Algonquin Power & Utilities Corp. – Consolidated Financial Statements Algonquin Power & Utilities Corp. Consolidated Statement of Equity (thousands of Canadian dollars) See accompanying notes to interim consolidated financial statements 2012 Annual Report 76$^{For the year ended December 31, 2012:}$ Additional Common Preferred Subscription paid-in Accumulated Accumulated Non-controlling Shares Shares Receipts capital Deficit OCI interests Total Balance, December 31, 2011 $ 975,263  $ $ $ 1,525  $ (366,080) $ (96,510) $ 38,497  $ 552,695  Net earnings 14,532 7,414 21,946 Other comprehensive loss  -  -  -  -  - (8,357) 1,668  (6,689) Dividends declared and  distributions to non-controlling  interests  -  -  -  - (43,619)  - (2,640) (46,259) Dividends and issuance of  shares under dividend  reinvestment plan 7,343  -  -  - (7,343)  -  -  - Exercise and conversion of  subscription receipts 142,609  -  -  -  -  -  - 142,609  Issuance of subscription receipts  -  - 61,160   -  -  -  - 61,160  Conversion and redemption of  convertible debentures 118,779  -  - (689)  -  -  - 118,090  Issuance of common shares  under employee share  purchase plan 432  -  -  -  -  -  - 432 Stock compensation expense  -  -  - 1,956   -  -  - 1,956  Public offering related taxes 900  -  -  -  - 900 Issuance of preferred shares  - 116,546   -  -  -  -  - 116,546  Acquisition of 49.99% of Liberty  Energy (California)  -  -  -  - (3,633) (35,023) (38,656) Acquisition of U.S. Wind farms  -  - - 2,432  -  - 474,967  477,399  Balance, December 31, 2012 $ 1,245,326  $ 116,546  $ 61,160  $ 5,224  $ (406,143) $ (104,867) $ 484,883  $ 1,402,129  Additional Common Preferred Subscription paid-in Accumulated Accumulated Non-controlling Shares Shares Receipts capital Deficit OCI (CTA) interests Total Balance, December 31, 2010 $ 795,329  $  - $  - $ 1,612  $ (357,035) $ (99,845) $  - $ 340,061  Net earnings 23,381 3,921 27,302 Other comprehensive income   -  -  -  -  - 3,335  889  4,224  Dividends declared and  distributions to non-controlling  interests  -  -  -  - (32,426)  - (523) (32,949) Conversion and redemption of  convertible debentures 59,973  -  - (815)  -  -  - 59,158  Public offering 91,188  -  -  -  -  -  - 91,188  Exercise and conversion of  subscription receipts 27,700  -  -  -  -  -  - 27,700  Stock compensation expense  -  -  - 728   -  -  - 728 Acquisition of Liberty Energy  (California)  -  -  -  -  -  - 34,210  34,210  Amounts received in  connection with Highground  transaction 1,073  -  -  -  -  -  - 1,073  Balance, December 31, 2011 $ 975,263  $  - $  - $ 1,525  $ (366,080) $ (96,510) $ 38,497  $ 552,695  For the year ended December 31, 2011: