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These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements relate to: (i) electricity and other energy prices, (ii) performance, (iii) business prospects and opportunities including expected growth and capital projects, (iv) status of and impact of policy, legislation and regulations, (v) effective tax rates, and (vi) other matters discussed under the Performance Overview and Outlook sections. 

Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company’s expectations. Such material risks and uncertainties are: (i) changes in electricity prices in markets in which the Company operates, (ii) changes in energy commodity market prices and use of derivatives, (iii) regulatory and political environments including changes to environmental, financial reporting and tax legislation, (iv) power plant availability and performance including maintenance expenditures, (v) ability to fund current and future capital and working capital needs, (vi) acquisitions and developments including timing and costs of regulatory approvals and construction, (vii) changes in market prices and availability of fuel, and (viii) changes in general economic and competitive conditions. See Risks and Risk Management for further discussion of these and other risks. 

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. 

## Performance Overview 

The Company measures its performance in relation to its corporate strategy through financial and non-financial targets that are approved by the Board of Directors. The measurement categories include corporate measures and core measures. The corporate measures are company-wide and include funds from operations and safety. The core measures are specific to certain groups of the Company and include plant operating margin and other operations measures, committed capital, construction and maintenance capital on budget and on schedule, and plant site safety. 

## Operational excellence 

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In 2012, the Company’s plant availability averaged 91% which achieved target. In the fourth quarter of 2012, Genesee 3 experienced a planned outage that was extended for an additional 9 days. The availability of the North East U.S. plants was lower than expected due to several pre-emptive outage days at Bridgeport and Tiverton in consideration of Hurricane Sandy. These unfavourable plant availabilities were partly offset by the favourable availability of the contracted plants in Alberta, Ontario and British Columbia. Strong 2012 third quarter performance of the Alberta commercial plants was offset by the impact of an unscheduled outage for Genesee 1 in the third quarter of 2012. In the second quarter, planned outages for Genesee 2, Bridgeport, Rumford, Tiverton and the North Carolina U.S. plants occurred. An unscheduled outage for Bridgeport due to a condenser leak impacted availability in the middle two quarters of 2012. In the first quarter, strong performances of Genesee 1 and 2, Keephills 3 and Joffre were partly offset by the Genesee 3 outage which continued from November 11, 2011 until January 15, 2012. 

Capital expenditures for 2012 for plant and other maintenance were consistent with target reflecting capital expenditures for plant maintenance and shutdowns and the major information technology systems that were substantially implemented by December 31, 2012. 

The maintenance and operating expenses target includes other raw materials and operating charges, staff costs and employee benefits expense and other administrative expenses for the Company’s plants. The actual results for 2012 were slightly better than target. 

