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Balancing Pool Provides Notice to Terminate the Sundance Alberta Power Purchase Arrangements
Balancing Pool Provides Notice to Terminate the Sundance Alberta Power Purchase Arrangemen...
About this update from Transalta Corporation
[{"type":"text","content":"\n\n\n\nBalancing Pool Provides Notice to Terminate the Sundance Alberta Power Purchase Arrangements\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Sept. 18, 2017\n\n\n\nCALGARY, Sept. 18, 2017 /CNW/ - TransAlta Corporation (\"TransAlta\" or the \"Company\") (TSX: TA; NYSE: TAC) announced today that it has received formal notice from the Balancing Pool for the termination of the Alberta Power Purchase Arrangements (\"PPAs\") for Sundance Unit B and Unit C effective March 31, 2018. \n\nThe termination of the Sundance PPAs by the Balancing Pool was expected and TransAlta anticipates working closely with the Balancing Pool to ensure the company receives the termination payment that it believes it is entitled to under the PPAs and applicable legislation. The expected impacts to TransAlta of the termination include:\n\n\nApproximately $231 million in compensation for the net book value of the assets as compared to the Balancing Pool's estimate of approximately $171 million. The Balancing Pool's estimate differs because it excludes certain assets which TransAlta believes should be included in the net book value calculation.\nIncreased operational flexibility, including with respect to dispatching of generation from the affected units, maintenance and turnaround schedules, and the timing of the coal-to-gas conversions.\nA neutral to positive financial impact as the termination payments will be used to repay debt maturing in 2018.\n\nTransAlta believes that the cash flow generated by its portfolio of coal, gas and renewable assets in Alberta will be maintained following the termination of the PPAs.\n\nThe Balancing Pool's decision does not change TransAlta's commitment to continue to be a low cost, reliable supplier of electricity with over 2,300 MW of gross capacity under Alberta PPAs, representing approximately 14% of the generation capacity in Alberta. \n\nAbout TransAlta Corporation:\n\nTransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk p...