content_image/233159.jpg
connections. Liberty Utilities (East) reports active connections, exclusive of vacant connections rather than total connections. 

From the acquisition date of July 3, 2012 to December 31, 2012, Liberty Utilities (East)’s electricity usage totalled 474.5 GW-hrs and natural gas usage totalled 4,728,400 MMBTU. 

<img src='content_image/233159.jpg'>

$^{1}$ Granite State Electric Utility and EnergyNorth Gas Utility were acquired on July 3, 2012. 

$^{2}$ Natural Gas costs are shown net of U.S. $4.5 million regulatory authorized deferral related to an under recovery of actual gas costs. 

## 2012 Annual Operating Results 

Liberty Utilities (East) has investments in electricity assets for regulatory purposes of U.S. $88.4 million, and natural gas assets for regulatory purposes of U.S. $263.4 million as at December 31, 2012, as compared to U.S. $nil and U.S. $nil, respectively as at December 31, 2011. 

From the date of acquisition to December 31, 2012, Liberty Utilities (East)’s revenue totalled U.S. $87.2 million as a result of the acquisitions of Granite State Electric Utility and EnergyNorth Gas Utility on July 3, 2012. 

From the date of acquisition to December 31, 2012, Liberty Utilities (East)’s revenue from utility electricity sales totalled U.S. $36.8 million. The cost of electricity is passed through to Liberty Utilities (East)’s customers. As a result, the division compares ‘net utility electricity sales’ (revenue from electricity sales less fuel and purchased power costs) as a more appropriate measure of the division’s results. From the date of acquisition to December 31, 2012, net electricity utility sales for Liberty Utilities (East) totalled U.S. $12.4 million. 

From the date of acquisition to December 31, 2012, Liberty Utilities (East)’s revenue from natural gas sales and distribution totalled U.S. $50.3 million. The cost of natural gas by Liberty Utilities (East) is passed through to Liberty Utilities (East)’s customers. As a result, the division compares ‘net utility natural gas sales and distribution revenue’ (utility natural gas sales and distribution revenue less natural gas purchases) as a more appropriate measure of the division’s results. From the date of acquisition to December 31, 2012, net utility natural gas sales and distribution revenue for Liberty Utilities (East) totalled U.S. $26.3 million. 

From the date of acquisition to December 31, 2012, electricity purchases for Liberty Utilities (East) totalled U.S. $24.4 million, and natural gas purchases totalled U.S. $24.0 million. 

From the date of acquisition to December 31, 2012, operating expenses, excluding electricity and natural gas purchases, totalled U.S. $30.4 million. 

From the date of acquisition to December 31, 2012, Liberty Utilities (East)’s operating profit totalled U.S. $8.8 million. 

Measured in Canadian dollars, from the date of acquisition to December 31, 2012, Liberty Utilities (East)’s revenue from utility electricity sales totalled $36.7 million and utility natural gas sales totalled $49.9 million. Measured in Canadian dollars, from the date of acquisition to December 31, 2012, Liberty Utilities (East)’s net utility electricity sales and distribution revenue totalled $12.4 million and net utility natural gas sales and distribution revenue totalled $26.1 million. 

