July 29, 2021

CANADIAN UTILITIES REPORTS HIGHER SECOND QUARTER 2021 ADJUSTED EARNINGS

CALGARY, AB, July 29, 2021 /CNW/ -�Canadian Utilities Limited (TSX: CU) (TSX: CU.X) �

Canadian Utilities today announced second quarter 2021 adjusted earnings of $115 million ($0.43 per share), which were $21 million ($0.09 per share) higher compared to $94 million ($0.34 per share) in the second quarter of 2020.

Higher adjusted earnings in the second quarter of 2021 were mainly due to stronger results from the Utilities segment related to ongoing transition work and commencement on June 1, 2021 under the Supplemental Agreement to LUMA Energ0y's 15-year contract to modernize and operate Puerto Rico's electricity transmission and distribution system. A return to more stable levels of inflation in Australia also provided a positive impact to earnings.

IFRS earnings attributable to equity owners of the Company were $5 million in the second quarter of 2021, $67 million lower compared to 2020. Earnings attributable to equity owners of the Company include timing adjustments related to rate-regulated activities, dividends on equity preferred shares of the Company, unrealized gains or losses on mark-to-market forward and swap commodity contracts, one-time gains and losses, impairments, and items that are not in the normal course of business or a result of day-to-day operations. These items are not included in adjusted earnings.

RECENT DEVELOPMENTS

• Invested $430 million in capital projects in the second quarter of 2021, of which 96 per cent was invested in regulated utilities.
  
  
• Received a decision from the Alberta Utilities Commission on June 15, 2021 approving the acquisition of the Pioneer Pipeline from Tidewater Midstream & Infrastructure and its partner TransAlta Corporation for the purchase price and associated integration costs of $265 million, and the corresponding revenue requirement for 2021 to be included in Natural Gas Transmission's rates. As part of the transaction, Natural Gas Transmission will transfer approximately 30-km of the pipeline to Nova Gas Transmission Ltd. for $65 million upon approval from the Canada Energy Regulator.
  
  
• LUMA Energy commenced operations on June 1, 2021 under the Supplemental Agreement to its 15-year contract to modernize and operate Puerto Rico's electricity transmission and distribution system after successful completion of the one-year transition period.
  
  
• Launched R�mi, a solutions provider for home and business owners, offering lifestyle products, home maintenance services and professional advice for homeowners. R�mi currently offers approximately 60 services in Edmonton and Calgary, and more than 750 products for purchase online.
  
  
• Announced a partnership with Suncor Energy in May 2021, to collaborate on early stage design and engineering of a potential clean hydrogen project near Fort Saskatchewan, Alberta. The project will produce more than 300,000 tons per year of clean hydrogen, while capturing greater than 90 per cent of the carbon emissions, reducing Alberta's carbon dioxide emissions by more than two million tons per year.
  
  
• Received notification of $29 million AUD in conditional funding from the Australian Renewable Energy Agency (ARENA) to kick start the production of hydrogen through a large scale project at Canadian Utilities' proposed Clean Energy Innovation Park in Western Australia.
  
  
• Declared a third quarter dividend of 43.98 cents per share or $1.76 per Class A non-voting and Class B common share on an annualized basis.

TELECONFERENCE AND WEBCAST

Canadian Utilities will hold a live teleconference and webcast to discuss our second quarter 2021 financial results. Dennis DeChamplain, Executive Vice President & Chief Financial Officer, will discuss second quarter 2021 recent developments and financial results at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) on Thursday, July 29, 2021 at 1-800-319-4610. No passcode is required. Opening remarks will be followed by a question and answer period with investment analysts. Participants are asked to please dial-in 10 minutes prior to the start and request to join the Canadian Utilities teleconference.

Management invites interested parties to listen via live webcast at:
https://www.canadianutilities.com/en-ca/investors/events-presentations.html

A replay of the teleconference will be available approximately two hours after the conclusion of the call until August 29, 2021. Please call 1-800-319-6413 and enter passcode 7276. An archive of the webcast will be available on July 29, 2021 and a transcript of the call will be posted on
https://www.canadianutilities.com/en-ca/investors/events-presentations.html within a few business days.

This news release should be read in concert with the full disclosure documents. Canadian Utilities' consolidated financial statements and management's discussion and analysis for the quarter ended June�30, 2021 will be available on the Canadian Utilities website (www.canadianutilities.com), via SEDAR (www.sedar.com) or can be requested from the Company.

With approximately 4,500 employees and assets of $20 billion, Canadian Utilities Limited is an ATCO company. Canadian Utilities is a diversified global energy infrastructure corporation delivering essential services and innovative business solutions in Utilities (electricity and natural gas transmission and distribution, and international electricity operations); Energy Infrastructure (electricity generation, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales). More information can be found at www.canadianutilities.com.

Investor & Analyst Inquiries:
Colin Jackson
Senior Vice President, Finance, Treasury, Risk & Sustainability
Colin.Jackson@atco.com
(403) 808 2636

Media Inquiries:
Kurt Kadatz
Senior Manager, Corporate Communications�
Kurt.Kadatz@atco.com
(587) 228 4571

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions.�

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.

The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions (including as may be affected by the COVID-19 pandemic), and other factors, many of which are beyond the control of the Company.

The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.�

Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation. �

SOURCE Canadian Utilities Limited