CALGARY, Alberta, June 03, 2026 (GLOBE NEWSWIRE) --
Highlights
Acquisition of two new natural gas-fired peaking facilities totaling 318 MW; 100% contracted under tolling agreements with investment grade customers for 25+ years
Adds scale with the expected addition of low risk, high-quality Adjusted EBITDA1 of approximately US$80 million per year ($110 million) and Free Cash Flow1 of approximately US$33 million per year ($45 million) with potential upside to projections from availability incentive payments
Expected to deliver immediate low-to-mid single digit accretion to Free Cash Flow per Share1; TransAlta is anticipated to be able to unlock operational, insurance and tax synergies
Total transaction value of US$1.0 billion includes the assumption of US$750 million of debt and US$250 million of equity to be raised via a concurrent $350 million bought deal common share offering, with a 15% over-allotment option
27-year weighted average off-take agreement tenure increases TransAlta's contractedness and contract duration profile; full pass through of all fuel, O&M and capital costs
Establishes physical position in Colorado, a state with highly attractive growth prospects within TransAlta's core geography of the Western U.S.
Continues TransAlta's successful track record of accretive, on-strategy acquisitions that leverage its competitive advantages
Cash flows to be redeployed into other attractive growth opportunities such as Centralia and Alberta data centres
Strengthens business risk profile with a clear path to improving credit metrics in the near-term
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.
The Acquisition is subject to Canyon Peak Power achieving commercial in-service as well as customary closing conditions, including receipt of regulatory approvals. The Acquisition is expected to close early in the fourth quarter of 2026.
Facilities Overview
Mountain Peak Power
Canyon Peak Power
Capacity
162 MW
156 MW
COD
September 2025
Expected Q3 2026
Technology
Six GE LM2500XPRESSGas Turbines
Six GE LM2500XPRESSGas Turbines
Contract Term
30 Years
25 Years
Customer
United Power, Inc.
CORE Electric Cooperative
Customer Credit Rating
