The company has determined that the units cannot be economically restored to service after extensive physical inspection of the boilers in the units and review of the terms and conditions of the PPA.
TransAlta said that it expects to recover the net book value prescribed in the PPA and does not expect any material financial impact.
Sundance 1 and 2 comprised 560MW of the 2,126MW Sundance power plant, which has six individual units and serves as a baseload facility for the Alberta electricity system.
The company took the two units out of service in mid-December 2010 due to testing that indicated boiler tube conditions were no longer at design limits.
