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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) 

## 11. Pension and other post-retirement benefits (continued) 

## (b) Net pension and OPEB obligation (continued) 

The accumulated benefit obligation for the pension plan was $97,687 and $239 at December 31, 2012 and 2011, respectively. 

The amounts recognized in accumulated other comprehensive loss were as follows: 

<img src='content_image/241949.jpg'>

## (c) Assumptions 

Weighted average assumptions used to determine net benefit cost for 2012 and 2011 were as follows: 

<img src='content_image/241950.jpg'>

Weighted average assumptions used to determine net benefit obligation for 2012 and 2011 were as follows: 

<img src='content_image/241951.jpg'>

In selecting an assumed discount rate, the Company uses a modeling process that involves selecting a portfolio of high-quality corporate debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of the Company's expected future benefit payments. The Company considers the results of this modeling process, as well as overall rates of return on high-quality corporate bonds and changes in such rates over time, to determine its assumed discount rate. 

