Algonquin Power & Utilities Corp. – Management’s Discussion & Analysis wastewater utility systems serve approximately 66,550 water and wastewater connections located in the State  of Arizona. These utilities systems, previously reported in the Liberty Utilities (South) region, have now been  combined with Liberty Utilities (West) for reporting purposes, effective July 1, 2012.  The Liberty Utilities (Central) region is comprised of regulated natural gas and water distribution and wastewater  collection utility systems. The regulated natural gas utilities serve approximately 82,050 active natural gas  connections located in the states of Missouri, Illinois, and Iowa and the regulated water distribution and  wastewater collection utilities serve approximately 11,500 water and wastewater customers located in the states  of 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 which provides 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. For electricity and natural gas operations, Liberty Utilities reports active connections, exclusive of vacant  connections rather than total connections. For water and wastewater operations, Liberty Utilities reports total  connections, inclusive of vacant connections.  Liberty Utilities (West) is comprised of Liberty Utilities operations in California and Arizona. On December 21,  2012, Liberty Utilities (West) acquired the remaining 49.999% interest in the Calpeco Electric Utility. Therefore,  as at December 31, 2012, Liberty Utilities (West) holds a 100% interest in the Calpeco Electric Utility. Liberty Utilities (West)’s increase in water and wastewater connections during the period is primarily due to  development within the service territory. For the year ended December 31, 2012, Liberty Utilities (West)’s electricity usage totalled 545.4 GW-hrs, as  compared to 602.0 GW-hrs for the same period in 2011, a decrease of 56.6 GW-hrs or 9%. This decrease in  usage was primarily due to milder winter and spring weather in 2012 as compared to the colder weather  experienced in the same period a year ago. Under the rate tariff approved in November 2012, and commencing  on January 1, 2013, the revenues earned by the Calpeco Electric Utility will not reflect variations due to  customer demand variability.  During the year ended December 31, 2012, Liberty Utilities (West) provided approximately 5.1 billion U.S.  gallons of water to its customers, treated approximately 1.7 billion U.S. gallons of wastewater and sold  approximately 360 million U.S. gallons of treated effluent. 2012 Annual Report 33 Year ended December 31  2012  2011  Number of Active Electric Connections   Residential 41,400  41,346   Commercial – Small  5,500  5,506   Commercial – Large  55  54  Total Active Electric Connections  46,955  46,906  Number of Water Connections   Wastewater connections 31,750 30,900  Water distribution connections 34,800 33,900 Total Water Connections  66,550 64,800 Customer Usage (GW-hrs)   Residential 273.6 291.2  Commercial – Small  149.7  173.1   Commercial – Large  121.0  136.6  Public Street and Highway Lighting  1.1 1.1 Total Customer Usage (GW-hrs)  545.4  602.0  Gallons Provided  Wastewater treated (millions of gallons)  1,650  1,710   Water sold (millions of gallons)  5,080 5,190 Total Gallons Provided  6,730  6,900  Liberty Utilities: West Region