DEDHAM, Mass., Aug. 14, 2019
/CNW/ -- Atlantic Power Corporation (NYSE: AT) (TSX: ATP)
("Atlantic Power" or the "Company") announced today that on
August 13, 2019, it completed the
acquisition of the equity ownership interests held by AltaGas Power
Holdings (U.S.) Inc. ("AltaGas") in the Craven County and Grayling contracted biomass
plants.
Craven County Wood Energy is a 48 megawatt (MW) biomass plant in
North Carolina that has been in
service since October 1990. Atlantic
Power acquired a 50% interest from AltaGas; the remaining 50%
interest is held by CMS Energy. Craven
County has a Power Purchase Agreement (PPA) with Duke Energy
Carolinas that runs through December
2027. The plant burns wood waste, including wood chips,
poultry litter, forestry residues, mill waste, bark and
sawdust.
Grayling Generating Station is a 37 MW biomass plant in
Michigan that has been in service
since June 1992. Atlantic Power
acquired a 30% interest from AltaGas; the remaining interests are
held by Fortistar (20%) and CMS Energy (50%). Grayling has a PPA
with Consumers Energy, the utility subsidiary of CMS Energy, which
runs through December 2027. The plant
burns wood waste from local mills, forestry residues, mill waste
and bark.
Both plants are operated by an affiliate of CMS Energy. There is
no project-level debt at either plant.
The purchase price for the equity interests in the two plants of
$20 million was based on an
acquisition as of January 1, 2019.
Since that date, Grayling has made two quarterly distributions to
its equity owners. Craven County
makes distributions annually at year end. At closing, the Company
paid $18.5 million, which was net of
distributions received earlier by AltaGas and other closing
adjustments. The Company funded the acquisition from discretionary
cash.
The Company expects Project Adjusted EBITDA from the acquisition
of approximately $4 million to
$5 million annually on average over
the remaining term of the PPAs.
About Atlantic Power
Atlantic Power is an independent power producer that owns power
generation assets in eleven states in the
United States and two provinces in Canada. The generation projects sell
electricity and steam to investment-grade utilities and other
creditworthy large customers predominantly under long‑term PPAs
that have expiration dates ranging from 2019 to 2043. The Company
seeks to minimize its exposure to commodity prices through
provisions in the contracts, fuel supply agreements and hedging
arrangements. The projects are diversified by geography, fuel type,
technology, dispatch profile and offtaker (customer). The majority
of the projects in operation are 100% owned and directly operated
and maintained by the Company. The Company has expertise in
operating most fuel types, including gas, hydro, and biomass, and
it owns a 40% interest in one coal project.
Atlantic Power's shares trade 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
Investor Relations
(617) 977-2700
info@atlanticpower.com
Copies of the Company's financial data and other publicly filed
documents are available 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.
Cautionary Note Regarding Forward-Looking Statements
To the extent any statements made in this news release contain
information that is not historical, these statements are
forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, and
forward-looking information under Canadian securities law
(collectively, "forward-looking statements").
Certain statements in this news release may constitute
"forward-looking statements", which reflect the expectations of
management regarding the future growth, results of operations,
performance and business prospects and opportunities of the Company
and its projects. These statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, can generally be identified by the use of the words
"may," "will," "should," "project," "continue," "believe,"
"intend," "anticipate," "expect" or similar expressions that are
predictions of or indicate future events or trends and which do not
relate solely to present or historical matters. Examples of such
statements in this press release include, but are not limited, to
statements with respect to the following:
- The Company expects Project Adjusted EBITDA from the
acquisition of approximately $4
million to $5 million annually
on average over the remaining term of the PPAs.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such
performance or results will be achieved. Please refer to the
factors discussed under "Risk Factors" and "Forward-Looking
Information" in the Company's periodic reports as filed with the
U.S. Securities and Exchange Commission (the "SEC") from time to
time for a detailed discussion of the risks and uncertainties
affecting the Company. Although the forward-looking statements
contained in this news release are based upon what are believed to
be reasonable assumptions, investors cannot be assured that actual
results will be consistent with these forward-looking statements,
and the differences may be material. These forward-looking
statements are made as of the date of this news release and, except
as expressly required by applicable law, the Company assumes no
obligation to update or revise them to reflect new events or
circumstances.
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SOURCE Atlantic Power Corporation