TransAlta To Acquire Mountain Peak Power And Canyon Peak Power; Total Transaction Value Of $1.0B Includes The Assumption Of $750M Of Senior Secured Project Level Debt And $250M Of Equity To Be Raised Via A Concurrent Bought Deal Common Share Offering For $350M And Is Subject To Working Capital And Other Adjustments

TransAlta Corporation (TransAlta or the Company) (TSX:TA) (NYSE:TAC) is pleased to announce that it has entered into a purchase and sale agreement (the Acquisition) to acquire Mountain Peak Power LLC and Canyon Peak Power LLC (the Project Companies), each of which is an indirect subsidiary of Blackstone, Inc. The Project Companies own two new natural gas peaking facilities totaling 318 MW near Denver, Colorado.

The assets are expected to add approximately US$80 million of Adjusted EBITDA1 per year from the 162 MW Mountain Peak Power and 156 MW Canyon Peak Power facilities. Mountain Peak Power has been operating since September 2025 and Canyon Peak Power is expected to achieve commercial in-service in the third quarter of 2026.

"This acquisition adds new, high-quality, low-risk assets in a core market for us," said Joel Hunter, President and Chief Executive Officer of TransAlta. "It strengthens our business risk profile, is immediately accretive to our Free Cash Flow per Share1 and establishes a strategic foothold in Colorado, a state we believe has accelerating growth potential. These assets will generate long-term contracted cashflows for redeployment into other growth prospects such as Centralia and Alberta data centres, and I am pleased with the continued meaningful progress on both projects," concluded Mr. Hunter.

The total transaction value of US$1.0 billion includes the assumption of US$750 million of senior secured project level debt and US$250 million of equity to be raised via a concurrent bought deal common share offering for $350 million and is subject to working capital and other adjustments. Net proceeds from TransAlta's concurrent $350 million bought deal common share offering will fully fund the equity component of the Acquisition. The non-recourse project debt at each asset is fully amortizing over the contract terms and carries an investment grade rating. The Company continues to actively manage its capital structure through multiple levers, including portfolio optimization and asset recycling opportunities. Combined with the expected recovery of Alberta power prices and the return to service of Centralia, credit metrics are expected to strengthen.