(East) related maintenance and installation pipe in New Hampshire; approximately $20 million at Liberty Utilities (Central) related to pipe expansion and replacement; and, approximately $24 million at Liberty Utilities (West) related to major line rebuilds for the Calpeco Electric Utility and meter and overall improvements related to the water utilities. For APCo, capital expenditures includes: approximately $10 million related to the APCo Renewable Energy Division, $45 million related the development of the Cornwall Solar project; and, approximately $3 million related to the APCo Thermal Division primarily related to routine maintenance at the Windsor Locks facility and a turbine overhaul at the EFW facility. 

APUC anticipates that it can generate sufficient liquidity through internally generated operating cash flows, working capital and bank credit facilities to finance its property, plant and equipment expenditures and other commitments. 

## 2012 Annual Property Plant and Equipment Expenditures 

During the year ended December 31, 2012, APCo incurred capital expenditures of $31.4 million, as compared to $39.2 million during the comparable period in 2011 in addition to $245.7 million to acquire operating entities. 

During the year ended December 31, 2012, APCo’s Renewable Energy Division spent $21.1 million in capital expenditures as compared to $25.6 million in the comparable period in 2011. The capital expenditures primarily relate to the St. Leon II expansion, capitalized maintenance and upgrades at the Tinker, Long Sault, and Clement Dam hydro facilities, and project costs related to the Cornwall Solar, St. Damase and Amherst Island developments. Additionally, APCo’s Renewable Energy Division spent $245.7 million on property plant and equipment in the acquisition of Sandy Ridge, Minonk, and Senate Wind Facilities. APCo’s Thermal Energy Division net capital expenditures were $10.3 million, as compared to $13.6 million in the comparable period in 2011. The capital expenditures primarily relate to the Windsor Locks repowering and the major maintenance at the Sanger facility offset by two one-time non-recurring items: the $6.5 million grant from the State of Connecticut; and a $2.4 million heat and power ITC sponsored by the U.S. Federal Government. 

During the year ended December 31, 2012, Liberty Utilities invested $46.5 million in capital expenditures as compared to $21.2 million during the comparable period in 2011. Additionally, Liberty Utilities spent $424.2 million to acquire operating entities as compared to $100.1 million during the comparable period in 2011. Liberty Utilities (West)’s spend was primarily related to maintenance and refurbishment needs at the Calpeco Electric Utility and the expansion of the LPSCo facility. Liberty Utility (Central)’s $10.8 million in capital expenditures was primarily a result of the $128.9 million acquisition of the Midwest Gas Utility. Liberty Utility (East)’s $12.5 million in capital expenditures was primarily a result of the $295.3 million acquisition of Granite State Electric Utility and EnergyNorth Gas Utility. 

## 2012 Fourth Quarter Property Plant and Equipment Expenditures 

During the quarter ended December 31, 2012, APCo incurred capital expenditures of $5.5 million, as compared to $11.2 million during the comparable period in 2011 in addition to $217.0 million to acquire operating entities. 

During the quarter ended December 31, 2012, APCo Renewable Energy Division’s capital expenditures were $7.5 million, as compared to $6.7 million in the comparable period in 2011. The capital expenditures primarily relate to the capitalized maintenance of the Long Sault hydro facilities, and project costs related to the Cornwall Solar, St. Damase and Amherst Island developments. APCo Thermal Energy Division’s net capital expenditures were ($2.0) million as a result of a $2.4 million ITC sponsored by the U.S. Federal Government related to the repowering of the facility earlier in the year. 

During the quarter ended December 31, 2012, Liberty Utilities invested $27.3 million in capital expenditures as compared to $9.5 million during the comparable period in 2011. Liberty Utilities (West)’s spend was primarily related to maintenance and refurbishment needs at the Calpeco Electric Utility and the expansion of the LPSCO facility. Liberty Utility (Central)’s $8.8 million in capital expenditures was primarily a result of the acquisition of the Midwest Gas Utility. Liberty Utility (East)’s $8.9 million in capital expenditures was primarily a result of the Granite State Electric Utility and EnergyNorth Gas Utility acquisition. 

## Quebec Dam Safety Act 

As a result of the dam safety legislation passed in Quebec (Bill C93), APCo’s Renewable Energy Division completed technical assessments on its hydroelectric facility dams owned or leased within the Province of Quebec. Out of these, nine remedial plans have been submitted to the Quebec government and two are undergoing options analysis by APCo. The nine remedial plans have been accepted by the Quebec government and one is still being reviewed. 

