TransAlta Corp. (TSX: TA) (NYSE: TAC) announced Dec. 22 that it has signed a Non-Utility Generator (NUG) Enhanced Dispatch Contract with the Ontario Independent Electricity System Operator for its Mississauga Cogeneration Facility.
The new contract will take effect on Jan. 1, 2017. In conjunction with the execution of this contract, TransAlta has agreed to terminate, effective Dec. 31, 2016, the facility’s existing contract with the Ontario Electricity Financial Corp., which would have otherwise terminated in December 2018.
The new contract provides TransAlta a fixed monthly payment until Dec. 31, 2018, with no delivery obligations, and maintains TransAlta’s operational flexibility to pursue opportunities for the facility to meet power market needs in the Northeast, including Ontario. Additionally, this new contract provides an immediate reduction in the greenhouse gas emissions in Ontario, and will reduce power costs for Ontario ratepayers. TransAlta has committed to working with the employees of the facility during this transition.
Mississauga was commissioned in 1992 and has two LM6000 PC gas turbines. Each is capable of generating up to 46 MW. A steam turbine can generate an additional 30 MW. The plant is located next to Toronto’s Pearson International Airport.
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.