FINANCIAL POSITION REVIEW Overview As at December 31, 2013, Capstone had a consolidated working capital surplus of $37,375 compared with $30,821 at December 31, 2012. The  surplus improvement of $6,554 reflected a $1,770 increase from the businesses acquired with ReD,$1,242 for the other power businesses and $12,732 at corporate. These increases were offset by a$9,190 decline at utilities - water. Unrestricted cash and cash equivalents totaled $45,768 on a consolidated basis at December 31, 2013 compared with $49,599 at December 31, 2012. The increase reflected $11,192 for the businesses acquired with ReD and a $2,844 increase at corporate offset by decreases of $16,185 and $1,682 in the utilities - water and other power businesses, respectively. During 2013, Capstone’s debt to capitalization ratio (refer to page 36) increased from 62.7% to 65.7% on a fair value basis and decreased from 57.6% to 57.3% on a book value basis. The increase in Bristol Water's debt to fund ongoing capital expenditures and foreign exchange translation increased the ratio on both a fair value and a book value basis. The year-over-year decline in Capstone's share price also contributed to the ratio's increase. This was offset by the ReD acquisition for which the ratio of debt assumed to equity issued was lower than Capstone's ratio prior to acquisition. As at December 31, 2013, Capstone and its subsidiaries complied with all debt covenants. Liquidity Working capital As at Dec 31, 2013 Dec 31, 2012 Power 31,638 31,041 Utilities – water 933 10,123 Corporate 4,804 (10,343) Working capital 37,375 30,821 The power segment working capital as at December 31, 2013 was $646 higher for the ReD businesses acquired. For the remaining power facilities,  working capital changes from December 31, 2012 were primarily attributable to timing of cash distributions to corporate, higher revenue receivables and restricted cash increases in accordance with credit facility requirements. The utilities - water segment working capital reduction primarily  reflected cash reduction to fund the capital expenditure program. The lower working capital balance at Bristol Water reflected a conscious effort to  ensure more efficient management of surplus working capital. In addition to cash, Bristol Water has$70,508 of credit availability for liquidity and to fund the longer term capital projects. The increase in corporate working capital was primarily attributable to an accumulation of cash following the dividend change and stable distributions from Capstone's businesses. Cash and cash equivalents As at Dec 31, 2013 Dec 31, 2012 Power 28,991 20,941 Utilities – water 9,130 25,315 Corporate 7,647 3,343 Unrestricted cash and cash equivalents 45,768 49,599 Less: cash with access limitations Power (18,096) (8,386) Utilities – water (9,130) (25,315) Cash and cash equivalents available to Capstone 18,542 15,898 Unrestricted cash represents funds available for operating activities, capital expenditures and future acquisitions. The decrease of $3,831 in cash  from December 31, 2012 was primarily attributable to a $16,185 reduction in Bristol Water cash to fund the expenditure program. This was partially  offset by the addition of $11,192 in cash from the businesses acquired with ReD, which is reflected in the power segment and corporate. Cash and cash equivalents available to Capstone represent funds available for general purposes, including payment of dividends to shareholders. For the power segment, $18,096 of cash is only periodically accessible to Capstone through distributions under the terms of the credit agreements  for the hydro power facilities, Erie Shores, Amherstburg and ReD's operating wind facilities, including Glace Bay, the SkyGen facilities, and Amherst. 2013 ANNUAL REPORT  35