9. Basic and diluted earnings (loss) per share

Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted average common shares outstanding during their respective period. Diluted earnings (loss) per share are computed including dilutive potential shares as if they were outstanding shares during the year. Dilutive potential shares include shares that would be issued if all of the convertible debentures were converted into shares at January 1, 2013. Dilutive potential shares also include the weighted average number of shares, as of the date such notional units were granted, that would be issued if the unvested notional units outstanding under the LTIP were vested and redeemed for shares under the terms of the LTIP.

The following table sets forth the diluted net income and potentially dilutive shares utilized in the per share calculation for the three months ended March 31, 2013 and 2012:

	Three months ended March 31,

	2013		2012
Numerator:
Income (loss) from continuing operations attributable to Atlantic Power Corporation	$	5.6	$	(53.9	)
Income from discontinued operations, net of tax		0.9		11.6

Net loss attributable to Atlantic Power Corporation	$	6.5	$	(42.3	)
Denominator:
Weighted average basic shares outstanding		119.5		113.6
Dilutive potential shares:
Convertible debentures		27.7		13.3
LTIP notional units		0.4		0.5

Potentially dilutive shares		147.6		127.4

Diluted loss per share from continuing operations attributable to Atlantic Power Corporation	$	0.04	$	(0.47	)
Diluted earnings per share from discontinued operations		0.01		0.10

Diluted loss per share attributable to Atlantic Power Corporation	$	0.05	$	(0.37	)

Potentially dilutive shares from convertible debentures have been excluded from fully diluted shares for the three months ended March 31, 2013 because their impact would be anti-dilutive and potentially dilutive shares from convertible debentures and LTIP notional units have been excluded from fully diluted shares for the three months ended March 31, 2012 because their impact would be anti-dilutive.