CALGARY,
AB, Aug. 23, 2022 /CNW/ - TransAlta Renewables
Inc. (TSX: RNW) ("TransAlta Renewables" or the "Company") is
pleased to announce that it has been awarded capacity contracts for
the Sarnia cogeneration facility
and the Melancthon 1 wind facility with the Ontario Independent
Electricity System Operator ("IESO") as part of the IESO's
Medium-Term Capacity Procurement Request For Proposals (the "RFP").
The Company's successful proposal will extend the period of
contracted revenues of the Sarnia
facility to April 30, 2031.
"Recontracting Sarnia with the IESO and our industrial customers
was an important and complex initiative for the Company over the
last few years that required a cross functional effort and
alignment across many stakeholders. We would like to acknowledge
the work done by the IESO and our industrial customers in helping
us complete the successful recontracting of the electrical capacity
of the facility," said Todd Stack,
President of TransAlta Renewables.
The Company was awarded the contracts for both the Sarnia facility and the Melancthon 1 wind
facility through the competitive RFP process that included a cap on
pricing, and which was designed by the IESO to help address
electricity supply needs and reliability in Ontario in a cost-effective
manner. Although the Company expects gross margin from the
Sarnia facility to be reduced by
approximately 30 percent per year starting in May 2026 as a result of the price cap under the
RFP, the extension to the facility's contracted capacity revenues
into 2031 will help ensure the facility continues to supply
reliable steam and power to the Company's industrial customers and
the IESO beyond 2025. The awarded contracts are expected to be
finalized and executed with the IESO by September 20, 2022.
About TransAlta Renewables Inc.:
TransAlta
Renewables is among the largest of any publicly traded renewable
independent power producers ("IPP") in Canada. Our asset platform and economic
interests are diversified in terms of geography, generation and
counterparties and consist of interests in 26 wind facilities, 13
hydroelectric facilities, eight natural gas generation facilities,
two solar facilities, one natural gas pipeline, and one battery
storage project, representing an ownership interest of 2,968
megawatts of owned generating capacity, located in the provinces of
British Columbia, Alberta, Ontario, Québec, New
Brunswick, the States of Pennsylvania, New Hampshire, Wyoming, Massachusetts, Michigan, Minnesota, Washington, North
Carolina, and the State of Western
Australia.
Forward-Looking Statements:
This news
release contains forward looking statements within the meaning of
applicable securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "propose", "plans", "intends" and similar expressions are
intended to identify forward looking information or statements.
More particularly, and without limitation, this news release
contains forward looking statements and information relating to:
the finalization and execution of the awarded contract under the
IESO's medium term RFP for the Sarnia facility and the Melancthon 1 wind
facility and the impact on gross margin at the Sarnia facility. These
statements are subject to a number of risks and uncertainties that
may cause actual results to differ materially from those
contemplated by the forward-looking statements. Some of the factors
that could cause such differences include: changes to
government regulations, including as it pertains to the medium
term RFP or Ontario's electricity
market; operational risks involving our Sarnia facility and the Melancthon 1 wind
facility, including unplanned outages at such facilities;
disruptions in the source of wind, or gas resources required to
operate our facilities; any commercial disagreements or disputes
with the IESO or the industrial customers at the Sarnia facility; catastrophes and public
health crises, including COVID-19; equipment failure and our
ability to carry out repairs in a cost-effective or timely manner,
or at all; 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, 2021, filed under the Company's
profile with the Canadian securities regulators on www.sedar.com
and the U.S. Securities and Exchange Commission on www.sec.gov.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect TransAlta's expectations
only as of the date of this news release. The purpose of the
financial outlooks contained in this news release are to give the
reader information about management's current expectations and
plans and readers are cautioned that such information may not be
appropriate for other purposes and is given as of the date of this
news release. TransAlta disclaims any intention or obligation to
update or revise these forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
SOURCE TransAlta Renewables Inc