ATLANTIC POWER CORPORATION

SCHEDULE I—CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY)

(in millions of U.S. dollars)


	December 31,
	2019		2018
Assets
Current assets:
Cash and cash equivalents	$	43.2	$	42.4
Prepayments and other current assets		0.8		3.3
Total current assets		44.0		45.7
Investment in and advances to / from subsidiaries		0.3		51.6
Total assets	$	44.3	$	97.3

Liabilities
Current liabilities:
Accounts payable and accrued liabilities	$	3.6	$	3.4
Derivative liability		3.2		1.2
Convertible debentures		—		18.1
Total current liabilities		6.8		22.7
Convertible debentures		81.1		80.4
Other long-term liabilities		1.4		1.1
Total liabilities		89.3		104.2

Shareholders' equity		(45.0)		(6.9)
Total liabilities and shareholders' equity	$	44.3	$	97.3

See accompanying notes to condensed financial statements.

ATLANTIC POWER CORPORATION

SCHEDULE I—CONDENSED STATEMENTS OF OPERATIONS (PARENT COMPANY ONLY)

(in millions of U.S. dollars)


	Year Ended December 31,
	2019		2018		2017
Administrative and other expenses:
Administrative expense	$	4.6	$	5.0	$	5.4
Interest expense, net		10.0		13.5		11.6
Foreign exchange loss (gain)		4.3		(9.4)		4.0
Other expense (income)		2.0		(3.1)		0.2
Loss from parent company		(20.9)		(6.0)		(21.2)

Equity (loss) earnings of subsidiaries, net of income tax benefit		(22.9)		43.2		(71.8)

Net (loss) income	$	(43.8)	$	37.2	$	(93.0)

See accompanying notes to condensed financial statements.

ATLANTIC POWER CORPORATION

SCHEDULE I—CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY)

(in millions of U.S. dollars)


	Years Ended December 31,
	2019		2018		2017
Cash provided by operating activities:
Net (loss) income	$	(43.8)	$	37.2	$	(93.0)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Non-cash losses (earnings) from subsidiaries, net of taxes		22.9		(43.2)		71.8
Dividends received from subsidiaries		68.5		39.0		67.9
Unrealized foreign exchange loss (gain)		4.3		(9.4)		4.0
Change in fair value of convertible debenture conversion option derivative		1.8		(3.2)		—
Amortization of debt discount and deferred financing costs		0.7		2.6		—
Change in other operating balances
Accounts receivable		(9.0)		7.4		(1.1)
Prepayments and other assets		2.5		1.0		1.4
Accounts payable and accrued liabilities		1.4		0.8		0.5
Cash provided by operating activities		49.3		32.2		51.5
Cash used in investing activities:
Advances to / from investments in subsidiaries		(27.5)		2.4		(57.8)
Cash paid for acquisition		—		(13.6)		—
Deposit for acquisition		—		(2.6)		—
Cash used in investing activities		(27.5)		(13.8)		(57.8)
Cash used in financing activities:
Common share repurchases		(2.5)		(16.6)		(0.2)
Repayment of convertible debentures		(18.5)		(88.1)		—
Deferred financing costs		—		(5.1)		—
Proceeds from convertible debenture issuance		—		92.2		—
Repayment of intercompany note		—		(0.2)		(0.9)
Cash used in financing activities		(21.0)		(17.8)		(1.1)
Net increase (decrease) in cash and cash equivalents		0.8		0.6		(7.4)
Cash, restricted cash and cash equivalents at beginning of period		42.4		41.8		49.2
Cash, restricted cash and cash equivalents at end of period	$	43.2	$	42.4	$	41.8
Supplemental cash flow information
Interest paid	$	5.2	$	4.7	$	6.2

See accompanying notes to condensed financial statements

ATLANTIC POWER CORPORATION

SCHEDULE I—NOTES TO CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY)

(in millions of U.S. dollars)

Nature of business

Atlantic Power Corporation (the “Parent Company”) is a holding company that conducts substantially all of its business through its subsidiaries. As specified in certain of its subsidiaries' credit agreements, there are restrictions on the Parent Company's ability to obtain funds from certain of its subsidiaries through dividends (refer to Note 11, “Long-term debt”, to the consolidated financial statements). As of December 31, 2019, total Atlantic Power Corporation shareholders’ deficit was $45.0 million and approximately $5.3 million of net assets at certain subsidiaries constituted restricted net assets as defined in Rule 4-08(e)(3) of Regulation S-X. The restricted net assets of these subsidiaries exceeded our consolidated net assets, thus requiring this Schedule I, “Condensed Financial Information of the Registrant.” Accordingly, the balance sheets as of December 31, 2019 and 2018, and the statements of operations and cash flows for the years ended December 31, 2019, 2018 and 2017, have been presented on a “Parent-only” basis. In these statements, the Parent Company's investments in its consolidated subsidiaries are presented under the equity method of accounting. We had no undistributed earnings from our unconsolidated investments for the years ended December 31, 2019, 2018 and 2017, respectively.

As disclosed in Note 12 of the consolidated financial statements, APLP Holdings may be restricted from making dividend payments or other distributions to Atlantic Power Corporation, and APLP and its subsidiaries may be prohibited from making dividends or distributions to Atlantic Power Preferred Equity Limited shareholders in the event of a covenant default or if APLP Holdings fails to achieve a target principal amount on the Term Loan that declines quarterly based on a predetermined specified schedule. APLP Holdings has made principal payments to meet the targeted debt balance requirement as of December 31, 2019 and is not prohibited from making dividends to the Parent Company. The consolidated equity of APLP Holdings was approximately $4.9 million at December 31, 2019 and includes the subsidiaries with restricted net assets of $5.3 million at December 31, 2019 disclosed above.

The Parent-only financial statements should be read in conjunction with our consolidated financial statements included elsewhere herein.

Dividends received

The Parent Company received dividends of $68.5 million, $39.0 million and $67.9 million in 2019, 2018 and 2017, respectively, from its consolidated and unconsolidated subsidiaries.