TransAlta Board Approves Plan for Accelerating Transition to Clean Power in Alberta

Apr 19, 2017

CALGARY, Alberta (April 19, 2017) – TransAlta Corporation (“TransAlta” or the “Company”) (TSX: TA; NYSE: TAC) today announced that its Board of Directors has approved a strategy to accelerate the transition of the Company to gas and renewables generation.  This strategy includes the following steps:

  • retirement of Sundance Unit 1 effective January 1, 2018;
  • mothballing of Sundance Unit 2 effective January 1, 2018, for a period of up to 2 years;
  • conversion of Sundance Units 3 to 6 and Keephills Units 1 and 2 from coal-fired generation to gas-fired generation in the 2021 to 2023 timeframe, thereby extending the useful life of these units until the mid-2030s; and
  • effective immediately, taking steps to secure the gas supply required for the converted units (expected to be up to 700 million cubic feet of gas per day at peak levels of demand), including the construction of the required pipeline.

The retirement of Sundance Unit 1 and mothballing of Sundance Unit 2 reflects the limited economic viability of the units upon the expiry of their Power Purchase Arrangement (“PPA”) due to the current oversupplied Alberta power market and low power price environment.

The benefits of converting units to gas-fired generation for TransAlta include:

  • significantly lowering carbon intensities, emissions, and carbon costs;
  • significantly lowering operating and sustaining capital costs;
  • increasing operating flexibility; and
  • adding between five-to-ten years of economic life to each converted unit.

“The Company is taking steps today that will position us as a leader in clean power generation and improve our competitive position as we consider a future where carbon is a high cost input to power generation,” said Dawn Farrell, President and Chief Executive Officer. “TransAlta is committed to providing reliable and competitive power to our customers. Supplying markets with renewable power and competitive clean capacity from gas conversions will serve customers with low cost and low carbon electricity for decades to come,” Mrs. Farrell said.

Sundance Units 1 & 2

Federal regulations stipulate that all coal plants built before 1975 must cease to operate on coal by the end of 2019, which includes Sundance Units 1 and 2.  Given that Sundance Unit 1 will be shut down two years early, TransAlta intends to apply to the federal Minister of Environment to extend the life of Sundance Unit 2 from 2019 to 2021. This will provide the Company with flexibility to respond to the regulatory environment for coal-to-gas conversions and the new Alberta capacity market.

Sundance Units 1 and 2 collectively comprise 560 MW of the 2,141 MW at the Sundance power plant, which serves as a baseload provider for the Alberta electricity system. The PPA with the Balancing Pool relating to Sundance Units 1 and 2 expires on December 31, 2017.

Coal-to-Gas Conversions

The Company expects that the capacity of Sundance Units 3 to 6 and Keephills 1 and 2 will not change following conversion, which will result in a reduction of approximately 40 per cent of carbon emissions while maintaining approximately 2,400 MWs to the Alberta power grid.

“The total capital commitment for the coal-to-gas conversions is approximately $300 million, and we anticipate funding the conversions with free cash flow,” said Donald Tremblay, Chief Financial Officer of TransAlta. “These units are expected to provide low cost capacity and to be very competitive in the upcoming capacity market auctions; we expect the first auction to occur in 2019 for 2021.” Mr. Tremblay said.

The Company expects that Federal and Provincial regulations will be adopted to facilitate coal-to-gas conversions and continues to be engaged with government in the development of the required regulatory regime.

About TransAlta Corporation:

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been recognized on CDP’s Canadian Climate Disclosure Leadership Index (CDLI), which includes Canada’s top 20 leading companies reporting on climate change, and has been selected by Corporate Knights as one of Canada’s Top 50 Best Corporate Citizens and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.

For more information about TransAlta, visit our web site at transalta.com, or follow us on Twitter @TransAlta.

Forward-Looking Statements 

This news release contains forward looking statements within the meaning of applicable securities laws, including statements regarding: the closure of the Sundance Unit 1 and mothballing of Sundance Unit 2; the conversion to gas-fired generation of Sundance Units 3 to 6 and Keephills 1 and 2, including the timing thereof; the expected capacity from the units that have been converted from coal generation to gas-fired generation; the expected gas supply required for converted units; the reduction in carbon emissions arising from the coal-to-gas conversions; and the total capital commitment, timing and source of funding for the coal-to-gas conversions. These statements are based on TransAlta’s belief and assumptions based on information available at the time the assumptions were made. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include: legislative or regulatory developments, including as it pertains to the Alberta capacity market; the Federal and/or Provincial governments not implementing legislation or regulations facilitating the conversion from coal generation to gas generation; changes in economic and competitive conditions; inability to secure natural gas supply and the construction of a natural gas pipeline on terms satisfactory to the Company; the introduction of disruptive sources of energy or capacity; changes in the price for natural gas; decreased demand for energy or capacity; higher costs, expenses and interest rates; the outcome of pending and future litigation and governmental proceedings; availability of financing; strikes or other labour disruptions; and other risk factors contained in the Company’s annual information form and management’s discussion and analysis. Readers are cautioned not to place undue reliance on these forward looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 Note: All financial figures are in Canadian dollars unless otherwise indicated.

For more information:

Investor Inquiries:                                                                   

Jaeson Jaman

Manager, Investor Relations

Phone: 1-800-387-3598 in Canada and U.S.

Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher

Manager, Communications

Phone:  Toll-free media number: 1-855-255-9184

Email: ta_media_relations@transalta.com

 

Media Advisory: TransAlta Corporation Annual Meeting of Shareholders, First Quarter 2017 Results and Conference Call

Apr 7, 2017

CALGARY, Alberta (April 7, 2017) – TransAlta Corporation (“TransAlta”) (TSX: TA; NYSE: TAC) will hold its Annual Meeting of Shareholders on Thursday, April 20, 2017 at 10:00 a.m. MT (12:00 p.m. ET) in the Palomino Room (E-H) at the BMO Centre (Stampede Park) in Calgary, Alberta. The Annual Meeting will be broadcast via webcast and conference call. To access the broadcast, please visit http://www.transalta.com/powering-investors/events-and-presentations or use the dial-in information provided below.

Dial-in number – Annual Meeting of Shareholders:

Toll-free North American participants call: 1-877-385-4099 (Code 7664898)

TransAlta will release its first quarter 2017 results after market close on Friday, May 5, 2017. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other interested parties the following Monday, May 8, 2017, at 9:00 a.m. Mountain (11:00 a.m. ET). The media will be invited to ask questions following analysts.

Please contact the conference operator five minutes prior to the call, noting “TransAlta Corporation” as the company and “Jaeson Jaman” as moderator.

Dial-in numbers – Q1 2017 Results:

Toll-free North American participants call: 1-888-231-8191

Outside of Canada & USA call: 1-647-427-7450

A link to the live webcast will be available on the Investor Centre section of TransAlta’s website at http://www.transalta.com/investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-859-2056 (Canada and USA toll free) with TransAlta pass code 5938029 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

About TransAlta

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been recognized on CDP’s Canadian Climate Disclosure Leadership Index (CDLI), which includes Canada’s top 20 leading companies reporting on climate change, and has been selected by Corporate Knights as one of Canada’s Top 50 Best Corporate Citizens and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.

For more information about TransAlta, visit our web site at transalta.com, or follow us on Twitter @TransAlta.

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1 800-387-3598 in Canada and U.S.
Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher
Manager, Communications
Toll-free media number: 1-855-255-9184
Email: ta_media_relations@transalta.com

Media Advisory: TransAlta Third Quarter 2016 Results and Conference Call

September 30, 2016

CALGARY, Alberta (September 30, 2016) – TransAlta Corporation (TSX: TA; NYSE: TAC) will release its third quarter 2016 results before market open on Friday, November 4, 2016. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other interested parties the same day beginning at 9:00 a.m. Mountain (11:00 a.m. Eastern). The media will be invited to ask questions following analysts.

Please contact the conference operator five minutes prior to the call, noting “TransAlta Corporation” as the company and “Jaeson Jaman” as moderator.

Dial-in numbers:

Toll-free North American participants call: 1-800-319-4610

Outside of Canada & USA call: 1-604-638-5340

A link to the live webcast will be available on the Investor Centre section of TransAlta’s website at http://www.transalta.com/investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1 -855-669-9658 (Canada and USA toll free) or 1-604-674-8052 (Outside of Canada) with TransAlta pass code 0837 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

About TransAlta

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been recognized on CDP’s Canadian Climate Disclosure Leadership Index (CDLI), which includes Canada’s top 20 leading companies reporting on climate change, and has been selected by Corporate Knights as one of Canada’s Top 50 Best Corporate Citizens and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.

For more information about TransAlta, visit our web site at transalta.com, or follow us on Twitter @TransAlta.

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1-800-387-3598 in Canada and U.S.
Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher
Manager, Communications
Toll-free media number: 1-855-255-9184
Email: ta_media_relations@transalta.com

TransAlta Reports Second Quarter 2016 Results

August 9, 2016

CALGARY, Alberta (August 9, 2016) – TransAlta Corporation (“TransAlta” or the “Company”) (TSX: TA; NYSE: TAC) today reported second quarter 2016 comparable EBITDA(1) of $248 million, an increase of $65 million compared to last year and comparable FFO(1) of $175 million, $15 million higher than last year. As in the first quarter of the year, the impact of lower prices on our coal facilities was mostly mitigated by our high level of contracts and hedges. Cost reduction initiatives and contributions from renewables assets acquired last year continue to offset the impact of lower prices in Alberta. Year-to-date, comparable EBITDA was $527 million and comparable FFO was $372 million compared to EBITDA and FFO of $458 million and $371 million, respectively, for the same period in 2015.

“We delivered a solid second quarter,” said Dawn Farrell, President and Chief Executive Officer. “The closing of our $159 million debt financing and the commitment of our banks to extend our credit facilities demonstrates the strength of our funding plan. Our year is shaping up as expected and we anticipate achieving our goal of raising $400 to $600 million of project financing by year end.”

Second Quarter Highlights

• In August we received commitments from our lenders to extend our syndicated credit facility and three bilateral credit facilities by one year to 2020 and 2018 respectively. All commitments are subject to finalizing loan documentation with key terms and covenants remaining unchanged. The extended facilities provide us with financial flexibility to achieve our financial transition.

• We continued to advance the construction of the South Hedland power project. The bulk of the major equipment has arrived at site. Installation of the new fuel gas interconnection and high voltage works progressed with the connection and energization of the new generator transformer. We continue to expect the project to be delivered on schedule and on budget in mid-2017.

• On June 3, 2016, our indirect wholly-owned subsidiary New Richmond Wind L.P. issued non-recourse bonds in the amount of $159 million, bearing interest at 3.963 per cent, with principal and interest payable semi-annually, and maturing on June 30, 2032. Proceeds were used to repay our credit facility, repay a maturing Canadian Hydro Developers, Inc. (“CHD”) bond, and further finance the construction of the South Hedland power project.

• At June 30, 2016, we had a total of $2.1 billion of committed credit facilities, of which $1.5 billion was available, compared to $1.3 billion as at December 31, 2015. The $0.6 billion of credit utilized under these facilities was comprised entirely of letters of credit. We are in compliance with the terms of the credit facilities and all undrawn amounts are fully available. These facilities are comprised of a $1.5 billion committed syndicated bank facility which expires in 2019, and four bilateral credit facilities expiring in 2017.

(1) These items are not defined under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods’ results. Refer to the Comparable FFO and Comparable FCF and Earnings and Other Measures on a Comparable Basis sections of this quarter’s MD&A for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS.

Second Quarter 2016 Review by Segment

Comparable EBITDA
(in CAD$ millions)

3-months ended
June 30, 2016
3-months ended
June 30, 2015
6-months ended
June 30, 2016
6-months ended
June 30, 2015
  Canadian Coal 93 71 196 166
  U.S. Coal(1) 18 10 14 32
  Canadian Gas(1) 56 48 121 105
  Australian Gas(1) 33 30 64 57
  Wind and Solar 36 33 97 88
  Hydro 25 25 43 39
  Energy Marketing 6 (18) 29 5
  Corporate (19) (16) (37) (34)
Total Comparable EBITDA 248 183 527 458

(1) At the beginning of the first quarter 2016, we have chosen to disaggregate presentation of the Gas reportable segment into its two operating segments, Canadian Gas and Australian Gas. Previously included legacy costs of the non-operating U.S. Gas function have been re-allocated to U.S. Coal to align with management’s internal monitoring practices. Comparative segmented results for 2015 have been restated to align with separate reporting of the two segments and the reallocation of the non-operating costs.

Canadian Coal: Comparable EBITDA in the second quarter improved by $22 million and $30 million on a year-to-date basis, compared to the same periods in 2015. Cost reductions and effective hedging strategies have offset lower prices on uncontracted generation. During the second quarter, operational performance of the plants was also better than last year, with availability reaching almost 86 per cent compared to 75 per cent last year.

U.S. Coal: Comparable EBITDA was up $8 million for the quarter, compared to the same period in 2015, but $18 million lower on a year-to-date basis compared to 2015. Market optimization resulted in stronger performance during the second quarter. The first half of 2015 benefited from higher price hedges entered into during a higher price environment in 2014.

Canadian Gas: Comparable EBITDA for the three and six months ended June 30, 2016 was $56 million and $121 million compared to $48 million and $105 million, respectively, for the same periods in 2015, as result of a year over year change in mark-to-market on our gas position and lower operating costs from cost reduction initiatives.

Australian Gas: Comparable EBITDA increased $3 million during the second quarter, and increased $7 million on a year-to-date basis compared to 2015. The increase to comparable EBITDA for the second quarter of 2016 was mainly due to the addition of capacity payments for the completed gas reticulation asset at our Solomon gas plant. Year-to-date we also benefited from increased comparable EBITDA from the natural gas pipeline commissioned in late March 2015.

Wind and Solar: Comparable EBITDA was up $3 million during the quarter, and $9 million on a year-to-date basis compared to the same periods in 2015, due to the contribution of assets with a combined capacity of 136 MW acquired during the second half of 2015. Higher generation from our portfolio caused by stronger wind resources compared to last year partly offset the impact of lower prices on our uncontracted wind assets.

Hydro: Comparable EBITDA during the second quarter was similar to the same period in 2015. On a year-to-date basis, comparable EBITDA increased $4 million to $43 million, primarily due to an adjustment of prior years’ production volumes, and cost reduction initiatives.

Energy Marketing: Comparable EBITDA increased by $24 million during the second quarter and on a year-to-date basis due to a return to a normal level of gross margin from our short-term strategies. Last year’s results were largely attributable to volatile market conditions in the Alberta and Pacific Northwest regions impacting our results negatively.

Consolidated Financial Review

Comparable EBITDA for the three and six months ended June 30, 2016,increased by $65 million and $69 million to $248 million and $527 million, respectively, compared to the same periods in 2015. During the quarter, all segments delivered improved or similar results compared to last year, as was the case on a year-to-date basis except for U.S. Coal. Low prices in Alberta were largely mitigated through our hedging strategies and cost reduction initiatives. Asset acquisitions in 2015 contributed positively to our results in respect of both the three and six months ended June 30, 2016. Energy Marketing returned to a more normal performance after suffering a loss during the second quarter last year.

Comparable FFO for the quarter increased by $15 million to $175 million compared to the same period in 2015. Last year, comparable EBITDA included higher unrealized mark-to-market losses in Energy Marketing which were excluded from comparable FFO.

Comparable net loss attributable to common shareholders for the three months ended June 30, 2016 was $20 million ($0.07 net loss per share), up from a comparable net loss of $44 million ($0.16 net loss per share) during the three months ended June 30, 2015. The increase was a result of higher comparable EBITDA. Year-to-date, comparable net loss attributable to common shareholders was $6 million ($0.02 net loss per share), up from comparable net loss of $18 million ($0.06 net loss per share) in the same period in 2015. The improvement primarily related to higher comparable EBITDA, partially offset by higher depreciation as a result of asset acquisitions in 2015.

Reported net earnings attributable to common shareholders(1) was $6 million ($0.02 net earnings per share) compared to a net loss of $131 million ($0.47 net loss per share) for the same period in 2015. On a year-to-date basis, reported net earnings attributable to common shareholders was $68 million ($0.24 net earnings per share) compared to a net loss of $171 million ($0.62 net loss per share) for the same period in 2015. Second quarter and year-to-date net loss in 2015 was impacted by a $40 million and $95 million income tax charge, respectively, associated with the sale of an economic interest in our Australian business to TransAlta Renewables and a $42 million ($28 million after-tax) and $73 million ($48 million after-tax) negative change, respectively, in the fair value of de-designated and economic hedges at U.S. Coal, compared to $13 million ($8 million after-tax) and $18 million ($12 million after-tax) this year. Second quarter and year-to-date reported earnings in 2016 include $12 million (2015 – $4 million loss) and $41 million (2015 – $4 million loss), respectively, of non-comparable unrealized losses on intercompany financial instruments that are attributable only to the non-controlling interests.

(1) 2015 restated to reflect prior period correction to tax. Refer to the Accounting Changes section of this quarter’s MD&A.

Operating Review

Availability for the three and six months ended June 30, 2016 improved over the same periods in 2015 primarily as a result of fewer planned and unplanned outages at Canadian Coal

Production for the three and six months ended June 30, 2016 decreased by 921 gigawatt hours (“GWh”) and 1,954 GWh, respectively, compared to the same periods in 2015, primarily due to the restructuring of our contractual arrangement at Poplar Creek in the third quarter of 2015, and low prices in Ontario and the Pacific Northwest. Also, higher availability in Alberta Coal did not translate into a significant increase in power generation as some units were economically dispatched as a result of lower prices.

Total sustaining capital expenditures (including flood recovery capital) were $66 million for the quarter and $125 million for the six month period ended June 30, 2016, compared to $104 million and $174 million respectively in the same periods of last year. Planned major outages for 2016 include full major turnarounds of two Canadian Coal units that we operate, and two that our partners operate. Our planned outages also include significant work at our hydro facilities, including a stator/generator replacement.

One of our partners completed a major turnaround of one Canadian Coal unit that we do not operate in the first quarter of 2016, and in April we completed the planned outage of a second unit that we operate. The two limited scope turnaround projects were also completed in the first quarter. As a result, we now have only one more planned major outage at the Canadian Coal facilities that we operate for the rest of this year, and one at units that our partners operate.

Recent Events

Credit Facility Renewal

In August we received commitments from our lenders to extend our syndicated credit facility and three bilateral credit facilities by one year to 2020 and 2018 respectively. All commitments are subject to finalizing loan documentation with key terms and covenants remaining unchanged. The extended facilities provide us with financial flexibility to achieve our financial transition.

$159 Million Project Financing

On June 3, 2016, our indirect wholly-owned subsidiary New Richmond Wind L.P. issued non-recourse bonds in the amount of $159 million, bearing interest at 3.963 per cent, with principal and interest payable semi-annually, and maturing on June 30, 2032. Proceeds were used to repay our credit facility, repay a maturing Canadian Hydro Developers, Inc. (“CHD”) bond, and further finance the construction of the South Hedland power project.

South Hedland

We continued to advance the construction of the South Hedland power project. The bulk of the major equipment has arrived at site. Installation of the new fuel gas interconnection and high voltage works progressed with the connection and energization of the new generator transformer. We continue to expect the project to be delivered on schedule and on budget in mid-2017.

Sundance, Sheerness, and Keephills PPA Terminations

In March and May 2016, the buyers under the legislated Sundance, Sheerness, and Keephills PPAs announced their intention to transfer their respective obligations under the PPAs to the Balancing Pool as a result of a change in Alberta law. The Balancing Pool is presently investigating whether these transfers are permitted by the terms of the PPAs in the current circumstances and, if so, when the transfers would become effective. The outcome remains uncertain. If the Balancing Pool confirms the transfers, it will assume the role of the buyers and carry out the responsibilities of the buyers under the PPAs, including dispatching the generating units and making the capacity and energy payments to TransAlta until the end of the PPA terms. Pursuant to the Electric Utilities Act (Alberta), it could also choose to terminate the PPAs after following the requirements of legislation, which would include paying TransAlta an amount equal to the applicable closing net book value of the generating units. TransAlta does not presently expect the transfer of the PPAs to the Balancing Pool to have a material impact on our business.

On July 25, 2016, the Attorney General for the Province of Alberta filed a claim against all buyers who have purported to transfer their respective obligations under the PPAs, the owner of the Battle River #5 PPA, the Alberta Utilities Commission, and Balancing Pool, challenging the basis on which the buyers have purported to transfer their PPA obligations to the Balancing Pool. The outcome of this claim is uncertain.

Notwithstanding the above, TransAlta continues to operate the PPA generating units in their ordinary course and receive the capacity and energy payments due to it under the PPAs.

Credit Ratings Outlook

As at June 30, 2016, we maintain investment grade ratings from three credit rating agencies, but during the first quarter, DBRS and Fitch changed their outlooks from stable to negative. Their negative outlooks are a reflection of low energy prices and concerns over coal generation transition in Alberta. We remain focused on strengthening our financial position by de-leveraging our capital structure and securing a fair agreement with the Government of Alberta that assists them in their goal to transition the generation in the province to gas and renewables.

Second Quarter 2016 Financial and Operational Highlights

In CAD$ millions, unless otherwise
stated

3-months ended
June 30, 2016
3-months ended
June 30, 2015
6-months ended
June 30, 2016
6-months ended
June 30, 2015
Adjusted Availability (%)(1) 86.5 80.9 89.4 86.1
Production (GWh)(1) 7,899 8,820 16,766 18,720
Revenue 492 438 1,060 1,031
Comparable EBITDA 248 183 527 458
Net earnings (loss) attributable to common shareholders(2) 6 (131) 68 (171)
Comparable net loss attributable to common shareholders (20) (44) (6) (18)
Comparable Funds from Operations 175 160 372 371
Cash Flow from Operating Activities 119 (39) 394 114
Comparable Free Cash Flow 62 23 149 133
Net earnings (loss) per common share(2) 0.02 (0.47) 0.24 (0.62)
Comparable net loss per share (0.07) (0.16) (0.02) (0.06)
Comparable Funds from Operations per share 0.61 0.57 1.29 1.33
Comparable Free Cash Flow per share 0.22 0.08 0.52 0.48
Dividends declared per common share 0.04 0.18 0.08 0.36

(1) Adjusted for economic dispatching at U.S. Coal.

(2) 2015 restated to reflect prior period correction to tax. Refer to the Accounting Changes section of this quarter’s MD&A.

The complete report for the quarter, including MD&A and unaudited interim financial statements, as well as our quarterly presentation, will be available on the Investors section of our website: www.transalta.com.

Conference call

We will hold a conference call and webcast at 12:30 p.m. MT (2:30 p.m. ET) today to discuss our second quarter 2016 results. The call will begin with a short address by Dawn Farrell, President and CEO, and Donald Tremblay, Chief Financial Officer, followed by a question and answer period for investment analysts, investors and other interested parties. A question and answer period for the media will immediately follow. Please contact the conference operator five minutes prior to the call, noting “TransAlta Corporation” as the company and “Jaeson Jaman” as moderator.

Dial-in numbers:
Toll-free North American participants call; 1-800-319-4610
Outside of Canada & USA call: 1-604-638-5340

A link to the live webcast will be available on the Investor Centre section of TransAlta’s website athttp://www.transalta.com/investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-669-9658 (Canada and USA toll free) or 1-604-674-8052 (Outside of Canada) with TransAlta pass code 00636 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

About TransAlta

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been recognized on CDP’s Canadian Climate Disclosure Leadership Index (CDLI), which includes Canada’s top 20 leading companies reporting on climate change, and has been selected by Corporate Knights as one of Canada’s Top 50 Best Corporate Citizens and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.

For more information about TransAlta, visit our web site at www.transalta.com or follow us on Twitter @TransAlta.

Cautionary Statement Regarding Forward Looking Information

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. More particularly, and without limitation, this news release contains forward-looking statements and information relating to: TransAlta’s business and anticipated future financial performance; our expected strategies and opportunities including as it relates to becoming Canada’s leading clean energy company; expected governmental regulatory regimes and legislation (including the Government of Alberta’s Climate Leadership Plan) and the timing of the implementation of such regimes and regulations; our ability to achieve a beneficial outcome in connection with the coal-fired generation transition being pursued pursuant to the Alberta Climate Leadership Plan; the impact of the transfer of the Alberta PPAs to the Balancing Pool; our plans and strategies relating to repositioning our capital structure and strengthening our balance sheet; our planned outages expected to arise in 2016; and the construction and commissioning of the South Hedland power project and its expected timing, costs and benefits.  By their nature, forward-looking information requires us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking information will not prove to be accurate and readers are cautioned not to place undue reliance on our forward-looking information as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking information. Some of the factors that could cause such differences include: operational risks involving our facilities; changes in market prices where we operate; equipment failure and our ability to carry out repairs in a cost effective and timely manner, including unplanned outages at generating facilities and associated capital investments; the effects of weather; disruptions in the source of fuels, water or wind required to operate our facilities; energy trading risks; failure to obtain necessary regulatory approvals in a timely fashion; legislative or regulatory developments and their impacts, including the outcome of the coal-fired generation transition under the Government of Alberta’s Climate Leadership Plan; increasingly stringent environmental requirements and their impacts; increased competition; global capital markets activity (including our ability to access financing at a reasonable cost); changes in prevailing interest rates; currency exchange rates; inflation levels and commodity prices; general economic conditions in the geographic areas where we operate; deterioration of credit markets; and impediments to the construction of South Hedland.  Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Note: All financial figures are in Canadian dollars unless noted otherwise.

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1 800-387-3598 in Canada and U.S.
Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher
Manager, Communications
Toll-free media number: 1-855-255-9184
Email: ta_media_relations@transalta.com

 

 

Media Advisory: TransAlta Second Quarter 2016 Results and Conference Call

June 30, 2016

CALGARY, Alberta (June 30, 2016) – TransAlta Corporation (TSX: TA; NYSE: TAC) will release its second quarter 2016 results before market open on Tuesday, August 9, 2016. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other interested parties the same day beginning at 12:30 p.m. Mountain (2:30 p.m. Eastern). The media will be invited to ask questions following analysts.

Please contact the conference operator five minutes prior to the call, noting “TransAlta Corporation” as the company and “Jaeson Jaman” as moderator.

Dial-in numbers:

Toll-free North American participants call: 1-800-319-4610

Outside of Canada & USA call: 1-604-638-5340

A link to the live webcast will be available on the Investor Centre section of TransAlta’s website athttp://www.transalta.com/investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1 -855-669-9658 (Canada and USA toll free) or 1-604-674-8052 (Outside of Canada) with TransAlta pass code 00636 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

About TransAlta

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been recognized on CDP’s Canadian Climate Disclosure Leadership Index (CDLI), which includes Canada’s top 20 leading companies reporting on climate change, and has been selected by Corporate Knights as one of Canada’s Top 50 Best Corporate Citizens and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.

For more information about TransAlta, visit our web site at transalta.com, or follow us on Twitter @TransAlta.

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1-800-387-3598 in Canada and U.S.
Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher
Manager, Communications

TransAlta Reports First Quarter 2016 Results

May 3, 2016

CALGARY, Alberta (May 3, 2016) – TransAlta Corporation (“TransAlta” or the “Company”) (TSX: TA; NYSE: TAC) today reported first quarter 2016 comparable EBITDA(1) of $279 million and comparable FFO(1) of $196 million, in line with expectations and tracking to the guidance provided for 2016. Comparable EBITDA increased by $4 million compared to the same period in 2015 with all segments other than U.S. Coal delivering similar or improved results over last year. Power prices in Alberta were at historic low levels during the quarter and impacted our hydro and wind assets in the province. The impact of lower prices on our coal facilities was mostly mitigated by our high level of contracts and hedges. Cost reduction initiatives and contributions from renewables assets acquired last year also offset the impact of lower prices in Alberta. Comparable FFO for the quarter decreased by $15 million compared to the same period in 2015. Last year, comparable FFO was positively impacted by realized currency gains.

“We delivered strong operational and financial performance in the first quarter this year despite persisting low prices in Alberta and the Pacific Northwest. We remain on track to achieve our guidance ranges for 2016 as previously disclosed,” said Dawn Farrell, President and Chief Executive Officer. “We believe the operating and financial steps taken in 2015, along with our commitment to work with the provincial government to secure a mutually beneficial coal transition arrangement, provide a solid foundation and have positioned the Company for the future. We continue to focus on supporting a transition that works for all stakeholders while maintaining maximum financial flexibility and benefiting from growth in gas-fired and renewable generation as we transition to clean power.”

During the quarter, we repaid the balance on our credit facilities of approximately $315 million through a combination of cash flows from operations and cash proceeds received from TransAlta Renewables for its purchase of economic interests in certain Canadian assets completed in January. The strengthening of the Canadian dollar at the end of March also contributed to the reduction in debt balances from December.

First Quarter Highlights

• Continued to advance the construction of the South Hedland power project. The bulk of the major equipment has arrived at site. We continue to expect the project to be delivered on schedule and on budget in mid-2017.

• On Jan. 14, 2016, we revised our dividend to $0.16 per common share on an annualized basis from $0.72 previously, and suspended our dividend reinvestment plan. As a result, our annual dividend payments going forward will be approximately $46 million, down from $205 million, increasing our financial flexibility.

• On March 16, 2016, the Alberta Government appointed Terry Boston, the former CEO of North America’s largest power system, as Coal Phase-out Facilitator to lead discussions on coal transition as part of the Climate Leadership Plan. Discussions with the coal-fired generators, including TransAlta, are now in progress.

• At March 31, 2016, we had a total of $2.1 billion of committed credit facilities, of which $1.5 billion was available, compared to $1.3 billion as at December 31, 2015. The $0.6 billion of credit utilized under these facilities was comprised entirely of letters of credit. We are in compliance with the terms of the credit facilities and all undrawn amounts are fully available. These facilities are comprised of a $1.5 billion committed syndicated bank facility expiring in 2019, and four bilateral credit facilities expiring in 2017. We anticipate renewing these facilities, based on reasonable commercial terms, prior to their maturities.

• During the quarter, TransAlta’s 12 million Series A Preferred Shares reached their first reset date. Approximately 10.2 million shares will now pay fixed dividends of nearly $0.68 per share annually until their next reset date in 2021 (down from $1.15 per share) and approximately 1.8 million shares were converted into Series B Preferred Shares, which currently pay dividends of approximately $0.62 per share (down from $1.15 per share) on an annualized basis, adjusted quarterly. The declaration of dividends remains subject to approval by the Board of Directors.

(1)These items are not defined under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods’ results. Refer to the Comparable FFO and Comparable FCF and Earnings and Other Measures on a Comparable Basis sections of this quarter’s MD&A for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS.

First Quarter 2016 Review by Segment

Comparable EBITDA
(in CAD$ millions)

3-months ended
March 31, 2016
3-months ended
March 31, 2015
  Canadian Coal 103 95
  U.S. Coal(1) (4) 22
  Canadian Gas(1) 65 57
  Australian Gas(1) 31 27
  Wind and Solar 61 55
  Hydro 18 14
  Energy Marketing 23 23
  Corporate (18) (18)
Total Comparable EBITDA 279 275

(1)Beginning this quarter, we have chosen to disaggregate presentation of the Gas reportable segment into its two operating segments, Canadian Gas and Australian Gas. Previously included legacy costs of the non-operating U.S. Gas function have been re-allocated to U.S. Coal to align with management’s internal monitoring practices. Comparative segmented results for 2015 have been restated to align with separate reporting of the two segments and the reallocation of the non-operating costs.

Canadian Coal: Comparable EBITDA in the first quarter was $103 million, $8 million higher than the same period last year as cost reductions and effective hedging strategies have offset lower prices on uncontracted generation. Availability was also higher than last year.

U.S. Coal: Comparable EBITDA was a $4 million loss for the quarter, down $26 million compared to the same period in 2015 due to lower realized prices and mark-to-market losses on financial contracts put in place to hedge our future generation. The first quarter of 2015 benefited from higher price hedges entered into in a higher price environment in 2014.

Canadian Gas: Comparable EBITDA increased by $8 million during the first quarter to $65 million compared to the same period in 2015. Last year’s results included $4 million of unrealized mark-to-market losses on our gas, compared to a gain of $3 million this quarter.

Australian Gas: Comparable EBITDA increased by $4 million during the first quarter compared to the same period in 2015, due to additional revenues from the natural gas pipeline that was commissioned in late March 2015.

Wind and Solar: Comparable EBITDA increased $6 million during the quarter, compared to the same period in 2015, due to the contribution of projects with a combined capacity of 136 MW acquired during the second half of 2015. Higher generation from the portfolio caused by stronger wind resources compared to last year offset the impact of lower prices in Alberta.

Hydro: Comparable EBITDA increased by $4 million to $18 million, primarily due to an adjustment of prior year production volumes and cost reduction initiatives.

Energy Marketing: Comparable EBITDA remained consistent with 2015.

Corporate: Our Corporate overhead costs during the quarter have remained similar to 2015, as our cost reductions were offset by reduced allocations to our business segments.

Consolidated Financial Review

Comparable EBITDA for the quarter totaled $279 million, up slightly from $275 million in the same period last year with all segments other than U.S. Coal delivering similar or improved levels over last year. Asset acquisitions in 2015 contributed positively to our results in the first quarter of 2016.

Comparable FFO for the quarter decreased by $15 million to $196 million compared to the same period in 2015, mainly due to lower realized foreign exchange gains, and an increase in long-term receivables, partially offset by a reduction to provisions. Comparable free cash flow decreased by $24 million as a result of lower comparable FFO and increased non-controlling interest dividend payments associated with the additional shares issued and sold to non-controlling interests in TransAlta Renewables in 2015 and 2016.

During the quarter, comparable net earnings attributable to common shareholders was $14 million ($0.05 net earnings per share), down from comparable net earnings of $26 million ($0.09 net earnings per share) in 2015. The decrease was primarily due to higher earnings attributable to non-controlling interests, resulting from higher outstanding shares of TransAlta Renewables owned by the public.

Reported net earnings attributable to common shareholders(1) was $62 million ($0.22 net earnings per share) compared to a net loss of $40 million ($0.14 net loss per share) for the same period in 2015. Last year, net earnings were reduced by a $55 million income tax charge associated with the sale of an economic interest in our Australia business to TransAlta Renewables and a negative change in the fair value of de-designated and economic hedges at U.S. Coal. Reported earnings in 2016 includes the effects of non-comparable unrealized losses on intercompany financial instruments that are attributable only to the non-controlling interests.

Operating Review

Availability for the quarter, after adjusting for economic dispatching at U.S. Coal, was 92.3 per cent compared to 91.3 per cent in 2015, as a result of lower unplanned outages at Canadian Coal.

Production for the three months ended March 31, 2016 decreased by 1,033 gigawatt hours compared to the same period in 2015, primarily due to the restructuring of the Poplar Creek contractual arrangement that was completed in late 2015 and low prices in Ontario and the Pacific Northwest.

Total sustaining capital expenditures (including flood recovery capital) were $59 million for the quarter compared to $70 million last year. Planned major outages for 2016 include full major turnarounds of two Canadian Coal units that we operate, and two that our partners operate. During the first quarter, we replaced one planned full scope major turnaround with limited scope major turnaround work on two units that we operate. Our planned outages also include significant work at our hydro facilities, including a stator/generator replacement. One of our partners completed a major turnaround of one Canadian Coal unit that we do not operate in the first quarter of 2016, and in April we completed the planned outage of a second unit that we operate. The two limited scope turnaround projects were also completed in the first quarter. As a result, we now have only one more planned major outage at the Canadian Coal facilities that we operate for the rest of this year, and one at units that our partners operate.

During the first quarter of 2016, we reduced our estimate of sustaining capital expenditures for the full year from our previous estimate by approximately $25 million, to reflect the reduced scope of a major turnaround, deferral of the Ghost river diversion project to a subsequent year, and other savings and deferrals.

(1) 2015 restated to reflect prior period correction to tax. Refer to the Accounting Changes section of this quarter’s MD&A.

Recent Events

Sundance and Sheerness PPA Terminations

In March 2016, the buyers under the legislated Sundance and Sheerness PPAs announced their intention to transfer their respective obligations under the PPAs to the Balancing Pool as a result of a Change in Law. The Balancing Pool is presently investigating whether these transfers are permitted by the terms of the PPAs in the current circumstances and, if so, when the transfers would become effective. The outcome remains uncertain. If the Balancing Pool confirms the transfers, it will assume the role of the buyers and carry out the responsibilities of the buyers under the PPAs, including dispatching the generating units and making capacity and energy payments to TransAlta until the end of the PPA terms. Pursuant to the Electric Utilities Act (Alberta), the Balancing Pool can also choose to terminate the PPAs after following the requirements of legislation, which would include paying TransAlta an amount equal to the applicable closing net book value of the generating units. TransAlta does not presently expect the transfer of the PPAs to the Balancing Pool to have a material impact on our business.

Credit Ratings Outlook

As at March 31, 2016 we maintain investment grade ratings from three credit rating agencies. During the first quarter of 2016, credit rating agencies DBRS and Fitch affirmed our investment grade credit rating with negative outlooks. The negative outlook is a reflection of low energy prices and concerns over coal transition in Alberta. We remain focused on strengthening our financial position by de-leveraging our capital structure and securing a fair agreement with the Government of Alberta to assist them in their goal to transition the generation in the province to gas and renewables.

South Hedland

We continued to advance the construction of the South Hedland power project. Major equipment has been arriving on schedule and the bulk of the major equipment has arrived at site. We continue to expect the project to be delivered on schedule and on budget in mid-2017. When completed, the project is expected to contribute approximately $80 million of EBITDA annually. Total construction cost for the project is still AUD$570 million and will be funded by cash generated by the business.

Conversion of Series A Preferred Shares to Series B Preferred Shares

On March 17, 2016, 1,824,620 of our 12 million Series A Cumulative Redeemable Fixed Rate Reset Preferred Shares were tendered for conversion, on a one-for-one basis, into Series B Cumulative Redeemable Floating Rate Preferred Shares. For the next five years, the Series A Shares will pay a fixed cumulative preferential cash dividend of $0.67725 per share annually (down from $1.15 per share), subject to the Board’s dividend declaration. The Series B Shares will pay quarterly floating rate cumulative preferential cash dividends set at the sum of the 90 day Government of Canada Treasury Bill rate plus 2.03 per cent. The annualized quarterly dividend rate for the Series B Shares for the 3-month floating rate period for the second quarter 2016 is $0.623 per share.

First Quarter 2016 Financial and Operational Highlights

In CAD$ millions, unless otherwise
stated

3-months ended
March 30, 2016
3-months ended
March 30, 2015
Adjusted Availability (%)(1) 92.3 91.3
Production (GWh)(1) 8,867 9,900
Revenue 568 593
Comparable EBITDA 279 275
Net Earnings (loss) attributable to common shareholders(2) 62 (40)
Comparable Net Earnings attributable to common shareholders 14 26
Comparable Funds from Operations 196 211
Cash Flow from Operating Activities 275 153
Comparable Free Cash Flow 86 110
Net Earnings (loss) per share attributable to common shareholders(2) 0.22 (0.14)
Comparable Net Earnings per share 0.05 0.09
Comparable Funds from Operations per share 0.68 0.76
Comparable Free Cash Flow per share 0.30 0.40
Dividends declared per common share 0.04 0.18

(1) Adjusted for economic dispatching at U.S. Coal.

(2) 2015 restated to reflect prior period correction to tax. Refer to the Accounting Changes section of this quarter’s MD&A.

The complete report for the quarter, including MD&A and unaudited interim financial statements, as well as our quarterly presentation, will be available on the Investors section of our website: www.transalta.com.

Conference call

We will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) today to discuss our first quarter 2016 results. The call will begin with a short address by Dawn Farrell, President and CEO, and Donald Tremblay, Chief Financial Officer, followed by a question and answer period for investment analysts, investors and other interested parties. A question and answer period for the media will immediately follow. Please contact the conference operator five minutes prior to the call, noting “TransAlta Corporation” as the company and “Jaeson Jaman” as moderator.

Dial-in numbers:
Toll-free North American participants call; 1-800-319-4610
Outside of Canada & USA call: 1-604-638-5340

A link to the live webcast will be available on the Investor Centre section of TransAlta’s website at http://www.transalta.com/powering-investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-669-9658 (Canada and USA toll free) or 1-604-674-8052 (Outside of Canada) with TransAlta pass code 00391 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

About TransAlta

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been selected by Sustainalytics as one of Canada’s Top 50 Socially Responsible Companies since 2009; and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good. For more information about TransAlta, visit our web site at www.transalta.com or follow us on Twitter @TransAlta.

Cautionary Statement Regarding Forward Looking Information

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. More particularly, and without limitation, this news release contains forward-looking statements and information relating to: TransAlta’s business and anticipated future financial performance; our expected strategies and opportunities; expected comparable EBITDA, comparable FFO and comparable free cash flow ranges for 2016; our annual dividend amount; expected governmental regulatory regimes and legislation (including the Government of Alberta’s Climate Leadership Plan) and the timing of the implementation of such regimes and regulations; our ability to achieve a beneficial outcome in connection with the coal-fired generation transition being pursued pursuant to the Alberta Climate Leadership Plan; the impact of the transfer of the Alberta PPAs to the Balancing Pool; our plans and strategies relating to repositioning our capital structure and strengthening our balance sheet, including as it relates to our ability to renew our credit facilities; and the construction and commissioning of the South Hedland power project and its expected timing, costs and benefits. By their nature, forward-looking information requires us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking information will not prove to be accurate and readers are cautioned not to place undue reliance on our forward-looking information as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking information. Some of the factors that could cause such differences include: operational risks involving our facilities; changes in market prices where we operate; equipment failure and our ability to carry out repairs in a cost effective and timely manner, including unplanned outages at generating facilities and associated capital investments; the effects of weather; disruptions in the source of fuels, water or wind required to operate our facilities; energy trading risks; failure to obtain necessary regulatory approvals in a timely fashion; legislative or regulatory developments and their impacts, including the outcome of the coal-fired generation transition under the Government of Alberta’s Climate Leadership Plan; increasingly stringent environmental requirements and their impacts; increased competition; global capital markets activity (including our ability to access financing at a reasonable cost); changes in prevailing interest rates; currency exchange rates; inflation levels and commodity prices; general economic conditions in the geographic areas where we operate; deterioration of credit markets; and impediments to the construction of South Hedland. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Note: All financial figures are in Canadian dollars unless noted otherwise.

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1 800-387-3598 in Canada and U.S.
Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher
Manager, Communications
Cell: 587-437-3660
Toll-free media number: 1-855-255-9184
Email: ta_media_relations@transalta.com

Media Advisory: TransAlta Corporation Annual and Special Meeting of Shareholders, First Quarter 2016 Results and Conference Call

April 5, 2016

CALGARY, Alberta (April 5, 2016) – TransAlta Corporation (“TransAlta”) (TSX: TA; NYSE: TAC) will hold its Annual and Special Meeting of Shareholders on Friday April 22, 2016 at 10:00 a.m. MT (12:00 p.m. ET) in the Spectrum Ballroom at Hotel Arts in Calgary, Alberta. The Annual and Special Meeting will be broadcast via webcast and conference call. To access the broadcast, please visit http://www.transalta.com/powering-investors/events-and-presentations or use the dial-in information provided below.

Dial-in number – Annual and Special Meeting:

Toll-free North American participants call: 1-888-333-7965 (Code 2414738#)

TransAlta will release its first quarter 2016 results before market open on Tuesday, May 3rd, 2016. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other interested parties the same day beginning at 9:00 a.m. Mountain (11:00 a.m. Eastern). The media will be invited to ask questions following analysts.

Please contact the conference operator five minutes prior to the call, noting “TransAlta Corporation” as the company and “Jaeson Jaman” as moderator.

Dial-in numbers – Q1 2016 Results:

Toll-free North American participants call: 1-800-319-4610

Outside of Canada & USA call: 1-604-638-5340

A link to the live webcast will be available on the Investor Centre section of TransAlta’s website at http://www.transalta.com/powering-investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-669-9658 (Canada and USA toll free) or 1-604-674-8052 (Outside of Canada) with TransAlta pass code 00391 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

About TransAlta

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been recognized on CDP’s Canadian Climate Disclosure Leadership Index (CDLI), which includes Canada’s top 20 leading companies reporting on climate change, and has been selected by Corporate Knights as one of Canada’s Top 50 Best Corporate Citizens and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.

For more information about TransAlta, visit our web site at transalta.com, or follow us on Twitter @TransAlta.

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1-800-387-3598 in Canada and U.S.
Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher
Manager, Communications
Toll-free media number: 1-855-255-9184
Email: ta_media_relations@transalta.com

Media Advisory: TransAlta Fourth Quarter and Full Year 2015 Results and Conference Call

January 19, 2016

CALGARY, Alberta (January 19, 2016) – TransAlta Corporation (TSX: TA; NYSE: TAC) will release its fourth quarter 2015 results before market open on Thursday, February 18th, 2016. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other interested parties the same day beginning at 9:00 a.m. Mountain (11:00 a.m. Eastern). The media will be invited to ask questions following analysts.

Please contact the conference operator five minutes prior to the call, noting “TransAlta Corporation” as the company and “Jaeson Jaman” as moderator.

Dial-in numbers:

Toll-free North American participants call: 1-800-319-4610

Outside of Canada & USA call: 1-604-638-5340

A link to the live webcast will be available on the Investor Centre section of TransAlta’s website at http://www.transalta.com/powering-investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-669-9658 (Canada and USA toll free) or 1-604-674-8052 (Outside of Canada) with TransAlta pass code 00227 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

About TransAlta

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been recognized on CDP’s Canadian Climate Disclosure Leadership Index (CDLI), which includes Canada’s top 20 leading companies reporting on climate change, and has been selected by Corporate Knights as one of Canada’s Top 50 Best Corporate Citizens and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.

For more information about TransAlta, visit our web site at transalta.com, or follow us on Twitter @TransAlta.

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1-800-387-3598 in Canada and U.S.
Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher
Manager, Communications
Toll-free media number: 1-855-255-9184
Email: ta_media_relations@transalta.com

TransAlta Continues to Focus on Strengthening its Balance Sheet

October 1, 2015

CALGARY, ALberta (October 1, 2015) – TransAlta Corporation (“TransAlta” or the “Company”) (TSX: TA; NYSE: TAC) reiterated today that it will continue to focus on strengthening its balance sheet despite Moody’s Investor Services, Inc. (“Moody’s”) decision to place the Company’s rating of its senior unsecured debt under review for possible downgrade. The announcement by Moody’s is not anticipated to have a material financial impact on TransAlta’s business as the Company maintains investment grade ratings with stable outlooks from three credit rating agencies including BBB- (stable outlook) by S&P, BBB (stable outlook) by DBRS and BBB- (stable outlook) by Fitch. TransAlta continues to maintain $2.1 billion in committed credit facilities with approximately $1.0 billion in available liquidity as of June 30, 2015 and no material debt maturity until 2017.

TransAlta will continue to execute its plan to strengthen its financial position and remains committed to its financial and operating goals for 2015, including its plan to further reduce debt levels.

About TransAlta Corporation

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been selected by Sustainalytics as one of Canada’s Top 50 Socially Responsible Companies since 2009 and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.

Forward Looking Statements

This news release contains forward-looking statements including but not limited to the Company’s plans and strategies relating to strengthening its balance sheet and the debt reductions that are expected to occur in 2015. These forward-looking statements are not historical facts but reflect TransAlta’s current expectations concerning future plans, actions and results. These statements are subject to a number of risks and uncertainties that could cause actual plans, actions and results to differ materially from current expectations including, but not limited to, changes in economic and market conditions, and other risks and uncertainties discussed in TransAlta’s materials filed with the Canadian securities regulatory authorities from time to time. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1 800-387-3598 in Canada and U.S.
Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher
Manager, Communications
Toll-free media number: 1-855-255-9184

TransAlta Reaches Agreement with Market Surveillance Administrator

September 30, 2015

CALGARY, Alberta (September 30, 2015) – TransAlta Corporation (“TransAlta”) (TSX: TA; NYSE: TAC) advises today that it has reached an agreement with the Market Surveillance Administrator (the “MSA”) to settle all outstanding proceedings before the Alberta Utilities Commission (the “AUC”). An application for a consent order reflecting this settlement, which is subject to approval by the AUC, was filed today and will be reviewed at a hearing to be scheduled later this year.

Under the terms of the agreement, TransAlta will pay a total amount of $56 million including approximately $27 million as a repayment of “economic benefit” under the legislation, $4 million to cover the MSA’s legal and related costs, and a $25 million administrative penalty.

Additional terms include that TransAlta will pay the agreed amount in two separate installments with the first payment of $30 million due 30 days after the AUC issues an order approving the settlement. The remaining amount will be paid one year later.

About TransAlta Corporation

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been selected by Sustainalytics as one of Canada’s Top 50 Socially Responsible Companies since 2009 and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws, including statements regarding the settlement agreement with Alberta’s Market Surveillance Administrator and the approval of the settlement by the Alberta Utilities Commission. These statements are based on TransAlta’s belief and assumptions based on information available at the time the assumptions were made. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include a decision by the Alberta Utilities Commission to alter the terms of, or not approve, the proposed settlement. Readers are cautioned not to place undue reliance on these forward looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1 800-387-3598 in Canada and U.S.
Email: investor_relations@transalta.com

Media Inquiries:

Stacey Hatcher
Manager, Communications
Toll-free media number: 1-855-255-9184