Transalta Enters Mexican Power Market with New Plant
CALGARY, AB - - TransAlta Corporation announced it has won a competitive bid to build and operate a 250-megawatt power plant in Mexico. The Comisi n Federal de Electricidad (CFE) in Mexico selected TransAlta to build anexican state of Campeche. TransAlta anticipates completing negotiations and finalizing the power sales agreement with the CFE before the end of March 2000.
CFE, the state run utility, will purchase 100 per cent of the power from TransAlta's Campeche plant under a 25-year power purchase agreement. In addition to power purchase agreements, TransAlta will have a long-term fuel supply agreement with Pemex Gas Y Petro Quimica Basica.
"We have identified Mexico as an attractive market with excellent growth potential," says Steve Snyder, TransAlta's president and CEO. "We are building on our competitive advantage with projects that fit our risk profile to continue to deliver strong long-term earnings growth."
TransAlta began actively exploring opportunities in Mexico in 1999 as part of its strategy to grow gas-fired generation by 500 MW a year. The company will continue to evaluate and respond to future opportunities in Mexico.
"TransAlta's reputation for developing and building gas-fired independent power plants that provide reliable, low cost power was key in winning this bid," says Dawn Farrell, executive vice-president, Independent Power Projects."
TransAlta will retain full ownership of the dual fuel (gas and diesel), combined cycle plant. Construction of the Campeche plant is scheduled to begin before the end of 2000, with commercial operations projected for first quarter 2003. The total cost of the facility is expected to be approximately $200 million US.
TransAlta is an international electric energy company with about $6 billion Cdn in assets. The company is focused on achieving strong earnings growth and enhancing its competitive edge as a low-cost operator of generation and transmission assets, and a successful developer of gas-fired independent power projects. The company is concentrating its growth in Canada, the United States, Australia and Mexico.
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