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)  Regulatory assets and liabilities consist of the following:  Regulatory matters (continued) 2012  2011  Regulatory assets:  Environmental costs (a)  $ 59,789  $ - Pension and post-retirement benefits (b)  47,838  - Storm costs deferral (c)  6,726  - Deferred energy costs (d)  7,962  - Derivative assets (e)  1,731  - Rate case costs (f)  4,480  2,161 Alternative revenue program (g)  272  2,789 Asset retirement obligation (h)  1,095  - Other  4,499  79 Total regulatory assets  $134,392  $ 5,029 Less current regulatory assets  (10,644)  (2,458) Non-current regulatory assets  $123,748  $ 2,571 Regulatory liabilities  Cost of removal (i)  $ 58,852  $ 14,945 Rate-base offset (j)  15,541  - Energy costs adjustment (d)  11,706  6,708 Pension and post-retirement benefits (b)  1,127  - Derivative liabilities (e)  616 - Other 273  - Total regulatory liabilities  $ 88,115  $ 21,653  Less current regulatory liabilities (6,065) (2,469) Non-current regulatory liabilities  $ 82,050  $ 19,184 2012 Annual Report 101