CALGARY, Dec. 8, 2017
/CNW/ - TransAlta Corporation ("TransAlta" or the "Company") (TSX:
TA; NYSE: TAC) today responded favourably to details of the
Government of Alberta's
determination to permit carbon credits to be earned by existing
wind and hydro generation in the Alberta fleet.
On December 6, 2017, the
Government of Alberta announced
its intention to adopt a carbon credit regime that will fully
recognize the value of carbon reductions from the generation of
electricity from existing renewable assets. Under Alberta's
output based allocation system for carbon emissions, TransAlta's
existing wind and hydro facilities will receive credits for
emissions below the performance standard of 0.37 tonnes of
CO2 per MWh. Effective January 1, 2018, these credits can be used to
offset up to 40%, escalating to 60% by 2022, of the carbon price
obligations incurred by generation that exceeds the performance
standard, which will be charged a price of $30 per tonne of CO2. The carbon
credit regime will allow the Company to allocate the emissions
benefits from its existing renewables generation in Alberta to offset the direct carbon costs of
its thermal generation, including generation from its coal-to-gas
converted units.
"The recent announcement by the provincial government will more
competitively position our existing renewable generation," said
Dawn Farrell, President and Chief
Executive Officer. "By treating existing renewable generation
equally, we expect to eventually receive $30
million to $50 million
annually in credits attributable to our existing renewable
assets."
The Pan-Canadian Framework on Clean Growth and Climate
Change agreed to in late 2016 by the Government of Canada and most provinces and territories,
including Alberta, is expected to
result in the carbon price increasing to $40 per tonne of CO2 in 2021 and
$50 per tonne of CO2 in
2022, thereby increasing the value of the carbon credits in the
future.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of
electrical power generation assets in Canada, the United
States and Australia with a
focus on long-term shareholder value. We provide municipalities,
medium and large industries, businesses and utility customers
clean, affordable, energy efficient, and reliable power. Today, we
are one of Canada's largest
producers of wind power and Alberta's largest producer of hydro-electric
power. For over 100 years, TransAlta has been a responsible
operator and a proud community-member where its employees work and
live. TransAlta aligns its corporate goals with the UN
Sustainable Development Goals and we have been recognized by
CDP (formerly Climate Disclosure Project) as an industry leader on
Climate Change Management. We are also proud to have achieved
the Silver level PAR (Progressive Aboriginal Relations)
designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit our web site
at transalta.com.
Forward-Looking Statements
This news release contains forward-looking statements and
forward-looking information 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 Government of Alberta's carbon
credit regime, including that it will fully recognize the value of
carbon reductions from existing renewable generation and that
TransAlta's existing wind and hydro facilities will receive credits
for emissions below the performance standard of 0.37 tonnes of CO2
per MWh; that carbon credits can be used to offset up to 40%,
escalating to 60% by 2022, of the carbon price obligations; the
carbon price obligation will be $30
per tonne of CO2.; and the expected benefits to be realized by the
Company as a result of the Government of Alberta's carbon credit regime, including
facilitating a more competitive position for the Company's thermal
units; the carbon price increasing to $40 per tonne of CO2 in 2021 and $50 per tonne of CO2 in 2022; the increase in
value of the carbon credits in the future; and the receiving
between $30 million and $50 million annually in credits attributed to the
Company's existing renewable generation. These statements are
based on TransAlta's belief 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: legislative or regulatory developments,
including as it pertains to the Alberta capacity market; the Federal and/or
Provincial governments failing to implement the proposed
legislation or regulations; the Federal and/or Provincial
governments adopting different carbon prices rules; the Provincial
government determining not to continue the proposed carbon regime
regulation beyond its expected expiry in 2022; and other risk
factors contained in the Company's annual information form and
management's discussion and analysis. Readers are cautioned not to
place undue reliance on these forward-looking statements or
forward-looking information, 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. 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.
Note: All financial figures are in Canadian dollars.
SOURCE TransAlta Corporation