Transalta/EPCOR: Cos. Have 2 Added Option Pacts
Monday January 13, 5:34 pm ET
CALGARY (Dow Jones)--TransAlta Corp. has completed its acquisition of a 50% stake in EPCOR Utilities Inc.'s Genesse Phase 3 project for about C$ 395 million.
In a news release, TransAlta said the transaction, which was based on a memorandum of understanding signed in May, closed with the company's payment of C$157 million to EPCOR for costs incureed to date.
The company said the 450-megawatt addition to the existing Genesee Generating Station is currently under construction southwest of Edmonton. EPCOR and TransAlta will own Genesee Phase 3 on a 50/50 joint venture basis and will share costs equally. EPCOR will continue to manage the project's construction and will operate this merchant plant upon commercial operation in early 2005, TransAlta said.
The new generating unit will link to Alberta's existing transmission system and both parties will independently dispatch and market their share of the electrical output from the unit through the Alberta Power Pool.
TransAlta said Genesee Phase 3 will use supercritical combustion technology and will be the most advanced coal-combustion plant built in Canada. the level of a combined cycle, natural gas facility.
In addition to Genesee Phase 3, EPCOR and TransAlta have finalized the terms of two option arrangements. EPCOR has the option to purchase a 50% interest in TransAlta's Centennial 1 project - formerly known as Keephills 3 - a proposed 450-MW unit adjacent to TransAlta's existing Keephills facility. TransAlta would manage construction and operation of the fully merchant facility. Both parties would independently dispatch and market their share of the unit's electrical output. The option will expire Dec. 31, 2005, TransAlta said.
EPCOR also has the option to purchase a 50% interest in TransAlta's Sarnia Regional Cogeneration Plant in Ontario for 50% of the undepreciated capital cost. EPCOR may exercise its option between January 2003 and March 2004, TransAlta said.
EPCOR provides energy and energy-related services and products.
TransAlta is Canada's largest non-regulated electric generation and marketing company, with more than C$7 billion in assets and 9,000 megawatts of capacity either in operation or under construction.
Company Web Sites: transalta.com and epcor.ca |
