The Company | Investment Highlights

A Diversified Fleet of Power Generation and Transmission Assets

  • Fleet consists of a diverse group of 28 power projects in operation totaling 2,024 net MW, all strategically located in major U.S. and Canadian power markets

  • Projects are well diversified based on electricity and steam customers, regulatory jurisdictions, and regional power pools

  • 95% of our power generation is "clean power" (41% renewable and the balance natural gas)

Demonstrated Operating Performance of Projects

  • Projects have a demonstrated track record of high availability and reliability

Stable Power Purchase Agreements (PPAs) with Strong, Diverse Utility Customers

  • Cash flows derived from the sale of electricity under long-term PPAs typically designed to pass through fuel cost fluctuations

  • Weighted-average remaining PPA term of approximately 10 years; managing through near-term PPA expiration and opportunistically seeking to extend PPAs prior to expiration at select projects

  • Approximately 91% of capacity is covered by PPAs scheduled to expire in 2017 and beyond

  • Diversified customer base, consisting mostly of regulated electric utilities with investment-grade credit ratings from Standard & Poor's (S&P)

Strong In-House Operations and Partnerships with Experienced Operators

  • Approximately 80% of our projects are operated and maintained by our seasoned team at Atlantic Power

  • Projects not operated in house are operated and maintained through strong partnerships with recognized third-party operators in the independent power industry

Attractive Organic Growth Opportunities Around Existing Portfolio

  • On target to invest $17 million in 2014 for two-year total of $27 million in projects designed to enhance value of existing projects by increasing output, reducing costs and improving efficiency

  • Expect to realize at least $8 million of annual incremental cash flow from these investments beginning in 2015

  • Compelling risk-adjusted returns on relatively modest capital requirements; shorter lag between investment and cash returns than typical development projects

Addressed Near-Term Financial Priorities

  • February 2014 refinancing transaction addressed majority of near-term debt maturities (through March 2017).

  • Amortizing term loan structure results in deleveraging over time

  • Expect lower interest expense in 2014 and 2015

  • New credit facility provides greater capacity and flexibility with a later maturity date (2018)