TransAltaCorp. will manage water on the Bow River at its reservoir facility to aidin potential flood mitigation efforts under a five-year agreement with the Albertagovernment. The agreement also provides for water management at the KananaskisLakes system which includes the Interlakes,Pocaterra andBarrierfacilities.

TransAlta expects to cover lost revenue if and when waterlevels must be lowered and power cannot be generated for customers, but doesnot expect to make a profit. In turn, the Alberta government will provide thecompany with an annual compensation of C$5.5 million to offset the impacts ofmodified operations.

"This agreement builds on the initial successful pilotsfrom 2014 and 2015 in which water levels at Ghost reservoir were lowered duringthe high runoff season to provide additional flood water storage. Thisfive-year agreement enables flood storage similar to 2015 operations but nowincludes drought mitigation opportunities through use of the Kananaskis Lakessystem," the company said in an April 27 statement.

The period of operational control for the Ghost reservoir isMay 16 to July 7, unless otherwise directed by the province. The KananaskisLakes system will operate year-round to provide available water when thegovernment calls for it.