Sundance A B Power Purchase Agreement by jga24707

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									Sundance A & B
Power Purchase Agreement

                                                                    Power Purchase
                                                                    Arrangement Highlights
                                                                    Sundance A PPA:
                                                                    100 per cent of the output from units 1 & 2 =
                                                                    560 MW. Term expires in 2017.

                                                                    Sundance B PPA:
                                                                    50 per cent of the output from Units 3 & 4 =
                                                                    353 MW. Term expires in 2020.

                                                                    Location:
                                                                    The plant is located 70 kilometres (about 45 miles)
                                                                    west of Edmonton, Alberta on the south shore of
                                                                    Lake Wabamun.

                                                                    In-Service Date:
                                                                    Unit 1 - 1970; Unit 2 - 1973; Unit 3 - 1976;
                                                                    Unit 4 - 1977.

                                                                    Capacity:
                                                                    2,029 MW.

                                                                    Fuel:
                                                                    Coal from TransAlta’s Highvale mine.

                                                                    Environmental Features:
                                                                    Meets ISO 14001 standards; Regulated by Alberta
                                                                    Environment and the Alberta Electric Utilities Board.

                                                                    Owner:
                                                                    TransAlta Utilities Corporation.
TransCanada’s Sundance A and B Power Purchase Arrangements
entitle TransCanada to more than 900 megawatts (MW) of capacity     Operator:
from the Sundance Power Plant. TransCanada sells this electricity   TransAlta Utilities Corporation.
under long-term contracts and into the spot market. The Sundance
Power Plant has a total of six generating units and is owned and
operated by TransAlta.
Sundance A & B Power Purchase Agreement
In August 2000, TransCanada acquired the rights to the capacity of units 1 and
2 of the Sundance Power Plant. This 560-MW Sundance A Power Purchase
Arrangement (PPA) was purchased through the Alberta’s PPA auction. The term
of the Sundance A PPA was effective January 1, 2001 and expires in 2017.

In December 2001 TransCanada formed a partnership that acquired the
Sundance B PPA from Enron Canada Power Corp. TransCanada effectively has                 Sundance A & B PPA
a 50 per cent interest in the 706-MW PPA. The term of the Sundance B PPA
expires in 2020.

TransCanada markets the acquired capacity of the Sundance A&B PPAs through
a balanced portfolio of sales contracts.

The Sundance Power Plant is the largest coal-fired electrical generating facility
in western Canada. The plant is located 70 kilometres west of Edmonton,
Alberta on the south shore of Lake Wabamun. The Sundance plant has a total
of six generating units (boiler, turbine and generator), the capacity of which
was sold under the Government of Alberta’s PPA auction in August 2000.

A PPA is similar to a contract. Each PPA is an arrangement between the owner             Power plants owned or controlled
of a generating facility and the PPA buyer for a specified term. Buyers of a PPA         by TransCanada
gain exclusive rights to the generation capacity of the facility and can then sell       Gas storage
the associated energy (or the capacity itself) in the marketplace. In exchange,
the PPA holder is obligated to pay the generator-owner essentially the fixed and
variable costs of making the capacity available and producing the electricity as     For further information about
specified in the PPA.                                                                Sundance PPA’s, contact:

TransCanada’s ownership of the Sundance A & B PPAs provides the company              James Hoshizaki
with competitively priced power and has helped build TransCanada’s power             Director, Western Power Asset Optimization
business in Alberta.                                                                 Telephone: 403.920.7225
                                                                                     E-mail: james_hoshizaki@transcanada.com

                                                                                     TransCanada
                                                                                     450 First Street S.W.
                                                                                     Calgary, Alberta
                                                                                     T2P 5H1
                                                                                     1.800.661.3805
                                                                                     www.transcanada.com




Sundance - June 2009

								
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