logo
  Join        Login             Stock Quote

Transalta (TAC): Arbitration Panel Grants Claim Of Force Majeure On Sundance Unit 3

 November 23, 2012 08:02 AM
 


(By Balachander) TransAlta Corp. (NYSE: TAC) said an arbitration panel has validated the company's operating practices and granted claim relief for derates and outages in 2010 and 2011 related to mechanical failure of critical generator components on unit 3 at Sundance power plant.

The Calgary, Canada-based non-regulated electricity generation company took unit 3 of the Sundance facility out of service in May 2010 due to the mechanical failure of critical generator components.

Consequently, TransAlta said it notified the Power Purchase Arrangement (PPA) Buyers and claimed force majeure relief under the PPA.

[Related -13 Highest Dividend Paying Diversified Utilities]

"The PPA Buyer rejected this claim, which was then referred to a binding arbitration process under the dispute resolution process set out in the PPA and in accordance with the Alberta Arbitration Act," the company noted.

Sundance 3 comprises 353 megawatts (MW) of the 2,126 MW Sundance power plant, which has six individual units and serves as a baseload facility for the Alberta electricity system. TransAlta commissioned Unit 3 in 1976.

"This decision further validates our good operating practices," commented TransAlta CEO Dawn Farrell on Friday. "The circumstances of the failure were unforeseen; we did what was necessary and prudent to return the unit to service, maintain safe operations, and support the reliability of the Alberta system."

The stock, which has been trading in the 52-week range of $13.92 to $21.93, closed at $14.87 on Wednesday on the NYSE.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

article imageWhy Gold Is Undervalued

Gold has been in a bear market for three years. Technical analysts are asking themselves whether they read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.