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)  The accumulated benefit obligation for the pension plan was $97,687 and $239 at December 31, 2012 and 2011, respectively. The amounts recognized in accumulated other comprehensive loss were as follows:  11.  Pension and other post-retirement benefits (continued)  (b) Net pension and OPEB obligation (continued)  (c) Assumptions 2012 Annual Report 109 In selecting an assumed discount rate, the Company uses a modeling process that involves  selecting a portfolio of high-quality corporate debt issuances (AA- or better) whose cash  flows (via coupons or maturities) match the timing and amount of the Company's expected  future benefit payments. The Company considers the results of this modeling process, as  well as overall rates of return on high-quality corporate bonds and changes in such rates  over time, to determine its assumed discount rate. Weighted average assumptions used to determine net benefit obligation for 2012 and 2011  were as follows:  Weighted average assumptions used to determine net benefit cost for 2012 and 2011 were  as follows:  Accumulated other comprehensive  income Pension OPEB Balance, January 1, 2011  Current year net actuarial loss  $ 47  $ - Foreign exchange  1  - Balance at December 31, 2011  $ 48  $ - Current year net actuarial loss 3,303  857 Amortization of net actuarial loss (2)  (32) Foreign exchange  (16)  (4) Balance at December 31, 2012  $ 3,333  $ 821 Pension benefits  OPEB 2012 2011 2012 2011 Discount rate  3.89% 4.75% 3.97 %  N/A Expected return on assets  5.50% 6.00% 4.66%  N/A Rate of compensation increase  3.31% 4.00% N/A  N/A Healthcare cost trend rate  Before Age 65  8.48%  N/A Age 65 and after  7.50%  N/A Assumed Ultimate Medical Inflation Rate  5.00%  N/A Year in which Ultimate Rate is reached  2017  N/A Pension benefits  OPEB 2012 2011 2012 2011 Discount rate  3.62%  4.00%  3.75 %  N/A  Expected return on assets  5.50%  6.00% 4.66% N/A Rate of compensation increase  3.09%  4.00%  N/A  N/A 