Algonquin Power & Utilities Corp. – Management’s Discussion & Analysis wastewater collection utilities serve approximately 11,500 water and wastewater customers located in the States  of Arkansas, Illinois, Missouri, and Texas.  Liberty Utilities (East) region is comprised of regulated natural gas and electric distribution utility systems located  in the State of New Hampshire providing regulated local electrical utility services to approximately 43,250 active  electric connections; and regulated local gas distribution utility services to approximately 87,650 active natural  gas connections. Upon completion of certain pending acquisitions of natural gas utility systems located in  Georgia and Massachusetts, the additional 114,000 customers will be added to the Liberty Utilities (East)  region.  APUC has completed several acquisitions and has advanced a number of other initiatives that have  raised the growth profile for APUC’s earnings and cash flows which in turn supports an increase in the  dividend to shareholders. As a result, on August 9, 2012, the Board approved a dividend increase of  $0.03 per share annually bringing the total annual dividend to $0.31, paid quarterly at the rate of  $0.0775 per common share.  Management believes that the increase in the dividend is consistent with APUC’s stated strategy of  delivering total shareholder return comprised of attractive current dividend yield and capital appreciation  founded on increased earnings and cash flows.  On November 9, 2012, APUC issued 4.8 million cumulative rate reset preferred shares, Series A (the  “Series A Shares”) at a price of $25 per share, for aggregate gross proceeds of $120 million. The  shares will yield 4.5% annually for the initial six-year period ending on December 31, 2018. The  preferred shares have been assigned a rating of P-3 and Pfd-3(low) by S&P and DBRS respectively. The proceeds of the offering were used primarily to partially fund the acquisition of the interest in the  Gamesa wind powered generating stations (the “Gamesa Wind Facilities”) which closed on December  10, 2012. For the year ended December 31, 2012, APUC issued a total of 26.4 million shares for cash and share  proceeds of $142.6 million pursuant to the exercise of subscription receipts issued to Emera in  contemplation of certain previously announced transactions. The shares were issued in the context of  the existing Strategic Investment Agreement which contemplates Emera’s investment in APUC of up to  25%. As at December 31, 2012, Emera owned 34.9 million APUC common shares representing approximately 18.5% of the total outstanding common shares of the Company. Subsequent to the end of the year and pursuant to previously committed subscription receipts, APUC  issued 2.6 million shares at a price of $5.74, 5.2 million shares at a price of $5.74 and 3.4 million shares  at a price representing $4.72 per share pursuant to subscription agreements. As a result, at March 14,  2013, Emera owns 46.1 million APUC common shares representing approximately 23% of the total  outstanding common shares of the Company. On February 22, 2013, APUC announced that Emera agreed to subscribe to 4.0 million common shares  of APUC at a price of $7.40 per share for total proceeds of approximately $29 million representing a  $0.10 premium to the closing price of APUC shares on February 19, 2013. The conversion of these  subscription receipts will bring Emera’s total investment in APUC to 25%.  APUC believes issuance of shares to Emera is an efficient way to raise equity as it avoids underwriting  fees, legal expenses and other costs associated with raising equity in the capital markets.  2012 Annual Report 16 Strengthened Balance Sheet Issuance of $120M Preferred Shares Emera Subscription Receipts Major Highlights Corporate Highlights Dividend Increased to $0.31 per Common Share Annually