Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 200

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 200
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 to market forces. Power from commercial generation is cleared through a wholesale electricity market. Power is dispatched in accordance with an economic merit order administered by the Alberta Electric System Operator (AESO), based upon offers by generators to sell power in the real-time energy- only market. Our merchant Alberta fleet operates under this framework and we internally manage our offers to sell power. Optimization of portfolio performance in the Alberta merchant market is driven by the diversity of fuel types, which enables portfolio management. It also provides us with capacity that can be monetized as either energy production or ancillary services. A significant portion of the generation capacity in the portfolio has been hedged to provide greater cash flow certainty. The Company’s hedging strategy includes maintaining a significant base of Commercial and Industrial (C&I) customers and is supplemented with financial hedges. During periods of low market prices, the Company may choose not to generate power from the thermal fleet and monetize its hedged or contract positions. This results in a change in revenue not correlating with a change in production. During 2024, there were periods of low market prices, and the Company opted not to generate production from the thermal fleet, and as a result, the thermal generation sold through C&I contracts and financial hedges exceeded the actual merchant production generated.

| TransAlta Corporation |     | 2024 Integrated Report |     | M29 |

Management’s Discussion and Analysis The Alberta hydro fleet provides ancillary services and grid reliability products such as black start services, in the event of a system-wide blackout in the province, and drought mitigation, by systematically regulating river flows. Our Alberta wind and hydro fleets provide a steady stream of environmental credits that the Company sells to third parties and intercompany to the Gas segment. The following table provides information for the Company’s Alberta electricity portfolio:

|                                            |     |  2024 |     |        |     |        |     |            |     |        |     |  2023 |     |        |     |       |     |            |     |        |     |  2022 |     |        |     |       |     |            |     |        |
| Year ended Dec.                            
 31                                         |     | Hydro |     | Wind & 
  Solar |     | Gas(4) |     |     Energy 
 Transition |     |  Total |     | Hydro |     | Wind & 
  Solar |     |   Gas |     |     Energy 
 Transition |     |  Total |     | Hydro |