U.S. Markets open in 3 hrs 19 mins

Atlantic Power selling stake in Path 15

BOSTON (AP) -- Atlantic Power Corp. said Monday that it is selling its stake in a California power transmission project to Duke-American Transmission Co., saying it is no longer part of its core business model.

The energy company said it is focusing more heavily on natural gas development and that the sale of the project, the most highly levered asset in its portfolio, will allow it to better focus on the rest of its business. It anticipates net proceeds of roughly $56 million from the sale.

The project, called Path 15, is an 84-mile transmission line upgrade in California that was intended to alleviate north-to-south transmission congestion. Atlantic Power acquired a stake in the project in 2006. The company said that the roughly $137 million in project-level debt tied to Path 15 will transfer with the sale.

Atlantic Power said intends to use the proceeds for general corporate purposes and to invest in future growth opportunities.

The deal is expected to close in the second quarter of 2013.

Shares of Atlantic Power fell 2 cents to $5.41 by midday, in line with broader market trends.