CAPITAL POWER CORPORATION Notes to the Consolidated Financial Statements (Tabular amounts in millions of Canadian dollars, except share and per share amounts) 30. Risk management, continued: Liquidity risk, continued In addition to the facilities noted above, the Company, through its own facilities and those of its subsidiary, CPLP, has shelf prospectuses under which it may raise funds in the form of debt or equity. As at December 31, 2012, CPC had a Canadian shelf prospectus, which expires in March 2014, under which it may raise up to $2 billion collectively in common shares of the Company and subscription receipts exchangeable for common shares and/or other securities of the Company. As at December 31, 2012, the amounts available on the shelf prospectus are $1,620 million. In the second quarter of 2012, the Company’s subsidiary, CPLP, issued a Canadian shelf prospectus, which expires in July 2014, under which it may raise up to $1 billion in medium-term notes, to replace a previously issued shelf prospectus which expired during the year. As at December 31, 2012 CPLP has not drawn on the newly issued shelf prospectus. In addition the Company has $125 million of preferred shares, outstanding under a short-form prospectus (December 31, 2011 - $125 million). The following are the undiscounted cash flow requirements and contractual maturities of the Company’s financial liabilities, including interest payments, and where applicable, net of financial assets that generate cash inflows to meet cash outflows on financial liabilities as at December 31, 2012: Due within 1 year Due between Due after more than 5 years Total contractual cash flows 1 and 2 years 2 and 3 years 3 and 4 years 4 and 5 years Non-derivative financial liabilities : Loans and borrowings $ 19 $ 13 $ 314 $ 145 $ 149 $ 1,032 $ 1,672 Interest payments on loans and borrowings 87 86 85 65 58 146 527 Trade and other payables 1 195 - - - - - 195 Other current liabilities and deferred revenue 8 - - - - - 8 Derivative financial liabilities: Net commodity contracts for differences 52 6 3 2 2 - 65 Total $ 361 $ 105 $ 402 $ 212 $ 209 $ 1,178 $ 2,467 1 Excluding accrued interest on loans and borrowings of $15 million. 31. Capital management: The Company’s primary objectives when managing capital are to safeguard the Company’s ability to continue as a going concern, pay regular dividends to its shareholders, maintain a suitable credit rating, and to facilitate the acquisition or development of projects in Canada and the U.S. consistent with the growth strategy of the Company. The Company manages its capital structure in a manner consistent with the risk characteristics of the underlying assets. The Company manages capital through regular monitoring of cash and currency requirements by preparing short-term and long-term cash flow forecasts and reviewing monthly financial results. The Company matches the maturity profiles of financial assets and liabilities to identify financing requirements to help ensure an adequate amount of liquidity. The Company considers its capital structure to consist of loans and borrowings net of cash and cash equivalents and equity (which includes non-controlling interests). 127