AltaGas Ltd. Receives Independent Arbitration Panel Ruling Regarding Claim of Force Majeure on Sundance Unit 3
23 November 2012 - 1:55PM
Marketwired
AltaGas Ltd. ("AltaGas") (TSX:ALA) (TSX:ALA.PR.A) (TSX:ALA.PR.U)
received the ruling of the independent arbitration panel which
evaluated the merits of a force majeure claim in relation to
outages of the Sundance 3 facility that first occurred in the
second quarter 2010.
The independent arbitration panel issued its ruling on November
22, 2012 which granted partial force majeure relief to the operator
of the facility. Based on this decision, AltaGas expects to receive
a cash payment of approximately $5 million from the operator of the
facility and expects to record an after-tax, non-cash charge of
approximately $8 million in the fourth quarter of 2012.
In June 2010, the facility operator declared force majeure due
to the mechanical failure of critical generator components at its
353 megawatt (MW) Sundance 3 generator. Based on information
available at that time, AltaGas and its partner in the ASTC Power
Partnership disagreed with the operator's claim and initiated the
dispute resolution process prescribed by the Power Purchase
Arrangement. This resulted in a binding arbitration process that
was conducted earlier in 2012.
AltaGas is an energy infrastructure business with a focus on
natural gas, power and regulated utilities. AltaGas creates value
by acquiring, growing and optimizing its energy infrastructure,
including a focus on renewable energy sources.
This news release contains forward-looking statements. When used
in this news release, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "seek", "propose",
"estimate", "expect", and similar expressions, as they relate to
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contains forward-looking statements with respect to, among other
things, business objectives, expected growth, results of
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current views with respect to future events based on certain
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and uncertainties, including without limitation, changes in market,
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actual results may vary materially from those described in this
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only as of the date of this news release. AltaGas does not intend,
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release are expressly qualified by this cautionary statement.
Contacts: AltaGas Ltd. Investment Community
1-877-691-7199investor.relations@altagas.ca AltaGas Ltd. Media
(403) 691-9873media.relations@altagas.ca www.altagas.ca
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