Algonquin Power & Utilities unveils new 5-year capital plan with $3B boost

Algonquin Power & Utilities Corp. boosted its planned capital spending by $3 billion over the next five years compared to its previous plan from a year ago.

The company said in a news release Dec. 14 in advance of its investor day that it will spend $12.4 billion over the 2022-2026 period, with about 70%, or $8.8 billion, at its Regulated Services Group and the other 30%, or $3.6 billion, at its Renewable Energy Group.

"Both our regulated and renewables businesses are well-positioned to benefit from and contribute to the decarbonization transition while creating long-term shareholder value," Algonquin Power President and CEO Arun Banskota said in the news release.

Algonquin Power's previous five-year capital plan, for the 2021-2025 period, called for $9.4 billion in spending. Through the first nine months of 2021, the company has invested nearly $3.4 billion, it said.

In late October, Algonquin Power announced that it would acquire American Electric Power Co. Inc.'s Kentucky Power Co. utility and related AEP Kentucky Transmission Co Inc., pledging to shift the Kentucky utility's power generation resources from largely fossil fuels to renewables. Algonquin Power set out to pursue a similar strategy after it acquired southwest Missouri utility Empire District Electric Co. in 2017.

As part of the 2022-2026 capital plan, Algonquin Power said it has advanced over 600 MW from its prospective greenfield pipeline. This includes four solar projects in the U.S. Permian Basin that will be developed under a framework agreement with oil major Chevron Corp., the Blue Violent Wind project in Michigan, and the Riverbend hybrid wind and solar project in Illinois that could also incorporate battery storage.

The company is also expecting adjusted earnings per share of 72 cents to 77 cents for the 2022 fiscal year as well as an adjusted net earnings per share compound annual growth rate in the range of 7% to 9% for the 2022-2026 period.