Alterra Power Announces Audited Results for the Year Ended December 31, 2013 and Project Updates

 Alterra Power Announces Audited Results for the Year Ended December 31, 2013
                             and Project Updates

PR Newswire

VANCOUVER, March 27, 2014

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


VANCOUVER, March  27,  2014 /PRNewswire/  -  Alterra Power  Corp.  (TSX:  AXY) 
("Alterra" or the "Company") is pleased to report its financial and  operating 
results for the year ended December 31, 2013. For further information on these
results  please   see   Alterra's  Consolidated   Financial   Statements   and 
Management's Discussion and Analysis.

Alterra consolidates 100%  of the results  of operations at  HS Orka and  Soda 
Lake, 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% from January  to December 19, 2013 and 25.5%  for 
the remainder of 2013), ABW  Solar (10% from August  23, 2013 to November  29, 
2013) and Soda  Lake (100%)  had been  reported in  accordance with  Alterra's 
actual share of ownership at December 31, 2013 and for the twelve months  then 
ended. Management believes that net interest reporting provides the  clearest 
view of Alterra's performance.

Highlights for the year include:

  *Increased revenue and recurring net interest EBITDA: Revenue was up 5% to
    $63.9 million due to a higher level of contracted power sales at HS Orka.
    Net interest revenue (including business interruption proceeds) was $88.9
    million, up 2% from the comparative year, primarily due to the increase in
    revenue at HS Orka. Net interest EBITDA was 8% lower at $32.8 million,
    but would have been 4% higher ($37.2 million) if the non-recurring costs
    related to the Montrose rockslide that were expensed were excluded.

  *Reliable power generation: Alterra's fleet of power projects generated
    1,268,294 MWh of clean power (net interest), achieving 94% of budgeted
    generation despite the Montrose hydro facility being offline for nearly
    nine months. Generation would have been 101% of budget had the Montrose
    plant had been operating for the whole period. Total generation from
    plants operated by Alterra was 2,156,803 MWh.

  *Positive cash flow: The Company generated cash flow from operations of
    $16.6 million versus $12.1 million in the comparative period.

  *Strategic asset sales:

       *Dokie 1 partial sale: Alterra sold half of its 51% interest in Dokie
         1 to Fiera Axium for $26.8 million plus up to C$2.3 million over the
         next three years dependent on asset performance. The Company retains
         a 25.5% ownership of Dokie 1 and continues to operate and manage the
         project. The Company recognized a pre-tax gain on the sale of $17.5
         million in the year.

       *ABW Solar: Alterra sold its 10% interest in the ABW Solar project to
         Fiera Axium, for proceeds of $9.8 million. The Company recognized a
         pre-tax gain on the sale of $2.8 million in the year.

  *Montrose facility back in service: Penstock replacement at the Montrose
    hydro facility was 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.

  *Reykjanes field maintenance program: The Company commenced a fluid
    reinjection program at the Reykjanes field to enhance future field
    stability. In support of the fluid reinjection program, the Company
    completed drilling of a new large-diameter well (RN-33) with positive
    initial indications of permeability. Two new production wells were drilled
    at the Reykjanes reservoir early in 2013. The first of these wells has
    been tied in to the power plant and is supplying an additional 6 MW of
    capacity. Testing of the second well is underway.

  *Distributions received: The Company recognized equity distributions
    declared during the year from TMGP, DGP, and the Blue Lagoon in the
    amounts of $0.8 million, $2.0 million, and $1.8 million respectively. In
    2013, HS Orka declared a dividend of $1.2 million of which the Company's
    share was $0.8 million.

  *Jimmie Creek hydro project highlights:

       *Pre-construction activities: Alterra executed a further limited
         notice to proceed with SNC Lavalin to provide pre-construction design
         work and other services in preparation to commence construction on
         the 62 MW Jimmie Creek hydro project in British Columbia in 2014.

       *Power purchase agreement amended: The Company completed an amendment
         to the power purchase agreement ("PPA") for Jimmie Creek. Under the
         contract, the project will sell 100% of its power to BC Hydro for 40
         years commencing in August 2016.

       *Purchase agreement executed: Alterra completed an agreement in
         November to purchase the 49% stake of the Jimmie Creek project then
         held by an affiliate of GE Energy Financial Services ("GE EFS"). On
         March 6, 2014 the transaction was completed, following which the
         Company owned 100% of the project.

  *Shannon wind project highlights:

       *Completed acquisition: Alterra acquired a 10% interest in the
         Shannon wind project (a 202 MW development-stage wind project in Clay
         County, Texas, USA), and subsequent to year end acquired the
         remaining 90% for a small up-front payment and a developer's fee to
         be paid at financial close.

       *Commencement of construction: In December Alterra completed the
         construction of the initial phase of turbine foundations and project
         roads and began construction of the project's main power transformer.
         These activities are expected to qualify the project for the US
         Production Tax Credit.

       *Interconnection Security: Subsequent to year end, Alterra placed a
         $4.5 million cash deposit with the project's transmission provider to
         begin the design and equipment procurement for the project's
         interconnection substation.

       *Current activities: The Company is in the process of finalizing
         project contracts (turbine supply, O&M, etc.), documenting a power
         hedge for project output, and finalizing terms with tax equity
         investors. The Company has also entered into an exclusivity agreement
         with a large energy infrastructure fund as a potential equity partner
         for the project.

  *South American joint ventures: Alterra finalized its joint venture with
    Energy Development Corporation ("EDC") for the development of the Mariposa
    project in Chile and certain geothermal concessions in Peru (the last of
    which were agreed subsequent to year end). EDC will hold a 70% interest in
    the projects and fund 100% of the next $58.3 million of project
    expenditures at Mariposa and the next $14.0 million of project
    expenditures across the two Peruvian concession groups.

  *Italy joint venture: The Company finalized a joint venture with an
    affiliate of Graziella Green Power ("Graziella"), an Italian developer of
    solar and geothermal assets to further advance Alterra's geothermal
    concessions in Italy.

John Carson, Alterra's CEO, said, "2013  was a year of meeting challenges  for 
Alterra. While we were  busy for most  of the year  completing repairs at  our 
Montrose facility, our team  was still able to  deliver another solid year  of 
revenue, cash flow,  generation and team  safety. In 2014,  we are already  at 
full speed pursuing our goals of adding new projects and maintaining our track
record as a premier renewable energy operator."

Financial Results

The following table  shows Alterra's  net interest in  selected operating  and 
financial results  for the  year,  in addition  to key  financial  information 
extracted from the consolidated results.

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

($000 except where                                                                        
For the 12                                            ABW                       
months ended               Toba   Dokie 1      Soda     Solar Exploration
December31, HS Orka   Montrose   (25.5%)      Lake     (10%)    and Head       Net   Consolidated
2013         (66.6%)      (40%)      ^(a)    (100%)      ^(b)      Office  Interest        Results
Generation   852,528   194,927  151,268   67,512  2,059          —  1,268,294   1,347,584 
Total         39,512    20,153   16,658    4,545    832          —     81,700      63,872 
Business           —     7,166        —        —      —          —      7,166           — 
Gross Profit  10,156    10,028    7,602  (2,228)    555          —     26,113      13,021 
EBITDA ^(d)   16,388    15,363   11,371      266    276     (10,885)    32,779      41,044 
($000 except where                                                                       
For the 12                Toba              Soda    ABW                    Net 
months ended HS Orka   Montrose                Lake   Solar   Exploration  Interest
December31, (66.6%)      (40%)   Dokie 1    (100%)   (10%)      and Head     Total   Consolidated
2012            ^(c)                (51%)                          Office                  Results
Generation   817,549   264,564  151,667   64,421      —          —  1,298,201   1,292,008 
Total         38,367    27,238   17,034    4,406      —          —     87,045       61,112 
Gross Profit  11,904    15,248    6,480  (2,982)      —          —     30,650      14,524 
EBITDA        15,214    20,463   10,550    (614)      —      (9,884)    35,729      44,692 

(a) Reflect 51% interest from January 1, 2013 to December 19, 2013 and 25.5%
     interest for the remainder of 2013.
(b) Represent the Company's 10% interest from August 23, 2013 to November 29,
(c) Pro forma information which reflects what the results would have been had
     the Company consolidated 66.6% of HS Orka for the full twelve month
     period ended December 31, 2012 (versus the actual 75% held through
     February 29, 2012).
(d)  Here and elsewhere, Adjusted EBITDA ("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 goodwill 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 year ended December 31, 2013.

Consolidated Results

Revenue was up 5% at $63.9 million due to increased generation and contractual
sales at HS Orka.  Gross profit decreased to  $13.0 million ($14.5 million  at 
December 31,  2012)  as  the  increase in  revenue  was  offset  primarily  by 
increased power plant maintenance costs due to the planned cleaning and repair
of two geothermal wells at HS Orka.

Net loss  increased  to  $116.3  million, largely  as  a  result  of  one-time 
write-offs of development projects as well as other non-cash items, offset  in 
part by gains from the sale of investments and interest from equity  accounted 
joint ventures. Non-cash items contributing to the loss include:

  *A $21.7 million non-cash loss resulting primarily from the change in the
    fair value of embedded derivatives related to aluminum-linked PPAs offset
    in part by a $2.7 million non-cash gain in the fair value of bonds
    payable. Both of these movements relate primarily to fluctuations in
    forecasted aluminum prices which fell in the year by 8%.

  *A $120.5 million write-off of development projects ($1.6 million at
    December 31, 2012), which included$50.5 million for the Bute Inlet
    project, $10.6 million for the Upper Toba River project, $2.4 million for
    other hydro projects and $32.7 million for certain geothermal development
    properties. There was also a write-off of $24.3 million for select plant
    and equipment. The hydro write-offs were related to a decline in the
    market outlook for renewable energy projects as a result of the new
    Integrated Resource Plan ("IRP") from the BC Government. An additional
    write down was recorded for certain HS Orka development projects as a
    result of a lowered outlook on available power contract pricing. The
    Company remains active with these projects and will look to develop them
    in the future when market outlook improves.

Consolidated cash and cash equivalents at December 31, 2013 were $41.7 million
($39.2 million at  December 31, 2012)  of which  $33.9 million is  held by  HS 

Net Interest Results

Alterra's net  interest  in revenue  remained  stable  in 2013,  with  a  2% 
increase primarily due to new contractual revenues at HS Orka and the addition
of ABW Solar. 2013 EBITDA was consistent with 2012 with the exception of  Toba 
Montrose, where the EBITDA declined by $5.1 million due to non-recurring costs
related to the  removal of  the damaged portion  of the  penstock plus  higher 
insurance premiums in  the period. These  rockslide-related events caused  net 
interest in EBITDA to decrease by 8% (down $3.0 million).

The net interest cash position at December 31, 2013 was $38.1 million.

Iceland Operations (66.6% Interest)

The 100  MW Reykjanes  plant  generated 526,502  MWh  of electricity  (99%  of 
budget), and the 72 MW Svartsengi  plant generated 326,026 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 194,927 MWh of electricity, or 69% of the
generation projected for  both units  running at full  service. Although  the 
Montrose facility was offline for repairs during the majority of the year, the
measured water flow for purposes  of business interruption insurance  payments 
(attributed generation) was 94,290 MWh, for a combined pro forma generation of
289,217, or 102% 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  hydro facility. The penstock repairs  were 
completed and the plant resumed operation on September 22, 2013. Several  site 
improvements including protective berms were completed that will significantly
lessen the likelihood of any future damage or interruption.

The Company's proportionate share of  the insurance proceeds received to  date 
is $15.2  million ($8.0  million for  property damage  and $7.2  million  for 
business interruption). At December 31, 2013 an insurance receivable of  $3.4 
million was  recognized by  Toba  Montrose, of  which $2.9  million  currently 
remains outstanding. The final $2.5 million property claim is being reviewed
with respect  to eligible  property  costs and  sub-limits  and has  not  been 
accrued for at December 31, 2013.

The project  renewed  its  insurance  package in  September  2013  with  earth 
movement coverage capped at C$50.0 million. As a result, Toba Montrose  agreed 
with its lenders to  temporarily defer distributions until  a higher level  of 
earth movement coverage is re-established.  Toba Montrose expects to obtain  a 
significantly higher level of coverage and  is in discussion with the  lenders 
to extinguish the  waiver and resume  distributions once this  coverage is  in 

Dokie 1 Operations (25.5% Interest)

The 144 MW Dokie 1 wind farm generated 151,268 MWh of electricity for the year
(reflecting 51%  interest  from January  1  to  December 19,  2013  and  25.5% 
interest for the remainder of the year), or 91% of budget. Generation is lower
than budget due to lower winds in the third quarter.

On December 20, 2013 the Company sold half of its 51% interest in the Dokie  1 
wind farm to an affiliate of Fiera Axium Infrastructure, Inc. ("Fiera Axium"),
the Company's  partner at  Dokie 1  and Toba  Montrose. The  Company  received 
initial sales  proceeds of  $26.8 million,  and may  receive further  earn-out 
payments of up to C$2.3 million over  the next three years depending on  asset 
performance. The Company retains a 25.5% ownership of Dokie 1 and continues to
operate and manage the project. The  Company recognized a pre-tax gain on  the 
sale of $17.5 million in the year.

ABW Solar Operations (Sold)

On November 29, 2013 the Company sold its 10% interest in ABW to an  affiliate 
of Fiera Axium  for proceeds of  $9.8 million, recognizing  a pre-tax gain  of 
$2.8 million.  The Company  had acquired  the 10%  interest in  the ABW  Solar 
project, a 50 MW solar project in  Ontario, Canada for $7.1 million in  August 
2013. The Company was the managing partner  for the project, and held the  ABW 
Solar interest together with its partner, GE EFS.

Soda Lake Operations (100% Interest)

The 15 MW Soda Lake geothermal  plant generated 67,512 MWh of electricity  for 
the year, or 99% of budget.

Expansion and Development Projects

Jimmie Creek hydro (formerly Upper Toba)

The Company holds  100% interest  in the fully  permitted 62  MW Jimmie  Creek 
project, and commenced construction activities in March 2014. The Jimmie Creek
Project is  being delivered  under an  Engineering, Procurement,  Construction 
Management (EPCM) contract with SNC  Lavalin. Project advancements during  the 
year included completion of  drilling and seismic  testing for the  powerhouse 
and intake  locations,  further  hydrology  work  and  continued  construction 
preparation with project contractors and consultants.

The Jimmie Creek project has a 40 year  PPA with BC Hydro, has at a  nameplate 
capacity of 62 MW and projected annual firm energy of 114 GWh.

Shannon wind project

The Company holds a 100% interest in Shannon Wind Holdings LLC, a 202 MW  wind 
project located in Clay County, Texas, USA.

In December 2013,  the Company  completed certain  construction activities  to 
ensure the  Shannon wind  project will  qualify for  the U.S.  Production  Tax 
Credit, which  included contracting  with Mortenson  to complete  the  initial 
phase of on-site  construction and  contracting with Siemens  Energy to  begin 
manufacturing the project's main power transformer.

In February  2014, $4.5  million of  cash was  deposited with  Oncor  Electric 
Delivery Company LLC, the project's  transmission service provider, which  has 
commenced  the   design   and   equipment  procurement   for   the   project's 
interconnection substation.

Contract  negotiations  for  construction,  turbine  supply,  operations   and 
maintenance and other contracts are underway  and the Company is working  with 
several financing parties in preparation for closing project financing,  which 
is projected for the second quarter of 2014.

The Company  expects  to sell  electricity  generated from  the  Shannon  wind 
project under a  long term power  hedging agreement which  it is currently  in 
documentation. Subsequent to  year end,  Alterra entered  into an  exclusivity 
agreement with  a  large energy  infrastructure  fund as  a  potential  equity 
partner for the project.

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 
year Alterra continued to collect  data, conduct engineering work and  perform 
other studies to complete the assessment of the project.

South American geothermal projects

The Company holds a 30%  interest in the Mariposa project  in Chile and a  30% 
interest in  a  number  of  early stage  development  projects  in  Peru.  The 
remaining 70% interest is held by EDC, who will fund the next $58.3 million in
projected expenditures at Mariposa,  and $8.0 million  and $6.0 million  spend 
respectively under the two Peruvian  joint venture agreements. The next  major 
phase of activity at Mariposa  is expected to include drilling  large-diameter 
rotary  holes  to  confirm  rock  permeability,  reservoir  chemistry,   fluid 
chemistry and other resource parameters in order to finalize plant design. The
next steps  of  development  for the  Peruvian  concessions  include  advanced 
exploration activities designed to identify the best locations for power plant
development and construction.

Italian geothermal projects

The Company holds  a 45% interest  in the Mensano  and Roccastrada  geothermal 
concessions, the 55% interest is held by Graziella who will fund approximately
$4.0 million for the joint venture's next development activities.

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 the resource field.

Other development projects

During 2013 the Company has continued to perform hydrology studies on the Bute
Inlet and other  hydro projects and  has maintained all  existing permits  and 
licenses in good  standing. The  Company will continue  to collect  hydrology 
data and maintain  all projects in  good standing despite  writing down  these 
projects to nil for accounting purposes in the year, and will look to  develop 
these projects in the future when market outlook improves.

In Iceland, Alterra  began an environmental  assessment on the  Bulandsvirkjun 
hydroelectric project, which is owned 50% by HS Orka.


Ross Beaty, Alterra's Chairman, said, "2013 was a challenging year for us  due 
to a weaker power outlook in BC where so many of our development projects  are 
located, and the knock-on effects from the rockslide at Montrose in late 2012.
At year-end we decided to write off most of the historic costs carried on  our 
books for most  of our development  projects while retaining  our interest  in 
these projects  for  when conditions  recover  in the  future  allowing  their 
development. Today, Montrose  is back  in operation  and we  have shifted  our 
development efforts to Texas  where things look very  promising at our 200  MW 
Shannon wind  project  and where  power  markets  remain strong.  We  have  an 
exceptional team and adequate financial capacity  to manage our growth, and  I 
look forward to excellent results as 2014 progresses."

Alterra Power will host a conference call to discuss financial and operating
results on Friday, March 28, 2014 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 73147598.

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 147598.

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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