TransAlta Stock Price, News & Analysis

TransAlta Corporation (TAC) is a publicly traded power generation company that owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia. The company focuses on creating long-term shareholder value by supplying affordable, energy efficient and reliable power to a range of customers, including municipalities, medium and large industries, businesses and utility customers.

According to company disclosures, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of thermal generation and hydro-electric power. Over its more than 114-year history, the company has emphasized responsible operations and engagement as a member of the communities where it operates and where its employees work and live.

Business model and segments

TransAlta is described as an independent power producer with a diversified and growing fleet of generation assets. Based on its public information, the company organizes its activities into several reportable segments: Hydro, Wind & Solar, Gas, Energy Transition, Energy Marketing and a Corporate segment. These segments reflect different technologies and commercial approaches within its portfolio.

The company’s gas segment has been identified as the largest contributor to revenue. At the same time, TransAlta continues to operate significant hydro, wind and solar facilities, as well as thermal generation assets in Alberta and other regions. Its Energy Marketing activities support the portfolio through trading, hedging and optimization of generated power and related products, as reflected in its segmented financial reporting.

Geographic footprint and asset base

TransAlta’s generation fleet spans multiple jurisdictions in Canada, the United States and Australia. In Canada, the company has a notable presence in Alberta and Ontario, including natural gas-fired generation facilities and hydro, wind and solar assets. In the United States, TransAlta owns and operates the Centralia facility in Washington State, which has historically provided reliable and affordable power in the Pacific Northwest region. In Australia, the company also owns and operates power generation assets, as indicated in its corporate descriptions.

Recent disclosures highlight TransAlta’s plans and activities around specific assets. For example, the company has announced a long-term tolling agreement to convert its Centralia Unit 2 facility from coal to natural gas-fired generation, with a planned contracted capacity of 700 megawatts. The converted facility is expected to deliver power under a long-term fixed price contract and is intended to support reliability needs in the Pacific Northwest region.

Hydro, wind, solar and thermal generation

TransAlta reports that it is one of Canada’s largest producers of wind power and Alberta’s largest producer of thermal generation and hydro-electric power. Its hydro segment contributes to its overall generation portfolio, while the wind and solar segment reflects its renewable energy footprint. Thermal generation, including gas-fired facilities and other thermal assets, remains a core part of the company’s Alberta operations and other markets.

The company’s public communications emphasize its role in providing firm, dispatchable generation that supports grid reliability, particularly as electrification and population growth increase power demand. TransAlta’s acquisition of a contracted Ontario gas portfolio, consisting of four natural gas-fired generation facilities totaling 310 megawatts, is presented as enhancing its contracted portfolio and increasing its footprint in its core Ontario market.

Energy transition and environmental performance

TransAlta describes an ongoing energy transition within its fleet, including coal-to-gas conversions and other initiatives. The planned conversion of Centralia Unit 2 from coal to natural gas-fired generation is expected, according to the company, to lower the emission intensity profile of that facility by approximately 50 per cent once the conversion is complete and the facility re-enters operations.

In its public statements, TransAlta reports that it has achieved a 70 per cent reduction in greenhouse gas (GHG) emissions, or 22.7 million tonnes of CO2e, since 2015. The company also notes that it has received an upgraded MSCI ESG rating of AA. TransAlta states that it aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which define sustainable goals for businesses.

TransAlta’s reporting on climate change management is guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). These frameworks inform how the company discloses climate-related risks, opportunities and performance metrics.

Data centre and load growth initiatives

In addition to generation, TransAlta has highlighted its participation in programs related to large power loads. The company has entered into a Demand Transmission Service contract with the Alberta Electric System Operator (AESO) for 230 megawatts, representing the full allocation awarded to the company through Phase I of the AESO’s Data Centre Large Load Integration Program. TransAlta has also reported that land surrounding certain Alberta facilities has been rezoned to support data centre development, reflecting its interest in serving large-scale digital infrastructure loads.

Capital allocation, acquisitions and divestitures

TransAlta’s recent announcements include both acquisitions and divestitures. The company has entered into a definitive share purchase agreement to acquire Far North Power Corporation, which owns and operates four natural gas-fired generation facilities in Ontario totaling 310 megawatts. This acquisition is described as increasing TransAlta’s contracted and complementary assets in Ontario and contributing to its diversified portfolio.

On the divestiture side, TransAlta has completed the sale of its interest in certain facilities, such as the Poplar Hill and Rainbow Lake facilities, as part of required divestitures under a consent agreement with the federal Competition Bureau related to a prior acquisition. These transactions illustrate how the company adjusts its portfolio in response to regulatory requirements and strategic priorities.

Financial reporting and regulatory status

TransAlta is listed on the Toronto Stock Exchange under the symbol TA and on the New York Stock Exchange under the symbol TAC. As a foreign private issuer in the United States, the company files reports on Form 40-F and furnishes current information on Form 6-K under the Securities Exchange Act of 1934. Recent Form 6-K filings have included management’s discussion and analysis, interim financial statements, details of acquisitions, long-term agreements, dividend declarations, and supplemental indentures and underwriting agreements.

The company reports segmented financial performance for its Hydro, Wind and Solar, Gas, Energy Transition, Energy Marketing and Corporate segments, providing measures such as adjusted EBITDA, funds from operations and free cash flow. TransAlta also uses certain non-IFRS measures and ratios, which it explains in its management’s discussion and analysis.

Corporate governance and succession

TransAlta has announced a planned succession in its senior leadership, with its current President and Chief Executive Officer indicating an intention to retire on a specified future date and a designated successor named to assume the roles of President and Chief Executive Officer and to be nominated to the Board of Directors. The outgoing CEO is expected to serve as a strategic advisor for a period following retirement, according to the company’s public announcements.

ESG positioning and community role

TransAlta emphasizes its long-standing presence in the power sector, noting that it has operated for over 114 years and positions itself as a responsible operator and a member of the communities where it operates. The company highlights alignment with international sustainability frameworks, climate-related disclosure standards and ESG ratings as part of its broader approach to environmental, social and governance considerations.

Frequently asked questions about TransAlta Corporation

• What does TransAlta Corporation do?
  TransAlta owns, operates and develops electrical power generation assets in Canada, the United States and Australia. It supplies affordable, energy efficient and reliable power to municipalities, medium and large industries, businesses and utility customers.
• In which regions does TransAlta operate?
  According to its public disclosures, TransAlta’s generation fleet is located in Canada, the United States and Australia. It has a significant presence in Alberta and Ontario in Canada, and operates the Centralia facility in Washington State, among other assets.
• What types of power generation assets does TransAlta own?
  TransAlta reports that it operates a diverse fleet that includes hydro, wind, solar, gas and other thermal generation assets. It is identified as one of Canada’s largest producers of wind power and Alberta’s largest producer of thermal generation and hydro-electric power.
• How is TransAlta organized from a business segment perspective?
  The company’s reportable segments include Hydro, Wind & Solar, Gas, Energy Transition, Energy Marketing and a Corporate segment. These segments reflect different technologies, commercial structures and support functions within its portfolio.
• How does TransAlta describe its energy transition efforts?
  TransAlta has disclosed initiatives such as converting coal-fired facilities to natural gas-fired generation, including a planned conversion of Centralia Unit 2. The company reports a 70 per cent reduction in GHG emissions since 2015 and states that it aligns its climate reporting with IFRS S2 and TCFD recommendations.
• What is notable about TransAlta’s environmental, social and governance (ESG) profile?
  TransAlta reports that it has reduced GHG emissions by 22.7 million tonnes CO2e since 2015 and has received an upgraded MSCI ESG rating of AA. It also states that it aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark.
• What recent growth initiatives has TransAlta announced?
  Recent announcements include a definitive agreement to acquire a 310 megawatt contracted Ontario gas portfolio and a long-term tolling agreement to convert Centralia Unit 2 to natural gas-fired generation. The company has also highlighted participation in the AESO’s Data Centre Large Load Integration Program through a Demand Transmission Service contract.
• How does TransAlta communicate its financial performance?
  TransAlta publishes management’s discussion and analysis and consolidated financial statements, and reports metrics such as adjusted EBITDA, funds from operations and free cash flow. As a foreign issuer in the United States, it furnishes this information on Form 6-K and files annual information on Form 40-F.
• Is TransAlta still an active public company?
  Based on recent news releases and SEC filings, TransAlta continues to declare dividends, announce acquisitions and agreements, report quarterly results and file current reports on Form 6-K, indicating ongoing public company activity.
• What stock exchanges list TransAlta’s shares?
  TransAlta’s common shares trade on the Toronto Stock Exchange under the symbol TA and on the New York Stock Exchange under the symbol TAC.