utility provides natural gas service to over 87,000 connections in five counties and 30 communities in New Hampshire. 

In the first half of 2013, Granite State Electric Utility will file a rate case with the New Hampshire Public Utilities Commission (“NHPUC”) seeking an increase in distribution base rates. The filing is based on a 2012 test year, with revenues and expenses reflecting known and measurable changes. The regulatory process associated with the rate case is expected to last one year, with temporary rates expected to be implemented on or about July 1, 2013 and the final permanent rates determined in the rate case going into effect on or about March 2014. 

## Acquisition of Missouri Utility 

On August 1, 2012, Liberty Utilities completed the acquisition of regulated natural gas distribution utility systems (the “Midwest Gas Utilities”) located in Missouri, Illinois, and Iowa from Atmos Energy Corporation (“Atmos”) for consideration of U.S. $127.7 million plus working capital and other closing adjustments for a total consideration of U.S. $128.2 million. 

The acquisition was originally announced in May 2011 and final regulatory approvals were received in June 2012. The purchase price for the utility assets represented a multiple of net assets for regulatory purposes of approximately 1.1x. Collectively, the regulated natural gas distribution systems provide natural gas service to approximately 82,000 connections. 

## Acquisition of Arkansas Utility 

On February 1, 2013, Liberty Utilities completed the acquisition of issued and outstanding shares of United Water Arkansas Inc., a regulated water distribution utility (“Pine Bluff Water Utility”) from United Waterworks Inc. The Pine Bluff Water Utility is located in Pine Bluff, Arkansas and serves approximately 17,000 customers. Total purchase price for the Pine Bluff Water Utility was approximately U.S. $27.6 million representing a 1.16x premium to net utility assets of U.S. $24.6 million and subject to certain working capital and other closing adjustments. The Pine Bluff Water Utility will be included in the Liberty Utilities (Central) region. 

## U.S. Debt Private Placements 

In connection with the above noted gas and electric utility acquisitions during the third quarter, Liberty Utilities completed a U.S. $225 million private placement debt financing. The financing was closed in two tranches contemporaneously with the closing of the New Hampshire and Missouri Utilities acquisitions. The notes are senior unsecured notes with an average life maturity of over ten years and a weighted average coupon of 4.38%. The notes have been assigned a rating of "BBB high" by DBRS Limited. Proceeds from the private placement were used to partially fund the New Hampshire and Midwest Gas Utilities acquisitions. 

Subsequent to the year end on March 14, 2013 Liberty Utilities completed a U.S. $15 million private placement debt financing in connection with the above noted acquisition of an Arkansas water utility. The notes are senior unsecured with a 10 year term and a coupon of 4.14%. 

## U.S. $100 million Acquisition Term Facility 

On March 14, 2013 Liberty Utilities entered into a U.S. $100 million term loan with a U.S. Bank. The loan facility is available for acquisitions and general corporate purposes and matures on December 31, 2013. 

## Expansion of Liberty Utilities Credit Facility 

In 2012, Liberty Utilities entered into an agreement for a U.S. $100 million senior unsecured revolving credit facility (the “Liberty Facility”) with a consortium of U.S. banks. The Liberty Facility will be used for general corporate purposes and has a three year term with a maturity date of January 18, 2015. 

## Algonquin Power Co. Highlights 

## Acquisition of U.S. Wind Facilities 

In 2012 APCo completed its 60% equity investment in a portfolio of three wind powered generating stations: Minonk Wind (200MW), Senate Wind (150MW) and Sandy Ridge Wind (50MW) Facilities (“Gamesa Wind Facilities”) located in the states of Illinois, Texas, and Pennsylvania, respectively for consideration of $271.7 million. 

