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expenses and were included within Accounts Receivable on the Balance Sheet. 

## Contractual Obligations 

The contractual obligations of the Company over the next five years and periods thereafter, as at December 31, 2011, are outlined in the table “Contractual Obligations” . 

The Company has a primary fuel supply contract with Esso Cayman Limited (“Esso”) and is committed to purchase 80% of the Company’s diesel fuel requirements for its generating plant from Esso. The approximate quantities per the contract on an annual basis are, by fiscal year in millions of IGs: 2012 

## Significant Changes in Balance Sheets 

(from December 31, 2010 to December 31, 2011) 

- 10.1. The contract contains an automatic renewal clause for the years 2010 through to 2012. The Company has renewed the contract until May 2012. 

## Financial Position 

The table “Significant Changes in Balance Sheets”  is a summary of significant changes to the Company’s balance sheet from December 31, 2010 to December 31, 2011. 

## Capital Resources 

The Company’s principal activity of generation, transmission and distribution of electricity in Grand Cayman, requires CUC to have 

ongoing access to capital to build and maintain the electrical system for the community it serves. 

To help ensure access to capital, the Company targets a long- term capital structure containing approximately 45% equity, including preference shares, and 55% debt. The Company’s objective is to maintain investment-grade credit ratings. 

The Company sets the amount of capital in proportion to risk. The debt to equity ratio is managed through various methods such as the rights offering that occurred in 2008 and through the Company’s Share Purchase Plans. 

Certain of the Company’s long- term debt obligations have covenants 

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