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## North East U.S. commercial plants and portfolio optimization 

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(1) North East U.S. commercial plants include the Bridgeport and the Rumford and Tiverton facilities as of their dates of acquisition of April 28, 2011 and April 29, 2011, respectively. 

(2) The financial results by plant category, except for adjusted EBITDA, were prepared in accordance with GAAP. See Non-GAAP Financial Measures. 

Revenues and adjusted EBITDA for 2012 were unfavourably impacted by an unplanned outage at the Bridgeport facility which was offline from May 2 to June 11, 2012 due to a condenser leak. The Company incurred $2 million in maintenance costs as a result of this outage. Lower market spark spreads reflected the impact of lower natural gas prices resulting primarily from an oversupply of natural gas. The year-over-year unfavourable impacts of lower market prices and unplanned outages were more than offset in 2012 with a full year of operations compared with 2011 which only reflected operations since the acquisition of the plants in late April 2011. 

Apart from the plant operations, 2012 portfolio optimization activities included the fourth quarter net realized losses of $10 million on the Bridgeport heat rate option and locked-in prices on natural gas consumption and $2 million of other trading losses incurred during the full year. 

## North Carolina U.S. contracted plants 

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(1) North Carolina U. S. contracted plants comprises the Roxboro and Southport facilities as of their date of acquisition of November 5, 2011. 

(2) The financial results by plant category, except for adjusted EBITDA, were prepared in accordance with GAAP. See Non-GAAP Financial Measures. 

The 2012 performance of the North Carolina U.S. contracted plants was lower than expected primarily due to lower energy margins based on lower than expected heat rates (3) and higher maintenance and fuel costs compared with the costs in the prior year when these plants were owned and operated by CPILP. Maintenance costs in 2012 reflected planned spring outages at both Southport and Roxboro. Both outages took longer than expected which resulted in higher than anticipated maintenance costs. Between the two facilities, fuel costs for 2012 included approximately $2 million for unanticipated adjustments related to physical fuel coal inventory and Roxboro’s maintenance costs for the same period included $1 million for reclassification from capital to operating. 

(3) Heat rate is a measure of the efficiency of the conversion of fuel into electricity. 

## CPILP plants 

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(1) The financial results by plant category, except for adjusted EBITDA, were prepared in accordance with GAAP. See Non-GAAP Financial Measures. 

The Company divested its limited partnership units of CPILP in November 2011. 

