CALGARY, Nov. 13, 2017 /PRNewswire/ - 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.
TransAlta 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.
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 MW
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 Corporation:
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. TransAlta has been recognized on CDP's Canadian
Climate Disclosure Leadership Index (CDLI), which includes
Canada's top 20 leading companies
reporting on climate change, and has been selected by Corporate
Knights as one of Canada's Top 50
Best Corporate Citizens and is recognized globally for its
leadership on sustainability and corporate responsibility standards
by FTSE4Good.
About TransAlta Renewables Inc.:
TransAlta
Renewables is among the largest of any publicly traded renewable
independent power producers ("IPP") in Canada. Our 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, seven natural
gas generation facilities (including South Hedland) and one natural
gas pipeline, representing an ownership interest of 2,316 MW of net
generating capacity, located in the provinces of British Columbia, Alberta, Ontario, Québec, New
Brunswick, the State of
Wyoming and the State of Western
Australia. Our objectives are to (i) provide
stable, consistent returns for investors through the ownership of,
and investment in, highly contracted renewable and natural gas
power generation and other infrastructure assets that provide
stable cash flow primarily through long-term contracts with strong
counterparties; (ii) pursue and capitalize on strategic growth
opportunities in the renewable and natural gas power generation and
other infrastructure sectors; (iii) maintain diversity in terms of
geography, generation and counterparties; and (iv) pay out 80 to 85
per cent of cash available for distribution to the shareholders of
the Company on an annual basis.
Cautionary Statement Regarding Forward Looking
Information:
This news release contains forward
looking statements, including statements regarding the business and
anticipated financial performance of the Company and TransAlta
Renewables that are based on the Company's and TransAlta
Renewable's current expectations, estimates, projections and
assumptions in light of their experience and their perception of
historical trends. In some cases, forward-looking statements can be
identified by terminology such as "plans", "expects", "proposed",
"will", "anticipates", "develop", "continue", and similar
expressions suggesting future events or future performance. In
particular, this news release contains forward-looking statements
pertaining to, without limitation, the following: the
satisfaction of all conditions to achieving commercial operations
under the terms of the PPA; the ability of the South Hedland Power
Station to meet all of the requirements of FMG under the terms of
the PPA; TransAlta and TransAlta Renewables taking all steps
necessary to protect their interests in the South Hedland Power
Station and to ensure all cash flows promised under the PPA are
realized; and the ability of the South Hedland Power Station to
provide low cost electricity and generate low greenhouse gas
emissions. These forward-looking statements are not historical
facts but reflect the Company's and TransAlta Renewables' current
expectations concerning future plans, actions and results. These
statements are subject to a number of risks and uncertainties that
could cause actual plans, actions and results to differ materially
from current expectations including, but not limited to: the
outcome of the dispute with FMG; and operational breakdowns,
failures, or other disruptions. Readers are cautioned not to place
undue reliance on these forward-looking statements, which reflect
the Company's and TransAlta Renewables' expectations only as of the
date of this news release. The Company and TransAlta Renewables
disclaim any intention or obligation to update or revise these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
SOURCE TransAlta Corporation