TransAlta Announces Retirement of Sundance 3 Coal Unit

Rhea-AI Summary

TransAlta Corporation (NYSE: TAC) announced the retirement of its mothballed coal-fired Sundance Unit 3, effective July 31, 2020. This decision is part of TransAlta's strategy to achieve 100% clean electricity by 2025, driven by market conditions, the unit's age, and operational capacity. The company continues to operate a diversified fleet of generation assets, positioning itself to meet Alberta's electricity demands effectively. TransAlta is recognized for its contributions to sustainable energy and aims for long-term shareholder value.

Positive

• Transitioning to 100% clean electricity by 2025.
• Maintaining a diversified and low-cost fleet of generation assets.

Negative

• Retirement of Sundance Unit 3 may reduce energy capacity in the short term.

CALGARY, AB, July 22, 2020 /PRNewswire/ - TransAlta Corporation ("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC) announced that it gave notice today to the Alberta Electric System Operator ("AESO") of its intention to retire the currently mothballed coal-fired Sundance Unit 3 effective July 31, 2020.  The retirement decision was largely driven by TransAlta's assessment of future market conditions, the age and condition of the unit, and our ability to supply energy and capacity from our generation portfolio in Alberta. 

This decision advances the Company's transition to 100 per cent clean electricity by 2025. TransAlta continues to operate a highly diversified and low-cost fleet of generation assets that is well-positioned to service the electricity demands of Albertans. 

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. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of hydroelectric 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 has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. TransAlta is 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 its web site at transalta.com.

Forward-Looking Statements

This News Release includes "forward-looking information", within the meaning of applicable Canadian securities laws, and "forward-looking statements", within the meaning of applicable United States securities laws, including the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as "forward-looking statements"). In particular, this News Release contains forward-looking statements including, but not limited to, statements relating to: TransAlta becoming a 100 per cent clean electricity company by 2025; TransAlta continuing to operate a highly diversified and low cost fleet of generation assets; the Company being well positioned to service the electricity demands of Albertans; and the fleet being positioned to generate strong cash flows and be competitive in Alberta's energy-only market over the long term. The material factors and assumptions used in the preparation of the forward-looking statements contained herein, which may prove to be incorrect, include, but are not limited to, assumptions pertaining to the future market conditions in Alberta and competitive environment.  Factors that may adversely impact what is expressed or implied by forward-looking statements contained in this News Release include, but are not limited to, risks relating to the supply and demand for electricity within Alberta and other risk factors contained in the Company's Annual Information Form and Management's Discussion and Analysis for the year end dated December 31, 2019. Readers are cautioned not to place undue reliance on the forward-looking statements, which reflect the Company's expectations only as of the date hereof.  TransAlta disclaims any intention or obligation to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by applicable laws.

View original content:http://www.prnewswire.com/news-releases/transalta-announces-retirement-of-sundance-3-coal-unit-301098417.html

SOURCE TransAlta Corporation

FAQ

What is the significance of TransAlta's decision to retire Sundance Unit 3?

The retirement of Sundance Unit 3 marks a significant step towards TransAlta's goal of achieving 100% clean electricity by 2025.

When is the Sundance Unit 3 retirement effective?

The retirement of Sundance Unit 3 is effective from July 31, 2020.

How does the retirement of Sundance Unit 3 impact TransAlta's operations?

While it may reduce short-term energy capacity, it aligns with TransAlta's long-term strategy for clean energy.

What are TransAlta's plans for the future after retiring Sundance Unit 3?

TransAlta plans to continue developing and operating a diverse fleet of generation assets to meet Alberta’s energy demands.