OAKVILLE, Ontario, September 30, 2022 – On September 29, 2022, Liberty Utilities Co. (“Liberty”), the indirect subsidiary of Algonquin Power & Utilities Corp. (“AQN” or the “Company”) (TSX: AQN) (NYSE: AQN), and American Electric Power (NASDAQ: AEP) (“AEP”) entered  into an amendment (the “Amendment”) to the stock purchase agreement dated October 26, 2021 pursuant to which Liberty agreed to purchase Kentucky Power Company and AEP Kentucky Transmission Company, Inc. (the “Transaction”).

The Amendment provides a path to complete the Transaction at a revised purchase price of $2.646 billion, including the assumption of approximately $1.221 billion in debt. The Transaction remains subject to approval of the U.S. Federal Energy Regulatory Commission and is expected to close in January 2023 if such approval has been received.

“We look forward to welcoming the employees of Kentucky Power into the Algonquin-Liberty family,” said Arun Banskota, President and Chief Executive Officer of AQN. “We are excited about the Kentucky Power acquisition and adding to our regulated footprint in the United States, as well as leveraging our operational experience for the customers and communities of Kentucky.”

The Transaction is aligned with the Company’s disciplined growth in its Regulated Services Group given the compelling valuation and opportunities to deliver customer benefits and work with stakeholders on the energy transition in Kentucky. The Company plans to utilize its local customer-centric operational model and expertise at Kentucky Power.

All amounts are shown in United States dollars (“$”) unless otherwise indicated

Liberty Kentucky President David Swain issued the following statement today after the company donated $50,000 to the Team Eastern Kentucky Flood Relief Fund.

“Our thoughts and prayers are with the many individuals and families who have been impacted by the flooding in Eastern Kentucky. To help support relief efforts, Liberty has donated $50,000 to the Team Eastern Kentucky Flood Relief Fund established by Governor Beshear. We have been in close communication with our employees and community partners on-the-ground in Kentucky and stand ready to assist however we can. We look forward to serving the Eastern Kentucky community and are committed to being part of this important relief effort.”

For more information, please visit www.libertyenergyandwater.com.  

President of Liberty Utilities, David Swain, the man leading Liberty Utilities’ acquisition of Kentucky Power, took the podium during a Pikeville Rotary Club meeting June 1 in an effort to offer more insight into why the move will benefit Eastern Kentuckians. He said the company plans to focus on what they can do for customers and that they have a passion for Eastern Kentucky.

The approval by Kentucky Public Service Commission affirms that Liberty’s ownership of Kentucky Power is the best path forward for customers, communities and employees. This is a major step in completing the transaction by mid-2022. Additional regulatory approvals from the Federal Energy Regulatory Commission and the Public Service Commission of West Virginia are expected in the near future to allow the sale to be finalized by mid-2022 and the related benefits for customers to begin. We look forward to serving the customers and communities in eastern Kentucky with safe, cost-effective energy services.

Kentucky Power will be under the leadership of Liberty Utilities, if its sale is approved by a state commission.

The utility company, a subsidiary of American Electric Power, provides electricity for 165,000 retail customers in 20 Eastern Kentucky counties.

If you’ve recently filled up your cart at the grocery store or your car at the gas pump, you’ve probably been taken aback by the price on the register. Costs are rising for many of the basic goods and services we rely on every day—and as we continue to bounce back from the challenges of the last two years, paying for these expenses on top of other bills and obligations can feel overwhelming.

Liberty has negotiated with AEP to purchase Kentucky Power at a fair purchase price and maintain its current employees and operations in Eastern Kentucky. This transaction represents the best path forward for securing a strong future of reliable and cost-effective electric service, while preserving critical local jobs and creating new ones, all with a view to enhancing customer satisfaction.

“We appreciate and respect the interest that Attorney General Cameron and the members of the Kentucky Mountain Caucus of the General Assembly have taken in this important process. We have heard their concerns and addressed them in filings made at the Public Service Commission. We want to continue to work with them to help Eastern Kentucky thrive by providing significant benefits for the region including jobs and lower electric bills for Eastern Kentucky residents,” David Swain, President, Liberty South Region

• If the transaction is approved, Liberty has committed to lowering residential customer bills by 14 to 16 percent, potentially saving Eastern Kentuckians hundreds of dollars a year on their electric bills (depending on their electricity usage).
• These customer savings will only happen if the purchase is approved. They include a $40 million fund to help offset volatile fuel prices and a three-year “rate holiday” on the collection of the Big Sandy plant decommissioning rider that is currently part of Kentucky Power customer bills.

Liberty has committed to expanding Kentucky Power’s existing operations in the region, including keeping the current team of Kentucky Power employees, adding approximately 100 new jobs and maximizing the life of the Big Sandy Plant.

• Liberty plans on bringing approximately 100 new, good paying jobs to Eastern Kentucky including a customer advocate, in-person payment locations and local customer care agents to provide enhanced customer service.
• Liberty continually evaluates the best available power generation sources to serve its customers. We intend to work collaboratively with our customers and the Kentucky Public Service Commission (“PSC”) before any changes are proposed. Ultimately, any changes will require the approval of the PSC.

Liberty’s commitment to Eastern Kentucky and its promise to retain employees, create new jobs and provide lower electricity rates for customers is supported by numerous local officials and business groups who have sent letters supporting the purchase to the PSC.

More information about the benefits that Liberty expects to bring to the region are available at www.LibertyKentuckyPower.com and in the testimony that Liberty and Kentucky Power filed with the PSC on March 18, 2022.

MYTH: Liberty’s purchase of Kentucky Power will result in higher electric rates for customers.

• FACT: On Day One Liberty’s purchase will deliver immediate cost decreases to customers. Liberty has committed to creating a $40 million fund to provide immediate rate relief to customers of eastern Kentucky as well as deferring collection of the Big Sandy decommissioning rider for three years.   Together, this is expected to decrease residential customer bills approximately 14-16%.  These benefits are only available if the transaction is completed and not “contingent” on anything other than a successful sale. Liberty has also committed to honoring the current rate freeze in place through 2023.

MYTH: This transaction will result in poorer service to customers in the region.

• FACT: Liberty is focused on providing high levels of service and is committed to maintaining all current operations with the same great employees who have served Kentucky Power customers for years. We also plan on bringing many of the functions currently provided out of state to within the service territory—expected to add over 100 jobs—so that our local employees can focus on enhancing reliability and ensuring customers’ needs are met.  Liberty has significant experience providing reliable electric service in rugged terrains and will share this expertise to complement and enhance the significant experience of the local team. Liberty will ensure a strong, local customer service presence in the communities we serve, including plans to: open two walk-in service centers; maintain Kentucky Power’s local headquarters in Ashland; create a position supporting customer advocacy; and establish a call center in the service territory employing 20-25 local workers.

MYTH: This transaction will result in an underserved windfall profit for AEP.

• FACT: Liberty is purchasing Kentucky Power at a fair purchase price. Liberty is prohibited by law from seeking to recover from customers any premium paid for the acquisition.

MYTH: Liberty will quickly shift away from fossil generation.

• FACT: Liberty will maintain Kentucky Power’s existing operations in the region over the coming years including the Big Sandy plant. Moreover, Liberty is committed to maximizing the life of Big Sandy. Any future changes to these operations, including the type of power generation used to service the region, would be subject to a public approval process before the PSC.

MYTH: A non-profit electric cooperative would offer service to customers at a more competitive rate.

• FACT: Liberty represents the best path forward for securing a strong future of reliable and cost-effective electric service in eastern Kentucky. Furthermore, Liberty brings extensive expertise and a history of quality service that can be expected to provide reliable, cost-effective electric service to customers in eastern Kentucky along with maintaining current jobs and creating new jobs for local residents.

BOYD COUNTY, Ky. (WSAZ) – AEP announced in October it plans to sell its Kentucky operations, including Kentucky Power, for $2.846 billion after the sale is approved by regulators.

Liberty Utilities is a subsidiary of Algonquin Power & Utilities. Pending approval from the Public Service Commission, Liberty will become the region’s electric utility provider.

Officials with Liberty Utilities have shared more on the company’s purchase of Kentucky Power and how it plans to lower rates for customers, while maintaining operations in Eastern Kentucky.

Liberty Utilities announced on March 18 that it has negotiated with AEP to purchase Kentucky Power and maintain its operations in Eastern Kentucky. Liberty Utilities is a subsidiary of Algonquin Power & Utilities. Pending approval from the Public Service Commission, Liberty will become the region’s electric utility provider.

Liberty has negotiated with AEP to purchase Kentucky Power and maintain its operations in eastern Kentucky. We are currently working through the approval process at the Kentucky Public Service Commission (PSC) and expect to complete the transaction by mid-2022.

Today, Liberty reached a milestone in this process and filed rebuttal testimony with the PSC to address concerns raised regarding our proposed purchase of Kentucky Power, and to correct some of the misinformation around the proposed transaction. Our submission also includes important details about the many benefits Liberty will provide to residential customers throughout eastern Kentucky once this transaction has been completed.

As part of its entry into Kentucky, Liberty is committed to a number of direct customer benefits that could decrease residential customer bills 14-16% immediately upon closing of the transaction. These benefits would include the creation of a $40 million fund to help offset volatile fuel rates and institution of a “rate holiday” on the collection of the Big Sandy decommissioning rider for three years. Furthermore, Liberty has committed to honor the current rate freeze in place through2023.

Liberty’s purchase of Kentucky Power represents the best path forward for securing a strong future of reliable and cost-effective electric service for the region, while preserving critical jobs and creating new ones to grow our local presence and ensure customer satisfaction.

We are committed to ensuring a seamless transition for our customers in the months ahead and look forward to serving the people of eastern Kentucky.

Liberty has negotiated with AEP to purchase Kentucky Power and maintain its operations in eastern Kentucky. We are currently working through the approval process at the Kentucky Public Service Commission (PSC) and expect to complete the transaction by mid-2022.

Last fall, it was announced that Kentucky Power would be sold to Liberty Utilities. The sale is part of a strategic decision by AEP, our parent company. When AEP began looking for a new owner, one of the most important qualities they were looking for was a company with a strong history of customer service, a commitment to its employees, and a desire to become a part of the communities we serve.