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Management Discussion & Analysis

Management of Algonquin Power & Utilities Corp. (“AQN” or the “Company” or the “Corporation”) has prepared the following discussion and analysis to provide information to assist its shareholders’ understanding of the financial results for the three and twelve months ended December 31, 2021. This Management Discussion & Analysis (“MD&A”) should be read in conjunction with AQN’s annual consolidated financial statements for the years ended December 31, 2021 and 2020. This material is available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov/edgar, and on the AQN website at www.AlgonquinPowerandUtilities.com. Additional information about AQN, including the most recent Annual Information Form (“AIF”), can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.

Unless otherwise indicated, financial information provided for the years ended December 31, 2021 and 2020 has been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). As a result, the Company's financial information may not be comparable with financial information of other Canadian companies that provide financial information on another basis.

All monetary amounts are in U.S. dollars, except where otherwise noted. We denote any amounts denominated in Canadian dollars with "C$" immediately prior to the stated amount.

Capitalized terms used herein and not otherwise defined will have the meanings assigned to them in the Company's most recent AIF.

This MD&A is based on information available to management as of March 3, 2022.

Contents

Caution Concerning Forward-Looking Statements and Forward-Looking Information

This document may contain statements that constitute "forward-looking information" within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and/or "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information”). The words “anticipates”, “believes”, “budget”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “might”, “plans”, “projects”, “schedule”, “should”, “will”, “would” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specific forward-looking information in this document includes, but is not limited to, statements relating to: expected future growth, earnings (including 2022 Adjusted Net Earnings per common share) and results of operations; liquidity, capital resources and operational requirements; sources of funding, including adequacy and availability of credit facilities, debt maturation and future borrowings; expectations regarding the impact of the 2019 novel coronavirus (“COVID-19”) on the Company; expectations regarding the use of proceeds from financings; ongoing and planned acquisitions, projects and initiatives, including expectations regarding costs, financing, results, ownership structures, offtake arrangements, regulatory matters, in-service dates and completion dates; expectations regarding the anticipated closing of the Kentucky Power Transaction (as defined herein); expectations regarding the purchase price for the Kentucky Power Transaction and the expected financing thereof; the anticipated benefits of the Kentucky Power Transaction, including the impact of the Kentucky Power Transaction on the Corporation’s business, operations, financial condition, cash flows and results of operations; expectations regarding the Corporation’s and Kentucky Power’s (as defined herein) rate base; business mix and sustainability objectives following completion of the Kentucky Power Transaction; expectations regarding the timing for the transfer or retirement (for rate-making purposes in Kentucky) of the Mitchell Plant (as defined herein); expectations regarding cost recovery of amounts incurred by Empire in connection with the Midwest Extreme Weather Event (as defined herein) and retirement of the Asbury coal plant; expectations regarding the Company's corporate development activities and the results thereof, including the expected business mix between the Regulated Services Group and Renewable Energy Group; expectations regarding regulatory hearings, motions, filings, appeals and approvals, including rate reviews, and the impacts and outcomes thereof; expected future generation of the Company’s energy facilities; expected timing for signing a General Interconnection Agreement at the Neosho Ridge Wind Facility; statements regarding the Company’s sustainability and environmental, social and governance goals, including its net-zero by 2050 target; expected future capital investments, including expected timing, investment plans, sources of funds and impacts; expectations regarding future "greening the fleet" initiatives, including with respect to Kentucky Power; expectations regarding opportunities for the development of renewable natural gas facilities and cost recovery thereof; expectations regarding generation availability, capacity and production; expectations regarding the outcome of existing or potential legal and contractual claims and disputes; strategy and goals; dividends to shareholders; expectations regarding the impact of tax reforms; credit ratings and equity credit from rating agencies; anticipated customer benefits; the future impact on the Company of actual or proposed laws, regulations and rules; accounting estimates; interest rates and currency exchange rates. All forward-looking information is given pursuant to the “safe harbor” provisions of applicable securities legislation.

The forecasts and projections that make up the forward-looking information contained herein are based on certain factors or assumptions which include, but are not limited to: the receipt of applicable regulatory approvals and requested rate decisions; the absence of a material increase in the costs of compliance with environmental laws following the completion of the Kentucky Power Transaction; the absence of material adverse regulatory decisions being received and the expectation of regulatory stability; the absence of any material equipment breakdown or failure; availability of financing (including tax equity financing and self-monetization transactions for U.S. federal tax credits) on commercially reasonable terms and the stability of credit ratings of the Corporation and its subsidiaries; the absence of unexpected material liabilities or uninsured losses; the continued availability of commodity supplies and stability of commodity prices; the absence of sustained interest rate increases or significant currency exchange rate fluctuations; the absence of significant operational, financial or supply chain disruptions or liability; the continued ability to maintain systems and facilities to ensure their continued performance; the absence of a severe and prolonged downturn in general economic, credit, social or market conditions; the successful and timely development and construction of new projects; the closing of pending acquisitions substantially in accordance with the expected timing for such acquisitions; the absence of capital project or financing cost overruns; sufficient liquidity and capital resources; the continuation of long term weather patterns and trends; the absence of significant counterparty defaults; the continued competitiveness of electricity pricing when compared with alternative sources of energy; the realization of the anticipated benefits of the Corporation’s acquisitions and joint ventures; the absence of a change in applicable laws, political conditions, public policies and directions by governments, materially negatively affecting the Corporation; the ability to obtain and maintain licenses and permits; maintenance of adequate insurance coverage; the absence of material fluctuations in market energy prices; the absence of material disputes with taxation authorities or changes to applicable tax laws; continued maintenance of information technology infrastructure and the absence of a material breach of cybersecurity; favourable relations with external stakeholders; favourable labour relations; the realization of the anticipated benefits of the Kentucky Power Transaction, including that it will be accretive to the Corporation’s Adjusted Net Earnings per common share; that the Corporation will be able to successfully integrate newly acquired entities, and the absence of any material adverse changes to such entities prior to closing; the successful transfer of operational control over the Mitchell Plant to Wheeling Power Company; the transfer of the Mitchell Plant being implemented in accordance with the Corporation’s expectations; the absence of

Contents

undisclosed liabilities of entities being acquired; that such entities will maintain constructive regulatory relationships with state regulatory authorities; the ability of the Corporation to retain key personnel of acquired entities and the value of such employees; no adverse developments in the business and affairs of the sellers during the period when transitional services are provided to the Corporation in connection with any acquisition; the ability of the Corporation to satisfy its liabilities and meet its debt service obligations following completion of any acquisition; the absence of any reputational harm to the Corporation as a result of any acquisition; and the ability of the Corporation to successfully execute future “greening the fleet” initiatives. Given the continued uncertainty and evolving circumstances surrounding the COVID-19 pandemic and related response from governments, regulatory authorities, businesses, suppliers and customers, there is more uncertainty associated with the Corporation’s assumptions and expectations as compared to periods prior to the onset of COVID-19.

The forward-looking information contained herein is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. Factors which could cause results or events to differ materially from current expectations include, but are not limited to: changes in general economic, credit, social or market conditions; changes in customer energy usage patterns and energy demand; global climate change; the incurrence of environmental liabilities; natural disasters, diseases, pandemics and other force majeure events; critical equipment breakdown or failure; supply chain disruptions; the failure of information technology infrastructure and cybersecurity; physical security breach; the loss of key personnel and/or labour disruptions; seasonal fluctuations and variability in weather conditions and natural resource availability; reductions in demand for electricity, gas and water due to developments in technology; reliance on transmission systems owned and operated by third parties; issues arising with respect to land use rights and access to the Corporation’s facilities; terrorist attacks; fluctuations in commodity prices; capital expenditures; reliance on subsidiaries; the incurrence of an uninsured loss; a credit rating downgrade; an increase in financing costs or limits on access to credit and capital markets; increases in interest rates; currency exchange rate fluctuations; restricted financial flexibility due to covenants in existing credit agreements; an inability to refinance maturing debt on commercially reasonable terms; disputes with taxation authorities or changes to applicable tax laws; failure to identify, acquire, develop or timely place in service projects to maximize the value of tax credits; requirement for greater than expected contributions to post-employment benefit plans; default by a counterparty; inaccurate assumptions, judgments and/or estimates with respect to asset retirement obligations; failure to maintain required regulatory authorizations; changes in, or failure to comply with, applicable laws and regulations; failure of compliance programs; failure to identify attractive acquisition or development candidates necessary to pursue the Corporation’s growth strategy; failure to dispose of assets (at all or at a competitive price) to fund the Company’s operations and growth plans; delays and cost overruns in the design and construction of projects, including as a result of COVID-19; loss of key customers; failure to complete or realize the anticipated benefits of acquisitions or joint ventures; Atlantica (as defined herein) or a third party joint venture partner acting in a manner contrary to the Corporation’s interests; a drop in the market value of Atlantica's ordinary shares; facilities being condemned or otherwise taken by governmental entities; increased external-stakeholder activism adverse to the Corporation’s interests; fluctuations in the price and liquidity of the Corporation’s common shares and the Corporation's other securities; the severity and duration of the COVID-19 pandemic and its collateral consequences, including the disruption of economic activity, volatility in capital and credit markets and legislative and regulatory responses; impact of significant demands placed on the Corporation as a result of pending acquisitions or growth strategies; potential undisclosed liabilities of any entities being acquired by the Corporation; uncertainty regarding the length of time required to complete pending acquisitions; the failure to implement the Corporation’s strategic objectives or achieve expected benefits relating to acquisitions; Kentucky Power’s failure to receive regulatory approval for the construction of new renewable generation facilities; indebtedness of any entity being acquired by the Corporation; reputational harm and increased costs of compliance with environmental laws as a result of announced or completed acquisitions; unanticipated expenses and/or cash payments as a result of change of control and/or termination for convenience provisions in agreements to which any entity being acquired is a party; and the reliance on third parties for certain transitional services following the completion of an acquisition. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward- looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Some of these and other factors are discussed in more detail under the heading Enterprise Risk Management in this MD&A and under the heading Enterprise Risk Factors in the Corporation's most recent AIF.

Forward-looking information contained herein (including any financial outlook) is provided for the purposes of assisting the reader in understanding the Corporation and its business, operations, risks, financial performance, financial position and cash flows as at and for the periods indicated and to present information about management’s current expectations and plans relating to the future and the reader is cautioned that such information may not be appropriate for other purposes. Forward-looking information contained herein is made as of the date of this document and based on the plans, beliefs, estimates, projections, expectations, opinions and assumptions of management on the date hereof. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. While subsequent events and developments may cause the Corporation’s views to change, the Corporation disclaims any obligation to update any forward-looking information or to explain any material

difference between subsequent actual events and such forward-looking information, except to the extent required by applicable law. All forward-looking information contained herein is qualified by these cautionary statements.

Caution Concerning Non-GAAP Measures

AQN uses a number of financial measures to assess the performance of its business lines. Some measures are calculated in accordance with U.S. GAAP, while other measures do not have a standardized meaning under U.S. GAAP. These non-GAAP measures include non-GAAP financial measures and non-GAAP ratios, each as defined in Canadian National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. AQN’s method of calculating these measures may differ from methods used by other companies and therefore may not be comparable to similar measures presented by other companies.

The terms “Adjusted Net Earnings”, “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization” (“Adjusted EBITDA”), “Adjusted Funds from Operations”, "Net Energy Sales", "Net Utility Sales" and "Divisional Operating Profit", which are used throughout this MD&A, are non-GAAP financial measures. An explanation of each of these non-GAAP financial measures is set out below and a reconciliation to the most directly comparable U.S. GAAP measure, in each case, can be found in this MD&A. In addition, “Adjusted Net Earnings” is presented throughout this MD&A on a per share basis. Adjusted Net Earnings per common share is a non-GAAP ratio and is calculated by dividing Adjusted Net Earnings by the weighted average number of common shares outstanding during the applicable period.

Adjusted EBITDA is a non-GAAP financial measure used by many investors to compare companies on the basis of ability to generate cash from operations. AQN uses these calculations to monitor the amount of cash generated by AQN. AQN uses Adjusted EBITDA to assess the operating performance of AQN without the effects of (as applicable): depreciation and amortization expense, income tax expense or recoveries, acquisition costs, certain litigation expenses, interest expense, gain or loss on derivative financial instruments, write down of intangibles and property, plant and equipment, earnings attributable to non-controlling interests, non-service pension and post-employment costs, cost related to tax equity financing, costs related to management succession and executive retirement, costs related to prior period adjustments due to changes in tax law, costs related to condemnation proceedings, financial impacts on the Company's Senate Wind Facility from the significantly elevated pricing that persisted in the Electric Reliability Council of Texas market over several days (the "Market Disruption Event") as a result of the February 2021 extreme winter storm conditions experienced in Texas and parts of the central U.S. (the “Midwest Extreme Weather Event”), gain or loss on foreign exchange, earnings or loss from discontinued operations, changes in value of investments carried at fair value, and other typically non-recurring or unusual items. AQN adjusts for these factors as they may be non-cash, unusual in nature and are not factors used by management for evaluating the operating performance of the Company. AQN believes that presentation of this measure will enhance an investor’s understanding of AQN’s operating performance. Adjusted EBITDA is not intended to be representative of cash provided by operating activities or results of operations determined in accordance with U.S. GAAP, and can be impacted positively or negatively by these items. For a reconciliation of Adjusted EBITDA to net earnings, see Non-GAAP Financial Measures starting on page 37 of this MD&A.

Adjusted Net Earnings is a non-GAAP financial measure used by many investors to compare net earnings from operations without the effects of certain volatile primarily non-cash items that generally have no current economic impact or items such as acquisition expenses or certain litigation expenses that are viewed as not directly related to a company’s operating performance. AQN uses Adjusted Net Earnings to assess its performance without the effects of (as applicable): gains or losses on foreign exchange, foreign exchange forward contracts, interest rate swaps, acquisition costs, one-time costs of arranging tax equity financing, certain litigation expenses and write down of intangibles and property, plant and equipment, earnings or loss from discontinued operations (excluding sale of assets in the course of normal operations), unrealized mark-to-market revaluation impacts (other than those realized in connection with the sales of development assets), costs related to management succession and executive retirement, costs related to prior period adjustments due to changes in tax law, costs related to condemnation proceedings, financial impacts from the Market Disruption Event on the Company's Senate Wind Facility, changes in value of investments carried at fair value, and other typically non-recurring or unusual items as these are not reflective of the performance of the underlying business of AQN. AQN believes that analysis and presentation of net earnings or loss on this basis will enhance an investor’s understanding of the operating performance of its businesses. Adjusted Net Earnings is not intended to be representative of net earnings or loss determined in accordance with U.S. GAAP, and can be impacted positively or negatively by these items. For a reconciliation of Adjusted Net Earnings to net earnings, see Non-GAAP Financial Measures starting on page 38 of this MD&A.

Adjusted Funds from Operations is a non-GAAP financial measure used by investors to compare cash flows from operating activities without the effects of certain volatile items that generally have no current economic impact or items such as acquisition expenses that are viewed as not directly related to a company’s operating performance. AQN uses Adjusted

Funds from Operations to assess its performance without the effects of (as applicable): changes in working capital balances, acquisition expenses, certain litigation expenses, cash provided by or used in discontinued operations, financial impacts from the Market Disruption Event on the Company's Senate Wind Facility, and other typically non-recurring items affecting cash from operations as these are not reflective of the long-term performance of the underlying businesses of AQN. AQN believes that analysis and presentation of funds from operations on this basis will enhance an investor’s understanding of the operating performance of its businesses. Adjusted Funds from Operations is not intended to be representative of cash flows from operating activities as determined in accordance with U.S. GAAP, and can be impacted positively or negatively by these items. For a reconciliation of Adjusted Funds from Operations to cash flows from operating activities, see Non-GAAP Financial Measures starting on page 39 of this MD&A.

Net Energy Sales is a non-GAAP financial measure used by investors to identify revenue after commodity costs used to generate revenue where such revenue generally increases or decreases in response to increases or decreases in the cost of the commodity used to produce that revenue. AQN uses Net Energy Sales to assess its revenues without the effects of fluctuating commodity costs as such costs are predominantly passed through either directly or indirectly in the rates that are charged to customers. AQN believes that analysis and presentation of Net Energy Sales on this basis will enhance an investor’s understanding of the revenue generation of the Renewable Energy Group. It is not intended to be representative of revenue as determined in accordance with U.S. GAAP. For a reconciliation of Net Energy Sales to revenue, see Renewable Energy Group - 2021 Renewable Energy Group Operating Results on page 31 of this MD&A.

Net Utility Sales is a non-GAAP financial measure used by investors to identify utility revenue after commodity costs, either natural gas or electricity, where these commodity costs are generally included as a pass through in rates to its utility customers. AQN uses Net Utility Sales to assess its utility revenues without the effects of fluctuating commodity costs as such costs are predominantly passed through and paid for by utility customers. AQN believes that analysis and presentation of Net Utility Sales on this basis will enhance an investor’s understanding of the revenue generation of the Regulated Services Group. It is not intended to be representative of revenue as determined in accordance with U.S. GAAP. For a reconciliation of Net Utility Sales to revenue, see Regulated Services Group - 2021 Regulated Services Group Operating Results on page 22 of this MD&A.

Divisional Operating Profit is a non-GAAP financial measure . AQN uses Divisional Operating Profit to assess the operating performance of its business groups without the effects of (as applicable): depreciation and amortization expense, corporate administrative expenses, income tax expense or recoveries, acquisition costs, certain litigation expenses, interest expense, gain or loss on derivative financial instruments, write down of intangibles and property, plant and equipment, gain or loss on foreign exchange, earnings or loss from discontinued operations (excluding the sale of assets in the course of normal operations), non-service pension and post-employment costs, financial impacts from the Market Disruption Event on the Company's Senate Wind Facility, and other typically non-recurring or unusual items. AQN adjusts for these factors as they may be non-cash, unusual in nature and are not factors used by management for evaluating the operating performance of the divisional units. Divisional Operating Profit is calculated inclusive of interest, dividend and equity income earned from indirect investments, and Hypothetical Liquidation at Book Value (“HLBV”) income, which represents the value of net tax attributes earned in the period from electricity generated by certain of its U.S. wind power and U.S. solar generation facilities. AQN believes that presentation of this measure will enhance an investor’s understanding of AQN’s divisional operating performance. Divisional Operating Profit is not intended to be representative of cash provided by operating activities or results of operations determined in accordance with U.S. GAAP, and can be impacted positively or negatively by these items. For a reconciliation of Divisional Operating Profit to revenue for AQN's main business units, see Regulated Services Group - 2021 Regulated Services Group Operating Results on page 22 and Renewable Energy Group - 2021 Renewable Energy Group Operating Results on page 31 of this MD&A

Overview and Business Strategy

AQN is incorporated under the Canada Business Corporations Act. AQN owns and operates a diversified portfolio of regulated and non-regulated generation, distribution, and transmission utility assets which are expected to deliver predictable earnings and cash flows. AQN seeks to maximize total shareholder value through real per share growth in earnings and cash flows to support a growing dividend and share price appreciation. AQN strives to achieve these results while also seeking to maintain a business risk profile consistent with its BBB flat investment grade credit ratings and a strong focus on Environmental, Social and Governance factors.

AQN’s current quarterly dividend to shareholders is $0.1706 per common share or $0.6824 per common share per annum. Based on the Bank of Canada exchange rate on March 2, 2022, the quarterly dividend is equivalent to C$0.2161 per common share or C$0.8644 per common share per annum. AQN believes its annual dividend payout allows for both an immediate return on investment for shareholders and retention of sufficient cash within AQN to fund growth opportunities. Changes in the level of dividends paid by AQN are at the discretion of AQN’s Board of Directors (the “Board”), with dividend levels being reviewed periodically by the Board in the context of AQN’s financial performance and growth prospects.

AQN’s operations are organized across two primary business units consisting of: the Regulated Services Group, which primarily owns and operates a portfolio of regulated assets in the United States, Canada, Bermuda and Chile, and the Renewable Energy Group, which primarily operates a diversified portfolio of owned renewable generation assets.

AQN pursues investment opportunities with an objective of maintaining the current business mix between its Regulated Services Group and Renewable Energy Group and with leverage consistent with its current credit ratings¹. The business mix target may from time to time require AQN to grow its Regulated Services Group or implement other strategies in order to pursue investment opportunities within its Renewable Energy Group.

The Company also undertakes development activities for both business units, working with a global reach to identify, develop, acquire, or invest in renewable power generating facilities, regulated utilities and other complementary infrastructure projects. See additional discussion in Corporate Development Activities.

Summary Structure of the Business

The following chart depicts, in summary form, AQN’s key businesses. A more detailed description of AQN’s organizational structure can be found in the most recent AIF.

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1 See Treasury Risk Management -Downgrade in the Company's Credit Rating Risk.

Renewable Energy Group

The Renewable Energy Group generates and sells electrical energy produced by its diverse portfolio of renewable power generation and clean power generation facilities primarily located across the United States and Canada. The Renewable Energy Group seeks to deliver growth through development of new power generation projects and accretive acquisitions of additional power generation facilities, as well as the acquisition and development of other complementary projects, such as renewable natural gas (“RNG”) and energy storage.

The Renewable Energy Group directly owns and operates hydroelectric, wind, solar, and thermal facilities with a combined gross generating capacity of approximately 2.3 GW. Approximately 82% of the electrical output is sold pursuant to long term contractual arrangements which as of December 31, 2021 had a production-weighted average remaining contract life of approximately 12 years.

In addition to directly owned and operated assets, the Renewable Energy Group has investments in generating assets with approximately 1.4 GW of net generating capacity which includes the Company’s approximately 44% interest in Atlantica Sustainable Infrastructure plc (“Atlantica”). Atlantica owns and operates a portfolio of international clean energy and water infrastructure assets under long term contracts with a Cash Available for Distribution (CAFD) weighted average remaining contract life of approximately 15 years as of December 31, 2021.

Below is a breakdown of the Renewable Energy Group’s generating capacity by geographic area as of December 31, 2021, which was comprised of gross generating capacity of facilities owned and operated and net generating capacity of investments including the Company’s approximately 44% interest in Atlantica.

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1 See Caution Concerning Non-GAAP Measures.

Declaration of 2022 First Quarter Dividend of $0.1706 (C$0.2161) per Common Share

AQN currently targets annual growth in dividends payable to shareholders underpinned by increases in earnings and cash flow. In setting the appropriate dividend level, the Board considers the Company’s current and expected growth in earnings per share as well as a dividend payout ratio as a percentage of earnings per share and cash flow per share.

On March 3, 2022, AQN announced that the Board declared a first quarter 2022 dividend of $0.1706 per common share payable on April 14, 2022 to shareholders of record on March 31, 2022.

Based on the Bank of Canada exchange rate on March 2, 2022, the Canadian dollar equivalent for the first quarter 2022 dividend is C$0.2161 per common share.

The previous four quarter U.S and Canadian dollar equivalent dividends per common share have been as follows:

Agreement to Acquire Kentucky Power Company and AEP Kentucky Transmission Company

On October 26, 2021, Liberty Utilities Co. (“Liberty Utilities”), an indirect subsidiary of AQN, entered into an agreement with American Electric Power Company, Inc. and AEP Transmission Company, LLC to acquire Kentucky Power Company (“Kentucky Power”) and AEP Kentucky Transmission Company, Inc. (“Kentucky TransCo”) for a total purchase price of approximately $2.846 billion, including the assumption of approximately $1.221 billion in debt (the “Kentucky Power Transaction”).

Kentucky Power is a state rate-regulated electricity generation, distribution and transmission utility serving approximately 228,000 active customer connections in 20 eastern Kentucky counties and operating under a cost of service framework. Kentucky TransCo is an electricity transmission business operating in the Kentucky portion of the transmission infrastructure that is part of the Pennsylvania – New Jersey – Maryland regional transmission organization, PJM Interconnection, L.L.C.. Kentucky Power and Kentucky TransCo are both regulated by the U.S. Federal Energy Regulatory Commission (“FERC”).

Closing of the Kentucky Power Transaction is subject to receipt of certain regulatory and governmental approvals, including the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (which has expired), clearance of the Kentucky Power Transaction by the Committee on Foreign Investment in the United States (which has been obtained), the approval by each of the Kentucky Public Service Commission and FERC with respect to the Kentucky Power Transaction and the termination and replacement of the existing operating agreement for the Mitchell coal generating facility (in which Kentucky Power owns a 50% interest, representing 780 MW) (the “Mitchell Plant”), and the approval of the Public Service Commission of West Virginia with respect to the termination and replacement of the existing operating agreement for the Mitchell Plant, and the satisfaction of other customary closing conditions. If the acquisition agreement is terminated in certain circumstances, including due to a failure to receive required regulatory approvals (other than the approval of the Kentucky Public Service Commission, FERC or the Public Service Commission of West Virginia for the termination and replacement of the existing operating agreement for the Mitchell Plant), the Corporation may be required to pay a termination fee of $65 million. The Kentucky Power Transaction is expected to close in mid-2022.

The Kentucky Power Transaction is expected to add over $2.0 billion of regulated rate base assets in a favourable regulatory jurisdiction. AQN expects the Kentucky Power Transaction to be accretive to Adjusted Net Earnings per common share in the first full year of ownership, generate mid-single digit percentage Adjusted Net Earnings per common share accretion thereafter, and support growth in AQN’s Adjusted Net Earnings per common share over the long term (see Caution Concerning Non-GAAP Measures). Near and medium term planned retirements (for Kentucky rate-making purposes) or transitions of over 1 GW of fossil fuel generation owned by Kentucky Power are expected to provide the Company with an opportunity to leverage its “greening the fleet” capabilities as a renewable energy developer and target to replace this generation capacity with renewable energy.

Acquisition of Liberty NY Water (formerly New York American Water Company, Inc.)

Effective January 1, 2022, Liberty Utilities (Eastern Water Holdings) Corp., a wholly-owned subsidiary of Liberty Utilities, closed the previously-announced acquisition of Liberty NY Water from American Water Works Company, Inc. for a purchase price of approximately $608 million.

Headquartered in Merrick, NY, Liberty NY Water is a regulated water and wastewater utility serving over 125,000 customer connections across seven counties in southeastern New York. Liberty NY Water’s operations include approximately 1,270 miles of water mains and distribution lines, with 98% of customers located in Nassau County on Long Island.

Completion of Renewable Construction Projects

On January 27, 2021, The Empire District Electric Company (“Empire”) closed its acquisition of the North Fork Ridge Wind Facility and, on May 5, 2021, Empire closed the acquisitions of the Kings Point and Neosho Ridge Wind Facilities (collectively, the “Empire Wind Facilities”.) As a result, the Regulated Services Group has successfully completed the construction and acquisition of all the wind facilities related to its Midwest ‘greening the fleet’ initiative. The initiative consisted of 600 MWs of new strategically located wind energy generation which is expected to provide benefits to the Regulated Services Group's electric customers in Missouri, Arkansas, Oklahoma and Kansas. The initiative also resulted in the early retirement of the 200 MW Asbury Coal Facility (Asbury”) on March 1, 2020, approximately 15 years ahead of its original retirement schedule.

The early retirement of Asbury is expected to provide long term benefits to customers and has reduced the Company's CO2e emissions by more than 900,000 metric tons, bringing the Company’s total reduction of greenhouse gas (“GHG”) emissions to over 1 million metric tons since 2017. The early retirement has also contributed to the reduction in the Company’s total Scope 1 GHG emissions as well as reductions in emission intensity per dollar of revenue since 2017, the year in which the Company acquired Empire, which owns Asbury. See Regulatory Proceedings.

On April 21, 2021, the Renewable Energy Group achieved full commercial operations (“COD”) at its 492 MW Maverick Creek Wind Facility, located in Concho County, Texas. The Maverick Creek Wind Facility is the Renewable Energy Group's 14th wind powered electric generating facility and is expected to generate approximately 1,920 GW-hrs of energy per year with the majority of output being sold through two long-term power purchase agreements (“PPA”s) with investment grade rated entities.

On June 1, 2021, the Renewable Energy Group achieved COD at its 80 MW Altavista Solar Facility, located in Campbell County, Virginia. The Altavista Solar Facility is the Renewable Energy Group’s sixth solar powered electric generating facility and is expected to generate approximately 174 GW-hrs of energy per year with the majority of output being sold to Facebook Operations, LLC, a wholly-owned subsidiary of Meta, pursuant to a PPA.

Acquisition of Majority Interest in Texas Coastal Wind Facilities

In the first quarter of 2021, the Renewable Energy Group closed the acquisitions of a 51% interest in three of four wind facilities (collectively the “Texas Coastal Wind Facilities”) that it had previously agreed to purchase from RWE Renewables Americas, LLC, a subsidiary of RWE AG. The acquisition of a 51% interest in the fourth wind facility closed in the third quarter of 2021 when that facility achieved COD. The four Texas Coastal Wind Facilities have a total generating capacity of approximately 861 MW.

Agreement to Acquire Renewable Natural Gas Development Platform

On December 13, 2021, Liberty (RNG), LLC, a wholly-owned subsidiary of AQN, entered into an agreement to acquire Sandhill Advanced Biofuels, LLC (“Sandhill”). Sandhill is a renewable natural gas ("RNG") development platform specializing in anaerobic digestion projects located on dairy farms with a portfolio of four projects in the state of Wisconsin, two of which are currently under construction and the remaining two are in late-stage development. The existing projects are expected to produce RNG at a rate of approximately 500 one million British thermal units (“MMBTU”) per day. The transaction is expected to close in the first half of 2022. If successfully completed, the acquisition will represent the Company’s first investment in the non-regulated renewable natural gas space.

Corporate Financings Completed

On April 9, 2021, the Renewable Energy Group issued C$400.0 million of green senior unsecured debentures bearing interest at 2.85% and with a maturity date of July 15, 2031 (the “Debentures”). Concurrent with the offering of the Debentures, the Renewable Energy Group entered into a cross currency interest rate swap to convert the proceeds into U.S. dollars with an effective interest rate throughout the term of the Debentures of approximately 2.82%. The net proceeds from the offering of the Debentures were or will be, as applicable, used in accordance with AQN’s Green Financing Framework.

On June 23, 2021, the Company closed an underwritten marketed public offering of 20,000,000 equity units (the “Green Equity Units”) for total gross proceeds of $1.0 billion. The underwriters subsequently exercised their option to purchase an additional 3,000,000 Green Equity Units on the same terms, bringing total gross proceeds including the over-allotment to

$1.15 billion.

Each Green Equity Unit consists of a 1/20 or 5% undivided beneficial interest in a $1,000 principal amount remarketable senior note of the Company due June 15, 2026, and a contract to purchase AQN common shares on June 15, 2024 based on a reference price determined by the volume-weighted average AQN common share price over the preceding 20 day trading period. Total annual distributions on the Green Equity Units are at the rate of 7.75%. The net proceeds from the Offering have been or will be, as applicable, used to finance or refinance investments in renewable energy generation or facilities or other clean energy technologies in accordance with the Company’s Green Financing Framework. See additional discussion in Long Term Debt.

On November 8, 2021, AQN closed a bought deal common equity offering for gross proceeds of approximately C$800 million (the “Common Equity Offering”). The Company intends to use the net proceeds of the Common Equity Offering to partially finance the Kentucky Power Transaction provided that, in the short-term, prior to closing of the Kentucky Power Transaction, the Company has used such net proceeds to reduce amounts outstanding under existing credit facilities.

Subsequent to quarter-end on January 18, 2022, the Company closed (i) an underwritten public offering in the United States (the “U.S. Note Offering”) of $750 million aggregate principal amount of 4.75% fixed-to-fixed reset rate junior subordinated notes series 2022-B due January 18, 2082 (the “U.S. Notes”); and (ii) an underwritten public offering in Canada (the “Canadian Note Offering” and, together with the U.S. Note Offering, the “Note Offerings”) of C$400 million aggregate principal amount of 5.25% fixed-to-fixed reset rate junior subordinated notes series 2022-A due January 18, 2082 (the “Canadian Notes” and, together with the U.S. Notes, the “Notes”). The Company intends to use the net proceeds of the Note Offerings to partially finance the Kentucky Power Transaction provided that, in the short-term, prior to closing of the Kentucky Power Transaction, the Company has used a portion of, and expects to use the remainder of such net proceeds to repay certain indebtedness of the Corporation and its subsidiaries. Concurrent with the pricing of the Note Offerings, the Company entered into a cross currency interest rate swap, to convert the Canadian dollar denominated proceeds from the Canadian Note Offering into U.S. dollars and a forward starting swap to fix the interest rate for the second five year term of the U.S. Notes. resulting in an anticipated effective interest rate to the Company of approximately 4.95% throughout the first ten year period of the Notes.

Net-Zero Goals and 2021 ESG Report

On October 5, 2021, the Company announced its target to achieve net-zero (scope 1 and 2 GHG) by 2050. Concurrently, the Company released its 2021 ESG Report, which details AQN’s progress with respect to environmental, social and governance matters.

Impact of COVID-19 on Operating Results

For the three and twelve months ended December 31, 2021, the Company’s operating results were not materially impacted by the COVID-19 pandemic. Approximately 60% of the Company’s workforce continues to work remotely and the Company continues to employ operational measures intended to protect the health and safety of its employees and customers. Over the coming months the Company is planning a return to base operations as the impacts of the pandemic further diminish.

The Company’s business, financial condition, cash flows and results of operations continue to be subject to actual and potential future impacts resulting from COVID-19, the full extent of which are not currently known. The extent of the future impact of the COVID-19 pandemic on the Company will depend on, among other things, the duration of the pandemic, the extent of the related public health measures taken in response to the pandemic and the Company’s efforts to mitigate the impact on its operations.

For a discussion of the risks the Company faces related to COVID-19 please refer to Enterprise Risk Management.

Outlook

The following discussion should be read in conjunction with the Forward-Looking Statements and Forward-Looking Information section in this MD&A. Actual results may differ materially from the estimates below. Accordingly, investors are cautioned not to place undue reliance on these estimates.

Estimated 2022 Adjusted Net Earnings Per Common Share

The Company estimates that its Adjusted Net Earnings per common share will be within a range of $0.72-$0.77 for the 2022 fiscal year, as compared to Adjusted Net Earnings per common share of $0.71 for the 2021 fiscal year (see Caution Concerning Non-GAAP Measures).

The Company’s 2022 Adjusted Net Earnings per common share estimate is based on the following key assumptions, as well as those set out under Forward-Looking Statements and Forward-Looking Information:

Capital Investment Expectations

The Company anticipates making capital investments of between approximately $4.34 billion and $4.68 billion in 2022. See 2022 Capital Investments for a more detailed discussion of the Company’s 2022 capital investment estimates.

The Company has also announced an approximately $12.4 billion capital plan for the period from 2022 through the end of 2026, with approximately 70% expected to be invested by the Regulated Services Group and approximately 30% expected to be invested by the Renewable Energy Group (see Corporate Development).

1 See Caution Concerning Non-GAAP Measures.

For the three months ended December 31, 2021, AQN experienced an average exchange rate of Canadian to U.S. dollars of approximately 0.7937 as compared to 0.7675 in the same period in 2020. As such, any quarter over quarter variance in revenue or expenses, in local currency, at any of AQN’s Canadian entities is affected by a change in the average exchange rate upon conversion to AQN’s reporting currency.

For the three months ended December 31, 2021, AQN reported total revenue of $594.8 million as compared to $491.3 million during the same period in 2020, an increase of $103.5 million or 21.1%. The major factors impacting AQN’s revenue in the three months ended December 31, 2021 as compared to the same period in 2020 are set out as follows:

1 See Caution Concerning Non-GAAP Measures.

2 Includes current and long-term portion of debt and convertible debentures per the annual consolidated financial statements

For the twelve months ended December 31, 2021, AQN experienced an average exchange rate of Canadian to U.S. dollars of approximately 0.7976 as compared to 0.7456 in the same period in 2020. As such, any year-over-year variance in revenue or expenses, in local currency, at any of AQN’s Canadian entities is affected by a change in the average exchange rate upon conversion to AQN’s reporting currency.

For the twelve months ended December 31, 2021, AQN reported total revenue of $2,285.5 million as compared to

$1,677.0 million during the same period in 2020, an increase of $608.5 million or 36.3%. The major factors resulting in the increase in AQN revenue for the twelve months ended December 31, 2021 as compared to the same period in 2020 are as follows:

During the three months ended December 31, 2021, cash provided by operating activities totaled $126.5 million as compared to $174.0 million during the same period in 2020, a decrease of $47.5 million. During the three months ended December 31, 2021, Adjusted Funds from Operations totaled $221.2 million as compared to Adjusted Funds from Operations of $179.3 million during the same period in 2020, an increase of $41.9 million (see Caution Concerning Non- GAAP Measures).

During the three months ended December 31, 2021, Adjusted EBITDA totaled $297.6 million as compared to $253.1 million during the same period in 2020, an increase of $44.5 million or 17.6%. A more detailed analysis of these factors is presented within the reconciliation of Adjusted EBITDA to net earnings set out below (see Caution Concerning Non-GAAP Measures).

During the twelve months ended December 31, 2021, cash provided by operating activities totaled $157.5 million as compared to $505.2 million during the same period in 2020. During the twelve months ended December 31, 2021, Adjusted Funds from Operations totaled $757.9 million as compared to $600.2 million the same period in 2020, an increase of $157.7 million (see Caution Concerning Non-GAAP Measures).

During the twelve months ended December 31, 2021, Adjusted EBITDA totaled $1,076.9 million as compared to $869.5 million during the same period in 2020, an increase of $207.4 million or 23.9%. A detailed analysis of this variance is presented within the reconciliation of Adjusted EBITDA to net earnings set out below under Non-GAAP Financial Measures.

2021 Adjusted EBITDA Summary

Adjusted EBITDA (see Caution Concerning Non-GAAP Measures) for the three months ended December 31, 2021 totaled $297.6 million as compared to $253.1 million during the same period in 2020, an increase of $44.5 million or 17.6%. Adjusted EBITDA for the twelve months ended December 31, 2021 totaled $1,076.9 million as compared to $869.5 million during the same period in 2020, an increase of $207.4 million or 23.9%. The breakdown of Adjusted EBITDA by the Company's main business units and a summary of changes are shown below.

REGULATED SERVICES GROUP

The Regulated Services Group operates rate-regulated utilities that as of December 31, 2021 provided distribution services to approximately 1,093,000 customer connections in the electric, natural gas, and water and wastewater sectors which is an increase of approximately 6,000 customer connections as compared to the prior year. With the acquisition of Liberty NY Water, the Regulated Services Group added an additional approximately 125,000 customer connections in the state of New York effective January 1, 2022. The Regulated Services Group now serves a total of approximately 1,218,000 customer connections.

The Regulated Services Group's strategy is to grow its business organically and through business development activities while using prudent acquisition criteria. The Regulated Services Group believes that its business results are maximized by building constructive regulatory and customer relationships, and enhancing customer connections in the communities in which it operates.

1	Net Utility Sales for the twelve months ended December 31, 2021 and 2020. See Caution Concerning Non-GAAP Measures.

2	Total Customer Connections represents the sum of all active and vacant customer connections.

The Regulated Services Group aggregates the performance of its utility operations by utility system type – electricity, natural gas, and water and wastewater systems.

The electric distribution systems are comprised of regulated electrical distribution utility systems and served approximately 307,000 customer connections in the U.S. States of California, New Hampshire, Missouri, Kansas, Oklahoma and Arkansas and in Bermuda as at December 31, 2021.

The natural gas distribution systems are comprised of regulated natural gas distribution utility systems and served approximately 373,000 customer connections located in the U.S. States of New Hampshire, Illinois, Iowa, Missouri, Georgia, Massachusetts and New York and in the Canadian Province of New Brunswick as at December 31, 2021 .

The water and wastewater distribution systems are comprised of regulated water distribution and wastewater collection utility systems and served approximately 413,000 customer connections located in the U.S. States of Arkansas, Arizona, California, Illinois, Missouri and Texas and in Chile as at December 31, 2021. With the acquisition of Liberty NY Water the Regulated Services Group added an additional approximately 125,000 customer connections in the state of New York effective January 1, 2022.

For the three months ended December 31, 2021, the electric distribution systems' usage totaled 1,481.0 GW-hrs as compared to 1,534.3 GW-hrs for the same period in 2020, a decrease of 53.3 GW-hrs or 3.5%. The decrease in  electricity consumption is primarily due to unfavorable weather at Empire Electric System in the fourth quarter of 2021.

For the twelve months ended December 31, 2021, the electric distribution systems' usage totaled 6,470.8 GW-hrs as compared to 5,891.9 GW-hrs for the same period in 2020, an increase of 578.9 GW-hrs or 9.8%. The increase in electricity consumption is primarily due to the acquisition of Ascendant in the fourth quarter of 2020, which contributed

522.6 GW-hrs.

For the three months ended December 31, 2021, usage at the natural gas distribution systems totaled 10,827,000 MMBTU as compared to 11,179,000 MMBTU during the same period in 2020, a decrease of 352,000 MMBTU, or 3.1%.  This was primarily due to warmer weather at the Mid-States, New York, Empire and New Brunswick Gas Systems.

For the twelve months ended December 31, 2021, usage at the natural gas distribution systems totaled 39,399,000 MMBTU as compared to 39,576,000 MMBTU during the same period in 2020, a decrease of 177,000 MMBTU, or 0.4%.  This was primarily due to warmer weather at the New Brunswick, Energy North and Peach State Gas Systems.

For the three months ended December 31, 2021, the water and wastewater distribution systems provided approximately 7,297 million gallons of water to customers and treated approximately 726 million gallons of wastewater. This is compared to 7,066 million gallons of water provided and 639 million gallons of wastewater treated during the same period in 2020, an increase in total gallons provided of 319 million, or 4.1%. This is primarily due to increased water consumption at ESSAL of 236 million gallons or 8.8% driven by commercial customers who were not operating during the fourth quarter of 2020 due to COVID-19 restrictions.

For the twelve months ended December 31, 2021, the water and wastewater distribution systems provided approximately 28,197 gallons of water to customers and treated approximately 2,768 gallons of wastewater. This is compared to 19,319 gallons of water provided and 2,535 gallons of wastewater treated during the same period in 2020, an increase in total gallons provided of 9,111 million, or 41.7%. The increase is primarily due to the acquisition of ESSAL in the fourth quarter of 2020, which contributed 11,212 million gallons of water provided.

1	See Caution Concerning Non-GAAP Measures.

2	See Note 21 in the annual consolidated financial statements.

3

This table contains a reconciliation of Net Utility Sales to revenue. The relevant sections of the table are derived from and should be read in conjunction with the consolidated statement of operations and Note 21 in the annual consolidated financial statements, “Segmented Information”. This supplementary disclosure is intended to more fully explain disclosures related to Net Utility Sales and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Net Utility Sales should not be construed as an alternative to revenue.

4	HLBV income represents the value of net tax attributes monetized by the Regulated Services Group in the period at the Luning and Turquoise Solar Facilities and the Empire Wind Facilities.

5

“Segmented Information”. This supplementary disclosure is intended to more fully explain disclosures related to Divisional Operating Profit and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Divisional Operating Profit should not be construed as an alternative to revenue.

6	Certain prior year items have been reclassified to conform with current year presentation.

2021 Fourth Quarter Operating Results

For the three months ended December 31, 2021, the Regulated Services Group reported revenue of $491.6 million (i.e.,

$261.3 million of regulated electricity distribution, $172.0 million of regulated gas distribution and $58.3 million of regulated water reclamation and distribution) as compared to revenue of $403.2 million in the comparable period in the prior year (i.e., $213.3 million of regulated electricity distribution, $137.0 million of regulated gas distribution and

$52.9 million of regulated water reclamation and distribution).

For the three months ended December 31, 2021, the Regulated Services Group reported a Divisional Operating Profit (excluding corporate administration expenses) of $191.4 million as compared to $162.4 million for the comparable period in the prior year (see Caution Concerning Non-GAAP Measures).

Highlights of the changes are summarized in the following table:

2021 Annual Operating Results

For the twelve months ended December 31, 2021, the Regulated Services Group reported revenue of $1,944.2 million (i.e., $1,183.4 million of regulated electricity distribution, $525.9 million of regulated gas distribution and $234.9 million of regulated water reclamation and distribution) as compared to revenue of $1,386.0 million in the prior year (i.e., $776.3 million of regulated electricity distribution, $454.7 million of regulated gas distribution and $155.0 million of regulated water reclamation and distribution).

For the twelve months ended December 31, 2021, the Regulated Services Group reported an Divisional Operating Profit (excluding corporate administration expenses) of $758.8 million as compared to $592.3 million in the prior year (see Caution Concerning Non-GAAP Measures).

Highlights of the changes are summarized in the following table:

1	See Caution Concerning Non-GAAP Measures.

2	The impacts of COVID-19 were estimated by normalizing sales in both periods for changes in weather and attributing the remaining variances to COVID-19.

When Empire filed its most recent Missouri rate case (ER-2021-0312) in May 2021, costs related to the Midwest Extreme Weather Event were included. In July 2021, Missouri House Bill 734 was signed into law, creating an option for utilities to finance the recovery of extraordinary weather event costs. When it filed its surrebuttal testimony in ER-2021-0312 in January 2022, Empire removed all costs related to the Midwest Extreme Weather Event from its rate request. Pursuant to House Bill 734, Empire filed a Petition for Financing Order for authorization of the issuance of securitized utility tariff bonds regarding 100% of the extraordinary costs incurred during the Midwest Extreme Winter Weather Event. A decision by the MPSC regarding Empire’s securitization request is required by August 22, 2022.

Regulatory Proceedings related to the retirement of Asbury

In the course of completing its 2017 and 2019 Integrated Resource Plans (“IRPs”), Empire analyzed the effects of retiring Asbury, a coal-fired generation unit that was constructed in 1970. In the course of the 2019 IRP, Empire determined that retiring the plant would generate $93.0 million in customer savings in the 20 years following the unit’s decommissioning. Asbury was retired on March 1, 2020. On July 23, 2020, the MPSC issued an AAO that directed Empire to establish regulatory asset and liability accounts, beginning January 1, 2020, to reflect impact of the closure of Asbury on operating and capital expenses in Missouri.

When Empire filed its most recent Missouri rate case (ER-2021-0312) in May 2021, its Asbury related revenues and expenses, along with the balance of the AAO, were included in the application. In July 2021, Missouri House Bill 734 created an option for utilities to finance the recovery of costs related to the retirement of obsolescent generation infrastructure, including recovery of undepreciated ratebase balances and financing costs, through securitized utility tariff bonds.

Algonquin Power & Utilities Corp. - Management Discussion & Analysis

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Regulatory Proceedings related to Acquisitions:

On October 26, 2021, Liberty Utilities entered into an agreement with American Electric Power Company, Inc. and AEP Transmission Company, LLC to acquire Kentucky Power and Kentucky TransCo.

On January 4, 2022, Liberty Utilities and Kentucky Power jointly filed for the approval of the Kentucky Power Transaction at the KPSC. By statute, the KPSC must issue an order on the application within 120 days, and therefore, the KPSC has issued a procedural schedule which calls for hearings to occur on March 28, 2022, and an order on the application is expected on or before May 4, 2022. In addition to the approval of the KPSC, closing of the Kentucky Power Transaction is subject to receipt of certain other regulatory approvals, including the approval of FERC and the approval of KPSC, FERC and the Public Service Commission of West Virginia with respect to the termination and replacement of the existing operating agreement for the Mitchell Plant.

2021 Fourth Quarter Renewable Energy Group Performance

For the three months ended December 31, 2021, the Renewable Energy Group generated 2,076.8 GW-hrs of electricity as compared to 1,607.8 GW-hrs during the same period of 2020.

For the three months ended December 31, 2021, the hydro facilities generated 142.0 GW-hrs of electricity as compared to

157.1 GW-hrs produced in the same period in 2020, a decrease of 9.6%. Electricity generated represented 95.3% of LTAR as compared to 105.4% during the same period in 2020. During the quarter, all regions except the Quebec Region were below their respective LTAR.

For the three months ended December 31, 2021, the wind facilities produced 1,785.0 GW-hrs of electricity as compared to 1,338.0 GW-hrs produced in the same period in 2020, an increase of 33.4%. The increase in production is primarily due to the addition of the Sugar Creek Wind Facility which achieved COD on November 9, 2020, and the Maverick Creek Wind Facility which achieved COD on April 21, 2021. Excluding the new facilities, production was 2.2% below the same period last year. The wind facilities, including new facilities, generated electricity equal to 97.1% of LTAR as compared to 85.5% during the same period in 2020

For the three months ended December 31, 2021, the solar facilities generated 84.3 GW-hrs of electricity as compared to 53.2 GW-hrs of electricity in the same period in 2020, an increase of 58.5%. The increase in production is primarily due to the Altavista Solar Facility which achieved partial completion on March 8, 2021 and COD on June 1, 2021. In addition, the Croton Solar Facility achieved COD on December 8, 2021. Excluding the new facilities, production was 2.3% below the same period last year. The solar facilities generated electricity equal to 99.9% of LTAR as compared to 100.8% in the same period in 2020.

For the three months ended December 31, 2021, the thermal facilities generated 65.5 GW-hrs of electricity as compared to 59.5 GW-hrs of electricity during the same period in 2020. During the same period, the Windsor Locks Thermal Facility generated 132.1 billion lbs of steam as compared to 140.8 billion lbs of steam during the same period in 2020.

2021 Annual Renewable Energy Group Performance

For the twelve months ended December 31, 2021, the Renewable Energy Group generated 6,851.3 GW-hrs of electricity as compared to 5,045.5 GW-hrs during the same period in 2020.

For the twelve months ended December 31, 2021, the hydro facilities generated 531.9 GW-hrs of electricity as compared to 568.4 GW-hrs produced in the same period in 2020, a decrease of 6.4%. Electricity generated represented 87.6% of LTAR as compared to 93.7% during the same period in 2020.

For the twelve months ended December 31, 2021, the wind facilities produced 5,628.5 GW-hrs of electricity as compared to 4,044.6 GW-hrs produced in the same period in 2020, an increase of 39.2%. The increase in production is primarily due to the addition of the Sugar Creek Wind Facility which achieved COD on November 9, 2020, and the Maverick Creek Wind Facility which achieved COD on April 21, 2021. Excluding the new facilities, production was 4.2% below the same period last year. The wind facilities generated electricity equal to 90.1% of LTAR as compared to 91.1% during the same period in 2020.

For the twelve months ended December 31, 2021, the solar facilities generated 416.7 GW-hrs of electricity as compared to 250.8 GW-hrs of electricity produced in the same period in 2020, an increase of 66.1%. The increase in production is primarily due to the addition of the Great Bay II Solar Facility which achieved partial completion on April 15, 2020 and COD on August 13, 2020, and the Altavista Solar Facility which achieved partial completion on March 8, 2021 and COD on June 1, 2021. In addition, the Croton Solar Facility achieved COD on December 8, 2021. Excluding the new facilities, production was 1.4% above the same period last year. The solar facilities generated electricity equal to 95.3% of LTAR as compared to 88.9% in the same period in 2020.

For the twelve months ended December 31, 2021, the thermal facilities generated 274.2 GW-hrs of electricity as compared to 181.7 GW-hrs of electricity during the same period in 2020. For the twelve months ended December 31, 2021, the Windsor Locks Thermal Facility generated 507.0 billion lbs of steam as compared to 571.2 billion lbs of steam during the same period in 2020.