TransAlta signs new agreement for Mississauga cogeneration facility in Ontario
TransAlta has signed a Non-Utility Generator Enhanced Dispatch Contract with the Ontario Independent Electricity System Operator for its Mississauga Cogeneration Facility. The new contract will come into effect on January 1, 2017. In conjunction with the execution of the New Contract, TransAlta has agreed to terminate, effective December 31, 2016, the Facility's existing contract with the Ontario Electricity Financial Corporation, which would have otherwise terminated in December 2018. The new contract provides TransAlta a fixed monthly payment until December 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, the New Contract provides an immediate reduction in the Greenhouse Gas emissions in Ontario, and will reduce power costs for Ontario ratepayers. Transalta expects the accounting for the new contract and the termination of the existing contract to have no impact to 2016 earnings on a comparable basis as the transaction will be recognized in future periods as payments from the IESO are received.