Algonquin Power & Utilities Corp. – Consolidated Financial Statements ALGONQUIN POWER & UTILITIES CORP.  21.  Commitments and contingencies  Notes to the Consolidated Financial Statements  December 31, 2012 and 2011   (in thousands of Canadian dollars except as noted and amounts per share)  b) Commitments (continued)  In addition to the commitments related to the proposed acquisitions disclosed in note 3 the  following significant commitments exist at December 31, 2012.  As a result of the dam safety legislation passed in Quebec (Bill C93), APUC has completed  technical assessments on its hydroelectric facility dams owned or leased within the Province  of Quebec. The assessments have identified a number of remedial measures required to  meet the new safety standards. APUC currently estimates further capital expenditures of  approximately $16,900 over a period of five years related to compliance with the legislation. APUC has outstanding purchase commitments for power purchases, gas delivery, service and  supply, service agreements, capital project commitments and operating leases. Detailed below  are estimates of future commitments under these arrangements:  Calpeco has entered into a five year all-purpose power purchase agreement with NV Energy to provide its full electric requirements at NV Energy’s “system average cost”  rates. The PPA has an effective starting date of January 1, 2011 with a five year renewal option. The commitment amounts included in the table above are based on market  prices as of December 31, 2012. However, the effects of purchased power unit cost  adjustments are mitigated through a purchased power rate-adjustment mechanism. Granite  State has several types of contracts for the purchase of electric power. Substantially all of  these contracts require power to be delivered before the Company is obligated to make  payment. 2012 Annual Report 126 Year 1  Year 2  Year 3  Year 4  Year 5  Thereafter Total  Purchased power  $56,276 $42,999 $41,316 $ - $ -  $ - $140,591 Gas delivery, service and  supply agreements  25,165 16,792 14,977 5,777 5,207 52,461 120,379 Service agreements  27,147 18,610 17,827 22,253 23,023  566,903 675,763 Capital projects  3,110 500 - - -  - 3,610 Operating leases  4,405 4,099 3,792 3,284 3,202  69,562 88,344 Total $116,103 $83,000 $77,912 $31,314 $31,432 $688,926 $1,028,687