TransCanada Responds to Notice Seeking Termination of Sundance 1 and 2 Power Purchase Arrangement
CALGARY, ALBERTA--(Marketwire - Feb. 9, 2011) - TransCanada Corporation (TSX:TRP)(NYSE:TRP) (TransCanada) today announced that it has received from TransAlta Corporation (TransAlta) notice under the Sundance A Power Purchase Arrangement (PPA) that TransAlta has determined that the Sundance 1 and 2 generating units cannot be economically repaired, replaced, rebuilt, or restored and that TransAlta therefore seeks to terminate the PPA in respect of those units. TransCanada has not received any information that would validate TransAlta's determination that the units cannot be economically restored to service.
TransCanada has 10 business days from the date of TransAlta's notice to either agree with or dispute TransAlta's determination that the Sundance 1 and 2 generating units cannot be economically repaired, replaced, rebuilt or restored. TransCanada will assess any information provided by TransAlta during this 10 day period. If TransCanada disputes TransAlta's determination, the issue will be resolved using the dispute resolution procedure under the terms of the PPA.
In December 2010, the Sundance 1 and 2 generating units were withdrawn from service for testing. In January 2011, these same units were subject to a force majeure claim by TransAlta under the PPA. To date, TransCanada has received insufficient information to make an assessment of TransAlta's force majeure claim.
With more than 50 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada's network of wholly owned natural gas pipelines extends more than 60,000 kilometres (37,000 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,800 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: www.transcanada.com
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TransCanada Media Enquiries: Terry Cunha/Shawn Howard 403.920.7859 or 800.608.7859 or Investor & Analyst Enquiries: David Moneta/Terry Hook/ Lee Evans 403.920.7911 or 800.361.6522 www.transcanada.com