TransAlta shifts $439 million in power assets to TransAlta Renewables subsidiary

CALGARY – TransAlta Corp. says it is selling power transmission assets in Canada and the United States for $439 million to its majority owned subsidiary TransAlta Renewables Inc.

The Calgary-based utility says it will hand over its 207-megawatt Windrise wind project in southern Alberta, along with a 49 per cent interest in the 137-megawatt Skookumchuck wind facility in Washington State and a 100 per cent interest in the 29-megawatt Ada cogeneration facility in Michigan.

It says the price includes the remaining construction costs for the Windrise project.

Closing of the transaction is expected early in 2021.

It says the portfolio has an average weighted contract life of about 19 years.

TransAlta also announced a six per cent increase in its quarterly dividend per common share to 4.5 cents starting with the quarter ending March 31.

“TransAlta’s overall business continues to perform firmly against our strategy. We are pleased to announce the transfer of our latest renewables and cogeneration investments to TransAlta Renewables to deliver our clean energy investment plan,” CEO Dawn Farrell said Wednesday.

This report by The Canadian Press was first published Dec. 23, 2020.

Companies in this story: (TSX:TA, TSX:RNW)