TransAlta Power, L.P. closes purchase of interest in Sheerness plant

July 31, 2003 -- TransAlta Power, L.P. today announced the closing of the previously announced acquisition of an indirect 25 per cent interest in the Sheerness Generating Station. This acquisition was approved at a special meeting of unitholders held on July 18, 2003.

July 31, 2003 TransAlta Power, L.P. closes purchase of interest in Sheerness plant As a result of the closing of the acquisition, each TransAlta Power, L.P. subscription receipt recently issued to the public to fund the acquisition will automatically be converted into one unit and one warrant of TransAlta Power, L.P. today. The warrants, each of which entitles the holder to acquire one unit at a price of $9.30, will expire on Aug. 3, 2004. In addition, as a result of the closing, each TransAlta Power, L.P. subscription receipt issued to TransAlta Energy Corporation to fund the acquisition will automatically be converted into one unit of TransAlta Power, L.P.

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.