Atlantic Power Corporation

Atlantic Power Corporation

March 04, 2005 12:24 ET

Atlantic Power Holdings Receives Significant Cash Distribution


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ATLANTIC POWER CORPORATION

TSX SYMBOL: ATP.UN

MARCH 4, 2005 - 12:24 ET

Atlantic Power Holdings Receives Significant Cash
Distribution

TORONTO, ONTARIO--(CCNMatthews - March 4, 2005) - Atlantic Power
Corporation (TSX:ATP.UN) -

On Tuesday March 1st, Atlantic Power Holdings ("Holdings") received a
distribution of $US35,857,500 from the MASSPOWER Project (the
"Project"). Atlantic Power Corporation ("ATP") holds a 58.1% interest in
Holdings.

This distribution is comprised of (i) a portion of the proceeds paid to
the Project by two of its three utility power purchasers to terminate
power purchase agreements that together account for approximately 66.5%
of the Project's output, (ii) operating income and (iii) the release of
restricted cash.

The Project has repaid its outstanding debt and will continue to deliver
power under its remaining power purchase agreement extending through
2013 for approximately 7.9% of its output, and will have the option to
sell the remainder of its output into the wholesale spot market.

Barry Welch, President and CEO of ATP's Manager stated, "We are very
pleased with this outcome and see it as a true win-win situation for the
Project and for ratepayers."

Holdings will place these funds into its Reserve Account, which is
available to fund acquisitions and other growth opportunities to enhance
the long-term stability of distributions.

Atlantic Power Corporation owns interests in a diversified portfolio of
15 power generation projects located primarily in major markets in the
United States. Atlantic Power's objectives are to sustain and grow its
cash distributions over the long term by enhancing the performance of
its existing assets and by making accretive acquisitions.

When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar expressions are
intended to identify forward-looking statements, which include
statements relating to pending and proposed projects. Such statements
are subject to certain risks, uncertainties and assumptions pertaining
to operating performance, regulatory parameters, weather and economic
conditions and, in the case of pending and proposed projects, risks
relating to design and construction, regulatory processes, obtaining
financing and performance of other parties, including partners,
contractors and suppliers.

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