CALGARY, Alta., June 9, 2022 /PRNewswire/ – TransAlta Corporation (“TransAlta” or the “Company”) (TSX: TA) (NYSE: TAC) announced that the alberta The Court of Appeals today issued a unanimous decision denying an application by ENMAX Energy Corporation (“ENMAX”) and the Balancing Pool to set aside an arbitration award in favor of TransAlta. The Court of Appeal upheld the Company’s action in the event of force majeure arising when its keep hills 1 generator set stopped operating in 2013. Following the decision, the Company’s force majeure claim remains valid and costs associated with the force majeure event will not be reassessed against TransAlta.
TransAlta Generation Partnership (“TransAlta”) was the owner and ENMAX was the purchaser under the Keephills Power Purchase Arrangement (the “PPA”). On March 5, 2013the keep hills 1 facility shut down due to suspected alternator winding failure and was not returned to service until October 6, 2013. TransAlta has claimed a Force Majeure remedy under the PPA. ENMAX and the Balancing Pool disputed the force majeure claim and initiated arbitration against TransAlta. In November 2016an independent arbitration panel unanimously concluded that TransAlta was entitled to relief in the event of force majeure and therefore was not obligated to pay approximately $167.6 million availability incentive payments plus associated interest.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of power generation assets in Canada, United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy-efficient and reliable power. Today, TransAlta is one of from Canada major producers of wind energy and from Alberta leading producer of hydroelectric power. For more than 100 years, TransAlta has been a responsible operator and a proud member of the community where its employees work and live. TransAlta aligns its corporate objectives with the United Nations Sustainable Development Goals.
For more information about TransAlta, visit our website at transalta.com.
Note: All financial figures are in Canadian dollars unless otherwise stated.
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