TransAlta commissions second Mexican power plant

CALGARY, ALBERTA - September 9, 2003 -- TransAlta Corporation (TSX:TA; NYSE:TAC) today began commercial operation of its new US$258 million, 259-megawatt (MW) Chihuahua III combined-cycle gas-fired power plant. The plant is located approximately 40 km(25 miles) south of the U.S. / Mexico border near Cuidad de Juarez. The plant's electrical output is sold under a 25-year contract to Mexico's government-owned utility, the Comision Federal de Electricidad (CFE).

"Chihuahua III is a long-term investment that allows us to diversify our portfolio and increase generation capacity in the strong Mexican market," said Steve Snyder, TransAlta President and CEO. "We look forward to supplying Mexico's growing and modern economy with clean, reliable, and affordable energy."

TransAlta owns and operates 511 MW of power generation in Mexico and employs 83 people at two power plants and one regional office. TransAlta's first power plant in Mexico was the 252-MW combined-cycle gas- and diesel-fuelled Campeche power plant located in the state of Campeche on the Yucatan Peninsula. Campeche's output is also sold under long-term contract to the CFE.

TransAlta is Canada's largest non-regulated power generation and wholesale marketing company. We have close to $9 billion in coal-fired, gas-fired, hydro and renewable generation assets in Canada, the U.S., Mexico and Australia. With approximately 10,000 megawatts of capacity either in operation, under construction or in development, our focus is to efficiently operate our assets in order to provide our wholesale customers with a reliable, low-cost source of power.