The Government of Alberta has reached final agreements to settle power purchase arrangements (PPAs) with AltaGas Ltd. and TransCanada Energy Ltd.
The agreements will terminate the PPA held by ASTC Power Partnership, a partnership between AltaGas and TransCanada, for Sundance B. The agreements will also terminate TransCanada’s PPAs for Sundance A and Sheerness. The PPAs will be returned to the Balancing Pool.
“These agreements will help ensure Albertans receive stable, reliable power at affordable prices as we transition from coal and add more renewable energy. Moving ahead, the province looks forward to working with energy companies to power Alberta’s future.”
AltaGas will contribute 391,879 self-generated carbon offsets and pay $6 million to the Balancing Pool. The cash payments will be made over three years starting in 2018.
TransCanada has provided value associated with a package of carbon offset credits that it has amassed as part of its risk management efforts. The value of the credits will be reflected in TransCanada’s annual, year-end financial statements, which will be released in February 2017.
The carbon offset contribution allows the Balancing Pool greater flexibility in meeting its future greenhouse gas emissions compliance obligations for the PPAs it will hold.
This action today completely removes TransCanada Energy and AltaGas Ltd. from the court proceedings and settles the matter between them and the government as well as all arbitrations between the two companies and the Balancing Pool. Capital Power has also been removed from the government’s proceeding as per its settlement with them, announced Nov. 24, 2016.