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## APCo: Renewable Energy Division 

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$^{1}$ APUC does not consolidate the operating results from this facility in its financial statements. Production from the facility is included as APUC manages the facility under contract and has an option to acquire a 75% equity interest in the facility in 2016. The prior year actual production in the Saskatchewan Region reflects production since Red Lily I achieved commercial operation on February 23, 2011. The long term average resource reflects three and twelve months of production. 

$^{2}$ Represents the operations of Sandy Ridge Wind Facility which was acquired on July 1, 2012. 

$^{3}$ Represents the operations of Minonk and Senate Wind Facilities in the states of Illinois and Texas, respectively which was acquired on December 10, 2012. 

$^{4}$ While most of APCo’s PPAs include annual rate increases, a change to the weighted average production levels resulting in higher average production from facilities that earn lower energy rates can result in a lower weighted average energy rate earned by the division, as compared to the same period in the prior year. 

$^{5}$ Cost of Sales – Energy consists of energy purchases by Algonquin Energy Services (“AES”) which is resold to its retail and industrial customers. Under GAAP, in APUC’s year-end consolidated Financial Statements, these amounts are included in operating expenses. 

## 2012 Annual Operating Results 

Production data, revenue and expenses have been adjusted to remove the results of the New York and New England regional assets which are now disclosed as discontinued operations. See Financial Statement note 18 for details. 

 For the year ended December 31, 2012, the Renewable Energy Division produced 1,160.8 GW-hrs of electricity, as compared to 1,125.8 GW-hrs produced in the same period in 2011, an increase of 3%. The increased generation is primarily due to additional wind production in Canada from the expansion of St. Leon and the addition of the Gamesa Wind Facilities, partially offset by reduced hydrology and wind resource in 2012 as compared to the comparable period in 2011. The level of production in 2012 represents sufficient renewable energy to supply the equivalent of 64,500 homes on an annualized basis with renewable power. Using new standards of thermal generation, as a result of renewable energy production, the equivalent of 640,000 tons of CO$_{2}$ gas was prevented from entering the atmosphere in the year ended December 31, 2012. 

