was due primarily to the installation of the new Titan turbine which is a smaller, more efficient turbine, sized to optimize the energy and steam requirements of the steam host compared to the larger, less efficient Frame 6 turbine that was operating the previous year. 

The EFW facility processed approximately 36,600 tonnes of municipal solid waste in the quarter as compared to 42,100 tonnes of municipal solid waste in the same period of 2011. The current level of production resulted in the diversion of approximately 32,600 tonnes of waste from municipal solid waste landfill sites in the fourth quarter of 2012. 

For the quarter ended December 31, 2012, the BCI and Windsor Locks facilities sold 342.2 billion lbs of steam as compared to 308.4 billion lbs of steam in the comparable period of 2011. During the quarter ended December 31, 2012, operations at the EFW facility generated 103.5 billion lbs of steam for the BCI facility as compared to 129.0 billion lbs of steam in the same period in 2011. 

For the quarter ended December 31, 2012, energy / steam revenue in the Thermal Energy Division totalled $11.3 million, as compared to $10.6 million during the same period in 2011, an increase of $0.7 million, or 7%. As natural gas expense is a significant revenue driver and component of operating expenses, the division compares ‘net energy sales revenue’ (energy sales revenue less natural gas expense) as an appropriate measure of the division’s results. For the quarter ended December 31, 2012, net energy / steam sales revenue at the Thermal Energy Division totalled $6.9 million, as compared to $2.8 million during the same period in 2011, an increase of $4.1 million. The increase is primarily attributed to lower fuel costs at Windsor Locks as a result of the installation of the new Titan Turbine and a $1.8 million reclassification from operating expenses into cost of sales – fuel in 2011 related to the KMS and Peel facilities. 

Revenue from energy / steam sales increased by $0.7 million as a result of $2.4 million in higher rates at the Windsor Locks facility as compared to the same period in 2011 and increased production volumes of 3% at the Sanger facility, offset by a decrease of $3.2 million in production at Windsor Locks and a 1% decrease in billing rates at Sanger. 

For the quarter ended December 31, 2012, fuel costs at Sanger and Windsor Locks totalled $4.4 million, as compared with $6.0 million (net of the $1.8 million reclassification) in the same period in 2011, a decrease of $1.6 million. The overall natural gas expense at the Windsor Locks facility decreased $1.1 million or 25%, primarily the result of a 43% decrease in volume of natural gas consumed, offset by a 32% increase in the average landed cost of natural gas per MMBTU as compared to the same period in 2011. The average landed cost of natural gas at the Windsor Locks facility during the quarter was $6.29 per MMBTU. Natural gas expense at Sanger increased 3%, primarily the result of a 0.2% decrease in the average landed cost of natural gas per MMBTU offset by a 3% increase in the volume of natural gas consumed as compared to the same period in 2011. The average landed cost of natural gas at the Sanger facility during the quarter was U.S. $4.02 per MMBTU. The division reported decreased fuel costs of $0.2 million as a result of the weaker U.S. dollar as compared to the same period in 2011. 

Revenue from waste disposal sales at the EFW facility for the quarter ended December 31, 2012 totalled $2.7 million as compared to $4.0 million during the same period in 2011, primarily due to the expiration of the Region of Peel contract. 

For the quarter ended December 31, 2012, operating expenses, excluding fuel costs at Windsor Locks and Sanger, totalled $5.2 million as compared to $3.3 million during the same period in 2011, an increase of $1.9 million, primarily as a result of a $1.8 million reclassification from operating expenses into cost of sales – fuel in 2011 related to the KMS and Peel facilities. 

For the quarter ended December 31, 2012, the Thermal Energy Division’s operating profit totalled $5.3 million, as compared to $3.9 million during the same period in 2011. 

## APCo: Development Division 

The Development Division works to identify, develop and construct new power generating facilities, as well as to identify, and acquire, operating projects that would be complementary and accretive to APCo’s existing portfolio. The Development Division is focused on projects within North America and is committed to working proactively with all stakeholders including local communities. APCo’s approach to project development and acquisition is to maximize the utilization of internal resources while minimizing external costs. This allows projects to mature to the point where most major elements and uncertainties are quantified and resolved prior to the commencement of project construction. Major elements and uncertainties of a project include the signing of a power purchase agreement, obtaining the required financing commitments to develop the project, completion 

