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ARTICLE · 18 MAY 2016

Fallout Continues Over Termination Of Alberta Power Purchase Arrangements With Coal-Fired Generators

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Earlier this spring, TransCanada Corp. announced that it would cancel its power purchase arrangements ("PPAs") with certain coal-fired plants in Alberta.

CanadaEnergy and Natural Resources
Zoë Thoms
Zoë Thoms
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Earlier this spring, TransCanada Corp. announced that it would cancel its power purchase arrangements ("PPAs") with certain coal-fired plants in Alberta. The company's stated reason for the termination was increased costs associated with CO2 emissions over the life of the PPAs as a result of recent amendments to the Specified Gas Emitter Regulation ("SGER"). TransCanada was the third company in Alberta to make the move to cancel PPAs with coal-fired power plants in recent months after Enmax and AltaGas Ltd. The PPAs allow a party to terminate the arrangement where a change in provincial law makes the arrangement unprofitable. In this case, the parties cited the amendments to the SGER as the triggering change in provincial law.

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