TOTAL SHAREHOLDER RETURN OUR CHALLENGES STRENGTHENING OUR BALANCE SHEET While we made significant investments in our  future, 2012 also saw the results of our efforts to  substantially strengthen our balance sheet. In 2012,  we added yet another financial instrument to our  capital structure through our first issue of $120  million cumulative rate reset preferred shares.The  shares have a coupon of 4.5% annually for the initial  six-year rate reset period and have been assigned  a rating of P-3 and Pfd-3(low) by S&P and DBRS  respectively. In 2012 we also retired our final two series of  convertible debentures and as a result, convertible  debentures no longer form part of the Algonquin  capital structure. The Company has continued to build upon the  investment grade debt financing platforms of  both APCo and Liberty through the completion of  several new senior unsecured credit facilities. APCo  successfully completed a follow-on $150 million  4.8% bond offering (swapped to US$ at 4.4%) to  To ensure we fully capitalize on our opportunities,  we are enhancing our risk management practices  to ensure that the Company’s risks and related  exposures are consistent with our business  objectives and risk tolerance.We view ourselves  as a risk-focused, socially and environmentally  sustainable organization committed to investing  in our people, our assets, our businesses and  ultimately, our future.  While we certainly celebrate our accomplishments,  we also need to recognize 2012 posed some  challenges, such as historically low hydrology,  continued depressed power prices in the U.S.,  longer than expected regulatory processes, and the  end of the Region of Peel’s waste supply contract  with our energy from waste facility. In facing these  challenges we take comfort in the knowledge that  this is not the first time we have endured diffi cult  circumstances and we remain confi dent that our  diversification and contingency planning will ensure  we can continue to navigate our way successfully. Our relationship with Emera, our largest shareholder,  remains strong and they have continued to be an  enthusiastic supporter of our growth plans.They  have increased their ownership in our Company to  25% as contemplated in our strategic investment  agreement.We believe that our strong relationship  with Emera provides strategic business development  support and is an efficient way to raise equity. finance our U.S. wind acquisitions. Additionally,  Liberty Utilities closed a U.S. $225 million private  placement debt financing to partially fund the  natural gas and electric distribution utilities in  New Hampshire, Missouri, Illinois and Iowa.These  financing platforms were carefully designed to  provide us with the additional liquidity and fi nancial  flexibility needed to facilitate the continued growth  of both our regulated and non-regulated utility  businesses.  Our recent acquisitions and investment initiatives  affirmed the growth trajectory of our Company’s  earnings and cash flows in 2012 and, consequently,  the Board of Directors approved an 11% dividend  increase to $0.31 per common share annually.We  believe this dividend increase is consistent with  our strategy of delivering total shareholder return  comprised of an attractive dividend yield and capital  appreciation founded on increased earnings and  cash fl ows. $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 2009 2010 2011 2012 0.24 0.24 0.27 0.30 DIVIDENDS PER SHARE 2012 Annual Report 11