Algonquin Power & Utilities Corp. – Management’s Discussion & Analysis For the three months ended December 31, 2012, Liberty Utilities (East)’s operating profit totalled U.S. $5.5  million. Measured in Canadian dollars, for the three months ended December 31, 2012, Liberty Utilities (East)’s revenue  from utility electricity sales totalled $17.6 million and utility natural gas sales totalled $37.7 million. Measured in  Canadian dollars, for the three months ended December 31, 2012, Liberty Utilities (East)’s net utility electricity  sales and distribution revenue totalled $5.4 million and net utility natural gas sales and distribution revenue  totalled $16.0 million.  Measured in Canadian dollars, for the three months ended December 31, 2012, Liberty Utilities (East)’s  electricity purchases totalled $12.2 million, and natural gas purchases totalled $21.7 million.  Measured in Canadian dollars, for the three months ended December 31, 2012, Liberty Utilities (East)’s  operating expenses excluding electricity and natural gas purchases totalled $16.3 million.  Measured in Canadian dollars, for the three months ended December 31, 2012, Liberty Utilities (East)’s  operating profit totalled $5.5 million.  In the June 30, 2012 Interim MD&A, guidance was provided on Granite State Electric Utility and EnergyNorth  Gas Utility’s expected operating results over the 12 month period ending June 30, 2013. For the three months  ended December 31, 2012, Granite State Electric Utility’s EBITDA of U.S. $0.5 million was lower than the  guidance EBITDA of U.S. $0.8 million. The decreased EBITDA was due to lower than expected electricity usage  by residential, commercial and industrial connections. Actual electricity usage was 212.1 GW-hrs compared to  the guidance of 224.6 GW-hrs. Actual active electric connections were 43,250 compared to the previous  guidance of 43,259 active electric connections.  For the three months ended December 31, 2012, EnergyNorth Gas Utility’s EBITDA of U.S. $5.0 million met the  guidance EBITDA of U.S. $5.0 million. The EBITDA for the fourth quarter was a result of higher than expected  connections for the quarter offset by lower than expected natural gas usage by residential, commercial, and  industrial connections as compared to the previous guidance. Actual MMBTU was 3,266,800 compared to the  previous guidance of 3,787,000. Actual active natural gas connections were 87,650 compared to the previous  guidance of 86,832 active natural gas connections.  The table below represents forward looking information that was provided as at August 9, 2012 and which  summarizes the expected operating results for Granite State Electric Utility and EnergyNorth Gas Utility over the  next two quarters:  Readers are cautioned that actual results may vary from the above noted forward-looking information. Management is providing this forward looking information to allow readers to better understand the actual  EBITDA of the acquired utilities as they occur in the year following acquisition, including the variation in financial  performance that might be expected from quarter to quarter. Further, the forward-looking financial information  does not include information for net earnings resulting from the acquisitions as it does not include information  related to interest, depreciation, amortization and income taxes. Therefore, this forward-looking information may  not be suitable or appropriate for other purposes other than as described herein. Management intends to report  actual EBITDA results compared to this forward-looking information. Management does not intend to further  update this financial information except as may be required by law.  Liberty Utilities (West) expects continuing modest customer growth throughout its respective service territories in  2013. On May 31, 2012, Liberty Utilities (West) filed a general rate case with the Arizona Corporation Commission  related to the Rio Rico facilities seeking, among other things, an increase in EBITDA by U.S. $1.0 million over  Outlook – Liberty Utilities  Expected short term metrics  2013  2013  Q1  Q2  Granite State Electric Utility:  Customers  43,312  43,365  Normalized MW-hrs  238,200  227,500  EBITDA (U.S.$ millions)  $1.8  $1.0  EnergyNorth Gas Utility  Customers  87,263  87,696  Normalized MMBTU  5,629,000  2,462,000  EBITDA (U.S. $ millions)  $12.8  $3.9  2012 Annual Report 43