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ARTICLE · 02 AUGUST 2012

Panel Orders TransAlta To Return Coal Generation Units To Service

Stikeman Elliott LLP
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On July 23, 2012, TransCanada Corporation announced that it received a favorable ruling from an independent arbitration panel regarding its dispute with TransAlta Corporation over TransAlta’s force majeure and economic destruction claims.

CanadaLitigation, Mediation & Arbitration
Stikeman Elliott LLP
Stikeman Elliott LLP
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On July 23, 2012, TransCanada Corporation announced that it received a favorable ruling from an independent arbitration panel regarding its dispute with TransAlta Corporation over TransAlta's force majeure and economic destruction claims.

In December 2010, TransAlta shutdown two coal-fired generation units at its Sundance power plant just west of Edmonton (the Units) after testing revealed problems with the boiler tubes. TransAlta declared that the Units could not be economically repaired and claimed force majeure and economic destruction. TransAlta issued a formal notice of termination of the Power Purchase Arrangement (PPA) with respect to the Units in February 2011. TransCanada rejected these claims and the matter was referred to the arbitration panel pursuant to the dispute resolution provisions of the PPA.

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