03/26/2013 11:46 EDT | Updated 05/26/2013 05:12 EDT

TransAlta expects little financial impact from outage at Alberta power plant

CALGARY - TransAlta Corp. (TSX:TA) says an equipment failure in its Keephills 1 power plant near Wabamum, Alta., will keep the unit out of service until about April 21.

As a result, the company has declared force majeure, a contractual provision that TransAlta says will protect it from significant financial impact.

By making the declaration — something done in the event of major unusual disruptions — TransAlta says it will continue to receive some payments under a power contract and it will be protected from penalties.

TransAlta said it's working with the manufacturer of the generator equipment to bring the 395 megawatt coal-fired Keephills 1 plant back into service.

The plant was one of several that underwent maintenance outages last year.