#1ATCO Puerto Rico Electric Transmission & Distribution System Operating & Maintenance Agreement Overview June 2020#2LEGAL 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 therefore actual results may differ materially from those currently anticipated. ATCO Ltd. and Canadian Utilities Limited disclaim any intention or obligation to update or revise such statements. Due to the nature of the Corporation's operations, quarterly revenues and earnings are not necessarily indicative of annual results. ATCO#3Puerto 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 beginning mid-2020 → 15-year fee-for-service Operating & Maintenance (O&M) period commencing in mid-2021 O&M contract provides long-term contracted cash flows and earnings with no required capital investment by LUMA Leverages collective expertise to create a reliable, resilient, affordable and sustainable electricity system focused on providing outstanding customer service to the people of Puerto Rico LUMA CU 50% CANADIAN UTILITIES LIMITED An ATCO Company QUANTA 50% 3 ATCO#4Key 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 - » ~15-year operating period – LUMA assumes responsibility for all in-scope operational matters working with local workforce and management System operating costs and capital expenditures are pass-through and paid from PREPA's pre- funded service accounts Significant planned capital program to rebuild the T&D system post-hurricane Irma and Maria with funding through U.S. federal disaster relief agencies - no required capital investment by LUMA. The Puerto Rico Electric Power Authority (PREPA) retains ownership of all assets. 4 ATCO#5Key Contract Terms and Objectives Front-End Transition Period (2020-2021) > Preparatory work to enable full transition of operations to LUMA. CU and Quanta will work alongside PREPA to realize improvements and achieve an efficient and effective transition of operations. O&M Services Period (2021 - 2035) > LUMA assumes responsibility for all in-scope operational matters to transform the T&D system into an efficient and modern utility. This work will include utility operations and customer service, disaster recovery and storm-hardening capital programs. Back-end transition period begins one year before end of contract term. LO 5 ATCO#6Front-End Transition Service Fee Fixed Fee Incentive Fee Key Financial Contract Terms Front-End Transition Period Compensation Fixed Front-End Transition Service Fee of US$60M Reimbursement of actual costs to provide Front-End Transition Services O&M Services Period Compensation Fixed Fee for each Contract Year (July 1 to June 30) paid monthly Year 1 - US$70M; Year 2 - US$90M; Year 3 - US$100M; Year 4 to 16 - US$105M Adjusted pro-rata for any partial Contract Year Fixed Fee escalated annually at US CPI System operating costs and capital expenditures are flow-through expenditures LUMA's costs for Executives, Board of Directors, and general corporate administration will be borne by LUMA and paid from the Fixed Fee Incentive Fee up to a maximum of ~20% of the Fixed Fee in each Contract Year Year 1 - US$13M; Year 2 - US$17M; Year 3 - US$19M; Year 4 to 16 - US$20M Incentive Fee escalated annually at US CPI Note: All compensation figures above are at the LUMA level. Canadian Utilities Limited holds a 50% interest in LUMA. 6 ATCO#7Puerto 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 Puerto Rico Electric Power Authority → LUMA will operate T&D system, while PREPA continues to operate generation assets FLORIDA Network of ~30,000km of transmission and distribution lines 7 CUBA = HAITI DOMINICAN REPUBLIC PUERTO RICO ATCO#8CU CANADIAN UTILITIES LIMITED An ATCO Company QUANTA IEM. · · 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 50 per cent joint venture owner Industry-leading contractor building reliable energy infrastructure and providing skilled workforce training Market capitalization of C$7 bn Sub-contractor to LUMA 34 years+ experience supporting disaster response and recovery programs funded by federal, state and local sources with US$51 bn deployed to date 8 LUMA Purpose-built utility company Best-in-class operational and customer service expertise Superior electric utility services and project execution capabilities Long-time partners with track record of superior performance Specialized partner with best-in-class disaster relief funding experience ATCO#9Shared Vision for Puerto Rico CUSTOMER CENTRIC LUMA 24/7 PEOPLE, SAFETY AND TRAINING RELIABILITY, RESILIENCY AND AFFORDABILITY COMMITMENT TO THE COMMUNITY 9 ATCO#10Regulatory and oversight Federal relief funding Counterparties to O&M Agreement Key Organizations LUMA is Working With Puerto Rico Electric Power Authority . DEPARTMENT HOMELAND CURITY O FEMA РЯЕВ Puerto Rico Energy Bureau • Corporation responsible for power generation and T&D in Puerto Rico Counterparty to O&M Agreement Owner of all assets and retains all existing liabilities Coordinates U.S. federal government's role in disaster response and recovery Provider of federal funding to Puerto Rico for planned capital program to rebuild from 2017 hurricanes Entity responsible for regulatory oversight of the electrical system Approves all rates and applications using a Fair and Reasonable Doctrine P₂ Public-Private Partnerships (P3) Authority COR CENTRAL OFFICE FOR RECOVERY, RECONSTRUCTION AND RESILIENCY Oversight Financial Management Board 大厦 for Puerto Rico FOMB . Government agency responsible for administering P3s in Puerto Rico Counterparty to and administrator of O&M Agreement • Agency set up as recipient of federal relief funding from FEMA Coordinates with sub-recipients, such as PREPA, to distribute funds • . Financial oversight board responsible for managing Title III bankruptcy process and fiscal plans in Puerto Rico Interaction with LUMA as Puerto Rico bankruptcy process concludes 10 ATCO#11Opportunity 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 earnings with no required capital investment » Continues Canadian Utilities' geographic expansion and diversification strategy into the U.S. and Latin America > Strong relationship and joint project management with well-known and industry- leading partner in Quanta Developing operating contract model and next generation energy expertise that can be used as a blueprint for future opportunities >>> Positioned to provide other services to the people of Puerto Rico 11 ATCO#12ATCO www.ATCO.com www.canadianutilities.com Tel: 403.292.7500 Investor Relations 5302 Forand Street SW Calgary, Alberta T3E 8B4 Canada [email protected] 12 ATCO