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Shareholders' capital | 12 Months Ended
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Dec. 31, 2019
Equity [Abstract] |
Shareholders' capital | Shareholders’ capital
(a) | Common shares
Number of common shares
|  | 2019 |  | 2018
Common shares, beginning of year |  | 488,851,433 |  |  | 431,765,935 |
Public offering (a)(i) and (a)(ii) |  | 28,009,341 |  |  | 50,041,624 |
Dividend reinvestment plan (a)(iii) |  | 6,068,465 |  |  | 5,880,843 |
Exercise of share-based awards (c) |  | 1,274,655 |  |  | 1,106,105 |
Conversion of convertible debentures (note 12(h)) |  | 19,429 |  |  | 56,926 |
Common shares, end of year |  | 524,223,323 |  |  | 488,851,433 |
Authorized APUC is authorized to issue an unlimited number of common shares. The holders of the common shares are entitled to dividends if, as and when declared by the Board of Directors (the “Board”); to one vote per share at meetings of the holders of common shares; and upon liquidation, dissolution or winding up of APUC to receive pro rata the remaining property and assets of APUC, subject to the rights of any shares having priority over the common shares. The Company has a shareholders’ rights plan (the “Rights Plan”), which expires in 2022. Under the Rights Plan, one right is issued with each issued share of the Company. The rights remain attached to the shares and are not exercisable or separable unless one or more certain specified events occur. If a person or group acting in concert acquires 20 percent or more of the outstanding shares (subject to certain exceptions) of the Company, the rights will entitle the holders thereof (other than the acquiring person or group) to purchase shares at a 50 percent discount from the then-current market price. The rights provided under the Rights Plan are not triggered by any person making a “Permitted Bid”, as defined in the Rights Plan.
(i) | Public offering
In October 2019, APUC issued 26,252,542 common shares at $13.50 per share pursuant to a public offering for proceeds of $354,409 before issuance costs of $14,418. On December 20, 2018, APUC issued 12,536,350 common shares at $10.09 (C$13.76) per share pursuant to a public offering for proceeds of $126,485 (C$172,500) before issuance costs of $366 (C$492). On April 24, 2018, APUC issued 37,505,274 common shares at $9.23 (C$11.85) per share pursuant to a public offering for gross proceeds of $346,458 (C$444,437) before issuance costs of $590 (C$765).
(ii) | At-the-market equity program
On February 28, 2019, APUC established an at-the-market equity program ("ATM program") that allows the Company to issue up to $250,000 of common shares from treasury to the public from time to time, at the Company's discretion, at the prevailing market price when issued on the TSX, the NYSE, or any other existing trading market for the common shares of the Company in Canada or the United States. During the year, the Company issued 1,756,799 common shares under the ATM program at an average price of $12.54 per common share for gross proceeds of $22,034 ($21,704 net of commissions). Other related costs, primarily related to the establishment of the ATM program, were $2,122.
(iii) | Dividend reinvestment plan
The Company has a common shareholder dividend reinvestment plan, which provides an opportunity for shareholders to reinvest dividends for the purpose of purchasing common shares. Additional common shares acquired through the reinvestment of cash dividends are purchased in the open market or are issued by APUC at a discount of up to 5% from the average market price, all as determined by the Company from time to time. Subsequent to year-end, APUC issued an additional 1,244,696 common shares under the dividend reinvestment plan.
13. | Shareholders’ capital (continued)
(b) | Preferred shares
APUC is authorized to issue an unlimited number of preferred shares, issuable in one or more series, containing terms and conditions as approved by the Board. The Company has the following Series A and Series D preferred shares issued and outstanding as at December 31, 2019 and 2018:
Preferred shares | Number of shares |  | Price per share |  | Carrying amount C$ |  | Carrying amount $
Series A | 4,800,000 |  |  | C$ | 25 |  |  | C$ | 116,546 |  |  | $ | 100,463 |
Series D | 4,000,000 |  |  | C$ | 25 |  |  | C$ | 97,259 |  |  | $ | 83,836 |
|  |  |  |  |  |  |  | $ | 184,299 |
The holders of Series A and Series D preferred shares had the right to convert their shares into cumulative floating rate preferred shares, Series B and Series E, respectively, subject to certain conditions, on December 31, 2018 and March 31, 2019, respectively, and every fifth year thereafter. Neither the Series A nor the Series B preferred shares were converted on December 31, 2018 and March 31, 2019 respectively. The holders of Series A preferred shares are entitled to receive quarterly fixed cumulative preferential cash dividends, if, as and when declared by the Board. The dividend for each year up to, but excluding, December 31, 2018 was an annual amount of C$1.125 per share. The dividend rate for the five-year period from and including December 31, 2018 to but excluding December 31, 2023 will be $1.2905. The Series A dividend rate will reset on December 31, 2023 and every five years thereafter at a rate equal to the then five-year Government of Canada bond yield plus 2.94%. The Series A preferred shares are redeemable at C$25 per share at the option of the Company on December 31, 2023 and every fifth year thereafter. The holders of Series D preferred shares are entitled to receive fixed cumulative preferential dividends as and when declared by the Board at an annual amount of C$1.25 per share for each year up to, but excluding, March 31, 2019. The dividend for the five-year period from and including March 31, 2019 to, but excluding, March 31, 2024 will be C$1.2728. The Series D dividend will reset on March 31, 2024 and every five years thereafter at a rate equal to the then five-year Government of Canada bond plus 3.28%. The Series D preferred shares are redeemable at C$25 per share at the option of the Company on March 31, 2024 and every fifth year thereafter. The Company has 100 redeemable Series C preferred shares issued and outstanding. The mandatorily redeemable Series C preferred shares are recorded as a liability on the consolidated balance sheets as they are mandatorily redeemable for cash (note 12(g)).
(c) | Share-based compensation
For the year ended December 31, 2019, APUC recorded $10,553 (2018 - $9,458) in total share-based compensation expense detailed as follows:
| 2019 |  | 2018
Share options | $ | 1,288 |  |  | $ | 2,054 |
Director deferred share units | 798 |  |  | 714 |
Employee share purchase | 322 |  |  | 312 |
Performance and restricted share units | 8,145 |  |  | 6,378 |
Total share-based compensation | $ | 10,553 |  |  | $ | 9,458 |
13. | Shareholders’ capital (continued)
(c) | Share-based compensation (continued)
The compensation expense is recorded as part of administrative expenses in the consolidated statements of operations. The portion of share-based compensation costs capitalized as cost of construction is insignificant. As of December 31, 2019, total unrecognized compensation costs related to non-vested options and PSUs were $1,252 and $12,750, respectively, and are expected to be recognized over a period of 1.68 and 1.86 years, respectively.
(i) | Share option plan
The Company’s share option plan (the “Plan”) permits the grant of share options to officers, directors, employees and selected service providers. The aggregate number of shares that may be reserved for issuance under the Plan must not exceed 8% of the number of shares outstanding at the time the options are granted. The number of shares subject to each option, the option price, the expiration date, the vesting and other terms and conditions relating to each option shall be determined by the Board (or the compensation committee of the Board (“Compensation Committee”)) from time to time. Dividends on the underlying shares do not accumulate during the vesting period. Option holders may elect to surrender any portion of the vested options that is then exercisable in exchange for the “In-the-Money Amount”. In accordance with the Plan, the “In-The-Money Amount” represents the excess, if any, of the market price of a share at such time over the option price, in each case such “In-the-Money Amount” being payable by the Company in cash or shares at the election of the Company. As the Company does not expect to settle these instruments in cash, these options are accounted for as equity awards. The Compensation Committee may accelerate the vesting of the unvested options then held by the optionee at the Compensation Committee's discretion. In the event that the Company restates its financial results, any unpaid or unexercised options may be cancelled at the discretion of the Compensation Committee in accordance with the terms of the Company's clawback policy. The estimated fair value of options, including the effect of estimated forfeitures, is recognized as expense on a straight-line basis over the options’ vesting periods while ensuring that the cumulative amount of compensation cost recognized at least equals the value of the vested portion of the award at that date. The Company determines the fair value of options granted using the Black-Scholes option-pricing model. The risk-free interest rate is based on the zero-coupon Canada Government bond with a similar term to the expected life of the options at the grant date. Expected volatility was estimated based on the historical volatility of the Company’s shares. The expected life was based on experience to date. The dividend yield rate was based upon recent historical dividends paid on APUC shares. The following assumptions were used in determining the fair value of share options granted:
| 2019 |  | 2018
Risk-free interest rate | 1.9 | % |  | 2.1 | %
Expected volatility | 20 | % |  | 21 | %
Expected dividend yield | 4.3 | % |  | 4.8 | %
Expected life | 5.50 years |  |  | 5.50 years |
Weighted average grant date fair value per option | C$ | 1.66 |  |  | C$ | 1.41 |
13. | Shareholders’ capital (continued)
(c) | Share-based compensation (continued)
(i) | Share option plan (continued)
Share option activity during the years is as follows:
| Number of awards |  | Weighted average exercise price |  | Weighted average remaining contractual term (years) |  | Aggregate intrinsic value
Balance, January 1, 2018 | 6,738,856 |  |  | C$ | 11.18 |  |  | 6.32 |  |  | C$ | 19,380 |
Granted | 1,166,717 |  |  | 12.80 |  |  | 8.00 |  |  | — |
Exercised | (1,589,211 | ) |  | 10.66 |  |  | 5.02 |  |  | 5,059 |
Forfeited | (23,720 | ) |  | 12.80 |  |  | — |  |  | — |
Balance, December 31, 2018 | 6,292,642 |  |  | C$ | 11.61 |  |  | 5.75 |  |  | C$ | 13,342 |
Granted | 1,113,775 |  |  | 14.96 |  |  | 8.00 |  |  | — |
Exercised | (3,882,505 | ) |  | 11.23 |  |  | 4.45 |  |  | 6,225 |
Forfeited | — |  |  | — |  |  | — |  |  | — |
Balance, December 31, 2019 | 3,523,912 |  |  | C$ | 13.09 |  |  | 5.87 |  |  | C$ | 18,609 |
Exercisable, December 31, 2019 | 1,735,241 |  |  | C$ | 12.57 |  |  | 5.43 |  |  | C$ | 14,559 |
Subsequent to year-end, on February 19, 2020, 394,939 stock options were exercised at a weighted average price of C$12.77 in exchange for 115,517 common shares issued from treasury, and 279,422 options settled at their cash value as payment for the exercise price and tax withholdings related to the exercise of the options.
(ii) | Employee share purchase plan
Under the Company’s employee share purchase plan (“ESPP”), eligible employees may have a portion of their earnings withheld to be used to purchase the Company’s common shares. The Company will match 20% of the employee contribution amount for the first five thousand dollars per employee contributed annually and 10% of the employee contribution amount for contributions over five thousand dollars up to ten thousand dollars annually. Common shares purchased through the Company match portion shall not be eligible for sale by the participant for a period of one year following the purchase date on which such shares were acquired. At the Company’s option, the common shares may be (i) issued to participants from treasury at the average share price or (ii) acquired on behalf of participants by purchases through the facilities of the TSX or NYSE by an independent broker. The aggregate number of common shares reserved for issuance from treasury by APUC under the ESPP shall not exceed 2,000,000 common shares. The Company uses the fair value based method to measure the compensation expense related to the Company’s contribution. For the year ended December 31, 2019, a total of 253,538 common shares (2018 - 252,698) were issued to employees under the ESPP.
(iii) | Director's deferred share units
Under the Company’s deferred share unit plan, non-employee directors of the Company may elect annually to receive all or any portion of their compensation in DSUs in lieu of cash compensation. Directors’ fees are paid on a quarterly basis and at the time of each payment of fees, the applicable amount is converted to DSUs. A DSU has a value equal to one of the Company’s common shares. Dividends accumulate in the DSU account and are converted to DSUs based on the market value of the shares on that date. DSUs cannot be redeemed until the director retires, resigns, or otherwise leaves the Board. The DSUs provide for settlement in cash or shares at the election of the Company. As the Company does not expect to settle these instruments in cash, these options are accounted for as equity awards. As of December 31, 2019, 460,418 (2018 - 380,656) DSUs were outstanding pursuant to the election of the directors to defer a percentage of their director’s fee in the form of DSUs. The aggregate number of common shares reserved for issuance from treasury by APUC under the DSU plan shall not exceed 1,000,000 common shares.
13. | Shareholders’ capital (continued)
(c) | Share-based compensation (continued)
(iv) | Performance and restricted share units
The Company offers a PSU and RSU plan to its employees as part of the Company’s long-term incentive program. PSUs have been granted annually for three-year overlapping performance cycles. The PSUs vest at the end of the three-year cycle and will be calculated based on established performance criteria. At the end of the three-year performance periods, the number of common shares issued can range from 2.0% to 237% of the number of PSUs granted. RSU vesting conditions and dates vary by grant and are outlined in each award letter. RSUs are not subject to performance criteria. Dividends accumulating during the vesting period are converted to PSUs and RSUs based on the market value of the shares on that date and are recorded in equity as the dividends are declared. None of these PSUs or RSUs have voting rights. Any PSUs or RSUs not vested at the end of a performance period will expire. The PSUs and RSUs provide for settlement in cash or shares at the election of the Company. As the Company does not expect to settle these instruments in cash, these units are accounted for as equity awards. The aggregate number of common shares reserved for issuance from treasury by APUC under the PSU and RSU Plan shall not exceed 7,000,000 common shares. Compensation expense associated with PSUs is recognized rateably over the performance period. Achievement of the performance criteria is estimated at the consolidated balance sheet dates. Compensation cost recognized is adjusted to reflect the performance conditions estimated to date. A summary of the PSUs and RSUs follows:
| Number of awards |  | Weighted average grant-date fair value |  | Weighted average remaining contractual term (years) |  | Aggregate intrinsic value
Balance, January 1, 2018 | 955,028 |  |  | C$ | 12.30 |  |  | 1.84 |  |  | C$ | 13,428 |
Granted, including dividends | 791,524 |  |  | 12.41 |  |  | 2.00 |  |  | 10,098 |
Exercised | (285,551 | ) |  | 10.02 |  |  | — |  |  | 3,691 |
Forfeited | (68,869 | ) |  | 13.02 |  |  | — |  |  | — |
Balance, December 31, 2018 | 1,392,132 |  |  | C$ | 12.75 |  |  | 1.60 |  |  | C$ | 19,114 |
Granted, including dividends | 1,471,442 |  |  | 14.69 |  |  | 2.00 |  |  | 16,302 |
Exercised | (344,340 | ) |  | 11.55 |  |  | — |  |  | 5,148 |
Forfeited | (107,191 | ) |  | 13.84 |  |  | — |  |  | — |
Balance, December 31, 2019 | 2,412,043 |  |  | C$ | 14.00 |  |  | 1.86 |  |  | C$ | 44,309 |
Exercisable, December 31, 2019 | 743,787 |  |  | C$ | 13.21 |  |  | — |  |  | C$ | 13,663 |
(v) | Bonus deferral RSUs
During 2018, the Company introduced a new bonus deferral RSU program to certain of its employees. Eligible employees have the option to receive a portion or all of their annual bonus payment in RSUs in lieu of cash. The RSUs provide for settlement in shares, and therefore these options are accounted for as equity awards. The RSUs granted are 100% vested and therefore, compensation expense associated with RSUs is recognized immediately upon issuance.
13. | Shareholders’ capital (continued)
(c) | Share-based compensation (continued)
(vi) | Bonus deferral RSUs
A summary of the bonus deferral RSUs follows:
| Number of awards |  | Weighted average grant-date fair value |  | Aggregate intrinsic value
Balance, December 31, 2017 | — |  |  | C$ | — |  |  | C$ | — |
Granted, including dividends | 131,611 |  |  | 12.82 |  |  | 1,683 |
Exercised | (4,545 | ) |  | 12.82 |  |  | 61 |
Balance, December 31, 2018 | 127,066 |  |  | C$ | 12.82 |  |  | C$ | 1,745 |
Granted, including dividends | 135,324 |  |  | 15.40 |  |  | 2,084 |
Balance and exercisable, December 31, 2019 | 262,390 |  |  | C$ | 14.15 |  |  | C$ | 4,820 |

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