Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — Investor Presentation (June 2020)
13 slides from Canadian Utilities Limited Class A's investor presentation, Jun 22, 2020
Slide 1: Disclaimer
DISCLAIMER Due to uncertainty surrounding the application of recent amendments to the Competition Act (Canada), the documents incorporated by reference herein are referenced for historical information purposes only and do not constitute active or current representations of Canadian Utilities Limited
Slide 2: Puerto Rico Electric Transmission & Distribution System Operating & Maintenance Agreement Overview
Puerto Rico Electric Transmission & Distribution System Operating & Maintenance Agreement Overview June 2020 1
Slide 3: Legal Disclaimer
LEGAL DISCLAIMER Statements made by representatives for ATCO Ltd. and Canadian Utilities Limited and information provided in this presentation may be considered forward-looking statements. By their nature, such statements are subject to numerous known and unknown risks and uncertainties and therefor
Slide 4: Puerto Rico Electric T&D Opportunity
Puerto Rico Electric T&D Opportunity In June 2020, the Puerto Rico Public-Private Partnerships Authority (P3A) selected LUMA Energy to manage and modernize Puerto Rico’s electric transmission and distribution (T&D) system 16-year contract to operate the T&D system: → 1-year transition period beginni
Slide 5: Key Contract Terms and Objectives
Key Contract Terms and Objectives Operating and maintenance services contract that leverages CU’s and Quanta’s best- in-class capabilities to deliver significant benefits to the people of Puerto Rico ▪ ~1-year transition period – efficient and effective transition of operations from PREPA to LUMA ▪
Slide 6: Key Contract Terms and Objectives
Key Contract Terms and Objectives Front-End O&M Services Period Transition Period (2021 – 2035) (2020 – 2021) • Preparatory work to • LUMA assumes responsibility for all in-scope operational matters to enable full transition of transform the T&D system into an efficient and modern utility. This oper
Slide 7: Key Financial Contract Terms
Key Financial Contract Terms Front-End Transition Period Compensation Front-End ▪ Fixed Front-End Transition Service Fee of US$60M Transition ▪ Reimbursement of actual costs to provide Front-End Transition Services Service Fee O&M Services Period Compensation ▪ Fixed Fee for each Contract Year (July
Slide 8: Puerto Rico Electric T&D System Overview
Puerto Rico Electric T&D System Overview ▪ One of the largest U.S. public utilities serving nearly 1.5 million customers ▪ PREPA currently owns and operates the T&D system and generation facilities → LUMA will operate T&D system, while PREPA continues to operate generation assets ▪ Network of ~30,00
Slide 9: LUMA Consortium
LUMA Consortium • 50 per cent joint venture owner • Operator of world-class utility businesses delivering safe, reliable and affordable energy to customers • Market capitalization of C$9 bn ✓ Purpose-built utility company • 50 per cent joint venture owner Best-in-class operational and • Industry-lea
Slide 10: Shared Vision for Puerto Rico
Shared Vision for Puerto Rico CUSTOMER CENTRIC PEOPLE, SAFETY AND TRAINING RELIABILITY, RESILIENCY AND AFFORDABILITY COMMITMENT TO THE COMMUNITY 9
Slide 11: Key Organizations LUMA is Working With
Key Organizations LUMA is Working With • Corporation responsible for power • Government agency responsible for Counterparties to O&M Agreement generation and T&D in Puerto Rico administering P3s in Puerto Rico • Counterparty to O&M Agreement • Counterparty to and administrator of • Owner of all asse
Slide 12: Opportunity Highlights
Opportunity Highlights ▪ LUMA has been selected to plan and execute a historic transformation and modernization of the electricity system working with the local workforce, PREPA and other parties to provide significant benefits to the people of Puerto Rico ▪ Long-term contracted cash flows and earni
Slide 13: Investor Relations Contact
www.ATCO.com www.canadianutilities.com Tel: 403.292.7500 Investor Relations 5302 Forand Street SW Calgary, Alberta T3E 8B4 Canada investorrelations@atco.com 12
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