UPDATE 2-TransAlta declares force majeure at Alberta power plant

Tue Mar 26, 2013 9:03am EDT

* Generator hit by winding failure

* Does not expect material financial impact

* Expects plant to return to service on or about April 21

March 26 (Reuters) - Canadian power generation company TransAlta Corp declared force majeure at its 395-megawatt Keephills 1 power plant in Alberta due to a winding failure in the generator.

TransAlta said it expects the coal-fired unit to return to service on or about April 21 and does not see a material financial impact.

The company said it is protected under the terms of the power purchase arrangement (PPA) from having to pay availability penalties and is entitled to continue to receive its PPA capacity payment in the event of force majeure.

Force majeure is a contract clause that allows a company to miss shipments due to circumstances beyond its control.

The company is working with the manufacturer of the generator to resolve the issue at the plant, located near Wabamun.

The company completed a major maintenance program at Keephills 1 last year.

Shares of the Calgary-based company, which has plants in Canada, the United States and Australia, closed at C$14.82 on Monday on the Toronto Stock Exchange.

FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article