text: Killam’s weighted average cost of natural cost on a per Gj basis increased by 32% in the year. Excluding the delivery charge component of the 
  cost, the actual commodity cost increased by a weighted average of 80% compared to 2012. This cost increase resulted in approximately $1.2 
  million in additional natural gas expense in the year. Killam saw a decrease in the cost per Gj in Nova Scotia in December year‑over‑year due to 
  fixed contracts noted above, however colder than normal weather resulted in an increase of 17% in heating degree days in the fourth quarter, 
  more than offsetting the price savings. Pricing increased in New Brunswick in December 2013, as noted in the graph above, and reflects the spike 
  in day pricing during the exceptionally cold weather during the second half of December 2013. 
  
  Looking forward, Management expects to see continued volatility in natural gas prices in New Brunswick and Nova Scotia in periods of cold 
  weather in the Northeastern US due to limited pipeline capacity and increasing demand from utilities. Originally expected to be a 2013 
  winter costing issue, this volatility may continue in periods of cold weather until additional pipeline infrastructure is built. In the short‑term, 
  Management will continue to manage assets to minimize its natural gas usage and is working with natural gas suppliers to explore fixing a 
  portion of its gas requirement in next year’s heating season. Despite the volatility in gas prices since late 2012, natural gas is generally more 
  economical than oil. Management monitors this price differential and has the capacity to switch to oil when it is more economical for a small 
  number of assets with dual‑fired capacity. 