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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) 

(a) Acquisition of New Hampshire electric and gas utilities (continued) 

Property, plant & equipment are amortized in accordance with regulatory requirements which are generally over the estimated useful lives of the assets using the straight line method. The weighted average life of the acquired assets of EnergyNorth and Granite State are 40 years and 28 years respectively. 

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

Granite State and EnergyNorth contributed revenue of $86,993 and a net loss of $354 to the Company’s results in 2012. Pro forma financial information is disclosed in note 3 (c). 

(b) Acquisition of Midwest Gas Utilities 

On August 1, 2012, Liberty Utilities acquired certain regulated natural gas distribution utility assets (the "Midwest Gas Utilities") located in Missouri, Iowa, and Illinois. The total purchase price for the Midwest Utilities was approximately $128,890 (U.S. $128,223), subject to final closing adjustments. 

The following table summarizes the preliminary determination of the fair value of the assets acquired and liabilities assumed at the acquisition date: 

<img src='content_image/149901.jpg'>

The determination of the fair value of assets and liabilities acquired has been based upon management’s preliminary estimates and certain assumptions with respect to the fair values of the assets acquired and liabilities assumed. The Company has not completed the fair value measurements. In addition, the purchase agreements provides for a final purchase price adjustment based on final agreed working capital and rate base balances at the acquisition date. The Company will continue to review information and perform further analysis prior to finalizing the fair value of the consideration paid and the fair value of the assets acquired and liabilities assumed. The actual fair values of the assets acquired and liabilities assumed may differ from the amounts above. 

