Algonquin Power & Utilities Corp. – Consolidated Financial Statements ALGONQUIN POWER & UTILITIES CORP.  Notes to the Consolidated Financial Statements  December 31, 2012 and 2011   (in thousands of Canadian dollars except as noted and amounts per share)  Credit risk  Credit risk is the risk of an unexpected loss if a customer or counterparty to a financial  instrument fails to meet its contractual obligations. The Company's financial instruments that  are exposed to concentrations of credit risk are primarily cash and cash equivalents  accounts receivable and notes receivable. The Company limits its exposure to credit risk  with respect to cash equivalents by ensuring available cash is deposited with its senior  lenders in Canada all of which have a credit rating of A or better. The Company does not  consider the risk associated with accounts receivable to be significant as over 80% of  revenue from power generation is earned from large utility customers having a credit rating  of BBB or better, and revenue is generally invoiced and collected within 45 days. The remaining revenue is primarily earned by the Utility Services business unit which  consists of water and wastewater utilities, electric utilities and gas utilities in the United  States. In this regard, the credit risk related to Utility Services accounts receivable balances  of U.S. $35,688 is spread over thousands of customers. The Company has processes in  place to monitor and evaluate this risk on an ongoing basis including background credit  checks and security deposits from new customers. In addition the state regulators of the  Company’s utilities allow for a reasonable bad debt expense to be incorporated in the rates  and therefore ultimately recoverable from rate payers.  As at December 31, 2012 the Company's maximum exposure to credit risk for these  financial instruments was as follows:  2012 Annual Report 137 December 31, 2012  Canadian $  US $  Cash and cash equivalents and restricted cash  $ 20,452  $ 39,936 Other current assets  833  - Accounts receivable  14,904  79,680 Allowance for Doubtful Accounts  - (4,382) Notes Receivable  20,747  2,201 $ 56,936  $ 117,435 24. Financial instruments (continued) (c)  Risk management (continued) 