Alterra Power Announces Results for the Quarter Ended March 31, 2013

     Alterra Power Announces Results for the Quarter Ended March 31, 2013

PR Newswire

VANCOUVER, May 10, 2013

(under IFRS and all amounts in US dollars unless otherwise stated)


VANCOUVER, May 10, 2013 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) is
pleased to report its financial and operating results for the three months
ended March 31, 2013. For further information on these results please see
Alterra's Unaudited Condensed Consolidated Interim Financial Statements and
Management's Discussion and Analysis.

Alterra's financial statements consolidate 100% of  the HS Orka and Soda  Lake 
operations, while Alterra's interests in the Toba Montrose run of river  hydro 
facility  and  the  Dokie  1  wind  facility  are  accounted  for  as   equity 
investments. In certain statements in this news release, Alterra's results are
disclosed as Alterra's "net  interest", which means  the effective portion  of 
results that Alterra  would have  reported if each  of HS  Orka (66.6%),  Toba 
Montrose (40%),  Dokie 1  (51%) and  Soda  Lake (100%)  had been  reported  in 
accordance with Alterra's actual share of ownership at March 31, 2013 and  for 
the three months then ended.  Management believes that net interest  reporting 
provides the clearest view of the Company's performance.

Highlights for the current quarter and subsequent period include:

  *Consistent revenue and EBITDA (net interest): Revenue and EBITDA of $17.6
    million and $6.4 million respectively were largely in line with the
    comparative quarter ($17.3 million and $7.3 million) on a pro forma basis
    (see "pro forma comparative numbers" below). EBITDA was down by $0.9
    million primarily due to off-season repairs at the Toba Montrose facility
    and lower revenue at Dokie 1.
  *Steady gross margin: Gross margins of 29.1% of revenues, up slightly from
    28.6% in the comparative quarter.
  *Reliable power production: 441,558 MWh of clean power production from
    Alterra's six power plants, consistent with the comparative quarter's
    output of 442,152 MWh. Alterra's net interest in generation totalled
    285,737 MWh.
  *New geothermal production wells: Two wells were completed at Alterra's
    Reykjanes facility in Iceland, with positive resource indications and
    costs of $1.1 million less than the budgeted amount.
  *ABW Solar acquisition: The 50 MW Ontario solar facility began commercial
    operations. Alterra expects to complete the acquisition of its 10%
    interest in the second quarter.
  *Montrose rockslide repairs: Repair work is fully underway with return to
    service expected in the summer of 2013. The damage and lost revenue will
    be fully covered by insurance other than $0.6 million of deductibles that
    were recorded in December 2012. 
  *South America partnership: Alterra is in final-stage negotiations for the
    next-phase joint venture agreement with Energy Development Corporation
    ("EDC"). Current plans call for EDC to invest over $65 million for a 70%
    stake of the Chile/Peru partnership.
  *HS Orka dividend: Alterra's Icelandic subsidiary HS Orka declared a
    dividend of $1.2 million during the quarter. Alterra's share is 66.6% and
    the cash is expected to be received by Alterra's Swedish subsidiary in the
    second quarter of 2013. 
  *New solar partnership: Alterra has partnered with Greenbriar Capital Corp.
    to develop 100 MW of solar facilities in Puerto Rico.

John Carson,  Alterra's  CEO, said,  "I'm  pleased to  report  another  strong 
quarter of  operational performance,  substantially in  line with  last  year. 
We're looking  forward  to  resuming  full production  at  the  Toba  Montrose 
facility by  August, and  beginning  construction on  the Jimmie  Creek  hydro 
facility later this year."

Financial Results

The following  table  shows  key  financial  information  extracted  from  the 
consolidated results.

(expressed in thousands of US dollars, except for production)

Consolidated Results        3 months ended 3 months ended
                            March 31, 2013 March 31, 2012
Production (MWh)                   347,653        341,066
Total Revenue                    $ 17,184         16,388
Gross Profit                         4,997          4,682
EBITDA ^(a)                          6,195          7,004
Interest Paid                        1,154            976
Financial Position        March 31, 2013 Dec 31, 2012
Total Assets                       718,395        712,530
Total Liabilities                  357,222        348,483
Long Term Debt                     259,655        269,443
Cash and Cash Equivalents           35,745         39,211
Working Capital                     14,119         29,300

Note (a) -   Here  and elsewhere,  EBITDA is  defined by  Alterra as  earnings 
before interest, taxes,  foreign exchange, depreciation  and amortization,  as 
well as  before deductions  for change  in  fair value  of bonds  payable  and 
derivatives, foreign exchange gain (loss), write off of development costs  and 
other income  (expense), amortization  of below  market contracts,  and  value 
assigned to options granted  less share of income  (loss) of equity  accounted 
investees plus  the  Company's interest  in  EBITDA of  its  equity  accounted 
investees. Alterra discloses EBITDA as it is a measure used by analysts and by
management to evaluate Alterra's performance. As EBITDA is a non-IFRS measure,
it may  not be  comparable to  EBITDA calculated  by others.  In addition,  as 
EBITDA is  not a  substitute for  net earnings,  readers should  consider  net 
earnings  in  evaluating  Alterra's  performance.  For  a  reconciliation   of 
consolidated EBITDA to  Alterra's consolidated financial  statements refer  to 
the Company's Management's Discussion and Analysis for the quarter ended March
31, 2013.

Consolidated revenue for the  current quarter was up  5% from the  comparative 
quarter ($17.2 million compared to $16.4 million) while gross profit increased
by 6%. The increase was largely due to the increased production at HS Orka and
Soda Lake resulting  in higher  revenue, as well  as the  timing of  portfolio 
energy credit sales.

Alterra recorded a  consolidated net  loss of  $11.9 million  for the  current 
quarter compared to a net loss of $9.8 million for the comparative quarter, an
increase in loss of  $2.1 million. The change  is largely attributable to  the 
following items:

  *A net negative non-cash change in the fair value of bonds and derivatives
    of $11.3 million, related primarily to a decline in the forecast future
    price of aluminum.
  *A non-cash improvement in foreign exchange gain (loss) of $5.1 million,
    with the current quarter's $2.9 million foreign exchange gain being
    contrasted to the comparative quarter's loss of $2.1 million.
  *A reduction in loss recorded in the current quarter from equity accounted
    investees of $3.8 million against $5.4 million in the comparative quarter.

At March 31, 2013, Alterra had consolidated cash and cash equivalents of $35.8
million (December  31,  2012:  $39.2  million)  and  ended  the  quarter  with 
consolidated working capital  of $14.1  million compared to  $29.3 million  at 
December 31, 2012. The decrease in both cash and working capital that occurred
in the first quarter  of 2013 was  primarily due to expenses  for the two  new 
geothermal wells and the purchase of other items of plant and equipment at  HS 
Orka, in addition to the classification of Alterra's revolving credit facility
as short term at March 31, 2013.

The following table  shows Alterra's  net interest in  selected operating  and 
financial results for the current quarter:

(expressed in thousands of US dollars, except for production)

For the 3 months ended    HS Orka Toba Montrose   Dokie 1 Soda Lake     Total
March 31, 2013           (66.6%)         (40%)     (51%)  (100%)^
Production (MWh)         218,652          556   47,182   19,347  285,737
Revenue                $  10,482   $       64 $  5,620 $  1,445   17,611
EBITDA                     4,086      (2,214)    4,224      344    6,440

Due to the change in ownership of HS Orka in the prior year, the net interest
total shown in the table above is not comparable to the quarter ended March
31, 2012. The following pro forma results represent what Alterra's net
interest of production, revenue and EBITDA would have been had Alterra held a
66.6% ownership interest in HS Orka for the comparative quarter:

For the 3 months ended     HS Orka Toba Montrose   Dokie 1 Soda Lake     Total
March 31, 2012         (66.6%) (a)        (40%)   (51%)^   (100%)
Production (MWh)          214,717        -       51,554   18,668  284,939
Revenue                $  10,131   $     -     $ 6,036  $ 1,177   17,344
EBITDA                     4,205      (1,793)    4,660     238     7,310

Net interest in generation and revenue marginally increased quarter on
quarter, due to new sales contracts at HS Orka entered into in late 2012 and
early 2013, increased production at Soda Lake as a result of a new well coming
on line in late 2012, offset by lower generation at Dokie 1 due to higher
winds in the comparative quarter of 2012.

Alterra's net interest in project  EBITDA decreased by $0.9 million  primarily 
due to off season repairs at the Toba Montrose facility and a weakening of the
Icelandic Krona.

Iceland Operations (66.6% Interest)

The 100  MW Reykjanes  plant  generated 203,056  MWh  of electricity  (99%  of 
budget), and the 72 MW Svartsengi  plant generated 125,250 MWh of  electricity 
(103% of budget), and continued to supply thermal energy for district heating.
Two new geothermal production wells were completed at the Reykjanes  facility. 
Initial indications for  the wells  are positive and  the final  cost for  the 
wells will be an estimated $1.1 million lower than budgeted. The new  capacity 
expected to result from the drilling will be used as reserve capacity for  the 

Toba Montrose Operations (40% Interest)

The 146 MW East Toba River and 89 MW Montrose Creek run of river hydro  plants 
generated 1,391 MWh of electricity, or  8% of forecast. Performance was  under 
budget due  to both  the temperature  being colder  than forecast  at site  in 
addition to the Montrose facility being offline for the whole period.

On December  13, 2012  a naturally  occurring rockslide  damaged a  300  meter 
section of the five kilometer penstock  (which supplies water from the  intake 
to the  power generating  plant)  at the  Montrose facility.  Preparation  for 
access into the rockslide area of the Montrose hydro facility was completed in
March 2013,  and excavation  for the  replacement of  the 300  meter  penstock 
segment and related work began in April 2013. The Company expects the facility
to return to service  during the summer of  2013. The project's insurers  have 
confirmed that the incident is  covered by property and business  interruption 
insurance. Deductibles totalling $0.6 million were recorded in December 2012.

Dokie 1 Operations (51% Interest)

The 144 MW  Dokie 1  wind farm  generated 92,514  MWh of  electricity for  the 
quarter, or 102%  of budget.  The surplus was  primarily due  to higher  than 
expected winds.

Soda Lake Operations (100% Interest)

The 15 MW Soda Lake geothermal  plant generated 19,347 MWh of electricity  for 
the current quarter, or 103% of budget. The higher than expected  performance 
was primarily a result  of the installation of  an additional production  well 
put into  operation at  the end  of  2012 which  increased generation  in  the 
current quarter.

Expansion and Development Projects

Alterra has agreed to  purchase for approximately $6.0  million, subject to  a 
number of closing conditions, 10% of a 50 MW solar generation project built in
Ontario by First Solar, Inc., ABW  Solar. Alterra will serve as the  managing 
partner for ABW Solar. In April 2013 the project entered commercial operations
and Alterra  together  with  our partner  General  Electric  Energy  Financial 
Services and First Solar  Inc. are currently  in late-stage negotiations  with 
lenders for the required debt financing and expect the project to close in the
second quarter of 2013.

During the  quarter, Alterra  continued  to advance  the Upper  Toba  project. 
Alterra is currently finalizing plant design for the Jimmie Creek run of river
hydro project (the first half of the Upper Toba project) and plans to commence
construction in  2013.  The project  is  based on  a  40 year  Power  Purchase 
Agreement ("PPA") with BC Hydro.

Preparations continue for the two expansions at the Reykjanes plant that would
increase capacity to  180 MW  and annual average  generation by  approximately 
700,000 MWh. The key  matters remaining prior  to construction are  concluding 
the ongoing PPA discussions, obtaining  project financing and confirmation  of 

Alterra holds a 51% interest in a  planned expansion of the Dokie 1 wind  farm 
("Dokie 2") with projected additions to capacity  of up to 156 MW. During  the 
quarter Alterra  continued  to  collect data,  conduct  engineering  work  and 
perform other studies to complete the assessment of the project.

Other Development Projects

Alterra signed an agreement with EDC  that outlines the terms of  partnerships 
for the development of  the Mariposa geothermal project  in Chile and  further 
exploration of Alterra's geothermal concessions in Peru. If EDC advances  into 
a formal arrangement then they will be  entitled to earn 70% interests in  the 
partnerships by  funding the  next $58.3  million in  project expenditures  at 
Mariposa and the  next $8.0 million  in project expenditures  on the  Peruvian 
concessions. Alterra and EDC  continue to document  a joint venture  agreement 
which will govern  any subsequent shareholder  agreements, which will  control 
the  individual  projects.  Alterra  expects  any  final  arrangements  to  be 
completed within the second quarter of 2013.

Alterra continues to advance  other early stage  geothermal projects in  Italy 
and Peru,  including exploration  field work,  data assessment  and  continued 
community  consultations.  Alterra  also  continues  to  advance  its  British 
Columbia hydro projects in 2013 through  collection of hydrology data for  the 
Bute Inlet project and other early stage run of river and pumped storage hydro
projects. In  Iceland,  Alterra  began  an  environmental  assessment  on  the 
Bulandsvirkjun hydroelectric project.

Alterra Power will host a conference call to discuss financial and operating
results on Monday, May 13, 2013 at 11:30 am ET (8:30 am PT). North American
participants dial 1-888-390-0546 and International participants dial
1-416-764-8688, the conference ID is 5225 3417. The call will also be
broadcast live on the Internet at The call will be
available for replay for one week after the call by dialing 1-416-764-8677 and
entering replay PIN 253417.

Cautionary Note regarding Forward-Looking Statements and Information

Certain statements included in this news release may contain information  that 
is forward-looking within  the meaning of  certain securities laws,  including 
information  and  statements  regarding  prospective  results  of  operations, 
financial position, cash flows or growth potential. These statements are based
on factors or assumptions that were applied in drawing a conclusion or  making 
a forecast or  projection, including assumptions  based on historical  trends, 
current conditions  and expected  future developments.  Since  forward-looking 
statements relate to future events and  conditions, by their very nature  they 
require making  assumptions  and  involve inherent  risks  and  uncertainties. 
Alterra cautions  that  although  it  is believed  that  the  assumptions  are 
reasonable in the circumstances,  these risks and  uncertainties give rise  to 
the  possibility  that   actual  results  may   differ  materially  from   the 
expectations set out in the forward-looking statements. Material risk  factors 
include those set out in the  management's discussion and analysis section  of 
Alterra's most recent  annual report  and quarterly report,  and in  Alterra's 
Annual Information  Form. Given  these  risks, undue  reliance should  not  be 
placed on  these forward-looking  statements,  which apply  only as  of  their 
dates. Other  than as  specifically  required by  law, Alterra  undertakes  no 
obligation to update any forward-looking statements or information to  reflect 
new information, subsequent or otherwise.

SOURCE Alterra Power Corp.


Peter Lekich, Corporate Communications
Alterra Power Corp.
Phone: 604.235.6719
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