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LIQUIDITY AND CAPITAL RESOURCES
The table below outlines the Corporation's sources and uses of cash for the three months ended March 31, 2013, as compared to the same period in 2012, followed by a discussion of the nature of the variances in cash flows.
----------------------------------------------------------------------------Summary of Consolidated Cash Flows (Unaudited) Quarter Ended March 31($ millions) 2013 2012 Variance--------------------------------------------------------------------------------------------------------------------------------------------------------Cash, Beginning of Period 154 87 67Cash Provided by (Used in): Operating Activities 280 328 (48) Investing Activities (289) (211) (78) Financing Activities 23 (94) 117----------------------------------------------------------------------------Cash, End of Period 168 110 58--------------------------------------------------------------------------------------------------------------------------------------------------------
Operating Activities: Cash flow from operating activities was $48 million lower quarter over quarter. The decrease was primarily due to unfavourable changes in working capital at FortisAlberta and the FortisBC Energy companies, associated with accounts payable and other current liabilities and current regulatory deferral accounts, partially offset by favourable working capital changes related to regulatory deferrals at Maritime Electric. Higher earnings quarter over quarter were partially offset by unfavourable changes in deferred income taxes attributable to regulatory deferrals and tax loss utilization.
Investing Activities: Cash used in investing activities was $78 million higher quarter over quarter. The increase was driven by FortisBC Electric's acquisition of electrical utility assets from the City of Kelowna in March 2013 for approximately $55 million, and higher capital spending at FortisAlberta, largely due to higher AESO capital contributions quarter over quarter.
Financing Activities: Cash provided by financing activities was $117 million higher quarter over quarter. The increase was primarily due to: (i) higher net borrowings under committed credit facilities classified as long-term; (ii) lower net repayments of short-term borrowings; and (iii) higher proceeds from the issuance of common shares. The above items were partially offset by higher repayments of long-term debt and a decrease in advances received from non-controlling interests.
Net repayments of short-term borrowings were $35 million lower quarter over quarter. The decrease was mainly due to the FortisBC Energy companies, partially offset by an increase in net repayments of short-term borrowings at Maritime Electric. A portion of the cash proceeds received by Maritime Electric from the Government of PEI, upon the assumption of the utility's regulatory asset related to certain deferred Point Lepreau replacement energy costs, was used to repay short-term borrowings in the first quarter of 2013.
Repayments of long-term debt and capital lease and finance obligations, and net borrowings (repayments) under committed credit facilities for the quarter compared to the same quarter last year are summarized in the following tables.
----------------------------------------------------------------------------Repayments of Long-Term Debt and Capital Lease and Finance Obligations (Unaudited) Quarter Ended March 31($ millions) 2013 2012 Variance--------------------------------------------------------------------------------------------------------------------------------------------------------FortisBC Energy Companies (21) (1) (20)Caribbean Utilities (1) (1) -Fortis Properties (18) (2) (16)----------------------------------------------------------------------------Total (40) (4) (36)------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Net Borrowings (Repayments) Under Committed Credit Facilities (Unaudited) Quarter Ended March 31($ millions) 2013 2012 Variance--------------------------------------------------------------------------------------------------------------------------------------------------------FortisAlberta 48 (29) 77FortisBC Electric 32 (9) 41Newfoundland Power 21 14 7Corporate 35 31 4----------------------------------------------------------------------------Total 136 7 129--------------------------------------------------------------------------------------------------------------------------------------------------------
