16 Caribbean Utilities Company, Ltd.  2011  Annual Report Management’s Discussion and Analysis Operating Activities: Investing Activities: Financing Activities: Transactions with Related Parties Cash flow provided by operations,  after working capital adjustments,  for Fiscal 2011, was $37.2 million, a  decrease of $3.6 million from $40.8  million for Fiscal 2010. This decrease  was primarily due to an increase in  regulatory deferral balances. Cash used in investing activities for  Fiscal 2011 totalled $35.4 million, an  increase of $15.0 million from $20.4  for Fiscal 2010. This increase is due to  increased capital related expenditures. Cash used in financing activities  totalled $3.7 million for Fiscal 2011 as  compared to $22.9 million for Fiscal  2010. The Company received no proceeds  from long-term debt in 2010 as  compared to $40.0 million in debt  financing in 2011. Debt payments  for 2011 included current payments  for long-term debt in addition to the  repayment of $9.0 million of short-  term debt. The Company borrowed  $6.0 million in short-term debt during  the Fourth Quarter 2011. Miscellaneous receivables from  FortisTCI, also a subsidiary of  Fortis Inc. totalling $0.01 million  were outstanding at December 31,  2011 ($0.04 million December 31,  2010) for engineering assistance  and are included within Accounts  Receivable on the Balance Sheet.  Miscellaneous payables to Fortis Inc.,  the Company’s majority shareholder,  were nil at December 31, 2011  ($0.03 million as at December 31,  2010). Prior year amounts related to  travel expenses and were included  within the Accounts Payable and  Accrued Expenses on the Balance  Sheet. Miscellaneous receivables  from management were nil at  December 31, 2011 ($0.001 million  as at December 31, 2010). Prior  year amounts related to insurance  Contractual Obligations ($ millions) Total  < 1 year  1 to 3 years  4 to 5 years  > 5 years Total debt  208.5  21.3  36.2  27.9  123.1 Defined benefit pension 0.1  0.1  -  -  - Total  208.6  21.4  36.2  27.9  123.1 Capital Structure December 31, 2011 % December 31, 2010  % ($ millions) ($ millions) Total debt  208.4 54 195.3  53 Shareholder’s equity  176.0 46 173.8  47 Total  384.4 100 369.1  100  Summary of Cash Flows ($ thousands) Twelve Twelve  Change  Change  months ended months ended  % December 31, 2011 December 31, 2010  Beginning cash  2,363  4,927  (2,564)  (52%) Cash provided by/(used in): Operating activities  37,152  40,767  (3,615)  (9%) Investing activities  (35,388)  (20,439)  (14,949)  73% Financing activities  (3,703)  (22,892)  19,189  (84%) Ending cash  424  2,363  (1,939)  (82%)