27 Caribbean Utilities Company, Ltd.  2011  Annual Report Management’s Discussion and Analysis Outstanding Share Data Subsequent Events Internal Controls over Financial  Reporting (“ICFR”) The Company’s analysis of the  cost effectiveness of refurbishing  the damaged 7.59 MW unit was  concluded in February 2012.  The investigation indicated that  refurbishment of the damaged unit  would not be cost effective. The ERA  has been provided with the results of  the Company’s assessement in order  to approve the retirement of the unit. In February 2012, the Company  purchased two of the temporary  generating units that were placed into  service in the Second Quarter of 2011.  The purchase of these units ensures  that the Company is in compliance  with capacity requirements. The CEO and CFO of the Company,  together with Management, have  established and maintained the  Company’s internal control over  financial reporting (“ICFR”), as  defined in National Instrument 52-109  Certification of Disclosure in Issuers’  Annual and Interim Filings, to provide  reasonable assurance regarding  the reliability of financial reporting  and the preparation of financial  statements for external purposes in  accordance with Canadian GAAP. The design of CUC’s internal  controls over financial reporting has  been established and evaluated using  the criteria set forth in the Internal  Control-Integrated Framework  by the Committee of Sponsoring  Organisations of the Treadway  Commission (“COSO”). Based on  the assessment, it was concluded  that CUC’s internal controls over  financial reporting are adequately  designed and operating effectively as  of December 31, 2011.  There has been no change in the  Company’s ICFR that occurred during  the period beginning on October 1,  2011 and ended on December 31,  2011 that has materially affected, or is  reasonably likely to materially affect,  the Company’s internal control over  financial reporting. In December 2011, the Company  filed its 2012 - 2016 CIP totalling  approximately $192.0 million with the  ERA. $131.0 million of the submission  is proposed non-generation  installation expenditures. Generation  needs are subject to a competitive bid  process. Outlook March 9, 2012 Letitia T. Lawrence Vice President Finance & Chief Financial  Officer At February 24, 2012 the Company  had issued and outstanding  28,626,677 Ordinary Shares and  250,000 9% cumulative Participating  Class B Preference Shares. Additional information, including  CUC’s Annual Information Form, is  available on SEDAR at  www.sedar.com and on the Company’s website at  www.cuc-cayman.com .