Canadian Utilities Reports Record Annual 2012 Earnings

Canadian Utilities Reports Record Annual 2012 Earnings 
CALGARY, ALBERTA -- (Marketwire) -- 02/21/13 -- Canadian Utilities
Limited (TSX: CU, CU.X) 
Earnings attributable to equity owners were $561 million ($4.12 per
share) for the year ended December 31, 2012 compared to $496 million
($3.65 per share) in 2011. Adjusted Earnings were $517 million for
the year ended December 31, 2012 compared to $471 million in 2011. 
Fourth quarter earnings were $144 million ($1.06 per share) compared
to $156 million ($1.14 per share) in the same period in 2011. Fourth
quarter Adjusted Earnings were $141 million and $109 million for the
same period in 2011. 
The company's strong performance in 2012 was led by ATCO Electric's
construction of new transmission infrastructure to meet Alberta's
long term electricity demand and improve reliability for consumers.
ATCO Electric has approximately two dozen transmission infrastructure
projects either approved or under construction. In 2012, major
industrial customers in northeast Alberta were connected to the
province's transmission grid and the electricity system serving that
growing region of the province was reinforced. 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. In the fourth quarter, ATCO Electric received approval to
commence construction of the Eastern Alberta Transmission Line, which
is expected to be in service in late 2014. 
Fourth quarter capital investment of $648 million by ATCO Electric,
ATCO Gas and ATCO Pipelines brought the total utility capital
investment for the year to $2.1 billion. These capital expenditures
added to the rate base upon which the companies earn a regulated
ATCO Gas Australia marked its first full year of operations under
ATCO ownership, with higher earnings reflecting a favorable decision
on its appeal of an earlier decision covering the current Access
Arrangement period 2010 - 2014. 
Increased earnings in 2012 were partially offset by lower earnings at
ATCO Power primarily due to planned maintenance outages at several
ATCO Power generating plants and lower earnings from ATCO Energy
Solutions' natural gas liquids extraction and gas gathering and
processing operations. 

--  Canadian Utilities declared a first quarter dividend for 2013 of 48.5
    cents per Class A non-voting and Class B common share, a 10% increase
    over the 44.25 cents paid in each of the previous four quarters.
    Canadian Utilities' annual dividend per share has increased for 41
    consecutive years. 
--  CU Inc., a wholly owned subsidiary of Canadian Utilities, issued $200
    million of 3.857% Debentures maturing on November 14, 2052. 
--  Canadian Utilities Limited issued $200 million of 3.122% Debentures
    maturing November 9, 2022. 
--  Effective December 1, 2012, Nancy C. Southern was appointed Chair of
    Canadian Utilities Limited by its Board of Directors, replacing Ronald
    D. Southern. As Chairman Emeritus & Founder, ATCO Group, Mr. Southern
    continues to serve as a Director of Canadian Utilities Limited.

A financial summary and reconciliation of Adjusted Earnings to
earnings attributable to equity owners is provided below: 

                                    For the Three Months       For the Year 
                                       Ended December 31  Ended December 31 
($ Millions except per share data)       2012       2011      2012     2011 
Adjusted Earnings (1)                     141        109       517      471 
Adjustments for Rate Regulated                                              
 Activities (2)                            (5)        37         9       45 
Acquisition Transaction Costs               -          -         -      (50)
Dividends on Equity Preferred Shares        8         10        35       30 
Earnings Attributable to Equity                                             
 Owners                                   144        156       561      496 
Earnings Per Share                       1.06       1.14      4.12     3.65 
Revenues                                  855        827     3,139    2,999 
Funds Generated By Operations (3)         416        414     1,483    1,319 
(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 International Financial Reporting         
    Standards (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 4 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 IFRS and   
    may not be comparable to similar measures used by other companies.      

The $140 million annual increase in revenues ($28 million in the
fourth quarter) was due primarily to increased rate base in the
utilities and the acquisition of ATCO Gas Australia in the third
quarter of 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 $164 million for the year ($2
million in the fourth quarter) 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 months and year
ended December 31, 2012, will be available on the Canadian Utilities
website (, via SEDAR ( or can
be requested from the Corporation. 
Canadian Utilities Limited, an ATCO company, with more than 7,100
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 
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.
Canadian Utilities Limited
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502
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