Algonquin Power & Utilities Corp. – Consolidated Financial Statements ALGONQUIN POWER & UTILITIES CORP.  3.  Business acquisitions and development projects (continued) Notes to the Consolidated Financial Statements  December 31, 2012 and 2011   (in thousands of Canadian dollars except as noted and amounts per share)  Property, plant & equipment are amortized on a straight line basis over the lives of the  assets, which have a weighted average life of 32 years.  All transaction costs related to the acquisition have been expensed through the Consolidated  Statement of Operations.  The contribution of the U.S. wind farms to the Company’s results in 2012 was as follows:  The disclosure of pro forma revenue and net earnings is impracticable as there is no  historical financial information since APCo acquired the wind farms shortly after commencement of commercial operations.  On December 21, 2012, APUC acquired the 49.999% interest in Calpeco from Emera  Inc.(“Emera”) for $38,756 which was funded by the proceeds of common share subscription  receipts (note 14(a)(iii)). The impact on the Company’s Consolidated Balance Sheet was as  follows:  On January 4, 2012, APCo acquired rights to develop a 10 MWac solar project located near  Cornwall, Ontario which has been granted a Feed-in-Tariff contract by the Ontario Power  Authority for a 20 year term at a rate of $443/MWh. The consideration for the development  rights is $4,500 plus additional contingent consideration of $3,500 based on achieving  certain construction milestones. As at December 31, 2012, the Company has paid a total of  $2,000 based on achieved milestones. The transaction has been recorded as a purchase of  intangible assets. Subsequent to year-end, effective January 1, 2013, APCo acquired the 109.5 MW Sandy  Oaks wind powered generating facility by assuming the existing long-term debt of approximately U.S. $150 million for no additional cash. The purchase agreement provides for  final purchase price adjustments based on working capital at the acquisition date, energy  generated by the project and basis differences between the relevant node and hub prices.  The energy and basis related price adjustment will be based on the project’s experience  from January 1, 2013 to June 30, 2014. 2012 Annual Report 95 (d)  Acquisition of U.S. wind farms (continued)  (e) Acquisition of noncontrolling interest in Calpeco  (f) Acquisition of solar energy project  (g) Acquisition of Shady Oaks wind power facility  Elimination of noncontrolling interest (net of intercompany  balance of $1,297 with Emera)  $ 33,726 Noncontrolling interest portion of currency translation  adjustment transferred to AOCI  1,397 Accumulated deficit  3,633 Exercise of subscription receipts  $ 38,756 Revenue Net earnings/(Loss)  Sandy Ridge  $ 2,132 $ (353) Senate  1,179 50 Minonk  785 (146) $ 4,096 $ (449)