Change often causes confusion. And judging from several anxious phone calls and e-mails we’ve received today, that appears to be the case for Atlantic Power Corp (TSX: ATP, OTC: ATPWF).

Fortunately, the facts are fairly simple. As of December 1, Atlantic Power has officially converted from an income participating security (IPS) to an ordinary corporation. This move was announced last October and has been well anticipated by the market. But it has triggered several changes as of today:

• Most important, the bond portion of the IPS has been converted to equity. Atlantic Power Corp is now a common stock.

• Atlantic’s monthly distribution is still 9.12 cents Canadian a share, but is now 100 percent equity dividend. There is no longer a debt interest portion.

• Reflecting that its security is no longer an IPS, Atlantic’s Toronto Stock Exchange symbol no longer carries the “-U” or “.UN” suffix. It’s now “ATP.”

• A New York Stock Exchange (NYSE) listing is still planned for early 2010. In the meantime, Atlantic’s TSX-listed shares will still be traded on the US over-the-counter (OTC) market.

• The OTC symbol is likely to remain ATPWF, despite today’s “delisting.” It could, however, also be ATLPF. These OTC shifts do occur when trusts or IPS listings convert to corporations. Stay tuned for details.

As I’ve stated numerous times, Atlantic’s move is extremely positive for its long-term future. The switch from an IPS eliminates considerable debt from its balance sheet, which, along with an NYSE listing, should make it a lot easier to finance new cash generating projects–and eventually higher distributions. It also clears up uncertainty regarding the 2016 maturity of the bond portion of the IPS.

Today’s confusion notwithstanding, the market has definitely agreed, as Atlantic has surged more than 20 percent since announcing the conversion from IPS to common stock. I can’t tell you what the misinformed may do to the stock today. From all indications, some have allowed panicky brokers to sway them to sell.

One thing we do know for certain, however, is confusing moments like these tend to clear up quickly. Some will get fleeced. Some will pick up an unexpected bargain. But from my point of view, if you already own shares in Atlantic Power, there’s no reason to do anything now.