BOSTON, April 9, 2015 /PRNewswire/ — Atlantic Power Corporation (NYSE: AT) (TSX: ATP) (“Atlantic Power” or “the Company”) today announced the relocation of its headquarters from the Financial District in Boston to Dedham, Massachusetts as part of its ongoing efforts to reduce corporate and other overhead costs. The relocation will occur later this month. The Company also provided the following update on its cost reduction efforts:
- The relocation to Dedham will result in a reduction in annual rental expense for its headquarters of nearly 50%.
- The Company is in the process of closing its offices in Seattle, Portland and outside of Chicago. In addition, the Company will be reducing the size of its Toronto office.
- Including staff associated with its wind assets, which are being sold, the corporate staff will be reduced by 25% this year and by more than 50% from 2013.
- The Company now expects that total corporate general and administrative expense of $38 million in 2015 will be reduced to $28 million in 2016 as a result of these and other cost reduction efforts. This represents an expected cumulative reduction of approximately 48% from 2013.
“These cost-cutting efforts have been painful but necessary elements of our plan to increase the value of the Company,” said James J. Moore, Jr., President and Chief Executive Officer of Atlantic Power. “A $10 million reduction in corporate costs will result in a meaningful improvement to our free cash flow generation. In addition, we remain focused on reducing leverage and associated interest expense as well as growing cash flow by investing in our own fleet at returns well in excess of those available in the external markets,” Mr. Moore noted.
About Atlantic Power
Atlantic Power owns and operates a diverse fleet of power generation assets in the United States and Canada. Atlantic Power’s power generation projects sell electricity to utilities and other large commercial customers largely under long-term power purchase agreements, which seek to minimize exposure to changes in commodity prices. Its power generation projects have an aggregate gross electric generation capacity of approximately 2,945 MW in which its aggregate ownership interest is approximately 2,024 MW. Its current portfolio consists of interests in twenty-eight operational power generation projects across eleven states in the United Statesand two provinces in Canada.