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)  Liquidity risk is the risk that the Company will not be able to meet its financial obligations as  they fall due. The Company's approach to managing liquidity risk is to ensure, to the extent  possible, that it will always have sufficient liquidity to meet liabilities when due. As at  December 31, 2012, in addition to cash on hand of $53,122 the Company had $224,310  available to be drawn on its senior debt facilities. The senior credit facilities contain  covenants which may limit amounts available to be drawn.  The Company's liabilities mature as follows:  Foreign currency risk  The Company is exposed to currency fluctuations from its U.S. based operations. APUC  manages this risk primarily through the use of natural hedges by using U.S. long term debt  to finance its U.S. operations.  In August 2012, APCo designated the amounts drawn on its bank credit facility denominated  in U.S. dollars as a hedge of the foreign currency exposure of its net investment in APCo’s  U.S. operations. The foreign currency transaction gain or loss on the outstanding U.S. dollar  denominated balance of APCo’s facility that is designated a hedge of the net investment in  its foreign operations is reported in the same manner as a translation adjustment (in other  comprehensive income) related to the net investment, to the extent it is effective as a hedge. A foreign currency loss of $452 was recorded in other comprehensive income.  The Company is exposed to interest rate fluctuations related to certain of its floating rate  debt obligations, including certain project specific debt and its revolving credit facility, its  interest rate swaps as well as interest earned on its cash on hand. The Company does not  currently hedge that risk.  Interest rate risk  2012 Annual Report 138 Due less  than 1 year  Due 2 to 3  years  Due 4 to 5  years  Due after 5  years  Total Long term debt obligations  $ 1,768 $ 58,490 $ 14,853 $ 695,715  $ 770,826 Advances in aid of  construction 591 - - 71,626 72,217 Interest on long term debt 41,090 80,415 71,576 136,671  329,752 Accounts payable and due to  related parties  36,094 - - -  36,094 Environmental obligation  2,433 32,152 15,232 10,045 59,862 Accrued liabilities  99,468 - - -  99,468 Derivative financial  instruments: Cross- currency swap  - - - 2,077  2,077 Interest rate swaps  1,968 2,810 - -  4,778 Energy derivative and commodity contracts  245 1,703 384 8,629  10,961 Capital lease payments  134 136 - -  270 Other obligations  4,217 3,100 380 15,972  23,669 Total obligations  $188,008 $ 178,806 $102,425 $ 940,735 $1,409,974 Liquidity risk  (c)  Risk management (continued)  24. Financial instruments (continued)