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Excluding capital lease and finance obligations, the Corporation's capital structure as at December 31, 2012 was 53.6% debt, 10.1% preference shares and 36.3% common shareholders' equity (December 31, 2011 - 55.3% debt, 8.6% preference shares and 36.1% common shareholders' equity).
Credit Ratings: The Corporation's credit ratings are as follows:
Standard & Poor's ("S&P") A- (long-term corporate and unsecured debt credit rating)DBRS A(low) (unsecured debt credit rating)In May 2012 and July 2012, S&P and DBRS, respectively, affirmed the Corporation's debt credit ratings. Due to the Corporation's financing plans for the pending acquisition of CH Energy Group and the expected completion of the Waneta Expansion on time and on budget, S&P and DBRS also removed the ratings from credit watch with negative implications and under review with developing implications, respectively, where the ratings had been placed in February 2012.
CAPITAL EXPENDITURE PROGRAM
Capital investment in infrastructure is required to ensure continued and enhanced performance, reliability and safety of the gas and electricity systems and to meet customer growth. All costs considered to be maintenance and repairs are expensed as incurred. Costs related to replacements, upgrades and betterments of capital assets are capitalized as incurred.
A breakdown of the approximate $1.1 billion in gross capital expenditures by segment for 2012 is provided in the following table.
----------------------------------------------------------------------------Gross Consolidated Capital Expenditures (Unaudited) (1)Year Ended December 31, 2012($ millions)-------------------------------------------------------------------------------------------------------------------------------------------------------- Other Regulated ElectricFortisBC UtilitiesEnergy Fortis FortisBC Newfoundland -Companies Alberta Electric Power Canadian----------------------------------------------------------------------------206 442 69 86 48------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Gross Consolidated Capital Expenditures (Unaudited) (1)Year Ended December 31, 2012($ millions)-------------------------------------------------------------------------------------------------------------------------------------------------------- Total Regulated Non- Non- Regulated Electric Regulated RegulatedFortisBC Utilities Utilities - -Energy - - Fortis FortisCompanies Canadian Caribbean Generation Properties Total----------------------------------------------------------------------------206 851 48 196 35 1,130--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Relates to cash payments to acquire or construct utility capital assets, income-producing properties and intangible assets, as reflected on the consolidated statement of cash flows. Excludes capitalized depreciation and amortization and non-cash equity component of AFUDC.
