Infrastructure – Utilities Water Capstone’s water utilities segment includes a 50% ownership interest in  Bristol Water, which is located in the United Kingdom. Capstone acquired  a 70% interest in October 2011 from Suez Environnement through its subsidiary, Agbar (Sociedad General de Aguas de Barcelona) and subsequently sold a 20% indirect interest in Bristol Water to a subsidiary of ITOCHU Corporation in May 2012. For the year ended Dec 31, 2013 Dec 31, 2012 Water supplied (megalitres) 82,125 81,245 Revenue 195,575 178,392 Operating expenses (100,030) (93,954) Interest income 275 751 Adjusted EBITDA before non-controlling interest 95,820 85,189 Less: non-controlling interest  (1) (47,943) (36,987) Adjusted EBITDA 47,877 48,202 Adjusted EBITDA of consolidated businesses with non-controlling interests (47,877) (48,202) Dividends from businesses with non-controlling interests 6,547 8,091 AFFO 6,547 8,091 (1) Starting from May 10, 2012, the non-controlling interest increased to 50% from 30%. Revenue  increased by $17,183, or 9.6%, primarily due to a 6.9% annual increase in water tariffs, which occurred on April 1, 2013, along with higher water consumption. Foreign exchange contributed $3,059. Operating expenses increased by $6,076, or 6.5%, mostly due to higher repairs and maintenance activities, as well as inflationary increases for  energy, consumables, wages and salaries. Foreign exchange contributed $1,611. Interest income  decreased by $ e 476, or 63.4%, due to lower average cash and short-term investment balances as cash was used to fund the capital expenditure program. Non-controlling interest  increased on May 10, 2012 following the partial sale of Capstone's interest in Bristol Water to ITOCHU. Capstone’s  t Adjusted EBITDA is reduced for Agbar’s 30% interest over the entire period and ITOCHU’s 20% interest beginning May 10, 2012. Dividends  paid to Capstone by Bristol Water decreased by $1,544, or 19.1%, mainly due to the reduction in Capstone's ownership interest on May 10, 2012. The approved and planned capital expenditures for the current asset management plan ("AMP5") period, which concludes in March 2015, is  approximately $520,000, or £294,000 (base price of £261,000 adjusted for inflation for new regulatory fiscal year). As at December 31, 2013, the cumulative capital expenditure incurred during AMP5 was $394,000, which was $20,000 lower than the original plan agreed with the Water Services Regulation Authority ("Ofwat"). Bristol Water's focus on meeting the AMP5 capital target has reduced the shortfall by 60% as  cumulative capital expenditures for regulatory purposes increased by$167,000 during 2013. The shortfall was primarily the result of delays at the start of AMP5 due to the Competition Commission review process. Capstone expects its expenditures over AMP5 to achieve the regulator-approved capital expenditure. Bristol Water experiences little seasonal variation in demand, resulting in stable revenue throughout the year. Operating expenses fluctuate depending on the availability of water from various sources, the quantity of water requiring treatment as a result of dry weather, and pipe bursts,  which are more common in periods when freezing and thawing occur leading to higher repairs and maintenance. Capital expenditures Seasonality 2013 ANNUAL REPORT  31