CALGARY, ALBERTA–(Marketwired – Dec. 16, 2016) – AltaGas Pipeline Partnership (“AltaGas“) (TSX:ALA) and the Government of Alberta (“GOA”) reached a definitive Settlement Agreement today regarding the termination of the Sundance B Unit 3 and Sundance B Unit 4 Power Purchase Arrangements (“Sundance B PPAs”) previously held by ASTC Power Partnership, a partnership between TransCanada Energy Ltd and AltaGas. Under the Settlement Agreement, AltaGas has agreed to contribute 391,879 self-generated carbon offsets and make a total of $6 million in cash payments over three years starting in 2018. AltaGas Pipeline Partnership and ASTC Power Partnership are granted a full release from all past, present and future obligations respecting the Sundance B PPAs by the GOA.
“Today’s agreement creates certainty for Alberta’s investment climate which will help spur clean energy projects,” said David Harris, President and CEO, of AltaGas. “We look forward to working with the Government of Alberta and its agencies as the new capacity market develops.”
“The agreement provides an amicable resolution for AltaGas and government and encourages participation by Alberta-based firms in the electricity future of the Province,” said John Lowe, AltaGas’ Executive Vice President. “It also honours the tradition of regulatory excellence fostered by Neil McCrank, Bob Heggie and other public servants of the former Alberta Energy & Utilities Board.”