Algonquin Power & Utilities Corp. – Consolidated Financial Statements Telephone (416) 777-8500 Fax (416) 777-8818  Internet  www.kpmg.ca  KPMG LLP   Chartered Accountants Bay Adelaide Centre  333 Bay Street, Suite 4600  Toronto, Ontario M5H 2S5  Canada To the Shareholders of Algonquin Power & Utilities Corp.  We have audited the accompanying consolidated balance sheets of Algonquin Power & Utilities  Corp. as of December 31, 2012 and December 31, 2011, and the related consolidated statements of  operations, comprehensive income (loss), equity and cash flows for the years then ended. Our  responsibility is to express an opinion on these consolidated financial statements based on our  audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and  the standards of the Public Company Accounting Oversight Board (United States). Those standards  require that we plan and perform the audit to obtain reasonable assurance about whether the  financial statements are free of material misstatement. An audit includes examining, on a test basis,  evidence supporting the amounts and disclosures in the financial statements. An audit also includes  assessing the accounting principles used and significant estimates made by management, as well as  evaluating the overall financial statement presentation. We believe that our audits provide a  reasonable basis for our opinion.  In our opinion, the consolidated financial statements referred to above present fairly, in all material  respects, the consolidated financial position of Algonquin Power & Utilities Corp. as of December  31, 2012 and December 31, 2011, and its consolidated results of operations and its consolidated  cash flows for the years then ended in conformity with US generally accepted accounting principles  We also have audited, in accordance with the standards of the Public Company Accounting  Oversight Board (United States), Algonquin Power & Utilities Corp.’s internal control over  financial reporting as of December 31, 2012, based on the criteria established in Internal Control –  Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway  Commission, and our report dated March 14, 2013 expressed an unqualified (unmodified) opinion  on the effectiveness of Algonquin Power & Utilities Corp.’s internal control over financial  reporting. Chartered Accountants, Licensed Public Accountants  Toronto, Canada  March 14, 2013  KPMG LLP, is a Canadian limited liability partnership and a member firm of the KPMG  Network of independent member firms affiliated with KPMG International, a Swiss cooperative.  KPMG Canada provides services to KPMG LLP. 2012 Annual Report 69 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 