CALGARY – TransCanada Corp. (TSX:TRP) plans to terminate its agreements to buy power from three coal-fired plants in Alberta.
The Calgary-based company says costs associated with carbon-dioxide emissions from the plants have risen and are forecast to increase further over the remaining term of the agreements.
TransCanada says it can terminate the power purchase contracts under a provision where a change in provincial law makes the agreements unprofitable.
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The decision affects the Sheerness power plant near Hanna, Alta., 230 kilometres northeast of Calgary, and the Sundance A and B plants that are 70 kilometres west of Edmonton.
TransCanada expects to write down the remaining value of the power purchase agreements for a total non-cash charge of $235 million before taxes and $175 million after taxes.
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The president of TransCanada’s energy business says it continues to see investment opportunities in the Alberta energy market, citing new wind projects and the need for gas-fired power capacity.
The NDP government of Rachel Notley announced in November that it planned to impose a carbon tax and phase out coal-fired power plants in order to reduce carbon dioxide emissions, a contributor to global warming.