TransAlta Our plan for lower carbon sustainable value creation

Renewable Energy Finance ForumMarch 30, 2010

Steve Snyder,President & CEO

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Highly levered to growthin Alberta market

Canada’s largest publically traded wholesale power generator

What is TransAlta?

2,000 MW of renewable energy;Canada’s leading provider

Balance sheet strength and investment grade credit ratios

Long-term>5yrs

Medium-term3-5yrs

Short-term<3yrs

Open

Contracts

International26%

Western Canada

60%Eastern Canada

14%

Region MW

Renewables23% Coal

56%

Gas21%

Fuel Type MWTransAlta

Strong development team and pipeline of growth projects

3

0

500

1,000

1,500

2,000

TA GLH.UN BAM.A EMA FTS IEF.UN TRP BPT.UN EP.UN

TransAlta is Canada’s #1 renewable energy company

Renewable CapacityIn Canada(MW)1

1 Based on renewable generation in Canada only

Wind Hydro Biomass

Over the last decade TransAlta has invested ~$3 billion in renewable energy infrastructure

Renewables will account for almost a quarter of TransAlta’s fleet in 2012

Coal56%Gas

21%

Renewables23%

Coal55%Gas

21%

Renewables24%

20122010

0

100

200

TA

Geothermal

Renewable CapacityIn U.S.(MW)

4

UNITED STATES

CANADA

AUSTRALIA

271 MW

Generation Facilities:

Coal-fired under construction

Coal-fired plants

Gas-fired plants

Hydro plants

Wind-powered plants

Wind under construction

Geothermal

4,967 MW

1,843 MW

893 MW

950 MW

123 MW

164 MW

Biomass 25 MW

Net generation in operation 8,842 MW

Hydro under development 18 MW

Delivering sustainable shareholder value through market cycles

A sound strategy

Wholesale generator & marketer in Western Canada and U.S.; renewable focus across Canada

Low to moderate risk profile

Low cost, predictable operations

Financial strength

Deep pipeline of low carbon growth opportunities

Environmental leadership

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STRATEGIC

VALUE

• Accretive to cash flow per share day one

• Slightly dilutive to earnings per share first couple years

• Unlevered IRRs in line with benchmark; long-term value accretion for TransAlta shareholders

• Minimal integration risk

• Maintains TransAlta’s strong balance sheet and stable investment grade credit ratings

Transaction accelerates TransAlta’s strategy to grow in renewables and is consistent with low-moderate risk profile

• 100% renewable generation – unique set of quality assets

• Accelerates expansion of TransAlta’s total renewables from 15% to 22% of total generation

• Decreases carbon intensity per MW and further diversifies fuel sources

• Canadian Hydro Developers’ assets highly contracted with creditworthy counterparties

• Expands TransAlta’s pipeline of organic growth opportunities

Why Canadian Hydro?

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Hydro

Wind

134 MW

417 MW

Geothermal 87 MW

Net Capacity 638 MW

12 Facilities Under Advanced Development:

Greening our growth; a strategic priority for TransAlta

Growth strategy has shifted to accelerate near-term investments in renewables and focus on multiple options for long-term sustainability

Total Capital Spend: $2.0B – $2.4B

5 Facilities Under Construction:

Wind

Hydro

Coal

Net Capacity

123 MW

18 MW

271 MW

412 MW

Total Capital Spend: $1.3B

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The future of renewable energy finance in Canada is only just starting to grow…