TransAlta and Puget Sound Energy sign power purchase agreement
25 July 2012 - 9:45PM
Marketwired
TransAlta (TSX:TA) (NYSE:TAC) and Puget Sound Energy (PSE) jointly
announced today they have entered into a power purchase agreement
for coal transition power from the Centralia generating station. If
approved by Washington utility regulators, the contract will
benefit PSE customers by providing them another source of low-cost
power, while advancing a separate TransAlta agreement with state
government and the environmental community to phase out coal-fired
power generation in Washington by 2025.
PSE selected the TransAlta offer through a competitive "Request
for Proposal" (RFP) process, evaluating the Centralia resource
against more than 30 competing power supply alternatives.
"I'm delighted that TransAlta and Puget Sound Energy came
together to help advance the state's goal of replacing coal-fired
power," said Gov. Chris Gregoire. "This will help our state move
toward more environmentally sustainable energy."
The state Legislature in 2011 passed a bill codifying a
collaborative agreement between TransAlta, lawmakers,
environmentalists, and labor representatives. The timelines agreed
to by the parties enable the state to make the transition to
cleaner fuels, while preserving the family-wage jobs and economic
benefits associated with the low-cost, reliable power provided by
the Centralia plant. The legislation allows long-term contracts,
through 2025, for sales of coal transition power associated with
the 1,340-megawatt (MW) Centralia facility, Washington's only
coal-fired plant.
"This agreement with Puget Sound Energy provides customers with
a stable-priced, low-cost source of power, while advancing
TransAlta's goal of contracting the output of the facility," said
TransAlta USA President Paul Taylor.
"In today's tough economy, we know our customers need us to keep
energy costs reasonable for their homes and businesses," said Dan
Doyle, PSE senior vice president and chief financial officer. "And,
over the long-term, we know our customers are also concerned about
the environment. This agreement balances both needs."
Under its power purchase agreement with TransAlta, PSE will buy
180 MW of firm, base-load coal transition power from TransAlta
starting in December 2014. In the following 12 months the contract
increases to 280 MW. From December 2016 to December 2024 the
contract is for 380 MW, and in the last year the contract volume
drops to 300 MW.
PSE expects to need additional power supplies for its customers
beyond what the TransAlta contract provides. The utility continues
to review other short-listed bids from its latest RFP process, and
anticipates issuing another RFP in 2013.
The power purchase agreement is supported by environmental
groups.
"We applaud Puget Sound Energy for working with TransAlta to
transition Washington State off of coal and in the process assist
Lewis County and the workers to make the transition onto clean
energy," said Bruce Nilles, Senior Director of the Sierra Club's
Beyond Coal Campaign.
The proposed TransAlta-PSE power transaction now awaits review
by the Washington Utilities and Transportation Commission.
About TransAlta
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. TransAlta's focus is to efficiently operate our
geothermal, wind, hydro, natural gas and coal facilities in order
to provide our customers with a reliable, low-cost source of power.
For 100 years, TransAlta has been a responsible operator and a
proud contributor to the communities where we work and live.
TransAlta is recognized for its leadership on sustainability by the
Dow Jones Sustainability North America Index, the FTSE4Good Index
and the Jantzi Social Index. TransAlta is Canada's largest
investor-owned renewable energy provider. For more information,
visit www.TransAltaUSA.com.
About Puget Sound Energy
Washington state's oldest local energy utility, Puget Sound
Energy serves 1.1 million electric customers and more than 750,000
natural gas customers in 11 counties. A subsidiary of Puget Energy,
PSE meets the energy needs of its customers, in part, through
cost-effective energy efficiency, procurement of sustainable energy
resources, and far-sighted investment in the energy-delivery
infrastructure. PSE employees are dedicated to providing great
customer service that is safe, dependable and efficient. For more
information, visit www.PSE.com.
Contacts: TransAlta Corporation - Media inquiries Richard DeBolt
Director, USA External Relations 360-742-3112 or Cell:
360-304-7900richard_debolt@transalta.com 724 Columbia Street NW,
Ste. 320, Olympia, WA 98501 Puget Sound Energy - Media inquiries
Roger Thompson PSE Communications Group 1-888-831-7250
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