Mr. Rod West reports

ALGONQUIN ANNOUNCES AGREEMENT TO SELL OWNERSHIP STAKE IN CHILEAN UTILITY

Algonquin Power & Utilities Corp. has reached an agreement to sell its approximately 64-per-cent ownership stake in Chilean water utility Suralis SA to a fund managed by Toesca SA Administradora General de Fondos, a Chilean asset manager that specializes in alternative investments.

Total proceeds from the sale are expected to be $126.5-million, plus an earnout opportunity of up to $1.5-million. Proceeds from the transaction are expected to be used for debt paydown and to facilitate capital recycling into the company's $3.2-billion capital plan for 2026 to 2028. All amounts are shown in U.S. dollars unless otherwise noted.

"This transaction represents an important step in simplifying our geographic footprint while concurrently recycling capital into our core regulated utility businesses," said Rod West, chief executive officer of Algonquin. "I want to thank our customers and the communities in the Los Lagos and Los Rios regions for allowing us to serve as their trusted water partner, supplier and neighbour. I also want to recognize the entire Suralis team for their unwavering commitment to our customers."

"This acquisition is a natural fit for Toesca, complementing our existing approximately 30-per-cent ownership in Suralis and allowing us to build on the foundation of exceptional customer service and community engagement that Suralis has fostered," said Carlos Saieh L., chief executive officer of Toesca. "We expect a smooth transition as we continue to provide water to customers and their communities."

The transaction is expected to close within the next two quarters and is subject to customary closing conditions, including merger control approval.

Centerview Partners LLC is acting as financial adviser, and Carey y Cia. Ltda. is acting as legal counsel to Algonquin.

About Algonquin Power & Utilities Corp. and Liberty Utilities Co.

Algonquin Power & Utilities, parent company of Liberty, is a diversified international generation, transmission and distribution utility. Algonquin is committed to providing safe, secure, reliable, cost-effective and sustainable energy and water solutions through its portfolio of generation, transmission and distribution utility investments to over one million customer connections, largely in the United States and Canada. Algonquin's common shares, preferred shares, Series A, and preferred shares, Series D, are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A and AQN.PR.D, respectively. Algonquin's common shares and Series 2019-A subordinated notes are listed on the New York Stock Exchange under the symbols AQN and AQNB, respectively.

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