ATLANTIC POWER CORPORATION (TSE:ATP) Files An 8-K Material Impairments

ME Staff 8-k
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ATLANTIC POWER CORPORATION (TSE:ATP) Files An 8-K Material Impairments
Item 2.06 Material Impairments.

On August23, 2017, Atlantic Power Corporation (the “Company”) received notification from the U.S. Navy that proposals involving the Company’s Naval Station and North Island projects were not selected in the final round of the Navy’s solicitation for energy security and resiliency at the two naval bases in San Diego on which these projects are located. The timing and final arrangements for decommissioning the sites have not been determined.

Following notification of the outcome of the Navy solicitation, the Company undertook an evaluation of the carrying values of the long-lived assets, which include intangible assets (primarily associated with the underlying Power Purchase Agreements, or “PPAs”) and property, plant and equipment at all three San Diego projects. In conducting this assessment, the Company determined that it is likely that the PPAs for all three projects will terminate ahead of their scheduled December2019 expiration dates, potentially as early as February2018. Accordingly, the Company expects to record a long-lived asset impairment of approximately $50 million in the third quarter of 2017, subject to further estimation of decommissioning costs. Subsequent to recording the impairment, the Company will continue to amortize the approximate remaining $16 million of carrying value of the three projects through February2018. Both the accelerated amortization and the impairment are non-cash expenses that do not affect cash flow, nor are they included in Project Adjusted EBITDA.

Item 7.01 Regulation FD Disclosure.

In connection with the impairment described in Item 2.06, the Company issued a press release. A copy of the press release is furnished as Exhibit99.1 to this Current Report on Form8-K.

The information in this Item 7.01, including Exhibit99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section18 of the Exchange Act, or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in that filing.

Item 99.1 Financial Statements and Exhibits.

(d)Exhibits

ExhibitNumber

Description

99.1

Atlantic Power Corporation press release dated August28, 2017 captioned “Atlantic Power Corporation Provides Update on Contractual Arrangements for Naval Station and North Island Projects.”


ATLANTIC POWER CORP Exhibit
EX-99.1 2 a17-21083_1ex99d1.htm EX-99.1 Exhibit 99.1     Atlantic Power Corporation Provides Update on Contractual Arrangements for Naval Station and North Island Projects   DEDHAM,…
To view the full exhibit click here

About ATLANTIC POWER CORPORATION (TSE:ATP)

Atlantic Power Corporation (Atlantic Power) owns and operates a fleet of power generation assets in the United States and Canada. The Company’s power generation projects sell electricity to utilities and other commercial customers primarily under long-term power purchase agreements (PPAs). Atlantic Power operates through four segments: East U.S., West U.S., Canada and Un-Allocated Corporate. Atlantic Power’s power generation projects in operation have an aggregate gross electric generation capacity of approximately 2,140 megawatts (MW), in which its aggregate ownership interest is approximately 1,500 MW. The Company’s portfolio consists of interests in approximately 20 operational power generation projects across over nine states in the United States and approximately two provinces in Canada. The Company’s power generation projects are primarily located in California, the United States Mid-Atlantic, New York and the provinces of Ontario and British Columbia.