Algonquin Power & Utilities Corp. – Management’s Discussion & Analysis (East) related maintenance and installation pipe in New Hampshire; approximately $20 million at Liberty Utilities  (Central) related to pipe expansion and replacement; and, approximately $24 million at Liberty Utilities (West)  related to major line rebuilds for the Calpeco Electric Utility and meter and overall improvements related to the  water utilities. For APCo, capital expenditures includes: approximately $10 million related to the APCo  Renewable Energy Division, $45 million related the development of the Cornwall Solar project; and, approximately $3 million related to the APCo Thermal Division primarily related to routine maintenance at the  Windsor Locks facility and a turbine overhaul at the EFW facility. APUC anticipates that it can generate sufficient liquidity through internally generated operating cash flows,  working capital and bank credit facilities to finance its property, plant and equipment expenditures and other  commitments. During the year ended December 31, 2012, APCo incurred capital expenditures of $31.4 million, as compared to  $39.2 million during the comparable period in 2011 in addition to $245.7 million to acquire operating entities. 2012 Annual Property Plant and Equipment Expenditures  During the year ended December 31, 2012, APCo’s Renewable Energy Division spent $21.1 million in capital  expenditures as compared to $25.6 million in the comparable period in 2011. The capital expenditures primarily  relate to the St. Leon II expansion, capitalized maintenance and upgrades at the Tinker, Long Sault, and  Clement Dam hydro facilities, and project costs related to the Cornwall Solar, St. Damase and Amherst Island  developments. Additionally, APCo’s Renewable Energy Division spent $245.7 million on property plant and  equipment in the acquisition of Sandy Ridge, Minonk, and Senate Wind Facilities. APCo’s Thermal Energy  Division net capital expenditures were $10.3 million, as compared to $13.6 million in the comparable period in  2011. The capital expenditures primarily relate to the Windsor Locks repowering and the major maintenance at  the Sanger facility offset by two one-time non-recurring items: the $6.5 million grant from the State of  Connecticut; and a $2.4 million heat and power ITC sponsored by the U.S. Federal Government. During the year ended December 31, 2012, Liberty Utilities invested $46.5 million in capital expenditures as  compared to $21.2 million during the comparable period in 2011. Additionally, Liberty Utilities spent $424.2  million to acquire operating entities as compared to $100.1 million during the comparable period in 2011. Liberty Utilities (West)’s spend was primarily related to maintenance and refurbishment needs at the Calpeco  Electric Utility and the expansion of the LPSCo facility. Liberty Utility (Central)’s $10.8 million in capital  expenditures was primarily a result of the $128.9 million acquisition of the Midwest Gas Utility. Liberty Utility  (East)’s $12.5 million in capital expenditures was primarily a result of the $295.3 million acquisition of Granite  State Electric Utility and EnergyNorth Gas Utility.  During the quarter ended December 31, 2012, APCo incurred capital expenditures of $5.5 million, as compared  to $11.2 million during the comparable period in 2011 in addition to $217.0 million to acquire operating entities.  During the quarter ended December 31, 2012, APCo Renewable Energy Division’s capital expenditures were  $7.5 million, as compared to $6.7 million in the comparable period in 2011. The capital expenditures primarily  relate to the capitalized maintenance of the Long Sault hydro facilities, and project costs related to the Cornwall  Solar, St. Damase and Amherst Island developments. APCo Thermal Energy Division’s net capital expenditures were ($2.0) million as a result of a $2.4 million ITC sponsored by the U.S. Federal Government  related to the repowering of the facility earlier in the year. During the quarter ended December 31, 2012, Liberty Utilities invested $27.3 million in capital expenditures as  compared to $9.5 million during the comparable period in 2011. Liberty Utilities (West)’s spend was primarily  related to maintenance and refurbishment needs at the Calpeco Electric Utility and the expansion of the LPSCO  facility. Liberty Utility (Central)’s $8.8 million in capital expenditures was primarily a result of the acquisition of  the Midwest Gas Utility. Liberty Utility (East)’s $8.9 million in capital expenditures was primarily a result of the  Granite State Electric Utility and EnergyNorth Gas Utility acquisition.  As a result of the dam safety legislation passed in Quebec (Bill C93), APCo’s Renewable Energy Division  completed technical assessments on its hydroelectric facility dams owned or leased within the Province of  Quebec. Out of these, nine remedial plans have been submitted to the Quebec government and two are  undergoing options analysis by APCo. The nine remedial plans have been accepted by the Quebec  government and one is still being reviewed.  2012 Fourth Quarter Property Plant and Equipment Expenditures  Quebec Dam Safety Act 2012 Annual Report 49