Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 349

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 349
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 |       |  -12 |
| Long-term                            |     |           |  — |     |                             |    8 |     |       |    8 |
| Net other risk management            
 liabilities                          |     |           |  — |     |                             |   -4 |     |       |   -4 |
| Total net risk management assets     
 (liabilities)                        |     |           | 45 |     |                             | -216 |     |       | -171 |

| TransAlta Corporation |     | F23 |

C. Nature and Extent of Risks Arising from Financial Instruments I. Market Risk i. Commodity Price Risk – Proprietary Trading The Company’s Energy Marketing segment conducts proprietary trading activities and uses a variety of instruments to manage risk, earn trading revenue and gain market information. A value at risk (VaR) measure gives, for a specific confidence level, an estimated maximum pre-taxloss that could be incurred over a specified period of time. VaR is used to determine the potential change in value of the Company’s proprietary trading portfolio, over a three-dayperiod within a 95 per cent confidence level, resulting from normal market fluctuations. Changes in market prices associated with proprietary trading activities affect net (loss) earnings in the period that the price changes occur. VaR at Sept. 30, 2025, associated with the Company’s proprietary trading activities was $1 million (Dec. 31, 2024 — $3 million). ii. Commodity Price Risk – Generation The generation segments utilize various commodity contracts to manage the commodity price risk associated with electricity generation, fuel purchases, emissions and byproducts, as considered appropriate. A Commodity Exposure Management Policy is prepared and approved annually, which outlines the intended hedging strategies associated with the Company’s generation assets and related commodity price risks. Controls also include restrictions on authorized instruments, management reviews on individual portfolios and approval of asset transactions that could add potential volatility to the Company’s reported net (loss) earnings. VaR at Sept. 30, 2025, associated with the Company’s commodity derivative instruments used in generation hedging activities was $2 million (Dec. 31, 2024 — $8 million). For positions and economic hedges that do not meet hedge accounting requirements or for short-term optimization transactions such as buybacks entered into to offset existing hedge positions, these transactions are marked to the market value with changes in market prices associated with these transactions affecting net (loss) earnings in the period in which the