Atlantic Power Corporation Releases Second Quarter 2014 Results

BOSTON, Aug. 7, 2014 /CNW/ -- Atlantic Power Corporation (NYSE: AT) (TSX: ATP) 
("Atlantic Power" or the "Company") today released its results for the three 
and six months ended June 30, 2014. 
http://photos.prnewswire.com/prnvar/20110809/NE49346LOGO 
"Our results this quarter benefited from continued strong wind generation, 
increased waste heat at our Ontario projects, improved water flows at Curtis 
Palmer and lower maintenance and administrative expenses versus a year ago.  
The improvement in our operating results this quarter largely offset the 
impact of outages that we experienced earlier in the year," said Barry Welch, 
President and CEO of Atlantic Power. 
"During the quarter, we repaid $37.5 million of our new term loan, which puts 
us on track to reduce total debt on a net basis by approximately $80 million 
this year.  The significant amount of term loan repayment resulted in negative 
Free Cash Flow this quarter, but we expect positive Free Cash Flow generation 
in the second half of the year," Mr. Welch continued.  "Based on our results 
year to date and our expectations for the balance of the year, we are 
reaffirming our 2014 guidance metrics for Project Adjusted EBITDA and Free 
Cash Flow." 
All amounts are in U.S. dollars and are approximate unless otherwise 
indicated. Free Cash Flow, Cash Distributions from Projects, and Project 
Adjusted EBITDA are not recognized measures under generally accepted 
accounting principles in the United States ("GAAP") and do not have 
standardized meanings prescribed by GAAP; therefore, these measures may not be 
comparable to similar measures presented by other companies. Please see 
"Regulation G Disclosures" attached to this news release for an explanation 
and the GAAP reconciliation of "Free Cash Flow", "Cash Distributions from 
Projects" and "Project Adjusted EBITDA" as used in this news release. 
Second Quarter 2014 Financial Highlights 


    --  Project loss of $(3.8) million decreased $24.1 million from Q2
        2013, driven by a $14.8 million non-cash impairment charge at
        Tunis in 2014 and $27.1 million of negative non-cash changes in
        fair value of derivatives
    --  Project Adjusted EBITDA of $75.0 million increased $19.1
        million from Q2 2013, due to fewer outages, stronger wind and
        waste heat, higher water flows at Curtis Palmer and a full
        quarter of Piedmont
    --  Cash flows from operating activities of $34.0 million increased
        $26.8 million from Q2 2013
    --  Free Cash Flow of $(15.1) million decreased $7.6 million from
        Q2 2013, as increased cash flows from operating activities were
        offset by the initial repayment on Atlantic Power Limited
        Partnership (APLP) term loan of $37.5 million (approximately
        70% of amount expected for full year)

YTD June 2014 Financial Highlights
    --  Project income of $16.4 million decreased $35.4 million from
        YTD June 2013, driven by the $14.8 million Tunis impairment
        charge in 2014 and $25.0 million of negative non-cash changes
        in fair value of derivatives
    --  Project Adjusted EBITDA of $149.6 million increased $13.5
        million from YTD June 2013
    --  Cash flows from operating activities of $5.5 million decreased
        $91.4 million from YTD June 2013, primarily due to $54 million
        of debt refinancing and repurchase costs, a $33 million
        reduction from businesses divested in 2013 and a $29 million
        reduction in working capital from 2013
    --  Free Cash Flow of $(61.0) million decreased $135.5 million from
        YTD June 2013 due to the reduction in cash flows from operating
        activities and $37.5 million of term loan repayment

Other Highlights
    --  On track to invest $17 million in 2014 (2013-2014 total $27
        million) in existing projects to boost output, improve
        efficiency and reduce costs, with expected cash return of at
        least $8 million annually beginning in 2015
    --  Closed sale of Delta-Person for $7.2 million in proceeds, plus
        another $1.4 million held in escrow, expected to be released 12
        months after close of the transaction
    --  Liquidity at quarter-end totaled $261 million, including $158
        million of unrestricted cash

2014 Guidance Reaffirmed
       --  Project Adjusted EBITDA of $280 to $305 million
    --  Project Adjusted EBITDA for APLP alone of $165 to $175 million
    --  Free Cash Flow of $0 to $25 million, which excludes
        approximately $49 million of debt refinancing transaction costs
        and $8 million of Piedmont debt payment (total $57.5 million)
    Atlantic Power Corporation
    Table 1 - Selected Results
    (in millions of U.S. dollars, except as otherwise stated)
    Unaudited
                                                                                                                        


                                                                                      Three months ended June 30,   
Six months ended June 30, 
                                                                                                                     
                                                                                     2014       2013       2014     
  2013 
                                                                                                                     
                                                                                     ----       ----       ----     
  ---- 


    Excluding results from discontinued operations(1)
    ------------------------------------------------
    Project revenue                                                                                                     


                                                                                   $143.2     $136.1     $288.5     
$273.6 
Project (loss) income                                                                                                
                                                                                    (3.8)      20.3       16.4      
 51.8 
Project Adjusted EBITDA                                                                                              
                                                                                     75.0       55.9      149.6     
 136.1 
Cash Distributions from Projects                                                                                     
                                                                                     85.3       50.1      135.7     
 104.0 
Aggregate power generation (thousands of Net MWh)                                                                    
                                                                                  2,022.8    2,008.6    4,110.7    
3,890.7 
Weighted average availability                                                                                        
                                                                                    91.2%     92.9%     91.9%     
93.9% 
-----------------------------                                                                                        
                                                                                     ----       ----       ----     
  ---- 


    Including results from discontinued operations (1)
    -------------------------------------------------
    Cash flows from operating activities                                                                                


                                                                                    $34.0       $7.2       $5.5     
 $96.9 
Free Cash Flow                                                                                                       
                                                                                   (15.1)     (7.5)    (61.0)      
74.5 
--------------                                                                                                       
                                                                                    -----       ----      -----     
  ---- 
(1) The Path 15 transmission line ("Path 15"), Auburndale Power Partners, L.P. ("Auburndale"), Lake CoGen, Ltd. 
("Lake") and Pasco Cogen, Ltd. ("Pasco") (collectively, the "Sold Projects") were sold in 
April 2013, the Company's interest in Rollcast Energy ("Rollcast") was sold in November 2013, and Thermo Power & 
Electric, LLC ("Greeley") was sold in March 2014.  Accordingly, the revenues, project 
income (loss), Project Adjusted EBITDA and Cash Distributions from these assets are included in discontinued 
operations for the three and six month periods ended June 30, 2013 and June 30, 2014. 
 The results of discontinued operations are excluded from Project revenue, Project income, Project Adjusted EBITDA 
and Cash Distributions from Projects as presented in Table 1.  The results for 
discontinued operations have also been excluded from the aggregate power generation and weighted average 
availability statistics shown in Table 1.  Under GAAP, the cash flows attributable to the Sold 
Projects, Rollcast and Greeley are included in cash flows from operating activities as shown on the Company's 
Consolidated Statement of Cash Flows; therefore, the Company's calculation of Free Cash 
Flow shown on Table 1 also includes cash flows from the Sold Projects, Rollcast, and Greeley.  The Gregory project 
("Gregory"),, which was sold in August 2013,, and the Delta-Person generating station 
("Delta-Person"), which was sold in July 2014, are both accounted for under the equity method of accounting and 
therefore are included in the Company's financial results from continuing operations. 
Note: Project Adjusted EBITDA, Free Cash Flow and Cash Distributions from Projects are not recognized measures 
under GAAP and do not have any standardized meaning prescribed by GAAP; 
therefore, these measures may not be comparable to similar measures presented by other companies. Please refer to 
Tables 9 through 12 for reconciliations of these non-GAAP measures to GAAP measures. 
--------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------- 
Financial Results 
Table 2 provides a breakdown of project income and Project Adjusted EBITDA by 
segment for the three and six month periods ended June 30, 2014 as compared to 
the same period in 2013. 
Project Income 
Reported project income can fluctuate significantly due to impacts from 
non-cash mark-to-market fair value of derivatives adjustments. 
Three Months Ended June 30, 2014 
Project income decreased by $24.1 million to $(3.8) million compared to $20.3 
million for the same period in 2013.  The reduction in project income was 
primarily due to: 


    --  Negative non-cash changes in the fair value of gas purchase
        agreements and interest rate swap agreements accounted for as
        derivatives in the East and Wind segments totaling $27.1
        million
    --  Decreased project income of $12.6 million at Tunis (East),
        primarily due to a long-lived asset and goodwill impairment of
        $14.8 million, partially offset by favorable outage comparisons
    --  Decreased project income of $4.9 million at Selkirk (East),
        primarily due to accelerated depreciation resulting from the
        scheduled expiration of the project's Power Purchase Agreement
        (PPA) in August 2014

These decreases were partially offset by the following positive factors:
       --  Increased project income of $11.5 million at Kapuskasing (East)
        and Naval Training Center, Williams Lake and Mamquam (West)
        mostly due to lower maintenance expense versus 2013, when the
        projects underwent scheduled maintenance outages
    --  Increased project income of $3.4 million at Curtis Palmer
        (East), primarily due to a decrease in interest expense of $2.8
        million due to redemption of project's senior notes in February
        2014
    --  Increased project income of $3.3 million at Orlando (East),
        which benefited from lower gas costs following the termination
        of above-market swaps in February 2014 and higher capacity
        payments under a new PPA
    --  Increased project income of $2.3 million at Piedmont (East),
        excluding the impact of derivatives included above,
        attributable to a full quarter of operation versus a partial
        quarter in 2013
    Atlantic Power Corporation
    Table 2 - Segment Results
    (in millions of U.S. dollars, except as otherwise stated)
    Unaudited
                                                                                                                        
                                     Three months ended June 30,                Six months ended June 30,
                                                                                                                        
                                            2014                           2013        2014                   2013
                                                                                                                        
                                            ----                           ----        ----                   ----
    Project income (loss)
    --------------------
    East                                                                                                                
                                          $(3.6)                         $12.2       $27.7                  $43.4
    West                                                                                                                
                                             6.7                          (3.1)        1.5                    0.4
    Wind                                                                                                                
                                           (1.9)                          14.5       (7.5)                  15.3
    Un-allocated Corporate                                                                                              
                                           (5.0)                         (3.3)      (5.3)                 (7.3)
    Total                                                                                                               
                                           (3.8)                          20.3        16.4                   51.8
    -----                                                                                                               
                                            ----                           ----        ----                   ----
    Project Adjusted EBITDA
    -----------------------
    East                                                                                                                
                                           $38.5                          $29.4       $84.0                  $78.5
    West                                                                                                                
                                            22.9                           14.1        34.1                   34.7
    Wind                                                                                                                
                                            17.2                           15.5        35.1                   30.5
    Un-allocated Corporate                                                                                              
                                           (3.6)                         (3.1)      (3.6)                 (7.6)
    Total                                                                                                               
                                            75.0                           55.9       149.6                  136.1
    -----                                                                                                               
                                            ----                           ----       -----                  -----


Note: Project Adjusted EBITDA is not a recognized measure under GAAP and does not have any standardized meaning 
prescribed by GAAP; therefore, this measure may not be comparable to similar 
measures presented by other companies. Please refer to Tables 9 through 12 for a reconciliation of this non-GAAP 
measure to a GAAP measure. 
The Company has not reconciled non-GAAP financial measures relating to individual projects to the directly 
comparable GAAP measure due to the difficulty in making the relevant adjustments on an 
individual project basis. 


    -------------------------

Six Months Ended June 30, 2014

Project income decreased by $35.4 million to $16.4 million compared to $51.8 
million for the same period in 2013. The reduction in project income was 
primarily due to:
    --  Net negative non-cash changes in fair value of gas purchase
        agreements and interest rate swap agreements accounted for as
        derivatives in the East and Wind segments totaling $25.0
        million
    --  Decreased project income of $12.8 million at Tunis (East),
        primarily due to the $14.8 million impairment recorded in the
        second quarter of 2014, partially offset by favorable outage
        comparisons
    --  Decreased project income of $7.2 million at Selkirk (East),
        primarily due to accelerated depreciation as described above
    --  Decreased project income of $2.8 million at Piedmont (East),
        excluding the impact of derivatives included above, primarily
        due to higher fuel and maintenance costs, partially offset by
        increased capacity payments (the project had two quarters of
        operation in 2014 versus a partial quarter in 2013)
    --  Net decreases in project income for other projects totaling
        approximately $7 million

These decreases were partially offset by the following positive factors:
    --  Increased project income of $10.5 million at Morris and North
        Bay (East) and Naval Training Center (West) primarily due to
        lower maintenance expense relative to 2013, when the projects
        underwent scheduled maintenance outages
    --  Increased project income from Wind segment of $3.8 million,
        excluding the impact of derivatives included above, primarily
        due to increased wind generation from Meadow Creek
    --  Increased project income of $3.1 million at Orlando (East),
        excluding the impact of derivatives included above, primarily
        due to lower gas costs and higher capacity payments as
        described above
    --  Reduction in Un-allocated Corporate segment of $2.0 million,
        including $1.7 million in development costs and $0.6 million in
        administrative expenses related to cost reduction initiatives
        undertaken in 2013

Project Adjusted EBITDA

Project Adjusted EBITDA includes proportional EBITDA from the Company's equity 
method projects and 100% of EBITDA from Rockland, which is 50% owned by the 
Company, but is consolidated.  Projects classified as discontinued operations 
are excluded from Project Adjusted EBITDA.

Three Months Ended June 30, 2014

Project Adjusted EBITDA increased $19.1 million to $75.0 million from $55.9 
million for the comparable period in 2013. The most significant contributors 
to the increase in Project Adjusted EBITDA were the following:
    --  Naval Training Center, Williams Lake and Mamquam (West),
        totaling approximately $9.1 million, primarily due to lower
        maintenance costs in 2014 relative to 2013, when the projects
        had scheduled maintenance outages
    --  Ontario projects (East), totaling approximately $6.5 million.
        Tunis, Kapuskasing and North Bay experienced lower maintenance
        costs in 2014 relative to 2013, when the projects had scheduled
        maintenance outages. In addition, the Ontario projects
        benefited from higher waste heat generation resulting in
        additional energy margin
    --  Piedmont (East), approximately $2.1 million, due to a full
        quarter of operation versus a partial quarter of operation in
        2013
    --  Other projects in the East totaling approximately $2.0 million,
        primarily Orlando, due to lower gas costs and higher capacity
        payments, and Curtis Palmer, due to increased water flows due
        to a late snowmelt and above-average rainfall
    --  Wind projects $1.7 million, primarily due to stronger wind
        generation, particularly at Meadow Creek

These increases were partially offset by the following decreases:
    --  Cadillac (East), $1.3 million due to lower capacity revenue and
        energy margin and higher maintenance expenses due to a
        scheduled outage

Six Months Ended June 30, 2014

Project Adjusted EBITDA increased by $13.5 million to $149.6 million from 
$136.1 million for the same period in 2013, as the $19.1 million increase in 
the second quarter of 2014 described previously more than offset the reduction 
in the first quarter of 2014.  Results for the first quarter were adversely 
affected by extreme weather and several plant outages, difficulties sourcing 
fuel at the Company's biomass projects, a gas swap termination at Orlando and 
several project-specific factors.  For the six-month period, the most 
significant contributors to the increase in Project Adjusted EBITDA were the 
following:
    --  Wind projects, $4.6 million due to stronger wind generation,
        particularly at Meadow Creek and Rockland, partly offset by
        impact of Canadian Hills weather-related outage in January
    --  Tunis, North Bay and Kapuskasing (East), totaling $4.5 million,
        due primarily to increased waste heat, decreased maintenance
        expenses and other factors
    --  Morris (East) $4.4 million, due primarily to lower maintenance
        costs, lower fuel expenses and higher revenues (higher PJM
        power prices)
    --  Naval Training Center (West), $3.9 million due to lower
        maintenance expense compared to 2013, when the project
        underwent scheduled turbine maintenance
    --  Reduction in Un-allocated Corporate loss of $4.0 million,
        primarily due to a reduction in development costs at Ridgeline
        of $1.7 million and a reduction in administrative costs of $2.2
        million resulting from cost reduction initiatives undertaken in
        2013

These increases were partially offset by the following decreases:
    --  Cadillac (East), $1.4 million due to lower capacity revenue and
        increased maintenance expenses resulting from a scheduled
        maintenance outage in March and April of 2014 that was extended
    --  Net decreases totaling approximately $6.5 million at other
        projects, including Williams Lake and North Island (West) and
        Calstock (East), as well as smaller decreases at other projects

Cash Distributions from Projects

Cash Distributions from Projects, which excludes projects classified as 
discontinued operations, increased by $32 million to approximately $136 
million for the six months ended June 30, 2014, compared to $104 million for 
the same period in 2013.  This result included a $35 million increase in the 
second quarter of 2014, which more than offset the decline in the first 
quarter of 2014.

Significant increases in the six months ended June 30, 2014 relative to the 
year-ago period occurred at (i) the Navy projects in California and were 
attributable to lower operation and maintenance expenses than in 2013, during 
which the projects experienced planned outages, and to lower working capital 
requirements associated with a new gas supply agreement in 2014; (ii) Meadow 
Creek, Canadian Hills, Rockland and Idaho Wind, due to the release of 
construction-related blade and credit reserves and increased wind generation; 
(iii) Orlando, due to lower gas costs following the termination of swaps that 
were above market as well as favorable changes to the project's PPA; and (iv) 
Nipigon and Tunis, due to the timing of revenue receipts.

These increases were partly offset by decreases at (i) Chambers, which 
benefited from the release of the DuPont settlement in the 2013 period and for 
which there was a change in the distribution date under the project's new debt 
agreement in 2014, with distributions next expected to occur in December; (ii) 
Williams Lake, due to costs associated with a January 2014 forced outage; and 
(iii) Selkirk, due to use of working capital to support credit requirements, 
although a distribution from the project is expected in August.

Cash Flow from Operating Activities

As previously reported, during the first quarter of 2014 the Company incurred 
significant costs in conjunction with its refinancing and debt repurchase 
transactions, which included entry into the new credit facilities, debt 
redemptions and repurchases, and the Piedmont term loan conversion.  These 
costs, which totaled approximately $100 million and included prepayment 
premiums and make-wholes, accrued interest expense, swap termination costs and 
financing expenses and fees, are detailed in Table 4 to the first quarter 2014 
earnings release dated May 12, 2014.  Approximately $49.4 million of these 
costs were recorded in interest expense and another $4 million to terminate 
gas swaps at the Orlando project were included in fuel expense.  Together 
these reduced cash flows from operating activities and Free Cash Flow by 
approximately $54 million in the first quarter of 2014, $0 million in the 
second quarter of 2014 and $54 million in the first six months of 2014.  With 
the exception of the Orlando gas swap termination cost, these transaction 
costs did not affect Project income or Project Adjusted EBITDA.

Three Months Ended June 30, 2014

Cash flows from operating activities increased by $26.8 million to $34 million 
compared to $7.2 million for the same period in 2013.  The increase is 
primarily due to the $19.1 million increase in Project Adjusted EBITDA for the 
quarter and a $7.0 million benefit from changes in working capital.

Six Months Ended June 30, 2014

Cash flows from operating activities decreased by $91.4 million to $5.5 
million compared to $96.9 million for the same period in 2013.  The decrease 
is primarily due to the $54 million of refinancing transaction costs incurred 
in the first quarter and described previously, a $32.8 million decrease in 
loss from discontinued operations (projects sold in 2013) and a $29.3 million 
decrease in working capital from the comparable 2013 period.  The decrease in 
working capital is due to a $31.6 million decrease in prepaid and other assets 
due to the collection of security deposits related to recently completed 
construction projects, such as Piedmont, Canadian Hills and Meadow Creek, in 
the first quarter of 2013.

Free Cash Flow

Three Months Ended June 30, 2014

Free Cash Flow decreased by $7.6 million to $(15.1) million compared to $(7.5) 
million for the same period in 2013.  The decrease is primarily due to $37.5 
million of term loan facility repayments by APLP, partially offset by $28.6 
million of higher operating cash flows.  The $37.5 million of term loan 
repayments in the second quarter included $1.5 million of 1% mandatory 
amortization ($6.0 million annually) and $36.0 million of debt repaid pursuant 
to the 50% sweep of APLP's cash flow after debt service and capex.  The 
Company expects term loan repayments for the full year to total approximately 
$52 to $55 million.

Six Months Ended June 30, 2014

Free Cash Flow decreased by $135.5 million to $(61.0) million compared to 
$74.5 million for the same period in 2013.  The decrease is primarily due to 
$37.5 million of term loan facility repayments by APLP and a $91.4 million 
decrease in operating cash flows as described previously.

The Company's full year 2014 Free Cash Flow guidance excludes (i) $49.4 
million of interest expense related to the refinancing and debt repurchase 
transactions and (ii) the $8.1 million Piedmont construction debt repayment.  
On that basis, Free Cash Flow for the first six months of 2014 is 
approximately $(3.5) million compared to $74.5 million for the same period in 
2013.

Results of Discontinued Operations

Results of discontinued operations are discussed beginning on page 9 of this 
press release.

Reaffirming 2014 Guidance
       --  Annual Project Adjusted EBITDA guidance of $280 to $305 million
    --  Annual Free Cash Flow guidance of $0 to $25 million

Project Adjusted EBITDA

The Company is reaffirming its previous guidance for 2014 Project Adjusted 
EBITDA in the range of $280 to $305 million.  Results for the first six months 
of 2014 totaled $149.6 million, or approximately 51% of the full-year 
guidance.  In the second quarter, favorable maintenance cost comparisons due 
to fewer planned outages, increased waste heat, higher levels of wind 
generation, and increased water levels at Curtis Palmer mostly offset the 
impact on first-quarter results of plant outages, lower water levels at Curtis 
Palmer and a $4 million termination cost for certain gas swaps at Orlando.

The Company is also reaffirming its expectation for APLP's 2014 Project 
Adjusted EBITDA in the range of $165 to $175 million.

The Company has not reconciled non-GAAP financial measures relating to the 
APLP projects to the directly comparable GAAP measures due to the difficulty 
in making the relevant adjustments on an individual project basis.

Free Cash Flow

The Company is reaffirming its previous guidance for 2014 Free Cash Flow in 
the range of $0 to $25 million.  This guidance excludes (i) approximately 
$49.4 million in expenses associated with the first quarter refinancing and 
debt repurchase transactions and (ii) the $8.1 million repayment of Piedmont 
construction debt made to facilitate the term loan conversion in February, 
together totaling $57.5 million.  The Company's Free Cash Flow guidance is net 
of planned capital expenditures totaling $16 million and debt repayments under 
the APLP term loan of approximately $52 to $55 million in 2014.

In the first six months of 2014, Free Cash Flow excluding the $57.5 million of 
transaction-related costs and Piedmont debt repayment (consistent with 
full-year guidance) was $(3.5) million.  However, this was after $37.5 million 
of term loan repayment.  The amount of term loan repayment in the second half 
of this year is expected to be lower than in the first half because of the 
timing of APLP cash flows, which are typically stronger in the winter and 
spring months at the Ontario projects (waste heat) and Curtis Palmer (hydro 
generation), and the timing of APLP capital expenditures, which are expected 
to be higher in the second half.  The Company expects that Free Cash Flow will 
benefit in the second half from distributions from minority-owned projects, 
some of which were deferred from the first half, and lower parent interest 
expense.

See Table 3 for full-year 2014 guidance and year-to date 2014 actual results.
    Atlantic Power Corporation
    Table 3 - 2014 Annual Guidance and YTD 2014 Actual
    (in millions of U.S. dollars, except as otherwise stated)
    Unaudited                                                                                                           


                                                                                         2014 Annual Guidance YTD 
2014 Actual 
---------                                                                                                            
                                                                                         -------------------- ------
--------- 
Project Adjusted EBITDA                                                                                              
                                                                                                  $280 - $305        
$149.6 
Free Cash Flow (1)                                                                                                   
                                                                                                     $0 - $25       
  $(61.0) 


    APLP Project Adjusted EBITDA (2)                                                                                    
                                                                                                      $165 - $175       
    $88.8


(1) Free Cash Flow is defined as cash flows from operating activities less capex; project-level debt repayments, 
including amortization of the Senior Secured Term Loan Facility; and distributions to 
noncontrolling interests, including preferred share dividends.  Note that 2014 guidance excludes $54 million of 
refinancing and debt repurchase transaction costs in first quarter 2014 and $8 million of 
Piedmont debt repayment in February 2014. 
(2) APLP is a wholly owned subsidiary of the Company.  APLP Project Adjusted EBITDA is a summation of Project 
Adjusted EBITDA at each APLP project, and is calculated in a manner which is 
consistent with the Company's Project Adjusted EBITDA calculation.  The Company has not reconciled non-GAAP 
financial measures relating to individual projects or the APLP projects to the directly 
comparable GAAP measures due to the difficulty in making the relevant adjustments on an individual project basis. 
Note: Project Adjusted EBITDA, APLP Project Adjusted EBITDA and Free Cash Flow are not recognized measures under 
GAAP and do not have any standardized meaning prescribed by GAAP; 
therefore, these measures may not be comparable to similar measures presented by other companies.  The Company has 
not provided a reconciliation of forward-looking non-GAAP measures, due 
primarily to variability and difficulty in making accurate forecasts and projections, as not all of the information 
necessary for a quantitative reconciliation is available to the Company without unreasonable 
efforts. 


    --------

Financial Update

Liquidity

As can be seen from Table 4, the Company's liquidity increased from 
approximately $246 million at March 31, 2014 to approximately $261 million as 
of June 30, 2014, including $158 million of unrestricted cash.  The Company 
plans to use $41 million of this cash to repay its Cdn$45 million convertible 
debentures due in October 2014.

The increase in liquidity in the quarter resulted from a reduction in letters 
of credit outstanding to $107 million from $144 million, which increased 
revolver availability by $37 million.  This was partly offset by a $22 million 
reduction in unrestricted cash, which was attributable to debt repayment and 
other uses of cash during the quarter.
    Atlantic Power Corporation
    Table 4 - Liquidity (in millions of U.S. dollars)
    Unaudited                                                                                                           
                            June 30, 2014
                                                                                                                        
             March 31, 2014
    ---                                                                                                                 
             --------------
    Revolver capacity                                                                                                   
                     $210.0         $210.0
    Letters of credit outstanding                                                                                       
                    (144.1)       (107.0)
    -----------------------------                                                                                       
                     ------         ------
    Unused borrowing capacity                                                                                           
                       65.9          103.0
    Unrestricted cash (1)                                                                                               
                      180.0          157.6
    --------------------                                                                                                
                      -----          -----
    Total Liquidity                                                                                                     
                     $245.9         $260.6


(1) Includes project-level cash for working capital needs of $16.4 million at June 30, 2014 and $17.6 million at 
March 31, 2014. 
--------------------------------------------------------------------------------------------------------------------
------------ 
Covenant Update 
Due to the aggregate impact of the up-front costs resulting from the 
prepayments and repurchases of the Company's indebtedness incurred in the 
first quarter of 2014 and as previously disclosed in the first quarter 
earnings release dated May 12, 2014, the Company is not in compliance with the 
fixed charge coverage ratio test included in the restricted payments covenant 
of the indenture governing its 9.0% senior unsecured notes.  The fixed charge 
coverage ratio must be at least 1.75 to 1.00 and is measured on a rolling four 
quarter basis, so the costs associated with debt prepayments and repurchases 
incurred in the first quarter of 2014 would no longer be included in the 
calculation beginning in the second quarter of 2015. 
As a consequence of the non-compliance, common dividend payments, which are 
declared and paid at the discretion of the Company's board of directors, in 
the aggregate cannot exceed the restricted payments "basket" provision of the 
greater of $50 million and 2% of consolidated net assets (approximately $61 
million at June 30, 2014), until such time that the Company satisfies the 
fixed charge coverage ratio test.  The Company has declared seven monthly 
dividends in January through July totaling approximately $25.6 million that 
are subject to the basket provision. 
The Company expects to be in compliance with the financial maintenance 
covenants governing (i) the Company's 9.0% senior unsecured notes; (ii) APLP's 
senior secured credit facilities, including the term loan; and (iii) APLP's 
5.95% Medium-Term Notes, for at least the next twelve months. 
Piedmont 
During the first quarter of 2014, Piedmont underwent several forced 
maintenance outages that resulted in the project not meeting its debt service 
coverage ratio covenant as of June 30, 2014.  The Company does not expect 
Piedmont to pass its debt service coverage ratio covenant for at least the 
next twelve months.  As a result, the project is not expected to make 
distributions for at least the next twelve months, which is at least six 
months beyond the Company's previous expectation. 
Tunis Impairment 
The Company's Tunis project in Ontario has a PPA with the Ontario Power 
Authority (OPA) that is scheduled to expire on December 31, 2014.  Consistent 
with its accounting policy of reviewing its projects for potential impairment 
six months prior to the expiration of an existing PPA, the Company conducted 
an impairment analysis of Tunis in the second quarter of 2014.  Based on the 
results of this analysis, the Company recorded a $14.8 million non-cash 
impairment charge for Tunis, including $9.6 million associated with the 
carrying value of the project's property, plant and equipment and $5.2 million 
for all of the project's goodwill. 
Business Update 
Project Operating Performance 
Three Months Ended June 30, 2014 
Availability declined to 91.2% from 92.9% in the second quarter of 2013 due to 
extended scheduled maintenance outages at Cadillac, Orlando, and Naval 
Station, partly offset by fewer forced outage hours at Williams Lake and Naval 
Station than in the year-ago period.  Generation increased 0.7% due to higher 
generation at Curtis Palmer, Williams Lake, Meadow Creek and Rockland, 
partially offset by the outages at Cadillac, Orlando and Naval Station and 
reduced dispatch at Manchief and Selkirk. 
Six Months Ended June 30, 2014 
Availability declined to 91.9% from 93.9% in the first six months of 2013 due 
to both scheduled and forced outages in the first quarter of 2014, some of 
which were related to extreme weather, and extended scheduled maintenance 
outages at Cadillac, Orlando and Naval Station in the second quarter.  
Generation increased 5.7% in the first six months of 2014 due to the addition 
of Piedmont in April 2013, increased dispatch at Chambers, higher generation 
at Frederickson, and higher wind generation at Meadow Creek and Rockland, 
partially offset by reduced dispatch at Manchief. 
Capex and Optimization Update 
The Company now expects to have major maintenance and capital expenditures in 
2014 of approximately $35 to $40 million.  This estimate is down slightly from 
the previous expectation of $38 to $43 million, because of an insurance 
recovery at Piedmont, timing of expenditures and cost savings on certain 
purchases, partly offset by increases at other projects.  In the first six 
months of 2014, the Company invested $12.5 million, or about one-third of the 
total expected for the year. 
Included in this forecast are certain expenditures designed to improve the 
operating performance and enhance the efficiency or lower the costs of the 
Company's existing portfolio.  The Company views these investments as an 
attractive use of its available cash as it believes that the risk-adjusted 
returns are compelling and the capital requirements are relatively modest.  
The level of planned spending associated with these optimization initiatives 
is approximately $17 million in 2014.  The largest of these projects is the 
steam generator replacement and upgrade at Nipigon, which will occur during an 
outage scheduled to begin later this month and be completed this fall.  Total 
estimated cost of the Nipigon project is approximately $11 million, including 
$8 million to be spent in 2014.  Other projects already completed this year 
include the repowering of two turbines at Curtis Palmer and capacity uprates 
at North Island, Mamquam and Calstock.  A project designed to boost output at 
Morris during peak periods is under way, with the major equipment installed 
and performance testing scheduled for this month. 
Together with investments made in 2013 totaling $10 million, the Company 
expects that optimization-related spending over the two-year period totaling 
$27 million will produce incremental cash flow of at least $8 million annually 
on a run-rate basis beginning in 2015.  The Company is already realizing a 
portion of this benefit this year from investments completed to date. 
Going forward, the Company expects that major maintenance and routine capex 
will average approximately $25 million annually (versus approximately $19 
million in 2014).  Although the level of optimization investments will vary 
from year to year, the Company has a target of identifying approximately $5 to 
$10 million of such investments annually. 
Supplementary Financial Information 
For further information, attached to this news release is a summary of Project 
Adjusted EBITDA by segment for the three and six months ended June 30, 2014 
and 2013 (Table 8) with a reconciliation to Project income (loss); a bridge 
from Project Adjusted EBITDA to Cash Distributions from Projects by segment 
for the six months ended June 30, 2014 (Table 9A) and the six months ended 
June 30, 2013 (Table 9B); a reconciliation of Cash Distributions from Projects 
and Project Adjusted EBITDA to Net income (loss) and of Free Cash Flow to cash 
flows from operating activities for the three and six months ended June 30, 
2014 and 2013 (Table 10); and a summary of Project Adjusted EBITDA for 
selected projects (top contributors based on the Company's 2014 budget, 
representing approximately 80% of total Project Adjusted EBITDA) for the three 
and six months ended June 30, 2014 and 2013 (Table 11). 
Financial Results of Discontinued Operations 
Financial results for the three and six month periods ended June 30, 2014 and 
June 30, 2013 are affected by the classification of the Company's interests in 
its divested assets as discontinued operations; accordingly, the revenues, 
project income, Project Adjusted EBITDA and Cash Distributions from Projects 
classified as discontinued operations are excluded from results from 
continuing operations.  The results of discontinued operations have been 
separately stated in the Consolidated Statements of Operations as "Net income 
(loss) from discontinued operations, net of tax".  The divested assets 
included in discontinued operations for these periods are the Auburndale, 
Lake, Pasco and Greeley projects and the Company's interests in Rollcast and 
Path 15. 
The cash flow attributable to discontinued operations is included in cash 
flows from operating activities as shown on the Consolidated Statement of Cash 
Flows; therefore, the Company's calculation of Free Cash Flow as shown herein 
also includes cash flow from discontinued operations. 


    --  Project income (loss) from discontinued operations was $0.0
        million and $(0.1) million, respectively, for the three and six
        months ended June 30, 2014, compared to $(5.0) million and $
        (4.1) million, respectively, for the same periods in 2013.
    --  Project Adjusted EBITDA from discontinued operations was $0.0
        million and $(0.1) million, respectively, for the three and six
        months ended June 30, 2014, compared to $6.6 million and $38.3
        million, respectively, for the same periods in 2013.
    --  Cash Distributions from Projects from discontinued operations
        was $0.0 million and $0.0 million, respectively, for the three
        and six months ended June 30, 2014, compared to $22.5 million
        and $22.6 million, respectively, for the same periods in 2013.

Delta-Person was sold in July 2014, resulting in a gain on sale of 
approximately $8.6 million, of which the Company received net cash proceeds of 
$7.2 million for its 40% interest in the project, with an additional $1.4 
million currently held in escrow, which the Company expects will be released 
12 months after the close of the transaction.  The Gregory project was sold in 
August 2013.  Gregory and Delta-Person are both accounted for under the equity 
method of accounting and therefore are included in the Company's financial 
results from continuing operations for the relevant reporting periods rather 
than being included in discontinued operations.

The Company has not reconciled non-GAAP financial measures relating to 
discontinued operations to the directly comparable GAAP measures due to the 
difficulty in making the relevant adjustments on an individual project basis.

Investor Conference Call and Webcast

A telephone conference call hosted by Atlantic Power's management team will be 
held on Friday, August 8, 2014 at 8:30 AM ET.  An accompanying slide 
presentation will be available on the Company's website prior to the call.  
The telephone numbers for the conference call are: U.S. Toll Free: 
1-888-317-6003; Canada Toll Free: 1-866-284-3684; International Toll: +1 
412-317-6061.  Participants will need to provide access code 3658548 to enter 
the conference call.  The conference call will also be broadcast over Atlantic 
Power's website, with an accompanying slide presentation. 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; Canada Toll Free 1-855-669-9658; International Toll: 
+1-412-317-0088. Please enter conference call number 10049145.  The replay 
will be available 1 hour after the end of the conference call through November 
7, 2014 at 9:00 AM ET. The conference call will also be archived on Atlantic 
Power's website.

About Atlantic Power

Atlantic Power owns and operates a diverse fleet of power generation assets in 
the United States and Canada.  Atlantic Power's power generation projects sell 
electricity to utilities and other large commercial customers largely under 
long-term power purchase agreements, which seek to minimize exposure to 
changes in commodity prices.  Its power generation projects in operation have 
an aggregate gross electric generation capacity of approximately 2,945 MW in 
which its aggregate ownership interest is approximately 2,024 MW. Its current 
portfolio consists of interests in twenty-eight operational power generation 
projects across eleven states in the United States and two provinces in Canada.

Atlantic Power 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 certain financial data and other publicly filed documents are 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.

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 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 our Company and our projects.  These statements, which are 
based on certain assumptions and describe our future plans, strategies and 
expectations, can generally be identified by the use of the words "may," 
"will," "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:
    --  2014 Project Adjusted EBITDA will be in the range of $280 to
        $305 million;
    --  2014 APLP Project Adjusted EBITDA will be in the range of $165
        to $175 million;
    --  2014 Free Cash Flow will be in the range of $0 to $25 million,
        excluding refinancing and debt repurchase transaction costs and
        principal repayment of Piedmont construction debt;
    --  the Company's Free Cash Flow will improve in the remainder of
        the year;
    --  the Company will have positive Free Cash Flow generation in the
        second half of the year;
    --  the Company will reduce total debt on a net basis by
        approximately $80 million this year;
    --  the Company will repay the Cdn$44.8 million aggregate principal
        amount of convertible debentures due October 2014 at maturity
        using cash;
    --  the Company will be in compliance with the financial
        maintenance covenants governing its 9.0% senior unsecured
        notes, APLP's senior secured credit facilities and APLP's 5.95%
        Medium-Term notes, for at least the next twelve months;
    --  the impact of the fixed charge coverage ratio included in the
        restricted payments "basket" provision of the indenture
        governing the Company's 9.0% senior unsecured notes;
    --  Piedmont will be unable to pass its debt service coverage ratio
        covenant for at least the next twelve months and as a result,
        will not make distributions for at least the next twelve
        months;
    --  APLP term loan repayments for the full year will total
        approximately $52 to $55 million, including repayments in the
        second half that are less than first half repayments of $37.5
        million, because of the timing of cash flows from APLP
        projects, which are typically stronger in the winter and spring
        months at certain projects, and the timing of APLP capital
        expenditures, which are expected to be higher in the second
        half of the year;
    --  an additional $1.4 million of net cash proceeds from the sale
        of Delta-Person will be released to the Company 12 months after
        the close of the transaction;
    --  the Company will have project capital expenditures and major
        maintenance expenses of approximately $35 to $40 million in
        2014, including optimization initiatives of approximately $16
        million;
    --  major maintenance expense and maintenance capex will average
        approximately $25 million annually, versus approximately $19
        million in 2014;
    --  the level of optimization investments will be approximately $17
        million in 2014, for a two-year (2013 and 2014) total of
        approximately $27 million, and that these investments will
        produce a cash flow run-rate contribution of approximately $8
        million beginning in 2015, with a portion of that realized in
        2014 from investments completed to date;
    --  the Company will have annual optimization capex on average of
        approximately $5 to $10 million; and
    --  the results of operations and performance of the Company's
        projects, business prospects, opportunities and future growth
        of the Company will be as described herein.

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 Securities and Exchange 
Commission from time to time for a detailed discussion of the risks and 
uncertainties affecting our Company, including, without limitation, the 
Company's ability to evaluate and/or implement a broad range of potential 
options, including further selected asset sales or joint ventures to raise 
additional capital for growth or potential debt reduction, the acquisition of 
assets, the dividend level, as well as broader strategic options, including a 
sale or merger of the Company, and the impact any such potential options may 
have on the Company or the Company's stock price.   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.  The financial outlook information 
contained in this news release is presented to provide readers with guidance 
on the cash distributions expected to be received by the Company and to give 
readers a better understanding of the Company's ability to pay its current 
level of distributions into the future.  Readers are cautioned that such 
information may not be appropriate for other purposes.
    Atlantic Power Corporation
    Table 5 - Consolidated Balance Sheets (in millions of U.S. dollars)
                                                                           June 30, December 31,
                                                                               2014          2013
                                                                               ----          ----
    Assets                                                                Unaudited
    Current assets:
    Cash and cash equivalents                                                $157.6        $158.6
    Restricted cash                                                            17.8          96.2
    Accounts receivable                                                        61.5          64.3
    Current portion of derivative instruments asset                             1.7           0.2
    Inventory                                                                  18.6          16.0
    Prepayments and other current assets                                       15.4          16.1
    Refundable income taxes                                                     2.1           4.0
    -----------------------                                                     ---           ---
    Total current assets                                                      274.7         355.4
    Property, plant and equipment, net                                      1,751.2       1,813.4
    Equity investments in unconsolidated affiliates                           368.5         394.3
    Other intangible assets, net                                              420.6         451.5
    Goodwill                                                                  291.1         296.3
    Derivative instruments asset                                                6.3          13.0
    Other assets                                                               98.3          71.1
    ------------                                                               ----          ----
    Total assets                                                           $3,210.7      $3,395.0
    ------------                                                           --------      --------
    Liabilities and Shareholder's Equity
    Current liabilities:
    Accounts payable                                                          $10.5         $14.0
    Accrued interest                                                            6.3          17.7
    Other accrued liabilities                                                  48.9          58.8
    Current portion of long-term debt                                          26.4         216.2
    Current portion of convertible debentures                                  42.0          42.1
    Current portion of derivative instruments liability                        28.4          28.5
    Dividends payable                                                           3.8           6.8
    Other current liabilities                                                   8.1           5.3
    -------------------------                                                   ---           ---
    Total current liabilities                                                 174.4         389.4
    Long-term debt                                                          1,436.0       1,254.8
    Convertible debentures                                                    362.4         363.1
    Derivative instruments liability                                           58.2          76.1
    Deferred income taxes                                                      95.7         111.5
    Power purchase and fuel supply agreement liabilities, net                  36.9          38.7
    Other non-current liabilities                                              63.2          65.4
    Commitments and contingencies                                                 -            -
    -----------------------------                                               ---          ---
    Total liabilities                                                       2,226.8       2,299.0
    Equity
    Common shares, no par value, unlimited authorized shares; 120,712,916   1,286.5       1,286.1
    and 120,205,813 issued and outstanding at June 30, 2014 and December
    31, 2013, respectively
    Preferred shares issued by a subsidiary company                           221.3         221.3
    Accumulated other comprehensive loss                                     (24.1)       (22.4)
    Retained deficit                                                        (754.3)      (655.4)
    ----------------                                                         ------        ------
    Total Atlantic Power Corporation shareholders' equity                     729.4         829.6
    -----------------------------------------------------                     -----         -----
    Noncontrolling interests                                                  254.5         266.4
    ------------------------                                                  -----         -----
    Total equity                                                              983.9       1,096.0
    ------------                                                              -----       -------
    Total liabilities and equity                                           $3,210.7      $3,395.0
        Atlantic Power Corporation
    Table 6 - Consolidated Statements of Operations
    (in millions of U.S. dollars, except per share amounts)
    Unaudited


                                                                                                                    
  Three months ended           Six months ended 


                                                                                                                        
         June 30,                June 30,


                                                                                                                    
2014            2013      2014              2013 
                                                                                                                    
----            ----      ----              ---- 
Project revenue: 
Energy sales                                                                                                       
$82.4           $76.9    $164.7            $153.8 
Energy capacity revenue                                                                                             
41.3            42.9      74.8              77.2 
Other                                                                                                               
19.5            16.3      49.0              42.6 
-----                                                                                                               
----            ----      ----              ---- 
                                                                                                                   
143.2           136.1     288.5             273.6 
Project expenses: 
Fuel                                                                                                                
50.4            50.0     110.2              97.7 
Operations and maintenance                                                                                          
34.5            46.4      67.2              73.9 
Development                                                                                                         
 1.1             1.8       1.8               3.5 
Depreciation and amortization                                                                                       
40.9            41.8      81.5              82.7 
-----------------------------                                                                                       
----            ----      ----              ---- 
                                                                                                                   
126.9           140.0     260.7             257.8 
Project other income (expense): 
Change in fair value of derivative instruments                                                                     
(2.8)           24.3      11.9              36.9 
Equity in earnings of unconsolidated affiliates                                                                     
 3.3             8.7      11.9              15.9 
Interest expense, net                                                                                              
(5.8)          (8.8)   (20.4)           (16.8) 
Impairment                                                                                                        
(14.8)              -   (14.8)                - 
                                                                                                                  
(20.1)           24.2    (11.4)             36.0 
Project (loss) income                                                                                              
(3.8)           20.3      16.4              51.8 
Administrative and other expenses (income): 
Administration                                                                                                      
10.2            11.8      17.5              20.1 
Interest, net                                                                                                       
27.7            25.3      94.1              51.2 
Foreign exchange loss (gain)                                                                                        
15.3          (14.5)    (1.5)           (22.0) 
Other income, net                                                                                                    
-          (9.5)    (2.1)            (9.5) 
                                                                                                                    
53.2            13.1     108.0              39.8 
                                                                                                                    
----            ----     -----              ---- 
(Loss) income from continuing operations before income taxes                                                      
(57.0)            7.2    (91.6)             12.0 
Income tax (benefit) expense                                                                                       
(0.6)            0.6    (12.9)            (1.9) 
----------------------------                                                                                        
----             ---     -----              ---- 
(Loss) income from continuing operations                                                                          
(56.4)            6.6    (78.7)             13.9 
Net loss from discontinued operations, net of tax (1)                                                                
-          (5.4)    (0.1)            (4.9) 
----------------------------------------------------                                                                
 ---           ----      ----              ---- 
Net (loss) income                                                                                                 
(56.4)            1.2    (78.8)              9.0 
Net (loss) income attributable to noncontrolling interest                                                          
(0.3)            1.1     (6.7)            (0.8) 
Net income attributable to preferred share dividends of a subsidiary company                                        
 3.1             3.1       5.9               6.3 
----------------------------------------------------------------------------                                        
 ---             ---       ---               --- 
Net (loss) income attributable to Atlantic Power Corporation                                                     
$(59.2)         $(3.0)  $(78.0)             $3.5 
------------------------------------------------------------                                                      --
----           -----    ------              ---- 
Basic earnings per share: 
(Loss) income from continuing operations attributable to Atlantic Power Corporation                              
$(0.49)          $0.02   $(0.65)            $0.07 
Loss from discontinued operations, net of tax                                                                        
-         (0.05)        -           (0.04) 
---------------------------------------------                                                                       
 ---          -----       ---            ----- 
Net (loss) income attributable to Atlantic Power Corporation                                                     
$(0.49)        $(0.03)  $(0.65)            $0.03 
Diluted earnings per share: 
(Loss) income from continuing operations attributable to Atlantic Power Corporation                              
$(0.49)          $0.02   $(0.65)            $0.07 
Loss from discontinued operations, net of tax                                                                        
-         (0.05)        -           (0.04) 
---------------------------------------------                                                                       
 ---          -----       ---            ----- 
Net (loss) income attributable to Atlantic Power Corporation                                                     
$(0.49)        $(0.03)  $(0.65)            $0.03 
------------------------------------------------------------                                                      --
----          ------    ------             ----- 


    (1) Includes contributions from the Sold Projects and Path 15, which are a component of discontinued operations.
    ----------------------------------------------------------------------------------------------------------------
    Atlantic Power Corporation
    Table 7 - Consolidated Statements of Cash Flows (in millions of U.S. dollars)
    Unaudited
                                                                                                   Six months ended


                                                                                                             June 
30, 


                                                                                     2014     2013
                                                                                     ----     ----
    Cash flows from operating activities:
    Net (loss) income                                                             $(78.8)    $9.0
    Adjustments to reconcile to net cash provided by operating activities
    Depreciation and amortization                                                    81.5     92.8
    Loss of discontinued operations                                                     -    32.8
    Gain on sale of asset                                                           (2.1)   (4.4)
    Long-term incentive plan expense                                                  0.9      1.2
    Impairment charges                                                               14.8      4.9
    Equity in earnings from unconsolidated affiliates                              (11.9)  (15.9)
    Distributions from unconsolidated affiliates                                     37.8     18.0
    Unrealized foreign exchange gain                                                (1.4)   (8.7)
    Change in fair value of derivative instruments                                 (11.9)  (47.7)
    Change in deferred income taxes                                                (15.5)   (6.5)
    Change in other operating balances
    Accounts receivable                                                               2.8    (3.6)
    Inventory                                                                       (2.6)   (1.3)
    Prepayments, refundable income taxes and other assets                            14.7     46.3
    Accounts payable                                                                (4.6)   (9.4)
    Accruals and other liabilities                                                 (18.2)  (10.6)
    ------------------------------                                                  -----    -----
    Cash provided by operating activities                                             5.5     96.9
    Cash flows provided by investing activities
    Change in restricted cash                                                        78.4   (19.4)
    Proceeds from sale of asset, net                                                  1.0    148.3
    Proceeds from treasury grant                                                        -    53.7
    Biomass development costs                                                           -   (0.1)
    Construction in progress                                                        (1.5)  (28.5)
    Purchase of property, plant and equipment                                       (2.5)   (2.7)
    -----------------------------------------                                        ----     ----
    Cash provided by investing activities                                            75.4    151.3
    Cash flows used in financing activities
    Proceeds from senior secured term loan facility                                 600.0        -
    Proceeds from project-level debt                                                    -    20.8
    Repayment of corporate and project-level debt                                 (608.0)   (64.2)
    Payments for revolving credit facility borrowings                                   -  (67.0)
    Deferred financing costs                                                       (38.8)       -
    Equity contribution from noncontrolling interest                                    -    44.6
    Offering costs related to tax equity                                                -   (1.0)
    Dividends paid to common shareholders                                          (20.9)  (43.2)
    Dividends paid to noncontrolling interests                                     (14.2)   (9.3)
    ------------------------------------------                                      -----     ----
    Cash used in financing activities                                              (81.9) (119.3)
    Net (decrease) increase in cash and cash equivalents                            (1.0)   128.9
    Cash and cash equivalents at beginning of period at discontinued operations         -     6.5
    Cash and cash equivalents at beginning of period                                158.6     60.2
    ------------------------------------------------                                -----     ----
    Cash and cash equivalents at end of period                                     $157.6   $195.6
    Supplemental cash flow information
    Interest paid                                                                  $114.7    $65.3
    Income taxes paid, net                                                           $1.0     $1.4
    Accruals for construction in progress                                            $8.2     $8.6

Regulation G Disclosures

Project Adjusted EBITDA, Cash Distributions from Projects and Free Cash Flow 
are not measures recognized under GAAP and do not have standardized meanings 
prescribed by GAAP.  Management believes that Free Cash Flow and Cash 
Distributions from Projects are relevant supplemental measures of the 
Company's ability to earn and distribute cash returns to investors.  
Reconciliations of Free Cash Flow to cash flows from operating activities and 
of Cash Distributions from Projects to Project income (loss) are provided in 
Table 10 on page 17 of this release.  Investors are cautioned that the Company 
may calculate these measures in a manner that is different from other 
companies.

Free Cash Flow is defined as cash flows from operating activities less capex; 
project-level debt repayments, including amortization of the new term loan; 
and distributions to noncontrolling interests, including preferred share 
dividends.

Project Adjusted EBITDA is defined as project income (loss) plus interest, 
taxes, depreciation and amortization (including non-cash impairment charges) 
and changes in fair value of derivative instruments.  Project Adjusted EBITDA 
is not a measure recognized under GAAP and is therefore unlikely to be 
comparable to similar measures presented by other companies and does not have 
a standardized meaning prescribed by GAAP.  Management uses Project Adjusted 
EBITDA at the project level to provide comparative information about project 
performance and believes such information is helpful to investors.  A 
reconciliation of Project Adjusted EBITDA to project income (loss) and a 
bridge to Cash Distributions from Projects are provided in Table 8 below and 
Tables 9A and 9B on page 16, respectively.  Investors are cautioned that the 
Company may calculate this measure in a manner that is different from other 
companies.
    Atlantic Power Corporation
    Table 8 - Project Adjusted EBITDA by Segment (in millions of U.S. dollars)
    Unaudited


                                                                     Three months ended June 30,                  
Six months ended June 30, 
                                                                        2014                2013                  
2014                  2013 
                                                                        ----                ----                  --
--                  ---- 
Project Adjusted EBITDA by segment 
East (1)                                                               $38.5               $29.4                 
$84.0                 $78.5 
West (2)                                                                22.9                14.1                  
34.1                  34.7 
Wind                                                                    17.2                15.5                  
35.1                  30.5 
Un-allocated corporate (3)                                             (3.6)              (3.1)                
(3.6)                (7.6) 
Total                                                                  $75.0               $55.9                
$149.6                $136.1 
Reconciliation to project income 
Depreciation and amortization                                           52.3                50.5                 
104.7                 102.3 
Interest expense, net                                                    8.6                 9.5                  
24.7                  19.7 
Change in the fair value of derivative 
 instruments                                                             3.1              (26.8)               
(11.0)               (38.3) 
Other (income) expense                                                  14.8                 2.4                  
14.8                   0.6 
Project income (loss)                                                 $(3.8)              $20.3                 
$16.4                 $51.8 
--------------------                                                   -----               -----                 ---
--                 ----- 


    (1) Excludes Auburndale, Lake and Pasco, which are components of discontinued operations.
    (2) Excludes Greeley and Path 15, which are components of discontinued operations.
    (3) Excludes Rollcast, which is a component of discontinued operations.


Note: Table 8 presents Project Adjusted EBITDA, which is not a recognized measure under GAAP and does not have any 
standardized meaning prescribed by GAAP; therefore, this measure may not be comparable to a similar 
 measure presented by other companies. 
--------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------- 


    Atlantic Power Corporation
    Table 9A - Cash Distributions from Projects (by Segment, in millions of U.S. dollars)
    Six months ended June 30, 2014 (Unaudited)
    Unaudited                                                                                               Project     
                                   Repayment of                                Interest expense,                        
            Capital                                    Other, including changes in           Cash Distributions
                                                                                                            Adjusted    
                                  long-term debt                                      net                               
         expenditures                                        working capital                    from Projects
                                                                                                             EBITDA
    ---                                                                                                      ------
    Segment
    East
      Consolidated                                                                                                      
         $60.3                                             $(9.4)                                     $(9.9)            
                                   $(0.6)                                           $24.2                        $64.6
      Equity method                                                                                                     
          23.7                                              (3.3)                                      (5.4)            
                                    (0.6)                                             1.7                         16.1
                                                                                                                        
          ----                                               ----                                        ----           


                                   ----                                              ---                         ---
- 


      Total                                                                                                             
          84.0                                             (12.7)                                     (15.3)            
                                    (1.2)                                            25.9                         80.7
                                                                                                                        
          ----                                              -----                                       -----           


                                   ----                                             ----                         ---
- 


    West
      Consolidated                                                                                                      
          26.6                                                  -                                          -            
                                    (0.8)                                           (1.7)                        24.1
      Equity method                                                                                                     
           7.5                                              (1.0)                                          -            
                                        -                                             0.3                          6.8
                                                                                                                        
           ---                                               ----                                         ---           
                                       ---                                             ---                          ---
      Total                                                                                                             
          34.1                                              (1.0)                                          -            
                                    (0.8)                                           (1.4)                        30.9
                                                                                                                        
          ----                                               ----                                         ---           
                                      ----                                             ----                         ----
    Wind
      Consolidated                                                                                                      
          29.7                                              (3.5)                                      (7.1)            
                                    (0.3)                                             2.5                         21.3
      Equity method                                                                                                     
           5.4                                              (2.9)                                      (2.3)            
                                      0.2                                              2.4                          2.8
                                                                                                                        
           ---                                               ----                                        ----           


                                    ---                                              ---                          --
- 


      Total                                                                                                             
          35.1                                              (6.4)                                      (9.4)            
                                    (0.1)                                             4.9                         24.1
      -----                                                                                                             
          ----                                               ----                                        ----           


                                   ----                                              ---                         ---
- 


      Total consolidated                                                                                                
         116.6                                             (12.9)                                     (17.0)            
                                    (1.7)                                            25.0                        110.0
      Total equity method                                                                                               
          36.6                                              (7.2)                                      (7.7)            
                                    (0.4)                                             4.4                         25.7
    Un-allocated corporate                                                                                              
         (3.6)                                                 -                                          -             
                                   (0.9)                                             4.5                            -
    ----------------------                                                                                              
          ----                                                ---                                        ---            
                                     ----                                              ---                          ---
    Total                                                                                                               
        $149.6                                            $(20.1)                                    $(24.7)            
                                   $(3.0)                                           $33.9                       $135.7
    -----                                                                                                               
        ------                                             ------                                      ------           


                                  -----                                            -----                       -----
- 
Note: Table 9A presents Cash Distributions from Projects and Project Adjusted EBITDA, which are not recognized 
measures under GAAP and do not have any standardized meanings prescribed by GAAP; therefore, these measures may not be 
comparable to similar measures presented by other companies. 
--------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------ 


    Atlantic Power Corporation
    Table 9B - Cash Distributions from Projects (by Segment, in millions of U.S. dollars)
    Six months ended June 30, 2013 (Unaudited)


                                                                                                Project Adjusted 
EBITDA                                Repayment of                                    Interest                           


        Capital expenditures                              Other, including changes in           Cash Distributions
                                                                                                                        
                                long-term debt                                   expense,                               
                                                           working capital                    from Projects
                                                                                                                        
                                                                                    net
                                                                                                                        
                                                             ---                                                        
                                                                                                                 ---
    Segment
    East
      Consolidated                                                                                                      
         $53.8                                             $(2.7)                                     $(8.1)            
                                   $(1.3)                                           $14.9                        $56.6
      Equity method                                                                                                     
          24.7                                              (7.0)                                      (1.2)            
                                        -                                             2.6                         19.1
                                                                                                                        
          ----                                               ----                                        ----           
                                        ---                                             ---                         ----
      Total                                                                                                             
          78.5                                              (9.7)                                      (9.3)            
                                    (1.3)                                            17.5                         75.7
                                                                                                                        
          ----                                               ----                                        ----           


                                   ----                                             ----                         ---
- 


    West
      Consolidated                                                                                                      
          26.2                                                  -                                          -            
                                    (0.8)                                          (12.0)                        13.4
      Equity method                                                                                                     
           8.5                                              (1.6)                                      (0.1)            
                                    (0.4)                                             0.1                          6.5
                                                                                                                        
           ---                                               ----                                        ----           


                                   ----                                              ---                          --
- 


      Total                                                                                                             
          34.7                                              (1.6)                                      (0.1)            
                                    (1.2)                                          (11.9)                        19.9
                                                                                                                        
          ----                                               ----                                        ----           


                                   ----                                            -----                         ---
- 


    Wind
      Consolidated                                                                                                      
          25.5                                              (4.9)                                      (7.4)            
                                    (2.3)                                           (4.2)                         6.7
      Equity method                                                                                                     
           5.0                                              (1.1)                                      (2.4)            
                                    (0.1)                                             0.3                          1.7
                                                                                                                        
           ---                                               ----                                        ----           


                                   ----                                              ---                          --
- 


      Total                                                                                                             
          30.5                                              (6.0)                                      (9.8)            
                                    (2.4)                                           (3.9)                         8.4
      -----                                                                                                             
          ----                                               ----                                        ----           


                                   ----                                             ----                          --
- 


      Total consolidated                                                                                                
         105.5                                              (7.6)                                     (15.5)            
                                    (4.4)                                           (1.3)                        76.7
      Total equity method                                                                                               
          38.2                                              (9.7)                                      (3.7)            
                                    (0.5)                                             3.0                         27.3
    Un-allocated corporate                                                                                              
         (7.6)                                                 -                                      (1.3)             
                                       -                                             8.9                            -
    ----------------------                                                                                              
          ----                                                ---                                       ----            
                                       ---                                             ---                          ---
    Total                                                                                                               
        $136.1                                            $(17.3)                                    $(20.5)            
                                   $(4.9)                                           $10.6                       $104.0
    -----                                                                                                               
        ------                                             ------                                      ------           


                                  -----                                            -----                       -----
- 
Note: Table 9B presents Cash Distributions from Projects and Project Adjusted EBITDA, which are not recognized 
measures under GAAP and do not have any standardized meanings prescribed by 


    GAAP; therefore, these measures may not be comparable to similar measures presented by other companies.
    -------------------------------------------------------------------------------------------------------
       Atlantic Power Corporation
    Table 10 - Free Cash Flow (in millions of U.S. dollars)
    Unaudited
                                                                                                                        


                                                                            Three months ended           Six months 
ended 
                                                                                                                     
                                                                                      June 30,                   
June 30, 
                                                                                                                     
                                                                        2014              2013      2014            
  2013 
                                                                                                                     
                                                                        ----              ----      ----            
  ---- 
Cash Distributions from Projects                                                                                     
                                                                       $85.3             $50.1    $135.7            
$104.0 
Repayment of long-term debt                                                                                          
                                                                       (8.4)           (11.7)   (20.1)           
(17.3) 
Interest expense, net                                                                                                
                                                                       (8.5)           (11.1)   (24.7)           
(20.5) 
Capital expenditures                                                                                                 
                                                                       (1.3)            (2.7)    (3.0)            
(4.9) 
Other, including changes in working capital                                                                          
                                                                        28.5              19.7      33.9            
  10.6 
-------------------------------------------                                                                          
                                                                        ----              ----      ----            
  ---- 
Project Adjusted EBITDA                                                                                              
                                                                       $75.0             $55.9    $149.6            
$136.1 
Depreciation and amortization                                                                                        
                                                                        52.3              50.5     104.7            
 102.3 
Interest expense, net                                                                                                
                                                                         8.6               9.5      24.7            
  19.7 
Change in the fair value of derivative instruments                                                                   
                                                                         3.1            (26.8)   (11.0)           
(38.3) 
Other (income) expense                                                                                               
                                                                        14.8               2.4      14.8             
0.6 
Project (loss) income                                                                                                
                                                                      $(3.8)            $20.3     $16.4             
$51.8 
Administrative and other expenses (income)                                                                           
                                                                        53.2              13.1     108.0            
  39.8 
Income tax (benefit) expense                                                                                         
                                                                       (0.6)              0.6    (12.9)            
(1.9) 
Net loss from discontinued operations, net of tax                                                                    
                                                                           -            (5.4)    (0.1)            
(4.9) 
Net (loss) income                                                                                                    
                                                                     $(56.4)             $1.2   $(78.8)             
$9.0 
Adjustments to reconcile to net cash provided by operating                                                           
                                                                        95.6              18.1      92.2            
  66.5 


    activities
    Change in other operating balances                                                                                  


                                                                       (5.2)           (12.1)    (7.9)             
21.4 
Cash flows from operating activities                                                                                 
                                                                       $34.0              $7.2      $5.5            
 $96.9 
Term loan facility repayments (1)                                                                                    
                                                                      (37.5)                -   (37.5)              
  - 
Project-level debt repayments                                                                                        
                                                                       (5.5)            (7.9)   (15.4)           
(10.5) 
Purchases of property, plant and equipment (2)                                                                       
                                                                         0.1             (1.7)    (2.5)            
(2.7) 
Distributions to noncontrolling interests (3)                                                                        
                                                                       (3.1)            (2.0)    (5.2)            
(2.9) 
Dividends on preferred shares of a subsidiary company                                                                
                                                                       (3.1)            (3.1)    (5.9)            
(6.3) 
-----------------------------------------------------                                                                
                                                                        ----              ----      ----            
  ---- 
Free Cash Flow                                                                                                       
                                                                     $(15.1)           $(7.5)  $(61.0)            
$74.5 
(1) Includes mandatory 1% annual amortization and 50% excess cash flow repayments by the Partnership. 
(2) Excludes construction costs related to our Canadian Hills project in 2014 and 2013 and our Piedmont and Meadow 
Creek projects in 2013. 
(3) Distributions to noncontrolling interests primarily include distributions, if any, to the tax equity investors 
at Canadian Hills and to the other 50% owner of Rockland. 
Note: Table 10 presents Cash Distributions from Projects, Project Adjusted EBITDA and Free Cash Flow, which are not 
recognized measures under GAAP and do not have any standardized meanings 
prescribed by GAAP; therefore, these measures may not be comparable to similar measures presented by other 
companies. 
--------------------------------------------------------------------------------------------------------------------
- 


    
    Atlantic Power Corporation
    Table 11 - Project Adjusted EBITDA
     by Project (for Selected
     Projects)
    (in millions of U.S. dollars)
    Unaudited
                                                                     Three months ended    Six months ended
                                                                               June 30,            June 30,
                                                                        2014        2013    2014         2013
                                                                        ----        ----    ----         ----
    East                                               Accounting
    Cadillac                                           Consolidated     $1.2        $2.4    $3.2         $4.6
    Curtis Palmer                                      Consolidated     12.1        11.4    18.7         18.7
    Morris                                             Consolidated      2.8         1.0     6.6          2.1
    Nipigon                                            Consolidated      2.8         2.3     8.7          8.6
    North Bay                                          Consolidated      1.2       (0.8)    6.1          4.5
    Piedmont                                           Consolidated      2.2         0.1     0.8          0.1
    Tunis                                              Consolidated      1.0       (0.8)    5.8          4.1
    Other (1)                                          Consolidated      3.4         2.8    10.4         11.1
    Chambers                                           Equity method     4.0         4.3     9.8         10.2
    Selkirk                                            Equity method     4.2         4.4     9.1         10.1
    Orlando                                            Equity method     3.6         2.3     4.8          4.4
                                                                         ---         ---     ---          ---
    Total                                                               38.5        29.4    84.0         78.5
    West
    Manchief                                           Consolidated      3.5         3.9     7.2          7.9
    Naval Station                                      Consolidated      3.5         3.1     4.8          4.5
    Williams Lake                                      Consolidated      2.8       (0.3)    6.8          8.4
    Other (2)                                          Consolidated      9.5         3.0     7.8          5.4
    Frederickson                                       Equity method     2.6         2.8     5.9          5.9
    Other (3)                                          Equity method     1.0         1.6     1.6          2.6
                                                                         ---         ---     ---          ---
    Total                                                               22.9        14.1    34.1         34.7
    Wind
    Canadian Hills                                     Consolidated      8.1         7.8    13.8         14.5
    Meadow Creek                                       Consolidated      4.2         3.5    10.2          6.5
    Rockland                                           Consolidated      2.3         2.0     5.7          4.5
    Other (4)                                          Equity method     2.6         2.2     5.4          5.0
                                                                         ---         ---     ---          ---
    Total                                                               17.2        15.5    35.1         30.5
    Totals
    Consolidated projects                                               60.6        41.4   116.6        105.5
    Equity method projects                                              18.0        17.6    36.6         38.2
    Un-allocated corporate                                             (3.6)      (3.1)  (3.6)       (7.6)
    ----------------------                                              ----        ----    ----         ----
    Total Project Adjusted EBITDA                                      $75.0       $55.9  $149.6       $136.1
    Reconciliation to project income (loss)
    Depreciation and amortization                                      $52.3       $50.5  $104.7       $102.3
    Interest expense, net                                                8.6         9.5    24.7         19.7
    Change in the fair value of derivative instruments                   3.1      (26.8) (11.0)      (38.3)
    Other (income) expense                                              14.8         2.4    14.8          0.6
    Project income (loss)                                             $(3.8)      $20.3   $16.4        $51.8
    --------------------                                               -----       -----   -----        -----
    (1) Kenilworth, Calstock, and Kapuskasing
    (2) Moresby Lake, Mamquam, North Island, Naval Training Station, and Oxnard
    (3) Q2 and YTD June 2013: Koma Kulshan, Gregory, and Delta-Person; Q2 and YTD June 2014:  Koma Kulshan
    and Delta-Person
    (4) Idaho Wind and Goshen North
    Notes: Table 11 presents Project Adjusted EBITDA, which is not a recognized measure under GAAP and does not have


any standardized meaning prescribed by GAAP; therefore, this measure may not be comparable to a similar measure 
presented 
by other companies. The Company has not reconciled non-GAAP financial measures relating to individual projects to 
the directly 
comparable GAAP measures due to the difficulty in making the relevant adjustments on an individual project basis. 
----------------------------------------------------------------------------------------------------------------- 
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SOURCE  Atlantic Power Corporation 
CO: Atlantic Power Corporation
ST: Massachusetts
NI: UTI OIL ERN EST ERN CONF  
-0- Aug/07/2014 21:23 GMT
 
 
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