Canadian Utilities Reports Comparable Third Quarter Adjusted

Canadian Utilities Reports Comparable Third Quarter Adjusted Earnings 
CALGARY, ALBERTA -- (Marketwire) -- 11/01/12 -- Canadian Utilities
Limited (TSX: CU, CU.X) 
Canadian Utilities today reported comparable Adjusted Earnings in the
third quarter as higher earnings from investment in utility
infrastructure to support Alberta growth and the addition of ATCO Gas
Australia in late July 2011 were offset by the effect of utility rate
decisions received at the end of 2011. 
Earnings attributable to equity owners were $119 million ($0.87 per
share) for the third quarter of 2012 compared to $66 million ($0.47
per share) for the same period in 2011. Adjusted Earnings were $106
million for the third quarter of 2012 and $106 million for the same
period in 2011. 
Earnings attributable to equity owners were $417 million ($3.06 per
share) for the nine months ended September 30, 2012 compared to $340
million ($2.51 per share) for the same period in 2011. Adjusted
Earnings were $376 million for the nine months ended September 30,
2012, and $362 million for the same period in 2011. 
In the third quarter, ATCO Electric, ATCO Gas and ATCO Pipelines
invested an additional $557 million in infrastructure to support
Alberta's continuing growth, bringing the total investment in the
first nine months of 2012 to $1.5 billion. A significant amount of
this capital investment is related to regulated transmission
infrastructure projects required to reinforce the electricity system
and supply growing electricity demand in northeast Alberta. Canadian
Utilities earns a regulated return on its infrastructure investments. 
Construction continues on the Hanna Region Transmission Development
Project in southeast Alberta with an expected in-service by the end
of the second quarter of 2013. Pre-construction activities continue
on the Eastern Alberta Transmission Line with final approval of the
facility application expected by late 2012. 
Higher earnings from utility rate base growth were offset by utility
rate decisions received at the end of 2011, which lowered the return
on equity for ATCO Electric, ATCO Gas and ATCO Pipelines from 9.00%
to 8.75%, reduced ATCO Pipelines equity from 45% to 38%, and reduced
interim rates billed to customers by ATCO Gas in 201
2. 
RECENT DEVELOPMENTS 


 
--  Canadian Utilities declared a fourth quarter dividend for 2012 of 44.25
    cents per Class A non-voting and Class B common share. Canadian
    Utilities' annual dividend per share has increased for 40 consecutive
    years. 
--  On August 1, 2012, Canadian Utilities announced the combination of the
    operations of ATCO Midstream and ATCO Energy Solutions under the name
    ATCO Energy Solutions, reflecting its focus on offering comprehensive
    gas storage, industrial water infrastructure, natural gas gathering,
    processing, transportation and gas liquids services to the oil and gas
    sector.
--  Canadian Utilities implemented a Dividend Reinvestment Plan (DRIP)
    effective with the quarterly dividend payment in September 2012 to
    eligible Class A non-voting and Class B common share owners of record as
    of August 10, 2012, who are enrolled in the program. Shares purchased
    under the DRIP will be new Class A shares issued from treasury. The
    shares will be issued at a two per cent discount to the volume weighted
    average price of the Class A shares traded on the Toronto Stock Exchange
    during the last five qualifying trading days preceding the dividend
    payment date. During the third quarter and first nine months of 2012,
    414,798 Class A non-voting shares were issued under the DRIP, using
    reinvested dividends of $28 million. 
--  CU Inc., a wholly owned subsidiary of Canadian Utilities, issued $500
    million of 3.805% Debentures maturing on September 10, 2042 and $200
    million of 3.825% Debentures maturing on September 11, 2062.

 
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS 
A financial summary and reconciliation of Adjusted Earnings to
earnings attributable to equity owners is provided 


 
below:                                                                      
                                 For the Three Months   For the Nine Months 
                                   Ended September 30    Ended September 30 
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($ Millions except per share                                                
 data)                                 2012      2011        2012      2011 
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Adjusted Earnings (1)                   106       106         376       362 
Adjustments for Rate Regulated                                              
 Activities (2)                           4         1          14         8 
Acquisition Transaction Costs             -       (47)          -       (50)
Dividends on Equity Preferred                                               
 Shares                                   9         6          27        20 
----------------------------------------------------------------------------
Earnings Attributable to Equity                                             
 Owners                                 119        66         417       340 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings Per Share                     0.87      0.47        3.06      2.51 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenues                                741       697       2,284     2,172 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Funds Generated By Operations                                               
 (3)                                    352       261       1,067       905 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Adjusted Earnings are earnings attributable to equity owners after      
    adjusting for the timing of revenues and expenses associated with rate  
    regulated activities and dividends on equity preferred shares of        
    Canadian Utilities. Adjusted Earnings also exclude one-time gains and   
    losses and items that are not in the normal course of business or day-  
    to-day operations. Adjusted Earnings present earnings on the same basis 
    as was used prior to adopting IFRS - that basis being the U.S.          
    accounting principles for rate regulated entities - and they are a key  
    measure used to assess segment performance, to reflect the economics of 
    rate regulation and to facilitate comparability of Canadian Utilities'  
    earnings with other Canadian rate regulated companies.                  
(2) Refer to Note 3 to the consolidated financial statements for            
    descriptions of the adjustments for rate regulated activities and the   
    timing of their recovery from or refund to customers.                   
(3) This measure is cash flow from operations before changes in non-cash    
   
 working capital. It does not have standardized meaning under            
    International Financial Reporting Standards (IFRS) and may not be       
    comparable to similar measures used by other companies.                 

 
Revenues in the third quarter and the first nine months of 2012
increased primarily due to increased rate base in the Utilities and
the acquisition of ATCO Gas Australia in late July 2011. These
increases in revenues were partially offset by lower flow through
natural gas sales in ATCO Energy Solution's natural gas liquids
extraction operations. 
Funds Generated by Operations increased in the third quarter and the
first nine months of 2012 primarily for the same reasons earnings
increased, as well as higher contributions by utility customers
required to connect customers to utility infrastructure. 
Canadian Utilities' consolidated financial statements and
management's discussion and analysis for the three and nine months
ended September 30, 2012, will be available on the Canadian Utilities
website (www.canadianutilities.com), via SEDAR (www.sedar.com) or can
be requested from the Corporation. 
Alberta-based Canadian Utilities Limited, an ATCO company, with more
than 6,700 employees and assets of approximately $13 billion,
delivers service excellence and innovative business solutions
worldwide with leading companies engaged in utilities (pipelines,
natural gas and electricity transmission and distribution), energy
(power generation, natural gas gathering, processing, storage and
liquids extraction) and technologies (business systems solutions).
More information can be found at www.canadianutilities.com. 
Forward-Looking Information: 
Certain statements contained in this news release may constitute
forward-looking information. Forward-looking information is often,
but not always, identified by the use of words such as "anticipate",
"plan", "estimate", "expect", "may", "will", "intend", "should", and
similar expressions. Forward-looking information involves known and
unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such
forward-looking information. The Corporation believes that the
expectations reflected in the forward-looking information are
reasonable, but no assurance can be given that these expectations
will prove to be correct and such forward-looking information should
not be unduly relied upon. 
Any forward-looking information contained in this news release
represents the Corporation's expectations as of the date hereof, and
is subject to change after such date. The Corporation disclaims any
intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events or
otherwise, except as required by applicable securities legislation.
Contacts:
Canadian Utilities Limited
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502
www.canadianutilities.com
 
 
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