||What is the DRIP?
||The DRIP is a plan that enables eligible holders of common
shares of Atlantic Power Corporation (the “Company”) to invest cash dividends,
if, as and when declared and paid on common shares, to acquire additional
||What are the advantages of participating in the DRIP?
- A participant may purchase additional common shares with the cash
dividends (net of any applicable withholding taxes) paid on the common
shares which are held by the participant or held in a participant’s
account maintained pursuant to the Plan.
- The price at which common shares will be issued from treasury on
reinvestment of cash dividends on common shares will be equal to the
Average Market Price (as defined in Question 8 below), less a discount
- No commissions, service charges or brokerage fees are payable by
participants in connection with the issuance of common shares from treasury
to participants under the Plan.
- Full investment of participants’ funds is possible under the Plan
because the Plan permits fractions of common shares as well as whole
common shares to be purchased and held for participants.
- Dividends in respect of common shares purchased under the Plan will
be held by Computershare Trust Company of Canada (“Computershare”),
as agent for the Plan, for the participants’ accounts and automatically
invested under the Plan in additional common shares of the Company.
||Who is eligible to participate in the DRIP?
||All holders of common shares who are Canadian or U.S. residents
are eligible to participate in the Plan at any time by enrolling in the
Plan as described in Question 4 below.
||How do I enroll in the DRIP?
||Nearly all of the Company’s shareholders are beneficial
owners, meaning that their common shares are registered in the name of their
stock brokerage, financial institution or other nominee. If you are an eligible
beneficial holder of common shares, you must contact your stock brokerage,
financial institution or other nominee with whom your shares are held to
enroll in the DRIP. Please note that your stock brokerage, financial
institution or other nominee may offer you another service generally referred
to as a “synthetic” dividend reinvestment plan, which is NOT the same as
the Company’s DRIP. Unlike the Company’s DRIP, a “synthetic” dividend reinvestment
plan offered by a stock brokerage, financial institution or other nominee
may, among other things:
If you wish to enroll in the Company’s DRIP, you will need to make
sure that your stock brokerage, financial institution or other nominee is
enrolling you in the Company’s DRIP and not another service they offer to
- only allow you to purchase whole common shares (and no fractional
shares) with your reinvested dividends,
- not pass along the 3% discount offered by the Company under its
- charge you a commission or other fee that would not apply if you
were participating in the Company’s DRIP.
If you are an eligible registered holder of common shares, you can enroll
in the DRIP by completing an enrollment form online through Computershare’s
self-service web portal, Investor Centre, at www.computershare.com/investorcentrecanada
or by downloading and returning a completed and signed enrollment form to
Computershare by no later than 4:00 p.m. (Toronto time) on the fifth business
day immediately preceding a dividend record date. An enrollment form may
also be obtained by contacting Computershare at 1-800-564-6253. If you are
a beneficial holder, and you fill out and send the enrollment form to Computershare,
you will NOT be enrolled in the DRIP. Please see above instructions for
beneficial holders to enroll in the Plan.
||When will my dividends start reinvesting after I enroll
in the DRIP?
||Eligible holders of common shares who return duly completed
and signed enrollment forms that are received by Computershare no later
than 4:00 p.m. (Toronto time) on the fifth business day immediately preceding
a dividend record date will be eligible to reinvest the dividend associated
with that record date. Once enrolled, participation in the DRIP continues
automatically unless participation is terminated in accordance with the
DRIP. If Computershare receives the completed enrollment form after the
fifth business day immediately preceding a dividend record date, the cash
dividend in respect of that dividend record date will be paid to the shareholder
in the usual manner and participation in the Plan will commence with the
||How are common shares purchased under the Plan?
||The common shares purchased under the Plan will be purchased
by Computershare, as plan agent on behalf of participants, directly from
the Company as newly-issued shares from treasury.
||Can participants purchase additional common shares under
the Plan over and above those which their dividends will buy?
||No. The agent will only purchase common shares under the
Plan using dividends paid on participants’ common shares.
||What price will be paid for the shares purchased under
||The subscription price of common shares purchased under
the Plan will be the weighted average of the trading price for common shares
on the stock exchange with the highest volume of common shares traded for
the five trading days preceding the relevant dividend payment date (the
“Average Market Price”) as determined by the Company less a discount of
3%. If the trading price used is from the New York Stock Exchange, the exchange
rate from U.S. dollars to Canadian dollars to determine the DRIP price will
be the Bank of Canada noon rate of exchange on the dividend payment date.
||Do I still have to pay withholding tax on dividends that
||Participation in the DRIP generally does not change the
taxable status of the dividends that are reinvested. Dividends that are
subject to withholding tax when paid in cash will still be subject to the
same withholding tax when reinvested and dividends that are taxable income
to the shareholder will generally still be taxable when they are reinvested
under the terms of the Plan. Please contact your tax advisor as individual
tax circumstances differ.
||How much does it cost to participate in the DRIP?
||There are no commissions, service charges or brokerage fees
payable by participants with respect to share purchases under the DRIP because
the participant purchases new common shares directly from the Company. All
administrative costs of the DRIP, including the fees and expenses of Computershare,
are borne by the Company.
||Can I reinvest a portion of my monthly dividend?
||No. Eligible holders of common shares who choose to participate
in the DRIP must reinvest the entire amount (less any applicable withholding
taxes) of their monthly dividend.
||Can a Participant withdraw shares held in the DRIP?
||A registered participant who is enrolled in the Plan may
withdraw whole common shares under the DRIP without terminating his, her
or its participation in the DRIP by duly completing the withdrawal portion
of the voucher located on the reverse of such registered participant’s periodic
statement of account and sending such completed voucher to the agent. Beneficial
participants should consult their financial institution or stock brokerage
in order to obtain certificates for common shares purchased on their behalf
under the DRIP.
||How do I terminate my participation in the DRIP?
||Participation in the Plan may be terminated by a registered
participant who is enrolled in the Plan at any time by completing and signing
the termination portion of the voucher located on the reverse of the registered
participant’s periodic statement of account and sending such completed and
signed voucher to Computershare no later than 4:00 p.m. (Toronto time) on
the fifth business day immediately preceding a dividend record date or by
following the instructions on Computershare’s Investor Centre web portal,
at www.computershare.com/investorcentrecanada. Computershare will issue
a common share certificate or Direct Registration System Advice for the
whole Plan shares and a cash payment for the fractional portion at the market
price at the time of sale. A beneficial participant can terminate their
participation in the DRIP by giving notice to his, her or its financial
institution or stock brokerage through which their common shares are held.
Termination by a participant will not prevent such shareholder from participating
in the Plan at a later date.
||What kind of statements will be sent to participants
in the Plan?
||An account will be maintained by Computershare for each
registered participant in the Plan. An unaudited quarterly statement of
account will be mailed to each registered participant as soon as practicable
following the last day of March, June, September and December, and the appropriate
information for tax reporting purposes will be sent by Computershare to
each registered participant on an annual basis. Beneficial participants
should consult their financial institution or stock brokerage in order to
determine the type of reporting they will receive.
||I am not a resident of Canada or the United States. Can
I still participate?
||No. The Plan is only open to holders of common shares who
are residents of Canada or the United States.