Tran­sAlta has plug pulled on South Hed­land power deal

Tran­sAlta Corp. and Tran­sAlta Re­new­ables Inc. have been no­ti­fied that Fortes­cue Me­tals Group is ter­mi­nat­ing the PPA on the South Hed­land sta­tion, Aus­tralia. The com­pa­nies dis­pute Fortes­cue’s claim that the sta­tion has not achieved com­mer­cial op­er­a­tions.

Stockwatch Daily - - FRONT PAGE - Ms. Sally Tay­lor re­ports

TEC HED­LAND Pty. Ltd., a sub­sidiary of Tran­sAlta Corp., has re­ceived for­mal no­tice of ter­mi­na­tion of the South Hed­land power pur­chase agree­ment from a sub­sidiary of Fortes­cue Me­tals Group Ltd. (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.

Tran­sAlta and Tran­sAlta Re­new­ables Inc. 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.

Con­fir­ma­tion 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.

The South Hed­land power sta­tion has been fully op­er­a­tional and able to meet FMG’s re­quire­ments un­der the terms of the PPA since July, 2017.

The South Hed­land power sta­tion, lo­cated in the Pil­bara re­gion of Western Aus­tralia, is a 150-megawatt com­bined-cy­cle nat­u­ral gas power sta­tion that is one of the most ef­fi­cient power plants in Western Aus­tralia, pro­vid­ing low-cost elec­tric­ity to its cus­tomers and gen­er­at­ing low green­house gas emis­sions. About Tran­sAlta Corp. Tran­sAlta is a power gen­er­a­tion and whole­sale mar­ket­ing com­pany fo­cused on cre­at­ing long-term share­holder value. Tran­sAlta main­tains a low-to-mod­er­ate risk pro­file by op­er­at­ing a highly con­tracted port­fo­lio of as­sets in Canada, the United States and Aus­tralia. Tran­sAlta’s fo­cus is to ef­fi­ciently op­er­ate wind, hy­dro, so­lar, nat­u­ral gas and coal fa­cil­i­ties in order to pro­vide cus­tomers with a re­li­able, low-cost source of power. For over 100 years, Tran­sAlta has been a re­spon­si­ble op­er­a­tor and a proud con­trib­u­tor to the com­mu­ni­ties in which it works and lives.

About Tran­sAlta Re­new­ables Inc.

Tran­sAlta Re­new­ables is among the largest of any pub­licly traded re­new­able in­de­pen­dent power pro­duc­ers (IPP) in Canada. Its as­set plat­form and eco­nomic in­ter­ests are di­ver­si­fied in terms of ge­og­ra­phy, gen­er­a­tion and coun­ter­par­ties, and con­sist of in­ter­ests in 18 wind fa­cil­i­ties, 13 hy­dro­elec­tric fa­cil­i­ties, eight nat­u­ral gas gen­er­a­tion fa­cil­i­ties and one nat­u­ral gas pipe­line, rep­re­sent­ing an own­er­ship in­ter­est of 2,441 megawatts of net gen­er­at­ing ca­pac­ity, lo­cated in the prov­inces of Bri­tish Columbia, Al­berta, On­tario, Que­bec, New Brunswick, the st ate of Wy­oming and the state of Western Aus­tralia.

We seek Safe Har­bor.

Rona Am­brose, John Patrick Diel­wart, Ti­mothy Wil­liam Faith­full, Dawn Lor­raine Far­rell, Alan J Fohrer, Gor­don D Gif­fin, Paul Thomas Jenk­ins, Yak­out Man­sour, Georgia R Nel­son, Bev­er­lee Faye Park

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