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## Operating Activities: 

Cash flow provided by operations, after working capital adjustments, for Fiscal 2011, was $37.2 million, a decrease of $3.6 million from $40.8 million for Fiscal 2010. This decrease was primarily due to an increase in regulatory deferral balances. 

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## Investing Activities: 

Cash used in investing activities for Fiscal 2011 totalled $35.4 million, an increase of $15.0 million from $20.4 for Fiscal 2010. This increase is due to increased capital related expenditures. 

## Financing Activities: 

Cash used in financing activities totalled $3.7 million for Fiscal 2011 as 

compared to $22.9 million for Fiscal 2010. 

The Company received no proceeds from long-term debt in 2010 as compared to $40.0 million in debt financing in 2011. Debt payments for 2011 included current payments for long-term debt in addition to the repayment of $9.0 million of short- term debt. The Company borrowed $6.0 million in short-term debt during the Fourth Quarter 2011. 

## Transactions with Related Parties 

Miscellaneous receivables from FortisTCI, also a subsidiary of Fortis Inc. totalling $0.01 million were outstanding at December 31, 2011 ($0.04 million December 31, 2010) for engineering assistance and are included within Accounts Receivable on the Balance Sheet. Miscellaneous payables to Fortis Inc., the Company’s majority shareholder, were nil at December 31, 2011 ($0.03 million as at December 31, 2010). Prior year amounts related to travel expenses and were included within the Accounts Payable and Accrued Expenses on the Balance Sheet. Miscellaneous receivables from management were nil at December 31, 2011 ($0.001 million as at December 31, 2010). Prior year amounts related to insurance 

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