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## 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) 

(d) Acquisition of U.S. wind farms (continued) 

Property, plant & equipment are amortized on a straight line basis over the lives of the assets, which have a weighted average life of 32 years. 

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

The contribution of the U.S. wind farms to the Company’s results in 2012 was as follows: 

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The disclosure of pro forma revenue and net earnings is impracticable as there is no historical financial information since APCo acquired the wind farms shortly after commencement of commercial operations. 

(e) Acquisition of noncontrolling interest in Calpeco 

On December 21, 2012, APUC acquired the 49.999% interest in Calpeco from Emera Inc.(“Emera”) for $38,756 which was funded by the proceeds of common share subscription receipts (note 14(a)(iii)). The impact on the Company’s Consolidated Balance Sheet was as follows: 

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(f) Acquisition of solar energy project 

On January 4, 2012, APCo acquired rights to develop a 10 MWac solar project located near Cornwall, Ontario which has been granted a Feed-in-Tariff contract by the Ontario Power Authority for a 20 year term at a rate of $443/MWh. The consideration for the development rights is $4,500 plus additional contingent consideration of $3,500 based on achieving certain construction milestones. As at December 31, 2012, the Company has paid a total of $2,000 based on achieved milestones. The transaction has been recorded as a purchase of intangible assets. 

(g) Acquisition of Shady Oaks wind power facility 

Subsequent to year-end, effective January 1, 2013, APCo acquired the 109.5 MW Sandy Oaks wind powered generating facility by assuming the existing long-term debt of approximately U.S. $150 million for no additional cash. The purchase agreement provides for final purchase price adjustments based on working capital at the acquisition date, energy generated by the project and basis differences between the relevant node and hub prices. The energy and basis related price adjustment will be based on the project’s experience from January 1, 2013 to June 30, 2014. 

