Prospectus excerpt:  The holders of the Cumulative Redeemable Second Preferred Shares Series Y (the "Series Y Preferred Shares") of Canadian Utilities Limited (the "Corporation") will be entitled to receive, as and when declared by the board of directors of the Corporation (the "Board of Directors"), fixed cumulative preferential cash dividends for the Initial Fixed Rate Period (as defined herein) from and including the closing date of this offering to but excluding June 1, 2017, at an annual rate of $1.00 per share, payable quarterly on the first day of March, June, September and December in each year. Assuming an issue date of September 21, 2011, the first dividend, if declared, will be payable December 1, 2011, in the amount of $0.1945 per share.

For each five year period after the Initial Fixed Rate Period (each a "Subsequent Fixed Rate Period"), the holders of the Series Y Preferred Shares shall be entitled to receive, as and when declared by the Board of Directors, fixed cumulative preferential cash dividends, payable quarterly on the first day of March, June, September and December in each year, in the amount per share determined by multiplying one-quarter of the Annual Fixed Dividend Rate (as defined herein) for such Subsequent Fixed Rate Period by $25.00. The Annual Fixed Dividend Rate for each ensuing Subsequent Fixed Rate Period will be determined by the Corporation on the Fixed Rate Calculation Date (as defined herein) and will be equal to the sum of the Government of Canada Yield (as defined herein) on the Fixed Rate Calculation Date plus a spread of 2.40% (the "Spread"). This Spread will apply to both the Series Y Preferred Shares and the Series Z Preferred Shares described below, and will remain unchanged over the life of the Series Y Preferred Shares and the Series Z Preferred Shares (as defined herein). See "Details of the Offering".