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TransAlta and TransAlta Renewables Respond to Notice of Termination for the South Hedland Power Purchase Agreement Received from Fortescue Metals Group
TransAlta and TransAlta Renewables Respond to Notice of Termination for the South Hedland ...
About this update from Transalta Corporation
[{"type":"text","content":"\n\n\n\nTransAlta and TransAlta Renewables Respond to Notice of Termination for the South Hedland Power Purchase Agreement Received from Fortescue Metals Group\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, Nov. 13, 2017\n\n\n\nCALGARY, Nov. 13, 2017 /CNW/ - TransAlta Corporation (\"TransAlta\" or the \"Company\") (TSX: TA, NYSE: TAC) and TransAlta Renewables Inc. (\"TransAlta Renewables\") (TSX: RNW) announced today that TEC Hedland Pty Ltd, a subsidiary of TransAlta, received formal notice of termination of the South Hedland Power Purchase Agreement (\"PPA\") from a subsidiary of Fortescue Metals Group Limited (\"FMG\").  The PPA allows FMG to terminate the agreement if the power station has not reached commercial operation within a specified time period.  FMG continues to be of the view that the South Hedland Power Station has yet to achieve commercial operation. \n\nTransAlta and TransAlta Renewables remain confident that all conditions required to establish commercial operations, including all performance conditions, have been achieved under the terms of the PPA.  These conditions include receiving a commercial operation certificate, successfully completing and passing certain test requirements, and obtaining all permits and approvals required from the North West Interconnected System (\"NWIS\") and government agencies.   \n\nConfirmation of commercial operation has been provided by independent engineering firms, as well as by Horizon Power, the state-owned utility.  TransAlta and TransAlta Renewables will take all steps necessary to protect their interests in the facility and ensure all cash flows promised under the PPA are realized.\n\nThe South Hedland Power Station has been fully operational and able to meet FMG's requirements under the terms of the PPA since July 2017. \n\nThe South Hedland Power Station, located in the Pilbara Region of Western Australia, is a 150 MW combined-cycle natural gas power station that is one of the most efficient power plants in Western Australia, providing low cost electric...