Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 232

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 232
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 and thermal facilities. Hedging is a key component of cash flow certainty and the hedges are primarily tied to our portfolio of gas facilities and also allocated to our portfolio of hydro facilities rather than a single facility.

| M78 |     | TransAlta Corporation |     | 2024 Integrated Report |

Management’s Discussion and Analysis Sustaining Capital Expenditures Our estimate for total sustaining capital is as follows:

|                          |     | Spent in 2024 |              |     | Expected spend in 2025 |                      |
| Total sustaining capital |     |               | $142 million |     |                        | $145 to $165 million |

The Company expects sustaining capital to be in the range of $145 to $165 million. The midpoint for the range represents an 11 per cent increase from the midpoint of the 2024 expected sustaining capital range of $130 to $150 million, and a nine per cent increase from 2024 sustaining capital spend. This is driven by increased Hydro dam safety spending and the additional capital requirements to support Heartland gas facilities, offset by lower sustaining capital expenditures for planned major maintenance related to our other gas facilities and lower sustaining capital from our Energy Transition segment as 2025 is our Centralia plant’s final year of coal-fired generation. Liquidity and Capital Resources We maintain adequate available liquidity under our committed credit facilities. As at Dec. 31, 2024, we had access to $1.6 billion in liquidity, including $336 million in cash, which exceeds the funds required for committed growth, sustaining capital and productivity projects. Material Accounting Policies and Critical Accounting Estimates The selection and application of accounting policies is an important process that has developed as our business activities have evolved and as accounting rules and guidance have changed. Accounting rules generally do not involve a selection among alternatives, but involve the implementation and interpretation of existing rules and the use of judgment relative to the circumstances existing in the business. Every effort is made to comply with all applicable rules on or before the effective date and we believe the proper implementation and consistent application of accounting rules is critical. However, not all situations are specifically addressed in the accounting literature. In these cases, our best judgment is used to adopt a policy for accounting for these situations. We draw analogies to similar situations and the accounting guidelines governing them, consider foreign accounting standards and consult with our independent auditors about the appropriate interpretation and application of these policies. Each of the critical accounting policies involves complex situations and a high degree of judgment either in the application and interpretation of existing literature