Total capital expenditures for the Quality Wind and Halkirk projects were approximately 10% and 8%, respectively, lower than budget. Construction of the Port Dover & Nanticoke project was delayed by completion of the land title transfers and regulatory proceedings, which resulted in $57 million of planned expenditures being deferred to 2012. The delay is not expected to impact the total cost of the project, but the project’s completion date was delayed until the fourth quarter of 2013. Sustaining capital expenditures include spending on plant maintenance, the Genesee mine, information technology systems, and leasehold improvements for offices in Calgary and Edmonton. The cash flows from financing activities in 2012 primarily reflected proceeds from the $250 million CPLP debt offering in February 2012 and the $150 million proceeds on the December 2012 preferred share issue partly offset by debt repayments of $62 million and distributions and dividends paid of $110 million. The Company’s credit facilities consisted of: As at December 31, 2012, the committed credit facility utilization consisted of $207 million in letters of credit outstanding, $104 million in bankers’ acceptances outstanding and $30 million in U.S. dollar bank loans. This reflects an increase of $20 million in letters of credit outstanding, a reduction of $61 million in bankers’ acceptances and an increase of $30 million in U.S. dollar bank loans since December 31, 2011. In July 2012, the committed credit facilities were amended to include an accordion feature to increase the facility size by $300 million in the future, subject to certain conditions including lender approval. The available credit facilities will provide the Company with adequate funding for ongoing development projects. The loan and credit agreements with EPCOR require CPLP to meet certain financial covenants, including maintaining a consolidated senior debt to consolidated capitalization ratio of not more than 0.75 to 1.0 as at the end of any fiscal quarter. In addition, in the event that CPLP is assigned a credit rating by S&P that is less than BBB- or by DBRS that is less than BBB(low) (in each case with a stable outlook), then CPLP must also maintain a ratio of consolidated EBITDA to consolidated interest expense (each as defined in the credit agreement with EPCOR) of not less than 2.5 to 1.0 as at the end of each fiscal quarter. On November 16, 2012, S&P revised CPLP’s corporate credit rating from BBB to BBB- with a stable outlook. The BBB- rating assigned by S&P is an investment grade credit rating. According to S&P, a BBB- corporate credit rating exhibits adequate capacity to meet financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. CPLP has received a long-term debt credit rating of BBB from DBRS. The BBB rating assigned by DBRS is the fourth highest rating of DBRS’ ten rating categories for long-term debt obligations. According to DBRS, long-term debt rated BBB is of adequate credit quality. The capacity of the payment of financial obligations is considered acceptable but the entity is vulnerable to future events. A BBB rating is an investment grade credit rating, which enhances CPLP’s ability to re-finance existing debt as it matures and to access cost competitive capital for future growth. Capital Power Corporation Management’s Discussion and Analysis 2012 40 Financing activities ($ millions) As at December 31, 2012 As at December 31, 2011 Maturity timing Total facilities Credit facility utilization Available Total facilities Credit facility utilization Available CPLP committed credit facility 2017 1,200 341 859 1,200 352 848 CPLP demand facility n/a 20 20 20 - 20 Capital Power Corporation demand facility n/a 5 5 5 - 5 1,225 341 884 1,225 352 873