DEDHAM, Mass., April 1, 2021 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") announced today that on March 31,
2021, it executed a new agreement to sell capacity
from the Oxnard plant for an
additional two years, effective January 1,
2022 through December 31,
2023.
Oxnard is an approximately 49
megawatt gas-fired plant located in Oxnard, California. The plant is currently
operating under a Resource Adequacy (RA) agreement through
December 31, 2021. Under this
agreement, which satisfies the load obligations of a community
choice aggregator, Oxnard receives
a fixed monthly capacity payment and has the opportunity to receive
revenue from the potential sale of energy and ancillary
services.
The new RA agreement for 2022 and 2023 will satisfy the load
obligations of a different entity than the current one.
Oxnard will continue to receive
fixed monthly capacity payments and potentially earn revenue from
the sale of energy and ancillary services. The capacity payment is
modestly higher than the level in place for 2021. The Company
expects a modest level of Project Adjusted EBITDA from Oxnard in 2022 and 2023, similar to the level
expected for 2021.
"The requirement for firm and reliable generation to support the
further integration of intermittent renewable resources makes this
new agreement for Oxnard
possible," said Joe Cofelice,
Executive Vice President—Commercial Development of Atlantic Power.
"We believe this new two-year agreement to sell capacity through
2023 is a further indication of the value of the Oxnard plant in the California market."
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.
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 expectation for Project Adjusted EBITDA from the
Oxnard plant under the RA
agreement in 2021, 2022 and 2023; and
- the Company's assessment of market conditions in California.
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