25. Consolidating financial information

As of December 31, 2012 and December 31, 2011, we had $460.0 million of Senior Notes. These notes are guaranteed by certain of our 100% owned subsidiaries, or guarantor subsidiaries. These guarantees are joint and several.

Unless otherwise noted below, each of the following 100% owned guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes as of December 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, 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.

The following condensed consolidating financial information presents the financial information of Atlantic Power, the guarantor subsidiaries, and Curtis Palmer (our non-guarantor subsidiary) in accordance with Rule 3-10 under the SEC's Regulation S-X. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor subsidiaries or Curtis Palmer 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

December 31, 2012

(in thousands of U.S. dollars)

	Guarantor Subsidiaries		Curtis Palmer		APC			Eliminations			Consolidated Balance

Assets
Current assets:
Cash and cash equivalents	$	43,221	$	—	$	16,970		$	—		$	60,191
Restricted cash		28,618		—		—			—			28,618
Accounts receivable		138,836		35,774		919			(116,998	)		58,531
Prepayments, supplies, and other		53,368		1,285		9,337			(1,000	)		62,990
Asset held for sale		351,379		—		—			—			351,379

Total current assets		615,422		37,059		27,226			(117,998	)		561,709
Property, plant, and equipment, net		1,883,627		173,100		—			(1,217	)		2,055,510
Equity investments in unconsolidated affiliates		5,109,285		—		1,012,020			(5,692,615	)		428,690
Other intangible assets, net		367,073		157,810		—			—			524,883
Goodwill		276,440		58,228		—			—			334,668
Other assets		499,659		—		440,106			(842,573	)		97,192

Total assets	$	8,751,506	$	426,197	$	1,479,352		$	(6,654,403	)	$	4,002,652

Liabilities
Current Liabilities:
Accounts payable and accrued liabilities	$	169,730	$	13,690	$	44,002		$	(116,998	)	$	110,424
Revolving credit facility		47,000		—		20,000			—			67,000
Current portion of long-term debt		121,203		—		—			—			121,203
Liabilities held for sale		189,038		—		—			—			189,038
Other current liabilities		37,302		—		11,505			(1,000	)		47,807

Total current liabilities		564,273		13,690		75,507			(117,998	)		535,472
Long-term debt		809,138		190,000		460,000			—			1,459,138
Convertible debentures		—		—		424,246			—			424,246
Other non-current liabilities		1,230,747		8,324		973			(842,573	)		397,471
Equity
Preferred shares issued by a subsidiary company		221,304		—		—			—			221,304
Common Stock		5,103,843		214,183		1,285,487			(5,318,026	)		1,285,487
Accumulated other comprehensive income		9,383		—		—			—			9,383
Retained earnings (deficit)		577,438		—		(766,861	)		(375,806	)		(565,229	)

Total Atlantic Power Corporation shareholders' equity		5,911,968		214,183		518,626			(5,693,832	)		950,945

Noncontrolling interests		235,380		—		—			—			235,380

Total equity		6,147,348		214,183		518,626			(5,693,832	)		1,186,325

Total liabilities and equity	$	8,751,506	$	426,197	$	1,479,352		$	(6,654,403	)	$	4,002,652

ATLANTIC POWER CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2011

(in thousands of U.S. dollars)

	Guarantor Subsidiaries			Curtis Palmer			APC			Eliminations			Consolidated Balance

Assets
Current assets:
Cash and cash equivalents	$	58,370		$	(15	)	$	2,296		$	—		$	60,651
Restricted cash		21,412			—			—			—			21,412
Accounts receivable		93,855			13,637			12,088			(40,572	)		79,008
Prepayments, supplies, and other		30,967			1,225			7,504			—			39,696

Total current assets		204,604			14,847			21,888			(40,572	)		200,767
Property, plant, and equipment, net		1,213,080			176,017			—			(843	)		1,388,254
Transmission system rights		180,282			—			—			—			180,282
Equity investments in unconsolidated affiliates		5,109,196			—			870,279			(5,505,124	)		474,351
Other intangible assets, net		415,454			168,820			—			—			584,274
Goodwill		285,358			58,228			—			—			343,586
Other assets		478,600			—			439,548			(841,235	)		76,913

Total assets	$	7,886,574		$	417,912		$	1,331,715		$	(6,387,774	)	$	3,248,427

Liabilities
Current Liabilities:
Accounts payable and accrued liabilities	$	97,129		$	7,241		$	16,500		$	(40,572	)	$	80,298
Revolving credit facility		8,000			—			50,000			—			58,000
Current portion of long-term debt		20,958			—			—			—			20,958
Other current liabilities		20,793			—			12,405			—			33,198

Total current liabilities		146,880			7,241			78,905			(40,572	)		192,454
Long-term debt		754,900			190,000			460,000			—			1,404,900
Convertible debentures		—			—			189,563			—			189,563
Other non-current liabilities		1,177,994			8,072			898			(841,235	)		345,729
Equity
Preferred shares issued by a subsidiary company		221,304			—			—			—			221,304
Common Stock		5,156,644			208,991			1,217,265			(5,365,635	)		1,217,265
Accumulated other comprehensive loss		(5,193	)		—			—			—			(5,193	)
Retained earnings (deficit)		431,018			3,608			(614,916	)		(140,332	)		(320,622	)

Total Atlantic Power Corporation shareholders' equity		5,803,773			212,599			602,349			(5,505,967	)		1,112,754

Noncontrolling interests		3,027			—			—			—			3,027

Total equity		5,806,800			212,599			602,349			(5,505,967	)		1,115,781

Total liabilities and equity	$	7,886,574		$	417,912		$	1,331,715		$	(6,387,774	)	$	3,248,427

ATLANTIC POWER CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

December 31, 2012

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

	Guarantor Subsidiaries			Curtis Palmer			APC			Eliminations			Consolidated Balance

Project revenue:
Energy sales	$	182,854		$	34,184		$	—		$	—		$	217,038
Energy capacity revenue		154,851			—			—			—			154,851
Transmission services		—			—			—			—			—
Other		69,084			—			—			(596	)		68,488

		406,789			34,184			—			(596	)		440,377
Project expenses:
Fuel		169,093			—			—			—			169,093
Project operations and maintenance		119,220			6,139			(206	)		(394	)		124,759
Depreciation and amortization		102,744			15,287			—			—			118,031

		391,057			21,426			(206	)		(394	)		411,883
Project other income (expense):
Change in fair value of derivative instruments		(59,272	)		—			—			—			(59,272	)
Equity in earnings of unconsolidated affiliates		15,824			—			—			—			15,824
Interest expense, net		(5,217	)		(11,215	)		(6	)		—			(16,438	)
Other income, net		(556	)		40			—			—			(516	)

		(49,221	)		(11,175	)		(6	)		—			(60,402	)

Project income (loss)		(33,489	)		1,583			200			(202	)		(31,908	)
Administrative and other expenses (income):
Administration expense		17,590			—			10,677			—			28,267
Interest, net		79,740			—			9,955			173			89,868
Foreign exchange loss		1,185			—			(638	)		—			547
Other income		(6,045	)		—			317			—			(5,728	)

		92,470			—			20,311			173			112,954

Income (loss) from continuing operations before income taxes		(125,959	)		1,583			(20,111	)		(375	)		(144,862	)
Income tax expense (benefit)		(28,084	)		—			1			—			(28,083	)

Net income (loss) from continuing operations		(97,875	)		1,583			(20,112	)		(375	)		(116,779	)
Net income from discontinued operations, net of tax		16,459			—			—			—			16,459

Net income (loss)		(81,416	)		1,583			(20,112	)		(375	)		(100,320	)
Net loss attributable to noncontrolling interests		(593	)		—									(593	)
Net income attributable to preferred share dividends of a subsidiary company		13,049			—			—			—			13,049

Net income (loss) attributable to Atlantic Power Corporation	$	(93,872	)	$	1,583		$	(20,112	)	$	(375	)	$	(112,776	)

ATLANTIC POWER CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

December 31, 2011

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

	Guarantor Subsidiaries			Curtis Palmer			APC			Eliminations			Consolidated Balance

Project revenue:
Energy sales	$	34,581		$	9,009		$	—		$	—		$	43,590
Energy capacity revenue		34,009			—			—			—			34,009
Other		16,731			—			—			(435	)		16,296

		85,321			9,009			—			(435	)		93,895
Project expenses:
Fuel		37,471			—			—			—			37,471
Project operations and maintenance		21,225			851			922			(275	)		22,723
Depreciation and amortization		21,043			2,639			—			—			23,682

		79,739			3,490			922			(275	)		83,876
Project other income (expense):
Change in fair value of derivative instruments		(14,594	)		—			—			—			(14,594	)
Equity in earnings of unconsolidated affiliates		5,989			—			—			367			6,356
Interest expense, net		(3,885	)		(1,911	)		128			(1,576	)		(7,244	)
Other income, net		20			—			—			—			20

		(12,470	)		(1,911	)		128			(1,209	)		(15,462	)

Project income (loss)		(6,888	)		3,608			(794	)		(1,369	)		(5,443	)
Administrative and other expenses (income):
Administration expense		12,216			—			25,472			—			37,688
Interest, net		67,621			—			(41,668	)		—			25,953
Foreign exchange loss		4,057			—			9,781			—			13,838

		83,894			—			(6,415	)		—			77,479

Income (loss) from continuing operations before income taxes		(90,782	)		3,608			5,621			(1,369	)		(82,922	)
Income tax expense (benefit)		(11,346	)		—			242			—			(11,104	)

Net income (loss) from continuing operations		(79,436	)		3,608			5,379			(1,369	)		(71,818	)
Income from discontinued operations		36,177			—			—			—			36,177

Net income (loss)		(43,259	)		3,608			5,379			(1,369	)		(35,641	)
Net loss attributable to noncontrolling interest		(480	)		—			—						(480	)
Net income attributable to Preferred share dividends of a subsidiary company		3,247			—			—			—			3,247

Net income (loss) attributable to Atlantic Power Corporation	$	(46,026	)	$	3,608		$	5,379		$	(1,369	)	$	(38,408	)

ATLANTIC POWER CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

December 31, 2012

(in thousands of U.S. dollars)

	Guarantor Subsidiaries			Curtis Palmer			APC			Eliminations		Consolidated Balance

Cash flows from operating activities:
Net cash provided by (used in) operating activities:	$	(9,924	)	$	1,123		$	175,879		$	—	$	167,078
Cash flows (used in) provided by investing activities:
Acquisitions and investments, net of cash acquired		206,535			—			(287,031	)		—		(80,496	)
Proceeds from sale of equity investments		27,925			—			—			—		27,925
Construction in progress		(456,205	)		—			—			—		(456,205	)
Change in restricted cash		(11,589	)		—			—			—		(11,589	)
Biomass development costs		(480	)		—			—			—		(480	)
Purchase of property, plant and equipment		(1,794	)		(1,108	)		—			—		(2,902	)

Net cash (used in) provided by investing activities		(235,608	)		(1,108	)		(287,031	)		—		(523,747	)
Cash flows (used in) provided by financing activities:
Proceeds from issuance of convertible debentures		—			—			230,640					230,640
Net proceeds from issuance of equity		(1,398	)		—			67,692			—		66,294
Repayment of long-term debt		(284,783	)		—			—			—		(284,783	)
Deferred financing costs		(19,744	)		—			(11,473	)		—		(31,217	)
Proceeds from project-level debt		291,865			—			—			—		291,865
Payments for revolving credit facilities		(30,800	)		—			(30,000	)		—		(60,800	)
Proceeds from revolving credit facility borrowings		69,800			—			—			—		69,800
Equity investment from noncontrolling interest		225,000			—			—			—		225,000
Dividends paid		(13,084	)		—			(131,033	)		—		(144,117	)

Net cash provided by (used in) financing activities		236,856			—			125,826			—		362,682

Net (decrease) increase in cash and cash equivalents		(8,676	)		15			14,674			—		6,013
Less cash at discontinued operations		(6,473	)		—			—			—		(6,473	)
Cash and cash equivalents at beginning of period		58,370			(15	)		2,296			—		60,651

Cash and cash equivalents at end of period	$	43,221		$	—		$	16,970		$	—	$	60,191

ATLANTIC POWER CORPORATION

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

December 31, 2012 and 2011

(in thousands of U.S. dollars)

	Year ended December 31, 2012

	Guarantor Subsidiaries			Curtis Palmer		APC			Eliminations			Consolidated Balance
Net income (loss)	$	(81,416	)	$	1,583	$	(20,112	)	$	(375	)	$	(100,320	)
Other comprehensive income (loss):
Unrealized loss on hedging activities		(949	)		—		—			—			(949	)
Net amount reclassified to earnings		888			—		—			—			888

Net unrealized losses on derivatives		(61	)		—		—			—			(61	)
													—
Defined benefit plan, net of tax		(1,263	)		—		—			—			(1,263	)
Foreign currency translation adjustments		15,900			—		—			—			15,900

Other comprehensive income, net of tax		14,576			—		—			—			14,576

Comprehensive income (loss)		(66,840	)		1,583		(20,112	)		(375	)		(85,744	)
Less: Comprehensive (income) loss attributable to noncontrolling interests		12,456			—		—			—			12,456

Comprehensive income (loss) attributable to Atlantic Power Corporation	$	(79,296	)	$	1,583	$	(20,112	)	$	(375	)	$	(98,200	)

	Year ended December 31, 2011

	Guarantor Subsidiaries			Curtis Palmer		APC		Eliminations			Consolidated Balance
Net income (loss)	$	(43,259	)	$	3,608	$	5,379	$	(1,369	)	$	(35,641	)
Other comprehensive income (loss):
Unrealized loss on hedging activities		(2,647	)		—		—		—			(2,647	)
Net amount reclassified to earnings		1,009			—		—		—			1,009

Net unrealized losses on derivatives		(1,638	)		—		—		—			(1,638	)
Defined benefit plan, net of tax		(489	)		—		—		—			(489	)
Foreign currency translation adjustments		(3,321	)		—		—		—			(3,321	)

Other comprehensive income, net of tax		(5,448	)		—		—		—			(5,448	)

Comprehensive income (loss)		(48,707	)		3,608		5,379		(1,369	)		(41,089	)
Less: Comprehensive (income) loss attributable to noncontrolling interests		2,767			—		—		—			2,767

Comprehensive income (loss) attributable to Atlantic Power Corporation	$	(51,474	)	$	3,608	$	5,379	$	(1,369	)	$	(43,856	)