DEDHAM, Mass., Dec. 8, 2020 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") announced today a one-year extension of its Calstock
Power Purchase Agreement (PPA) and a final settlement of the
insurance claim for its Cadillac plant.
Calstock is an approximately 35
megawatt biomass plant located in Hearst,
Ontario. The offtaker under the PPA is the Ontario
Electricity Financial Corporation. The PPA was originally scheduled
to expire in June 2020 but prior to
that date was extended to December
2020 on existing terms. The second extension, which is also
on existing terms, runs to December 16,
2021. The extension provides the provincial government
additional time to consider future options for addressing mill
waste in the province, including a potential new PPA for
Calstock. The extension could be
terminated early by mutual agreement if the Company is successful
in securing a new contract.
"This extension was made possible by the Ontario government's commitment to support the
forestry sector and the economy of Northern Ontario, and the strong support of
all stakeholders involved in this process, including our
Calstock team, the local
communities and mills, unions and the Ontario Forest Industries
Association," said Joe Cofelice,
Executive Vice President—Commercial Development of Atlantic Power.
"We look forward to further engagement with government and other
stakeholders regarding a potential new contract for Calstock."
The PPA extension, which is effective December 17, 2020, does not result in a change to
the Company's 2020 Project Adjusted EBITDA guidance of $175 million to $190
million.
Separately, earlier this month, the Company executed a final
settlement of its insurance claim for the Cadillac plant, under
which it will receive final payments from the insurers totaling
approximately $10.1 million. The
outcome was consistent with the Company's expectation. The cash is
expected to be received by year-end 2020, which would allow the
Company to record business interruption insurance recoveries to
income in the fourth quarter of 2020.
About Atlantic Power
Atlantic Power is an independent power producer that owns power
generation assets in eleven states in the
United States and two provinces in Canada. The Company's generation projects sell
electricity and steam to investment-grade utilities and other
creditworthy large customers predominantly under long–term PPAs
that have expiration dates ranging from 2021 to 2043. The Company
seeks to minimize its exposure to commodity prices through
provisions in the contracts, fuel supply agreements and hedging
arrangements. The projects are diversified by geography, fuel type,
technology, dispatch profile and offtaker (customer). Approximately
75% of the projects in operation are 100% owned and directly
operated and maintained by the Company. The Company has expertise
in operating most fuel types, including gas, hydro, and biomass,
and it owns a 40% interest in one coal project.
Atlantic Power's shares trade on the New York Stock Exchange
under the symbol AT and on the Toronto Stock Exchange under the
symbol ATP. For more information, please visit the Company's
website at www.atlanticpower.com or contact:
Atlantic Power Corporation
Investor Relations
(617) 977-2700
info@atlanticpower.com
Copies of the Company's financial data and other publicly filed
documents are available on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on
the Company's website.
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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 information or forward-looking statements within
the meaning of applicable securities laws (collectively,
"forward-looking statements"), which reflect the expectations of
management regarding the future growth, results of operations,
performance and business prospects and opportunities of the Company
and its projects. These statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, can generally be identified by the use of the words
"plans", "expects", "does not expect", "is expected", "budget",
"estimates", "forecasts", "targets", "intends", "anticipates" or
"does not anticipate", "believes", "outlook", "objective", or
"continue", or equivalents or variations, including negative
variations, of such words and phrases, or state that certain
actions, events or results, "may", "could", "would", "should",
"might" or "will" be taken, occur or be achieved. Examples of such
statements in this press release include, but are not limited to,
statements with respect to the following:
- the Company's views with respect to re-contracting potential
for the Calstock plant;
- the Company's 2020 Project Adjusted EBITDA guidance of
$175 million to $190 million;
- the Company's view that the Cadillac insurance settlement was
consistent with its expectation; and
- the Company's expectation that it will receive approximately
$10.1 million of payments from the
insurers as the final settlement of its Cadillac claim by year-end
2020 and the timing of the recording of business interruption
insurance recoveries to income.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such
performance or results will be achieved. Please refer to the
factors discussed under "Risk Factors" and "Forward-Looking
Information" in the Company's periodic reports as filed with the
U.S. Securities and Exchange Commission (the "SEC") from time to
time for a detailed discussion of the risks and uncertainties
affecting the Company. Although the forward-looking
statements contained in this news release are based upon what are
believed to be reasonable assumptions, investors cannot be assured
that actual results will be consistent with these forward-looking
statements, and the differences may be material. These
forward-looking statements are made as of the date of this news
release and, except as expressly required by applicable law, the
Company assumes no obligation to update or revise them to reflect
new events or circumstances.
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SOURCE Atlantic Power Corporation