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## 2012 Fourth Quarter Operating Results 

For the three months ended December 31, 2012, Liberty Utilities (West)’s revenue totalled U.S. $28.6 million as compared to U.S. $29.7 million during the same period in 2011, a decrease of U.S. $1.1 million. 

For the three months ended December 31, 2012, Liberty Utilities (West)’s revenue from utility electricity sales totalled U.S. $19.5 million as compared to U.S. $20.8 million during the same period in 2011, a decrease of U.S. $1.3 million or 6%. Revenue decreased U.S. $0.9 million due to decreased customer demand and decreased U.S. $0.4 million due to decreased weighted average electricity and general rates as compared to the same period in 2011. The purchase of electricity by Liberty Utilities (West) is a significant revenue driver and component of operating expenses but these costs are effectively passed through to its customers. As a result, Liberty Utilities (West) compares ‘net utility electricity sales’ (utility electricity sales revenue less electricity purchases) as a more appropriate measure of the division’s results. For the three months ended December 31, 2012, net utility electricity sales for Liberty Utilities (West) totalled U.S. $8.0 million, as compared to U.S. $7.6 million during the same period in 2011, an increase of U.S. $0.4 million or 5%. 

For the three months ended December 31, 2012, revenue from wastewater treatment and water distribution totalled U.S. $9.1 million, as compared to U.S. $8.9 million during the same period in 2011, an increase of U.S. $0.2 million or 2%. 

For the three months ended December 31, 2012, fuel and purchased power costs for Liberty Utilities (West) totalled U.S $11.5 million, as compared with U.S. $13.2 million in the same period in 2011. The decrease of U.S. $1.7 million was a result of a 4% decrease in the volume of electricity used and a 9% decrease in average cost of electricity as compared to the same period in 2011. 

For the three months ended December 31, 2012, operating expenses totalled U.S. $9.3 million, as compared to U.S. $9.9 million during the same period in 2011, a decrease of U.S. $0.6 million or 6%. Operating expenses decreased due to reduced utilities and consumable expenses as compared to the same period in 2011. 

For the three months ended December 31, 2012, Liberty Utilities (West)’s operating profit was U.S. $8.9 million as compared to U.S. $6.8 million in the same period in 2011, an increase of U.S. $2.1 million or 31%. 

Measured in Canadian dollars, for the three months ended December 31, 2012, Liberty Utilities (West)’s revenue from utility electricity sales totalled $19.3 million, as compared to $21.3 million during the same period in 2011. For the three months ended December 31, 2012, net utility electricity sales for Liberty Utilities (West) totalled $7.9 million, as compared to $7.8 million during the same period in 2011. 

Measured in Canadian dollars, for the three months ended December 31, 2012, electricity purchases for Liberty Utilities (West) totalled $11.4 million, as compared to $13.5 million in the same period in 2011. 

Measured in Canadian dollars, for the three months ended December 31, 2012, Liberty Utilities (West)’s revenue from water treatment and wastewater distribution totalled $9.1 million, which was consistent with the same period in 2011. 

Measured in Canadian dollars, for the three months ended December 31, 2012, operating expenses totalled $9.4 million, as compared to $10.1 million in the same period in 2011. 

