Nov 23 TransAlta Corp, which operates
AltaGas Ltd's Sundance power plant in Alberta, said an
independent arbitration panel has allowed its claim of force
majeure related to outages in the coal-fired plant in 2010 and
TransAlta put out of service a 353 megawatt unit of the
plant in May 2010, citing problems with critical generator
components. The company declared force majeure in June but
AltaGas and partner ASTC Power Partnership contested the claim.
TransAlta said the panel's decision to grant relief
validates that the mechanical failure at unit 3 was beyond its
AltaGas said it expected to receive about C$5 million from
TransAlta and expects to record an after-tax, non-cash charge of
about C$8 million in the fourth quarter.
TransAlta won force majeure relief for units 1 and 2 in July
due to problems with the boiler tubes, and recorded about C$150
million penalty in the second quarter.
Sundance has a capacity to produce 2,126 megawatts.
Shares of TransAlta were slightly up at C$15.06 in early
trading on the Toronto Stock Exchange on Friday, while those of
AltaGas were up at C$34.05.