​​​“Operational performance was strong in the third quarter, and EPCOR's people continued to execute our capital plan," said EPCOR President & CEO Stuart Lee. “More than $258 million was invested to sustain and expand utility infrastructure for customers, bringing year-to-date capital spending and growth investments to $730 million."

“EPCOR's performance illustrates the value of a geographically diverse utility portfolio," Mr. Lee said. “Hot, dry weather in Alberta resulted in increased water and power consumption, while water sales were lower in Arizona and New Mexico due to their relatively wet summer. Overall, revenues and operating income reflected these weather impacts, the contribution from the San Tan districts acquired earlier this year, and higher costs for electricity supplied to Alberta Regulated Rate Option customers."

“Financial performance was consistent with our expectations given weather and market conditions, with third quarter net income of $146 million," Mr. Lee said. “In September, EPCOR transferred operation of the Bullhead City water utility systems to the local municipality. While EPCOR's financial results reflect the receipt of the US$80 million court-ordered bond from Bullhead City, it is important to note that the final purchase price and fair value for the water utility systems will be set through a jury trial scheduled to begin in early 2022."

Highlights of EPCOR's financial performance are as follows:

• Net income was $146 million and $287 million for the three and nine months ended September 30, 2021, respectively, compared with net income of $92 million and $212 million for the comparative periods in 2020, respectively. The increase of $54 million for the three months ended September 30, 2021 was primarily due to the gain on expropriation of the Bullhead City (BHC) water utility systems, higher transmission system access service charge net collections and higher Adjusted EBITDA¹, partially offset by unfavorable fair value adjustments related to financial electricity purchase contracts as well as higher income tax, depreciation and finance expenses.
  The increase of $75 million for the nine months ended September 30, 2021, was primarily due to the gain on expropriation of the BHC water utility systems, favorable fair value adjustments related to financial electricity purchase contracts and higher Adjusted EBITDA, partially offset by lower transmission system access service charge net collections, lower net collections of U.S. natural gas procurement costs, as well as, higher income tax, depreciation and finance expenses.
• Adjusted EBITDA was $227 million and $640 million for the three and nine months ended September 30, 2021, respectively, compared with $218 million and $576 million for the comparative periods in 2020, respectively. The increase of $9 million and $64 million for the three and nine months ended September 30, 2021, respectively, was primarily due to higher water consumption due to hot, dry weather conditions in the city of Edmonton, higher rates and customer growth, Adjusted EBITDA from the newly acquired Johnson Utility LLC operations and lower water treatment costs for operations in the city of Edmonton due to better water quality. These increases were partially offset by lower water consumption in Arizona and New Mexico due to a wet summer, lower Energy Price Setting Plan margins and higher staff costs related to additional operational support required for the implementation of the new customer billing system. In addition, for the nine months ended September 30, 2021 provisions for expected credit losses from customers were also lower.
• Investment in capital projects was $730 million for the nine months ended September 30, 2021, compared with $624 million for the corresponding period in 2020, and included the acquisition of Johnson Utilities LLC water and wastewater operations, higher capital spending in the Company's Water Services, Distribution and Transmission and U.S. Operations segments, partially offset by lower spending in Other.

Interim management's discussion and analysis and the unaudited condensed consolidated interim financial statements are available on our website and SEDAR.

EPCOR, through its wholly owned subsidiaries, builds, owns and operates electrical, natural gas and water transmission and distribution networks, water and wastewater treatment facilities and sanitary and stormwater systems and infrastructure in Canada and the United States. The Company also provides electricity, natural gas and water products and services to residential and commercial customers. EPCOR, headquartered in Edmonton, is an Alberta Top 75 employer.