Alterra Power Announces Results for the Quarter Ended September 30, 2013

   Alterra Power Announces Results for the Quarter Ended September 30, 2013

PR Newswire

VANCOUVER, Nov. 12, 2013

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

VANCOUVER, Nov. 12,  2013 /PRNewswire/  - Alterra  Power Corp.  (TSX: AXY)  is 
pleased to report its financial and  operating results for the three and  nine 
months ended  September 30,  2013. For  further information  on these  results 
please see Alterra's Condensed  Consolidated Interim Financial Statements  and 
Management's Discussion and Analysis.

Alterra consolidates 100% of the HS Orka and Soda Lake operations and accounts
for its interests in the Toba Montrose,  Dokie 1 and ABW Solar (third  quarter 
solar acquisition)  facilities as  equity investments.  Alterra's results  are 
sometimes disclosed as Alterra's "net interest", which means the results  that 
Alterra would have reported if each  of HS Orka (66.6%), Toba Montrose  (40%), 
Dokie 1 (51%),  ABW Solar  (10%) and  Soda Lake  (100%) had  been reported  in 
accordance with Alterra's actual share of ownership. Management believes  that 
net  interest  reporting   provides  the  clearest   view  of  the   Company's 
performance.

Highlights for the current quarter include:

  *Increased revenue and EBITDA (net interest): Revenue (including business
    interruption proceeds) was $30.0 million and EBITDA was $18.3 million, up
    3% from the comparative quarter, primarily due to increased contractual
    revenue at HS Orka and higher water flow at Toba Montrose.
  *Reliable power generation: Alterra's fleet of power projects generated
    360,391 MWh of clean power (net interest), achieving 89% of budgeted
    generation despite the Montrose hydro facility being offline for most of
    the quarter. Generation would have been 103% of budget had the Montrose
    plant not been offline. Total generation from plants operated by Alterra
    was 669,344 MWh.
  *ABW Solar acquisition completed: Alterra acquired a 10% interest in a 50
    MW solar generation project in Ontario, Canada (ABW Solar) for $7.1
    million, and will manage the project.
  *Montrose facility back online: Penstock repairs at the Montrose hydro
    facility were completed and the facility was brought back into service on
    September 22, 2013. Several site improvements including protective berms
    have also been completed and will significantly lessen the likelihood of
    any future damage or interruption.
  *Jimmie Creek project development:

       *Construction timing: Alterra now plans construction for this 62 MW
         run-of-river facility in 2014, and has executed a further limited
         notice to proceed with SNC Lavalin in support of this schedule.
       *PPA completed: The Jimmie Creek power purchase agreement ("PPA") was
         finalized through an amendment completed subsequent to the quarter.
         Under the contract, the project will sell 100% of its power to BC
         Hydro for 40 years commencing in August 2016.
       *Alterra to be 100% owner: Alterra completed an agreement to purchase
         the 49% project stake currently owned by an affiliate of General
         Electric Energy Financial Services. The transaction is expected to
         close by December 2013.

  *Shannon wind project: Alterra entered into an exclusivity agreement that
    provides for an option to purchase a 200 MW wind generation development
    project in Clay County, Texas, USA.
  *Reykjanes Re-Injection Program: Alterra commenced drilling a new
    large-diameter well in support of a field maintenance program. The well
    was completed in November, with positive initial indications of
    permeability.

John Carson, Alterra's CEO,  said "With our operations  back to full  strength 
and delivering positive results,  we are now focused  on making 2014 a  strong 
year of growth for Alterra. Our plan is to place both Jimmie Creek and Shannon
Wind into construction in 2014, and I'm confident that we have the  resources, 
including people and access to capital, to make that a reality."

Financial Results

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

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

For the
three months
ending                                                                          
September
30, 2013                                                                              
                            Toba      Dokie     Soda              Exploration     Net
                HS Orka   Montrose      1       Lake      ABW      and Head     Interest   Consolidated
              (66.6%)   (40%)     (51%)   (100%)   (10%)     Office      Total     Results
Generation      206,791   113,474   26,423   12,631  1,072              -    360,391        323,128
(MWh)                                                                                 
Total            8,821 $  12,143  $       $    817 $  434             -     24,993        14,062
Revenue       $                        2,778                    $             $          $
Business
Interruption          -     5,052        -        -      -              -      5,052              -
Insurance
Proceeds                                                                              
Gross Profit      2,171     9,387      390  (1,035)    298              -     11,211          2,225
(Loss)                                                                                
EBITDA ^(a)      4,787    14,541    1,266    (430)    268       (2,179)    18,253        20,385
                                                                                
                                                                                
For the
three months
ending                                                                          
September
30, 2012                                                                              
                            Toba      Dokie     Soda              Exploration     Net
                HS Orka   Montrose      1       Lake      ABW      and Head     Interest   Consolidated
              (66.6%)   (40%)     (51%)   (100%)   (10%)     Office      Total     Results
Generation      198,406   154,208   34,085   12,308      -              -    399,007        310,215
(MWh)                                                                                 
Total            8,338 $  16,210 $       $    806 $    -             -     29,244        13,326
Revenue      $                        3,890                   $             $          $
Gross Profit      2,439    13,259    1,518  (1,473)      -              -     15,743          2,189
(Loss)                                                                                
EBITDA ^(a)      4,077    14,092    2,429    (998)      -       (1,836)    17,764        19,808
                                                                           



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) except business interruption proceeds, 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
three and nine months ended September 30, 2013.

Consolidated Results

Revenue was up 6% ($14.1 million  compared to $13.3 million) due to  increased 
generation and contractual sales at HS Orka. Gross profit remained  consistent 
at $2.2 million as the increase in revenue was offset by increased maintenance
drilling at HS Orka.

Net income improved $1.7 million to $16.4 million, largely as a result of high
water flows and insurance  proceeds received at Toba  Montrose, which drove  a 
$7.5 million increase in Alterra's share of equity investments. Non-cash items
offsetting this increase include:

  *A $2.3 million negative change in the fair value of bonds payable and
    derivatives, related primarily to fluctuations in forecasted aluminum
    prices.
  *A $2.9 million negative movement related to foreign exchange.
  *A $2.0 million negative change in write-offs of certain development costs
    related primarily to the completion of joint ventures in Chile and Peru.

Consolidated cash  and cash  equivalents at  September 30  were $37.1  million 
($39.2 million at December 31, 2012).

Net Interest Results

Alterra's net interest in revenue and EBITDA increased 3% and 3%  respectively 
primarily due to increased contractual revenue at HS Orka, high water flow  at 
Toba Montrose resulting in increased  generation, income from the Blue  Lagoon 
hf due to increased visitor attendance and the addition of ABW Solar.  Offsets 
to these increases include reduced generation at Dokie 1 due to low winds, and
slight  increases   in  general   and   administrative  expense   related   to 
non-recurring transaction fees and office  reductions for the Company's  South 
American projects.

Iceland Operations (66.6% Interest)

The 100  MW Reykjanes  plant  generated 132,689  MWh  of electricity  (98%  of 
budget), and the 72  MW Svartsengi plant generated  74,102 MWh of  electricity 
(109% of budget), and continued to supply thermal energy for district heating.

Toba Montrose Operations (40% Interest)

The Toba Montrose  facility generated 113,474  MWh of electricity,  or 74%  of 
forecasted generation. Although the Montrose facility was offline for  repairs 
during the majority of  the quarter, the measured  water flow for purposes  of 
business interruption insurance  payments (attributed  generation) was  57,636 
MWh, for a combined pro forma generation of 171,110, 112% of budget.

On December 13,  2012 a  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.  The penstock  repairs  at  the 
Montrose hydro  facility  were completed  during  the third  quarter  and  the 
facility was brought  back into service  on September 22,  2013. Several  site 
improvements  including  protective  berms   were  also  completed  and   will 
significantly lessen  the likelihood  of any  future damage  or  interruption. 
Business Interruption and property  damage proceeds were  paid by the  insurer 
during the quarter and eligible property costs and sub-limits with respect  to 
future payments for property damage are being reviewed with the insurer.

New property insurance  for the project  was obtained in  September 2013  with 
earth movement coverage capped at C$40.0 million. Toba Montrose has agreed  to 
defer distributions  until  a  higher  level of  earth  movement  coverage  is 
re-established, which the Company  expects to occur by  the second quarter  of 
2014 or earlier.

Dokie 1 Operations (51% Interest)

The 144 MW  Dokie 1  wind farm  generated 26,423  MWh of  electricity for  the 
quarter, or 72% of budget.  Revenue decreased against the comparative  quarter 
due to lower wind.

ABW Solar Operations (10% Interest)

On August 23  Alterra acquired  a 10%  interest in  a 50  MW solar  generation 
project in Ontario (ABW  Solar), which will be  held in a general  partnership 
with an affiliate of  GE Energy Financial Services  ("GE EFS") and managed  by 
Alterra. The project was  built by First Solar,  Inc. and achieved  commercial 
operations during the second  quarter of 2013. The  project will sell 100%  of 
its electricity to the Ontario Power Authority under 20-year PPAs. The project
generated 1,072 MWh for the  quarter (beginning August 23), representing  113% 
of budget.

Soda Lake Operations (100% Interest)

The 15 MW Soda Lake geothermal  plant generated 12,631 MWh of electricity  for 
the current  quarter,  or  98%  of budget.  The  plant  completed  its  annual 
maintenance outage during the quarter as planned.

Expansion and Development Projects

Jimmie Creek hydro (formerly Upper Toba)

Alterra is currently  finalizing plant design  for the fully  permitted 62  MW 
Jimmie Creek project and in July 2013 signed a limited notice to proceed  with 
SNC Lavalin who will provide further pre-construction services. Alterra is now
targeting construction to begin in the first half of 2014.

On October 31 Alterra  signed an agreement  to purchase the  49% share of  the 
Jimmie Creek project currently owned by  GE EFS, following which Alterra  will 
own 100% of the project. Alterra expects the transaction to close by year-end.

In November 2013 Alterra completed an amendment to the project's PPA to  cover 
the Jimmie Creek project only, at a nameplate capacity of 62 MW with projected
annual firm  energy of  114 GWh  and an  August 1,  2016 completion  date  for 
construction. Under the contract, the project  will sell 100% of its power  to 
BC Hydro for 40  years. Alterrawill examine  the possibility of  constructing 
the Upper Toba project at a later date under a future call for power.

Dokie 2 wind farm expansion

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.

South American geothermal projects

In  July  2013  Alterra  completed  a  joint  venture  agreement  with  Energy 
Development Corporation ("EDC")  for the further  development of the  Mariposa 
project in Chile and  the Crucero, Loriscota, and  Tutupaca Norte projects  in 
Peru on a  joint basis.  Under the  terms of the  joint venture,  EDC will  be 
entitled to earn a 70% interest by  funding the next $58.3 million in  project 
expenditures at Mariposa and $8.0 million on the Peruvian projects. Subsequent
project equity contributions and economic sharing would be on a pro rata basis
between the partners. EDC is now  the managing partner for the development  of 
the Mariposa project and the Peruvian projects. The projects are now  recorded 
as equity investments by Alterra.

Reykjanes Expansion

Alterra has commenced a reinjection program  at the Reykjanes field, and  will 
refine the  timeline for  the  Reykjanes expansion  pending results  from  the 
program. The key matters remaining prior  to construction are conclusion of  a 
PPA, completion of project financing and confirmation of resource field.

Other development projects

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 Wednesday, November 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 18533630.
  *The call will also be broadcast live on the Internet at
    http://www.newswire.ca/en/webcast/detail/1246789/1373689.
  *The call will be available for replay for one week after the call by
    dialing 1-416-764-8677 and entering replay PIN 533630.



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.

Contact:

Peter Lekich, Corporate Communications
Alterra Power Corp.
Phone: 604.235.6719
Email:info@alterrapower.ca
 
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