Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 165

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 165
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 TransAlta OCP bonds(3)   |     |      |    (17 | ) |     |      |    (17 | ) |     |            |    — |   |
| Less: Fair value (asset) liability of hedging instruments on long-term 
 debt(4)                                                                |     |      |     (7 | ) |     |      |      5 |   |     |            |  (12 | ) |
| Total capital                                                          |     |      |  6,041 |   |     |      |  5,517 |   |     |            |  524 |   |

| (1) | Includes lease liabilities, amounts outstanding under credit facilities, tax equity liabilities,              
 current portion of long-term debt and new debt assumed as part of the Heartland acquisition. Refer to Note 4. |

| (2) | The Company includes available cash and cash equivalents, as a reduction in the calculation of                                   
 capital, as capital is managed using a net debt position. These funds may be available and used to facilitate repayment of debt. |

| (3) | The Company includes the principal portion of restricted cash on TransAlta OCP bonds as this cash 
 is restricted specifically to repay outstanding debt.                                             |

| (4) | The Company includes the fair value of economic and designated hedging instruments on debt in an                                                                                                                  
 asset, or liability, position as a reduction, or increase, in the calculation of capital, as the carrying value of the related debt has either increased, or decreased, due to changes in foreign exchange rates. |

| TransAlta Corporation |     | 2024 Integrated Report |     | F96 |

Notes to the Consolidated Financial Statements The Company’s overall capital management strategy and its objectives in managing capital are as follows: A. Maintain a Strong Financial Position The Company operates in a long-cycle and capital-intensive commodity business and it is therefore a priority to maintain a strong financial position that enables the Company to access capital markets at reasonable interest rates. Maintaining a strong balance sheet also allows our commercial team to contract the Company’s portfolio with a variety of counterparties on terms and prices that are favourable to the Company’s financial results and provides the Company with better access to capital markets through commodity and credit cycles. The Company has an investment grade credit rating from Morningstar DBRS. In 2024, Moody’s reaffirmed the Company’s long-term rating of Ba1 with a stable outlook. Morningstar DBRS reaffirmed the