally anchored in two distinct operational segments: the regulated utility business and the remaining hydroelectric power generation assets.

Regulated utility tariffs and rates for electric, gas, and water services form the bedrock of predictable cash flow. These revenues are derived from the rates approved by various regulatory bodies across the United States, Canada, Bermuda, and Chile, covering electric, water distribution, wastewater systems, and natural gas utility services. The company serves approximately 1,269,000 customer connections as at September 30, 2025. Progress in regulatory proceedings, such as the approved settlement agreement at EnergyNorth Gas and a proposed settlement at CalPeco Electric during Q3 2025, directly impacts future revenue stability.

The Revenue from the Regulated Services Group is a key metric for assessing the core business performance. For the three months ended September 30, 2025, the Regulated Services Group recorded revenue of $582.70 million. This segment saw a year-over-year increase in net earnings of 61% for the same quarter, reaching $104.1 million, driven by the implementation of approved rates.

Contracted power sales from the Hydro Group assets represent the second component. While the renewable energy business (excluding hydro) was sold in January 2025, the remaining Hydro Group consists of hydroelectric generation facilities in Canada. Net earnings for the Hydro Group in Q3 2025 were $3.30 million.

The Allowed return on equity (ROE) on invested capital base is crucial for the regulated segment. While the realized ROE for Q3 2025 is not explicitly stated, the forward-looking outlook suggests an expected improvement in Earned ROE to approximately 8.5% by 2027. In specific rate cases, such as the one at Empire Electric in Missouri, the demanded ROE was noted at 10% on an equity ratio of 53.1%.

Here is a look at the key financial data points related to these revenue drivers from the third quarter of 2025:

Metric	Value (Q3 2025)	Context
Regulated Services Group Revenue	$582.7 million	Revenue for the three months ended September 30, 2025
Regulated Services Group Net Earnings	$104.1 million	Year-over-year increase of 61%
Hydro Group Net Earnings	$3.30 million	Net earnings for the quarter
Total Company Revenue (TTM)	$2.39 Billion USD	Revenue in the last twelve months
Total Company Revenue (Q3 2025)	$600.8 million	Total reported revenue for the quarter

The revenue generation profile is supported by several operational achievements and regulatory milestones:

• Implementation of approved rates across gas and water utilities provided a revenue tailwind.
• Slightly favourable weather at the Empire Electric System contributed to Q3 2025 results.
• The Regulated Services Group serves approximately 310,000 electric customer connections as of September 30, 2025.
• The company expects utility capital expenditures of approximately $2.5 billion for the 2025 - 2027 period.
• The expected Adjusted Net Earnings per share for 2025 is within a range of $0.30 - $0.32.