## 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) 

## 3. Business acquisitions and development projects (continued) 

(g) Acquisition of Shady Oaks wind power facility (continued) 

The current portion of the long-term debt of U.S. $25,000 and U.S. $3,000 are payable on June 30 and November 15, 2013, respectively. The semi-annual principal repayment schedule for the following 11 years ranges from $3,000 to $6,000 with a final repayment of U.S. $20,000 in 2025. This debt may be repaid in whole or in part at anytime without penalty and bears interest at Libor plus 280 basis points. 

All costs related to the acquisition have been expensed through the Consolidated Statement of Operations. 

Based on the timing of the completion of this acquisition in relation to the date of issuance of the financial statements, the initial allocation of the consideration paid has not been completed. 

(h) Agreement to acquire Regulated Gas Utility in Georgia 

On August 8, 2012, Liberty Utilities entered into an agreement with Atmos Energy Corporation (“Atmos”) to acquire certain regulated natural gas distribution utility assets (the “Georgia Utility”) located in the State of Georgia. Total purchase price for the Georgia Utility is approximately U.S. $140,660, subject to certain working capital and other closing adjustments. Regulatory approval was obtained in February 2013 and the acquisition is expected to close on or about April 1, 2013. 

(i) Acquisition of Arkansas Regulated Water Utility 

Subsequent to year-end, on February 1, 2013, Liberty Utilities acquired United Water Arkansas Inc. a regulated water distribution utility (the “Arkansas Utility”) located in Pine Bluff, Arkansas. Total purchase price for the Arkansas Utility is approximately U.S. $27,600, subject to certain working capital and other closing adjustments. 

All costs related to the acquisition have been expensed through the Consolidated Statement of Operations. 

Based on the timing of the completion of this acquisition in relation to the date of issuance of the financial statements, the initial allocation of the consideration paid has not been completed. 

(j) Agreement to acquire New England Gas Company 

Subsequent to year-end, on February 11, 2013, Liberty Utilities entered into an agreement with The Laclede Group, Inc. to assume the rights to purchase the assets of New England Gas Company (“New England Gas”) located in the State of Massachusetts. Total purchase price for the New England Gas is approximately U.S. $74,000, subject to certain working capital and other closing adjustments. Closing of the transaction is subject to certain conditions including state and federal regulatory approval, and is expected to occur in the second half of 2013. 

## 4. Accounts receivable 

Accounts receivable as of December 31, 2012, includes unbilled revenue of $22,658 (December 31, 2011 - $11,304) in the regulated utilities. The unbilled revenue is an estimate of the amount of utility revenue since the date the meters were last read that has not yet been billed to customers. 

