BOSTON, Nov. 16, 2012 /PRNewswire/ -- Atlantic Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the "Company") today announced that it has entered into an agreement with Veolia Environnement SA ("Veolia") to acquire all of the outstanding shares of Ridgeline Energy Holdings, Inc. ("Ridgeline Energy" or "Ridgeline"), currently a wholly-owned subsidiary of Eolfi SA, a European renewable power development company majority owned by Veolia (the "Acquisition").
"The Acquisition will add interests in three wind projects totaling 150 net MW, two in operation and one completing construction by year end," said Barry Welch, President and CEO of Atlantic Power. "These projects have 20-year and 25-year power purchase agreements ("PPAs") with investment grade off-takers, and are expected to generate $9 to $12 million of operating cash flow per year starting in 2013. In addition, the Company will acquire Ridgeline's development pipeline, which includes approximately 1,000 MW of solar and wind projects. The Ridgeline team will add substantial experience in renewable project acquisition, development, construction and asset management to the Company. The Ridgeline acquisition strengthens our ability to execute development stage projects which is one of our target growth areas. It also complements our other growth area, operating project acquisitions, as exemplified by the Capital Power Income LP transaction completed a year ago. In combination with cash flows from our existing diversified portfolio of assets, these growth initiatives will continue to support our dividend."
Ridgeline Energy currently has a wind and solar development pipeline of more than 20 projects in the U.S. totaling approximately 1,000 MW. Planned development expenditures in 2013 are focused on near-term opportunities where PPAs can be obtained quickly, including solar sites where investment tax credits remain available and construction could be completed as early as the first quarter of 2014. Wind development viability will depend on continued support from renewable portfolio standards in more than 30 states and a possible extension of production tax credits. While the amount of development expenditures could vary significantly depending on ongoing progress with the pipeline projects, the Company's current estimate is that the net impact of those investments along with cash flow from the operating projects will be approximately neutral in 2013 to 2015, and significantly accretive thereafter.