The significant positions and results of portfolio optimization activities were as follows: (1) Hedged position is for the Alberta baseload plants and acquired Sundance PPA. (2) Realized power price is the average price realized on the Company’s commercial contracted sales and portfolio optimization activities. (3) The North East U.S. portfolio activities commenced upon the acquisition of the Bridgeport and the Rumford and Tiverton facilities on April 28 and April 29, 2011. The primary factors contributing to the change in net income for 2012 compared with 2011 are presented below; detailed analysis of these items can be found in the Results by Plant Category and Other and the Consolidated Other Expenses and Non-controlling Interests sections. Consolidated Net Income Unit 2012 2011 Alberta portfolio Hedged position (1) Percentage sold forward at beginning of period (%) 48 73 Realized power price (2) $/MWh 72 68 Spot power price averages $/MWh 64 76 North East U.S portfolio (3) Hedged position Approximate average percentage hedged at the beginning of the period (%) 46 55 (unaudited, $ millions) Consolidated net income for the year ended December 31, 2011 188 Decrease in adjusted EBITDA for CPILP plants (148) Increase in adjusted EBITDA for Alberta commercial plants and portfolio optimization 95 Decrease in gains on disposals (78) Decrease in net unrealized losses on fair value adjustments of derivative instruments and Atlantic Power shares 33 Increase in impairment losses (31) Decrease in adjusted EBITDA of Alberta contracted plants (21) Decrease in finance expense excluding bond forward contracts 15 Decrease in realized foreign exchange losses 13 Increase in net unrealized gains on forward bond contracts included in finance expense 10 Decrease in depreciation and amortization expense 8 Decrease in Corporate adjusted EBITDA (8) Decrease in realized losses on settled forward bond contracts included in finance expense 5 Other 5 Decrease in income before tax (102) Increase in income tax recovery 4 Decrease in net income (98) Consolidated net income for the year ended December 31, 2012 90 Capital Power Corporation Management’s Discussion and Analysis 2012 29