Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 140

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 140
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 changes in market value. Interest payable to the counterparties on the collateral received is calculated in accordance with each contract. Collateral held is related to physical and financial derivative transactions in a net asset position and is included in accounts payable and accrued liabilities in the Consolidated Statements of Financial Position. III. Contingent Features in Derivative Instruments Collateral is posted in the normal course of business based on the Company’s senior unsecured credit rating as determined by certain major credit rating agencies. Certain of the Company’s derivative instruments contain financial assurance provisions that require collateral to be posted only if a material adverse credit-related event occurs. At Dec. 31, 2024, the Company had posted collateral of $424 million (Dec. 31, 2023 — $392 million) in the form of letters of credit on physical and financial derivative transactions in a net liability position. Certain derivative agreements contain credit-risk-contingent features, which if triggered could result in the Company having to post an additional $128 million (Dec. 31, 2023 — $154 million) of collateral to its counterparties. 16. Inventory The components of inventory are as follows:

| As at Dec. 31                 |     | 2024 |     |     | 2023 |     |
|:------------------------------|:----|:-----|----:|:----|:-----|----:|
| Parts, materials and supplies |     |      |  85 |     |      |  72 |
| Coal                          |     |      |  27 |     |      |  38 |
| Emission credits              |     |      |  18 |     |      |  45 |
| Natural gas                   |     |      |   4 |     |      |   2 |
| Total                         |     |      | 134 |     |      | 157 |

No inventory was pledged as security for liabilities. As at Dec. 31, 2024, the Company holds 460,585 emission credits in inventory that were purchased externally with a recorded book value of $18 million (Dec. 31, 2023 — 962,548 emission credits with a recorded book value of $45 million). The Company also has 2,109,491 (Dec. 31, 2023 — 3,121,837) of internally generated eligible emission credits from the Company’s Wind and Solar and Hydro segments that have no recorded book value. Emission credits can be sold