TransAlta Power, L.P. unitholders approve acquisition of interest in Sheerness plant

CALGARY, ALBERTA, July 21, 2003 — TransAlta Power, L.P. announced that its unitholders overwhelmingly approved the acquisition of an indirect 25 per cent interest in the Sheerness Generating Station at a special meeting of unitholders held recently in Calgary, Alberta. As a result of the acquisition, distributions are expected to increase from $0.75 to $0.785 on an annual basis.

The proposed acquisition and related issue of subscription receipts were announced on June 16, 2003. The acquisition is expected to close on July 31, 2003.

Sheerness is a 756-megawatt, mine-mouth, coal-fired power plant located 200 kilometres north of Calgary, Alberta that has been jointly owned by TransAlta Corporation and Canadian Utilities Inc. Sheerness is operated by Canadian Utilities.

TransAlta Power, L.P. owns a 49.99 per cent interest in TransAlta Cogeneration, L.P., which owns three Ontario cogeneration facilities and a 60 per cent interest in the Fort Saskatchewan, Alberta cogeneration facility.

TransAlta Corporation, through two wholly owned subsidiaries, owns the remaining 50.01 per cent interest in TransAlta Cogeneration, L.P. and is responsible for the operation and maintenance of the plants. The Ontario plants have a total generating capacity of 244 megawatts of electric power.

Electricity from the plants is sold to Ontario Electricity Financial Corporation under long-term contracts; steam and other thermal energy produced is supplied to manufacturing plants and other facilities. The Fort Saskatchewan plant has a total generating capacity of 118 megawatts. Electricity and steam from this plant are sold to Dow Chemical Canada Inc. under a long-term contract.

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