Algonquin Power & Utilities Corp. – Management’s Discussion & Analysis of environmental permitting, and fixing the cost of the major capital components of the project. It is not until all  major aspects of a project are secured that APCo will begin construction or execute an acquisition agreement.  APCo’s Development Division has successfully advanced a number of projects and has been awarded or  acquired a number of power purchase agreements. The projects are as follows:  In the first quarter of 2012, APCo entered into a 25 year PPA with SaskPower for development of a 177 MW  wind power project in the rural municipality of Chaplin, Saskatchewan, 200 km west of Regina, Saskatchewan.  The project has a targeted commercial operation date of December, 2016. The facility will be constructed at an  estimated capital cost of $355 million and consist of approximately 77 multi-megawatt wind turbines. The  project is expected to generate first full year EBITDA of $37.5 million. The 25 year PPA features a rate  escalation provision of 0.6% throughout the term of the agreement. The project will take advantage of its  favourable location by interconnecting with a nearby 138Kv line and will be compliant with SaskPower’s latest  interconnection requirements.  The Amherst Island wind project is located on Amherst Island in the village of Stella, approximately 25  kilometres southwest of Kingston, Ontario. In February 2011, the 75 MW project was awarded a feed-in tariff  (“FIT”) contract by the OPA as part of the second round of the OPA’s FIT program.  The FIT contract originally stated that the OPA had the option to terminate the FIT contract prior to the date that  the OPA had issued a Notice to Proceed (“NTP”) and APCo had paid the incremental security required by the  NTP. On August 2, 2011, the Ontario Ministry of Energy directed the OPA to offer FIT contract holders the  opportunity to have the OPA’s termination rights under the FIT contract waived. APCo exercised this option on  August 9, 2011. As required by the waiver, APCo submitted a domestic content plan on October 14, 2011 and  provided a statutory declaration regarding equipment supply commitments by November 30, 2011.  The Amherst Island wind project is currently contemplated to use efficient Class III wind turbine generator  technology. APCo forecasts that the available wind resource could produce approximately 247 GW-hrs of  electrical energy annually, depending upon the final turbine selection for the project. Total capital costs for the  facility are currently estimated to be $230 million. The financing of the project will be arranged and announced  when all required permitting and all other pre-construction conditions have been satisfied. Environmental  studies and engineering are underway. The final open-house for public consultation was conducted on March  5$^{th}$ and 6$^{th}$, 2013. The submission of the Renewable Energy Approval application subsequent to the open house  is targeted for April 2013. Construction will commence shortly following the approval of the application and is  expected to take 12 to 18 months.  The Morse wind project is comprised of three contiguous projects with 25 MW of aggregate installed generating  capacity. The project is to be constructed near Morse, Saskatchewan, approximately 180 km west of Regina. It  Projects Currently in Development  Notes: Chaplin Wind  Amherst Island Wind Morse Wind Project 1  PPA signed 2  FIT contract awarded 3  Two 10 MW PPAs; one 5 MW PPA  4 Comprised of three projects that are connected geographically and will be built simultaneously. All three projects were awarded  PPAs under the province’s Green Options Partner Program (“GOPP”).  Project Name Location  Size (MW)  Estimated Capital  Cost  Commercial  Operation  PPA Term  Production GW-hrs  Chaplin Wind $^{1}$ Saskatchewan 177 $355.0 2016 25 720.0 Amherst Island $^{2}$ Ontario 75 $230.0 2015 20 247.0 Val Eo $^{1}$ Quebec 24 $70.0 2015 20 66.0 Morse Wind $^{3, 4}$ Saskatchewan 25 $70.0 2014 20 93.0 St. Damase $^{1}$ Quebec 24 $66.0 2014 20 78.7 Cornwall Solar $^{1, 2}$ Ontario 10 $45.0 2013 20 13.4 Total 335 $836.0 1,218.1 2012 Annual Report 30