Transaction will result in TransAlta owning 100% of the
Keephills 3 Facility and Capital
Power owning 100% of the Genesee 3 Facility
CALGARY, Aug. 2, 2019 /CNW/ - TransAlta Corporation
("TransAlta" or the "Company") (TSX: TA; NYSE: TAC) announced today
that it has entered into definitive agreements with Capital Power
Corporation ("Capital Power") providing for the swap of their
respective non-operating interests in the Keephills 3 facility and the Genesee 3
facility (the "Transaction"). As a result of the
Transaction, TransAlta will own 100% of the Keephills 3 facility and Capital Power will
own 100% of the Genesee 3 facility. The purchase prices for each
non-operating interest will be largely set-off against each other,
resulting in a net payment of approximately $10 million being made from Capital Power to
TransAlta, subject to working capital adjustments.
"Today marks another important step in our transition to
becoming Canada's leading clean
power company," stated Dawn Farrell,
President and Chief Executive Officer of TransAlta. "This
transaction consolidates our control and operation of the
Keephills 3 facility and allows us
greater flexibility in pursuing our strategy of accelerating the
coal-to-gas conversions."
The Keephills 3 facility is a
463 MW coal-fired generating facility located approximately 70
kilometers west of Edmonton,
Alberta, adjacent to TransAlta's existing Keephills Unit 1
and Unit 2 power plants. TransAlta and Capital Power are currently
equal partners in the ownership of the Keephills 3 facility, with TransAlta being
responsible for its operations. The Keephills 3 facility achieved commercial
operation in 2011 and has been identified as a candidate for
TransAlta's intended coal-to-gas conversions.
The Genesee 3 facility is a 466 MW coal-fired generating
facility located approximately 50 kilometers southwest of
Edmonton, adjacent to Capital
Power's Genesee generating station. TransAlta and Capital
Power are also equal partners in the ownership of the Genesee 3
facility, with Capital Power being responsible for its
operations.
The closing of the Transaction is subject to certain customary
closing conditions, including the receipt of all necessary
governmental and regulatory approvals and, as it applies to a
subsidiary of TransAlta, receipt of bondholder consent. The
Transaction is expected to close in the fourth quarter of
2019.
About TransAlta Corporation:
TransAlta owns,
operates and develops a diverse fleet of electrical power
generation assets in Canada,
the United States and Australia with a focus on long-term
shareholder value. We provide municipalities, medium and large
industries, and businesses and utility customers with clean,
affordable, energy efficient and reliable power. Today, we are one
of Canada's largest producers of
wind power and Alberta's largest
producer of hydro-electric power. For over 100 years, TransAlta has
been a responsible operator and a proud community-member where its
employees work and live. TransAlta aligns its corporate goals with
the UN Sustainable Development Goals and we have been
recognized by CDP (formerly Climate Disclosure Project) as an
industry leader on Climate Change Management. We are also proud to
have achieved the Silver level PAR (Progressive Aboriginal
Relations) designation by the Canadian Council for Aboriginal
Business.
For more information about TransAlta, visit our web site
at transalta.com.
Forward-Looking Statements
This news release
contains forward-looking statements and forward-looking information
within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "may",
"will", "project", "should", "propose", "plans", "intends" and
similar expressions are intended to identify forward-looking
information or statements. More particularly, and without
limitation, this news release contains forward-looking statements
and information relating to: the Transaction, including the closing
and satisfaction of conditions precedents; the anticipated benefits
arising from the Transaction, including as it relates to
TransAlta's coal-to-gas strategy; and the potential conversion of
the Keephills 3 facility to a
gas-fired facility. These statements are based on TransAlta's
belief and assumptions based on information available at the time
the assumptions were made. These statements are subject to a number
of risks and uncertainties that may cause actual results to differ
materially from those contemplated by the forward-looking
statements. Some of the factors that could cause such differences
include: failure to receive all necessary regulatory approvals or
satisfy other conditions to closing the Transaction; legislative or
regulatory developments; market or business conditions; business
opportunities that become available to, or are pursued by
TransAlta; and other risk factors contained in TransAlta's
annual information form and management's discussion and analysis.
Readers are cautioned not to place undue reliance on these
forward-looking statements or forward-looking information, which
reflect TransAlta's expectations only as of the date of this news
release. TransAlta disclaims 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.
Note: All financial figures are in Canadian dollars.
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content:http://www.prnewswire.com/news-releases/transalta-and-capital-power-reach-agreement-to-swap-non-operating-interests-in-keephills-3-and-genesee-3-300895538.html
SOURCE TransAlta Corporation