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wastewater utility systems serve approximately 66,550 water and wastewater connections located in the State of Arizona. These utilities systems, previously reported in the Liberty Utilities (South) region, have now been combined with Liberty Utilities (West) for reporting purposes, effective July 1, 2012. 

The Liberty Utilities (Central) region is comprised of regulated natural gas and water distribution and wastewater collection utility systems. The regulated natural gas utilities serve approximately 82,050 active natural gas connections located in the states of Missouri, Illinois, and Iowa and the regulated water distribution and wastewater collection utilities serve approximately 11,500 water and wastewater customers located in the states of Illinois, Missouri, and Texas. 

Liberty Utilities (East) region is comprised of regulated natural gas and electric distribution utility systems located in the State of New Hampshire which provides regulated local electrical utility services to approximately 43,250 active electric connections; and regulated local gas distribution utility services to approximately 87,650 active natural gas connections. 

For electricity and natural gas operations, Liberty Utilities reports active connections, exclusive of vacant connections rather than total connections. For water and wastewater operations, Liberty Utilities reports total connections, inclusive of vacant connections. 

## Liberty Utilities: West Region 

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Liberty Utilities (West) is comprised of Liberty Utilities operations in California and Arizona. On December 21, 2012, Liberty Utilities (West) acquired the remaining 49.999% interest in the Calpeco Electric Utility. Therefore, as at December 31, 2012, Liberty Utilities (West) holds a 100% interest in the Calpeco Electric Utility. 

Liberty Utilities (West)’s increase in water and wastewater connections during the period is primarily due to development within the service territory. 

For the year ended December 31, 2012, Liberty Utilities (West)’s electricity usage totalled 545.4 GW-hrs, as compared to 602.0 GW-hrs for the same period in 2011, a decrease of 56.6 GW-hrs or 9%. This decrease in usage was primarily due to milder winter and spring weather in 2012 as compared to the colder weather experienced in the same period a year ago. Under the rate tariff approved in November 2012, and commencing on January 1, 2013, the revenues earned by the Calpeco Electric Utility will not reflect variations due to customer demand variability. 

During the year ended December 31, 2012, Liberty Utilities (West) provided approximately 5.1 billion U.S. gallons of water to its customers, treated approximately 1.7 billion U.S. gallons of wastewater and sold approximately 360 million U.S. gallons of treated effluent. 

