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EWIRE

Atlantic Power Corporation Releases Third Quarter 2011 Results

BOSTON, Massachusetts, Nov. 11 - /EWire/ -- Atlantic Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the "Company") today announced its results for the three and nine months ended September 30, 2011. All amounts are in U.S. dollars unless otherwise indicated. Please see "Regulation G Disclosures" attached to this news release for an explanation and US GAAP reconciliation of the terms "EBITDA," "Project Adjusted EBITDA" and "Cash Available for Distribution" as used in this news release. Highlights Closed acquisition of Capital Power Income L.P. ("CPILP") on November 5, 2011 Financial results in line with expectations Maintaining 2011 project cash flow and payout ratio guidance "We are pleased that the results for the quarter met our expectations and are in line with our guidance for the year," commented Barry Welch, President and CEO. "With the successful close of the CPILP acquisition behind us, we are focusing on the critical task of fully integrating CPILP's people and assets into our organization. First and foremost, we are dedicated to finding a permanent CFO to join our management team. We have met with several great candidates, and hope to have an announcement on that front soon." Operating Performance Project Adjusted EBITDA, including earnings from equity investments, decreased by $0.5 million to $41.0 million for the quarter ended September 30, 2011 compared to $41.5 million for the same period last year. The primary drivers behind the decrease were: decreased earnings at Chambers due to an increase in operations and maintenance costs in connection with a forced outage in July 2011; decreased earnings at Lake attributable to the plant running favorable off-peak dispatch during the third quarter of 2010; and decreased earnings at Badger Creek due to lower capacity payments under the new one year interim power purchase agreement beginning in April 2011. These decreases were partially offset by: contributions from the Cadillac Renewable facility, which was acquired in December 2010; and contributions from Idaho Wind, which became operational in the first quarter of 2011. Project Adjusted EBITDA, including earnings from equity investments, increased by $1.0 million to $119.8 million for the nine months ended September 30, 2011 compared to $118.8 million for the same period last year. The increase in EBITDA was attributable to the following factors: contributions from the Cadillac Renewable facility, which was acquired in December 2010; and contributions from Idaho Wind, which became operational in the first quarter of 2011. These increases were partially offset by: decreased earnings at Selkirk due to lower capacity revenue in connection with a planned outage that was longer than expected and resulted in a delay of recognition of capacity payments until the fourth quarter of 2011; decreased earnings at Pasco primarily due to higher operations and maintenance expenses attributable to the unplanned replacement of gas turbine blades during a maintenance outage and un-planned repairs associated with the generator and boiler; decreased earnings at Chambers attributable to lower dispatch and a forced outage in July 2011; and decreased earnings at Topsham, as the project was sold in May 2011. Cash Available for Distribution For the three and nine months ended September 30, 2011, Cash Available for Distribution increased by $2.6 million and $11.8 million, respectively, compared to the prior year. The payout ratio for the nine months ended September 30, 2011 was 93% compared to 96% for the same period in 2010. The decrease in the payout ratio is attributable to the increase in EBITDA previously described and the release of $5.8 million previously trapped cash at Selkirk. The current payout ratio and project distributions are in line with expectations and previous guidance for the full year 2011. The calculation of Cash Available for Distribution (in both US$ and Cdn$) and a summary of Project Adjusted EBITDA by individual project for the three and nine months ended September, 2011 are attached to this news release. Capital Power Income L.P. Acquisition On November 5, Atlantic Power acquired all the outstanding units of CPILP pursuant to the Plan of Arrangement that was approved by the Court of Queen's Bench of Alberta on November 1. Details of the acquisition can be found in our closing press release dated November 7, 2011. Guidance Based on our actual performance to date and projections for the remainder of the year, we continue to expect to receive distributions from our projects in the range of $80 million to $90 million for the full year 2011. We expect overall levels of operating cash flows in 2011 to be improved over actual 2010 levels. Higher distributions from existing projects, initial distributions from our recent investment in Idaho Wind and Cadillac, and a slightly lower payment under the management termination agreement are expected to be partially offset by the one-time cash tax refund of $8.0 million received in 2010. These increased operating cash flows in 2011, combined with the impact of our public offerings in 2010, are expected to result in a payout ratio of approximately 100% to 105% in 2011 subject to the financial performance of our projects. In 2012, additional increases in distributions from projects are expected to further increase operating cash flow compared to 2011. The most significant factors in the expected higher operating cash flow in 2012 is accretion from the acquisition of CPILP and increased distributions from Selkirk following the final payment of its non-recourse project level debt in mid-2012. Outstanding Common Shares and Convertible Debentures As of November 9, 2011, we had 113,474,259 common shares, Cdn$44.9 million principal amount of 6.50% convertible secured debentures due October 31, 2014, Cdn$68.1 million principal amount of 6.25% convertible debentures due March 15, 2017, and Cdn$80.5 million principal amount of 5.60% convertible debentures due June 30, 2017 outstanding. Holders of common shares currently receive a monthly dividend at an annual rate of Cdn$1.15 per common share. Investor Conference Call and Webcast A telephone conference call hosted by Atlantic Power's management team will be held on Monday, November 14, 2011 at 10:00 AM ET. The telephone numbers for the conference call are: U.S. Toll Free: 1-877-317-6789; Canada Toll Free: 1-866-605-3852; International Toll: +1 412-317-6789. The Conference Call will also be broadcast over Atlantic Power's website. Please call or log in 10 minutes prior to the call. The telephone numbers to listen to the conference call after it is completed (Instant Replay) are U.S. Toll Free: 1-877-344-7529; International Toll: +1-412-317-0088. Please enter conference call number 10005106. The conference call will also be archived on Atlantic Power's website. About Atlantic Power Atlantic Power is a leading publicly traded, power generation and infrastructure company with a well diversified portfolio of assets in the United States and Canada. Our power generation projects sell electricity to utilities and other large commercial customers under long-term power purchase agreements, which seek to minimize exposure to changes in commodity prices. The net generating capacity of the Company's projects is approximately 2,116 MW, consisting of interests in 30 operational power generation projects across 11 states and 2 provinces, one 53 MW biomass project under construction in Georgia, and an 84-mile, 500 kilovolt electric transmission line located in California. Atlantic Power also owns a majority interest in Rollcast Energy, a biomass power plant developer with several projects under development. Atlantic Power is incorporated in British Columbia, headquartered in Boston and has offices in Chicago, Toronto, and Richmond, B.C. Our corporate strategy is to generate stable cash flows from our existing assets and to make accretive acquisitions to sustain our dividend payout to shareholders, which is currently paid monthly at an annual rate of Cdn$1.15 per share. Atlantic Power has a market capitalization of approximately $1.5 billion and trades on the New York Stock Exchange under the symbol AT and on the Toronto Stock Exchange under the symbol ATP. For more information, please visit the Company's website at www.atlanticpower.com or contact: Atlantic Power Corporation Amanda Wagemaker, Investor Relations (617) 977-2700 info@atlanticpower.com Copies of financial data and other publicly filed documents get filed on SEDAR at www.sedar.com or on EDGAR at www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on the Company's website.

For more information:

Atlantic Power Corporation Amanda Wagemaker, Investor Relations (617) 977-2700 info@atlanticpower.com

atlanticpower.com

Comments

Rocio

Chuck,Thanks for posting this aitlcre. The US is quickly catching up with the rest of the world when it comes to performance-based equity. And that is before we have Say-on-Pay , the main driver of these plans around the world. While are now starting to see real growth in this area, as a result of Say-on-Pay nealry all public companies in western Europe and Australia have performance share schemes. They have been hard at work rolling out more complex programs. Multiple interdependent goals are not uncommon. Take a look at the Royal Dutch Shell program or the Caltex program for examples of programs that combine Relative TSR, internal financial Metrics and internal operational metrics.In the US a great example of your comment regarding a push further down into organizations in HP. Their performance unit program reaches 30,000 employees.I still have several concerns about these plans including: 1) Many of these plans in the US are not complex enough to truly reflect the metrics that drive performance. (A single goal can create some interesting miss or make scenarios.) 2) Most companies do very little in the way of communicating progress during the performance period.In response to these issues my firm helps support executive compensation consultants such as you by providing unique tools and services. We provide faster, better modeling of potential results. Our tool, GEMS, is the only solution in the world that is specifically designed to help companies and participants see, understand and account for performance-based equity.Performensation is currently planning a series of joint webinars with top Executive Compensation professionals and we would like to invite you to present with us on this topic.Please contact me if you are interested.Best RegardsDan WalterPresident and CEOPerformensation

June 3, 2012, 8:23 PM
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