Competition Bureau Reaches Agreement with TransAlta to Preserve Competition in Wholesale Electricity Supply in Alberta
November 14, 2024
The Competition Bureau announced today that it has reached an agreement with TransAlta Corporation (TransAlta) to address concerns about the potential loss of competition in the wholesale electricity supply market in Alberta.
The agreement resolves the Bureau’s investigation into TransAlta’s proposed acquisition of the Keephills 3 coal-fired power plant from Capital Power Corporation (Capital Power). The Bureau determined that the acquisition, as originally proposed, would likely have resulted in a substantial lessening or prevention of competition in the wholesale electricity supply market in Alberta.
Under the terms of the agreement, TransAlta will divest its ownership interest in the Sundance A coal-fired power plant to a suitable purchaser. The divestiture will be completed within 12 months of the closing of the Keephills 3 acquisition.
The Sundance A power plant is located in Hinton, Alberta, and has a capacity of approximately 720 megawatts (MW). It is one of the largest coal-fired power plants in Alberta.
The Bureau’s investigation found that the acquisition of Keephills 3, without the divestiture of Sundance A, would have given TransAlta a dominant position in the wholesale electricity supply market in Alberta. This would have likely led to higher electricity prices for consumers and businesses in the province.
“This agreement preserves competition in the wholesale electricity supply market in Alberta,” said Matthew Boswell, Commissioner of Competition. “It ensures that consumers and businesses continue to benefit from competitive electricity prices.”
“TransAlta is committed to competition and to providing reliable and affordable electricity to our customers,” said Dawn Farrell, President and CEO of TransAlta. “We are pleased to have reached this agreement with the Competition Bureau, which will allow us to complete the acquisition of Keephills 3 while preserving competition in the Alberta electricity market.”
The agreement is subject to approval by the Alberta Utilities Commission.
Background
The Competition Bureau is an independent law enforcement agency that investigates and prosecutes anti-competitive conduct in Canada. The Bureau’s mandate is to protect and promote competition for the benefit of Canadian consumers and businesses.
TransAlta is a Canadian power generation and energy marketing company. It is one of the largest electricity generators in Canada.
Capital Power is a Canadian independent power producer. It is one of the largest electricity generators in Alberta.
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