Atlantic Power announces agreement for the sale of 300 MW Manchief gas-fired power plant to PSCo

Atlantic Power Corporation has announced that it has executed an agreement to sell its Manchief power plant to Public Service Co. of Colorado (PSCo) for US$45.2 million, subject to working capital and other customary adjustments. PSCo, a subsidiary of Xcel Energy, Inc., is the current customer under the Manchief Power Purchase Agreement (PPA). Closing of the sale is expected to occur in May 2022, following the expiration of the PPA.

Manchief is an approximately 300 megawatt gas-fired peaking facility that entered commercial operation in July 2000. The plant is dispatchable by the customer under the terms of the PPA. In November 2017, the company submitted several proposals in PSCo's 2017 All-Source Solicitation for its longer-term energy supply needs. In June 2018, the company was notified by PSCo that PSCo had selected the proposal under which it would acquire Manchief from the company at the end of the PPA term.

The sale is subject to various closing conditions and approvals, including the receipt of regulatory approvals from the Colorado Public Utilities Commission and the Federal Energy Regulatory Commission, which are expected within approximately 11 months of filing. Proceeds of the sale are expected to be used to reduce the remaining principal amount of the company's Senior Secured Term Loan.