Transactions with Related Parties (unaudited, $ millions) Year ended December 31 Note 2012 2011 EPCOR (shareholder) CPLP distributions paid (a) 42 60 Purchase of distribution and transmission services (b) 22 23 Purchase of other services (b) 6 7 Power sales (b) 9 239 Interest incurred on unsecured senior debt payable and expensed (c) 20 30 Interest incurred on unsecured senior debt payable and capitalized (c) 5 8 Repayment of unsecured senior debt payable (c) 25 237 The City of Edmonton (sole shareholder of EPCOR) Power sales (b) 36 34 As at December 31 Note 2012 2011 EPCOR (shareholder) Trade and other receivables (b) 1 1 Trade and other payables (b) 17 22 Provision for future maintenance costs associated with EPCOR’s Rossdale plant (d) 4 7 Loans and borrowings (c) 357 382 The City of Edmonton (sole shareholder of EPCOR) Trade and other receivables (b) 7 7 Capital Power Corporation Management’s Discussion and Analysis 2012 44 (d) The Rossdale plant, which is owned by EPCOR, was taken out of service in January 2009 and was decommissioned. Certain structures at the plant site were designated as Provincial Historical Resources by the Province of Alberta and are thereby legally protected from demolition. These structures, and additional structures at the plant site, are also on the City of Edmonton’s Register of Historic Resources. CPLP has an obligation to EPCOR to share in some of the costs for ongoing operations and maintenance of the Rossdale plant and related assets until 2019. (c) The Company’s unsecured senior debt payable to EPCOR, at interest rates ranging from 5.80% to 9.00% per annum, matures between 2013 and 2018. If EPCOR no longer owns, directly or indirectly, at least 20% of the outstanding common limited partnership units of CPLP, then EPCOR may, by written notice, require repayment of all or any portion of the outstanding principal amount of this debt and accrued interest thereon. If the principal amount specified in such repayment is less than $200 million, then it and the accrued interest thereon shall be payable 180 days after delivery of notice, and if it is $200 million or more, then it and the accrued interest thereon shall be payable 365 days after delivery of notice. (b) The power sales and purchase of other services transactions with EPCOR and the City of Edmonton were in the normal course of operations and were recorded at the exchange amounts which were based on normal commercial rates. The Company has a lease agreement with EPCOR for office space that requires payment to EPCOR of $4 million per year through 2031. (a) In April 2012, a subsidiary of EPCOR exchanged a total of 9.775 million of its exchangeable common limited partnership units in CPLP for common shares of Capital Power on a one-for-one basis. Subsequently, EPCOR entered into an agreement for a secondary offering of 9.775 million common shares of Capital Power. As a result, at December 31, 2012, EPCOR owned 28.441 million exchangeable common limited partnership units of CPLP, and 28.441 million accompanying special voting shares and one special limited voting share of Capital Power Corporation. At December 31, 2011, EPCOR owned 38.216 million exchangeable common limited partnership units of CPLP and 38.216 million accompanying special voting shares and one special limited voting share of Capital Power Corporation. In connection with EPCOR’s shareholdings, CPLP paid distributions to EPCOR for the years ended December 31, 2012 and 2011.