Here's the reason "FERC denies approval of the Kentucky Power Nelson Ng, CFA (Analyst) (604) 257-7617, nelson.ng@rbccm.com It is unclear to us why the transaction was denied, but we believe the end result may be that the transaction is further delayed (rather than not take place at all) as AQN and AEP work with FERC to resolve the outstanding issues. Additional colour on why the transaction was denied will be available when the decision document is filed. The shares of AQN have traded higher on the news as a potential termination of the transaction would provide the company with greater financial flexibility (would not need to make a $1.4 billion drawdown on its floating credit facility) and reduce the company's exposure to floating interest rates. Details • FERC denies pending Kentucky Power acquisition. A short summary was posted on the U.S. Federal Energy Regulatory Commission (FERC) website, indicating that FERC denied AQN's proposed $2.65 billion ($1.4 billion equity purchase price) acquisition of Kentucky Power from AEP. A FERC approval was the only approval required prior to closing the acquisition, and management previously expected to receive FERC approval in December 2022, and close the transaction in January 2023. • Potentially a further delay rather than an outright termination of the Kentucky Power acquisition. We believe that AQN and AEP will work to FERC to resolve the outstanding issues, as we don't see any fundamental reasons why AQN should not be allowed to acquire Kentucky Power. If the transaction is delayed, in our view, it would provide AQN with additional time to potentially divest assets to limit its floating interest rate exposure when the transaction finally closes. If the transaction is ultimately terminated, it would improve AQN's balance sheet, and reduce the company's exposure to floating interest rates."