Mr. Ian Robertson reports

ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES 10% DIVIDEND INCREASE AND DECLARES FIRST QUARTER 2017 COMMON SHARE DIVIDEND OF U.S. $0.1165 (CDN. $0.1533)

Algonquin Power & Utilities Corp.'s board of directors has approved a dividend increase of 4.24 U.S. cents annually per common share for a total annual dividend of 46.59 U.S. cents per common share, paid quarterly at a rate of 11.65 U.S. cents per common share.

Algonquin also announced today that the board has declared a dividend of 11.65 U.S. cents per share on its common shares, payable on April 14, 2017, to the shareholders of record on March 31, 2017, for the period from Jan. 1, 2017, to March 31, 2017. Shareholders can elect to receive the dividend in the amount of 15.33 cents.

"With the recent acquisition of the Empire District Electric Company, along with the completion of other successful renewable energy project initiatives this past year, APUC has experienced transformative growth across the organization," commented Ian Robertson, chief executive officer of Algonquin. "This 10-per-cent increase in our dividend is well underpinned by the increased 2017 earnings and cash flows arising in connection with these achievements."

The common share dividend will be paid in cash, or, if a shareholder has enrolled in the shareholder dividend reinvestment plan, dividends will be reinvested in additional shares of Algonquin as per the plan, based on equivalent Canadian funds. Plan shares will be acquired by way of a treasury purchase at the average market price as defined in the plan less a 5-per-cent discount for the first quarter of 2017.

Pursuant to the Income Tax Act (Canada) and corresponding provincial legislation, Algonquin hereby notifies its common shareholders that such dividends declared qualify as eligible dividends.

The quarterly dividends payable on common shares are declared in U.S. dollars. Beneficial shareholders (those who hold common shares through a financial intermediary) who are resident in Canada or the United States may request to receive their dividends in either U.S. dollars or the Canadian-dollar equivalent by contacting the financial intermediary with which the common shares are held. Unless the Canadian-dollar equivalent is requested, shareholders will receive dividends in U.S. dollars, which, as is often the case, the financial intermediary may convert to Canadian dollars. Registered shareholders receive dividend payments in the currency of residency. Registered shareholders may opt to change the payment currency by contacting CST Trust Company at 1-800-387-0825 prior to the record date of the dividend.

The Canadian-dollar equivalent of the quarterly dividend is based on the Bank of Canada noon exchange rate on the declaration date.

About Algonquin Power & Utilities

Algonquin is a North American diversified generation, transmission and distribution utility with $10-billion of total assets. Liberty Utilities provides rate-regulated natural gas, water and electricity generation, transmission, and distribution utility services to over 782,000 customers in the United States. Algonquin is committed to being a North American leader in the generation of clean energy through its portfolio of long-term contracted wind-, solar- and hydroelectric-generating facilities, representing more than 1,150 megawatts of installed capacity. Algonquin delivers continuing growth through an expanding pipeline of renewable energy development projects, organic growth within its rate-regulated generation, distribution and transmission businesses, and the pursuit of accretive acquisitions.