TAC News & Events

TransAlta (TAC) announced that it has entered into a purchase and sale agreement to acquire Mountain Peak Power and Canyon Peak Power, each of which is an indirect subsidiary of Blackstone (BX). The project companies own two new natural gas peaking facilities totaling 318 MW near Denver, Colorado. The assets are expected to add approximately $80M of adjusted EBITDA per year from the 162 MW Mountain Peak Power and 156 MW Canyon Peak Power facilities. Mountain Peak Power has been operating since September 2025 and Canyon Peak Power is expected to achieve commercial in-service in the third quarter. The total transaction value of $1B includes the assumption of $750M of senior secured project level debt and $250M of equity to be raised via a concurrent bought deal common share offering for $350M and is subject to working capital and other adjustments. Net proceeds from TransAlta's concurrent $350M bought deal common share offering will fully fund the equity component of the acquisition. The non-recourse project debt at each asset is fully amortizing over the contract terms and carries an investment grade rating. The company continues to actively manage its capital structure through multiple levers, including portfolio optimization and asset recycling opportunities. Combined with the expected recovery of Alberta power prices and the return to service of Centralia, credit metrics are expected to strengthen. The acquisition is subject to Canyon Peak Power achieving commercial in-service as well as customary closing conditions, including receipt of regulatory approvals. The acquisition is expected to close early in the fourth quarter of 2026.