Algonquin Power & Utilities Corp T.AQN

Alternate Symbol(s): AQN | T.AQN.PR.A | T.AQN.PR.D | AGQPF

Utilities Utilities - Diversified

Algonquin Power & Utilities Corp. is a Canada-based diversified international generation, transmission, and distribution company. The Company through its two business groups, the Regulated Services Group, and the Renewable Energy Group, provides sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. The Company is engaged in renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities. The Company owns, operates, and/or has net interests in over four gigawatts (GW) of installed renewable energy capacity. The Company is focused on its expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution and transmission businesses, and the pursuit of accretive acquisitions.

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Algonquin Power & Utilities Corp

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Post by scissors14on Oct 07, 2010 11:55am

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Post# 17540609

Canaccord Update

Algonquin Power & Utilities* (AQN : TSX : $4.69), Net Change: -0.05, % Change: -1.05%, Volume: 1,902,263
ROO! Algonquin Power was generating positive news on Wednesday, announcing that it has received a recommended order
and opinion (ROO) for its largest water utility, Litchfield Park Services in Arizona. The ROO recommends an increase in
revenue of US$8.1 million. The regulator is expected to issue a final order later this month with rate implementation expected to
be November 1. With this recent ROO, the company has now received US$10.3 million of rate increases and is awaiting
decisions on another ~$3.5 million of requested increases. Canaccord Genuity Power & Pipeline Analyst Juan Plessis notes that
the incremental revenues increases will flow through to the earnings before taxes (EBT) line and help prove up earnings in
2011. Algonquin is one of his top picks as he believes the company's return to a more stable level of earnings is proceeding
given the ROO as well as the recent conditional approval for the joint purchase of CalPeco (with Emera (EMA)). He continues
to view 2010 as a transition year with 2011 more representative of an earnings level from existing assets. Earnings in 2011
should also benefit from a full year of operation at its EFW facility (down for seven months in 2010) and the startup of the Red
Lily Wind Farm expected in Q1/11. Longer term, he believes valuation will improve both through stronger fundamentals and
the improvement of valuation metrics as the company continues to develop its portfolio of current growth projects.