Condensed consolidating financial information

3 Months Ended

Mar. 31, 2012

Condensed consolidating financial information

Condensed consolidating financial information

13. Condensed consolidating financial information

        As of March 31, 2012 and December 31, 2011, we had $460.0 million of 9.00% senior notes due November 2018 (the "Senior Notes"). These notes are guaranteed by certain of our wholly owned subsidiaries, or guarantor subsidiaries.

        Unless otherwise noted below, each of the following guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes as of March 31, 2012:

        Atlantic Power Limited Partnership, Atlantic Power GP Inc., Atlantic Power (US) GP, Atlantic Power Corporation, Atlantic Power Generation, Inc., Atlantic Power Transmission, Inc., Atlantic Power Holdings, Inc., Atlantic Power Services Canada GP Inc., Atlantic Power Services Canada LP, Atlantic Power Services, LLC, Teton Power Funding, LLC, Harbor Capital Holdings, LLC, Epsilon Power Funding, LLC, Atlantic Auburndale, LLC, Auburndale LP, LLC, Auburndale GP, LLC, Badger Power Generation I, LLC, Badger Power Generation, II, LLC, Badger Power Associates, LP, Atlantic Cadillac Holdings, LLC, Atlantic Idaho Wind Holdings, LLC, Atlantic Idaho Wind C, LLC, Baker Lake Hydro, LLC, Olympia Hydro, LLC, Teton East Coast Generation, LLC, NCP Gem, LLC, NCP Lake Power, LLC, Lake Investment, LP, Teton New Lake, LLC, Lake Cogen Ltd., Atlantic Renewables Holdings, LLC, Orlando Power Generation I, LLC, Orlando Power Generation II, LLC, NCP Dade Power, LLC, NCP Pasco LLC, Dade Investment, LP, Pasco Cogen, Ltd., Atlantic Piedmont Holdings LLC, Teton Selkirk, LLC, Atlantic Oklahoma Wind, LLC, and Teton Operating Services, LLC.

        In addition, as of March 31, 2012, Curtis Palmer, LLC, fully and unconditionally guaranteed Atlantic Power Limited Partnership's guarantee of the Senior Notes.

        The following condensed consolidating financial information presents the financial information of Atlantic Power, the guarantor subsidiaries and Curtis Palmer LLC in accordance with Rule 3-10 under the SEC's Regulation S-X. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor subsidiaries or Curtis Palmer LLC operated as independent entities.

        In this presentation, Atlantic Power consists of parent company operations. Guarantor subsidiaries of Atlantic Power are reported on a combined basis. For companies acquired, the fair values of the assets and liabilities acquired have been presented on a push-down accounting basis.

ATLANTIC POWER CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2012

(in thousands of U.S. dollars)
(Unaudited)

	Guarantor Subsidiaries		Curtis Palmer			Atlantic Power			Eliminations			Consolidated Balance
Assets
Current Assets:
Cash and cash equivalents	$	100,827	$	(78	)	$	5,860		$	—		$	106,609
Restricted cash		27,761		—			—			—			27,761
Accounts receivable		89,392		17,477			2,996			(50,364	)		59,501
Prepayments, supplies, and other		39,555		1,167			1,139			—			41,861
Other current assets		4,055		—			8,856			—			12,911
Total current assets		261,590		18,566			18,851			(50,364	)		248,643
Property, plant, and equipment, net		1,375,605		175,087			—			(1,066	)		1,549,626
Transmission system rights		178,319		—			—			—			178,319
Equity investments in unconsolidated affiliates		5,053,320		—			865,104			(5,441,326	)		477,098
Other intangible assets, net		582,491		166,067			—			(150,925	)		597,633
Goodwill		285,358		58,228			—			—			343,586
Other assets		483,401		—			438,639			(841,235	)		80,805
Total assets	$	8,220,084	$	417,948		$	1,322,594		$	(6,484,916	)	$	3,475,710
Liabilities
Current Liabilities:
Accounts payable and accrued liabilities	$	99,992	$	4,704		$	38,672		$	(50,364	)	$	93,004
Revolving credit facility		22,800					50,000						72,800
Current portion of long-term debt		246,520		—			—			—			246,520
Other current liabilities		51,308		—			13,468			—			64,776
Total current liabilities		420,620		4,704			102,140			(50,364	)		477,100
Long-term debt		714,685		190,000			460,000			—			1,364,685
Convertible debentures		—		—			193,269			—			193,269
Other non-current liabilities		1,214,271		8,135			948			(841,235	)		382,119
Equity
Preferred shares issued by a subsidiary company		221,304		—			—			—			221,304
Common shares		5,094,502		208,991			1,217,893			(5,303,493	)		1,217,893
Accumulated other comprehensive income (loss)		12,216		—			—			—			12,216
Retained deficit		539,619		6,118			(651,656	)		(289,824	)		(395,743	)
Total Atlantic Power Corporation shareholders' equity		5,867,641		215,109			566,237			(5,593,317	)		1,055,670
Noncontrolling interest		2,867		—			—			—			2,867
Total equity		5,870,508		215,109			566,237			(5,593,317	)		1,058,537
Total liabilities and equity	$	8,220,084	$	417,948		$	1,322,594		$	(6,484,916	)	$	3,475,710

ATLANTIC POWER CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Three months ended March 31, 2012

(in thousands of U.S. dollars, except per share amounts)

	Guarantor Subsidiaries			Curtis Palmer			Atlantic Power			Eliminations			Consolidated Balance
Project revenue:
Total project revenue	$	157,118		$	10,617		$	—		$	(125	)	$	167,610
Project expenses:
Fuel		62,099			—			—			—			62,099
Project operations and maintenance		30,067			1,636			(128	)		(75	)		31,500
Depreciation and amortization		32,705			3,763			—			—			36,468
		124,871			5,399			(128	)		(75	)		130,067
Project other income (expense):
Change in fair value of derivative instruments		(58,122	)		—			—			—			(58,122	)
Equity in earnings of unconsolidated affiliates		2,947			—			—			—			2,947
Interest expense, net		(4,325	)		(2,708	)		—			—			(7,033	)
Other income, net		15			—			—			—			15
		(59,485	)		(2,708	)		—			—			(62,193	)
Project income		(27,238	)		2,510			128			(50	)		(24,650	)
Administrative and other expenses (income):
Administration expense		5,134			—			2,699			—			7,833
Interest, net		20,379			—			1,484			173			22,036
Foreign exchange loss		1,133			—			(147	)		—			986
		26,646			—			4,036			173			30,855
Income (loss) from operations before income taxes		(53,884	)		2,510			(3,908	)		(223	)		(55,505	)
Income tax expense (benefit)		(16,291	)		—			—			—			(16,291	)
Net income (loss)		(37,593	)		2,510			(3,908	)		(223	)		(39,214	)
Net loss attributable to noncontrolling interest		(161	)		—			—			—			(161	)
Net income attributable to Preferred share dividends of a subsidiary company		3,239			—			—			—			3,239
Net income (loss) attributable to Atlantic Power Corporation	$	(40,671	)	$	2,510		$	(3,908	)	$	(223	)	$	(42,292	)

ATLANTIC POWER CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three months ended March 31, 2012

(in thousands of U.S. dollars)

	Guarantor Subsidiaries			Curtis Palmer			Atlantic Power			Eliminations		Consolidated Balance
Net cash provided by operating activities	$	30,019		$	(46	)	$	36,519		$	—	$	66,492
Cash flows used in investing activities:
Acquisitions and investments, net of cash acquired		198			—			(198	)		—		—
Change in restricted cash		(6,349	)		—			—			—		(6,349	)
Biomass development costs		(123	)		—			—			—		(123	)
Purchase of property, plant and equipment		(164,126	)		(17	)		—			—		(164,143	)
Net cash used in investing activities		(170,400	)		(17	)		(198	)		—		(170,615	)
Cash flows provided by financing activities:
Repayment for long-term debt		(2,725	)					—			—		(2,725	)
Deferred finance costs		(10,179	)					—			—		(10,179	)
Proceeds from project-level debt		184,216						—			—		184,216
Payments for revolving credit facility borrowings		(8,000	)		—			—			—		(8,000	)
Proceeds from revolving credit facility borrowings		22,800			—			—			—		22,800
Dividends paid		(3,274	)		—			(32,757	)		—		(36,031	)
Net cash provided by financing activities		182,838			—			(32,757	)		—		150,081
Net increase in cash and cash equivalents		42,457			(63	)		3,564			—		45,958
Cash and cash equivalents at beginning of period		58,370			(15	)		2,296			—		60,651
Cash and cash equivalents at end of period	$	100,827		$	(78	)	$	5,860		$	—	$	106,609