Transition timetable in Alberta climate change policy protects long-term investment capital, supports renewables
CALGARY, ALBERTA--(Marketwired - Nov. 22, 2015) - TransAlta Corporation ("TransAlta" or the "Company") (TSX:TA)(NYSE:TAC) is carefully reviewing the climate change policy announced today by the Alberta government to assess how it will impact TransAlta's business and strategy moving forward.
"What's critically important is that the Premier has committed to an orderly transition that ensures system reliability and price stability for our customers, given that it is now certain that coal-fired generation will be phased out by 2030, and that the province's policies will not unnecessarily strand capital," said TransAlta President and CEO Dawn Farrell. "This is a positive, timely and important step forward. We are looking forward to working with the government-appointed negotiator to achieve these objectives over the next few months to ensure a fair outcome for our stakeholders."
System reliability and investment certainty are critical to keeping Alberta's energy prices affordable for consumers, globally competitive for businesses, and attracting the billions of dollars in new growth capital needed to build new renewables capacity.
"This is an important announcement for the company and our shareholders. In the past six months we've seen a significant devaluation of our stock price due to the uncertainty of the future value of our coal assets in Alberta. The province's 15-year transition, and the commitment to appoint a negotiator, confirms that Alberta does not intend to strand capital," said TransAlta Chief Financial Officer Donald Tremblay.
As part of TransAlta's Clean Power strategy, the Company is currently analyzing a number of growth opportunities in renewables, including hydro, solar, wind and gas. We look forward to continuing to work with environmental groups, employees, communities and the province.
TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta's focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been recognized on CDP's Canadian Climate Disclosure Leadership Index (CDLI), which includes Canada's top 20 leading companies reporting on climate change, has been selected by Corporate Knights as one of Canada's 50 Best Corporate Citizens and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.
This news release may contain forward-looking statements, including statements regarding the phasing out of TransAlta's coal-fired generation by 2030, the government's intention not to strand capital as part of the transition to renewables generation and growth opportunities in hydro, solar, wind and gas generation. These statements are based on TransAlta's beliefs and assumptions based on information available at the time the assumptions were made. 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 in economic and market conditions and legislative or regulatory developments. 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. 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: Marketwired (Canada)
(November 22, 2015 - 7:05 PM EST)
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