Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 155

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 155
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, Brookfield will be able to acquire an additional 10 per cent interest in the entity holding the Alberta Hydro Assets, provided the 20-dayvolume-weighted average price (VWAP) of TransAlta’s common shares is not less than $14 per share prior to the exercise of the option, and up to the full 49 per cent if the 20-dayVWAP of TransAlta’s common shares at that time is not less than $17 per share. To the extent the value of the investment would exceed a 49 per cent equity interest, Brookfield will be entitled to receive the balance of the redemption price in cash. In connection with the Investment Agreement, Brookfield is entitled to nominate two directors for election to the Board.

| TransAlta Corporation |     | 2024 Integrated Report |     | F80 |

Notes to the Consolidated Financial Statements 27. Defined Benefit Obligation and Other Long-Term Liabilities The components of defined benefit obligation and other long-term liabilities are as follows:

| As at                                
 Dec. 31                              |     | 2024 |     | 2023 |
|:-------------------------------------|:----|-----:|:----|-----:|
| Defined benefit obligation (Note 32) |     |  146 |     |  155 |
| Retail power contract liability      |     |   45 |     |   83 |
| Other                                |     |   11 |     |   13 |
| Total                                |     |  202 |     |  251 |

The liability for pension and post-employment benefits and associated costs included in compensation expenses are impacted by estimates related to changes in key actuarial assumptions, including discount rates. The defined benefit obligation has decreased by $9 million to $146 million as at Dec. 31, 2024, from $155 million as at Dec. 31, 2023. The Company’s U.S. Defined Benefit Pension Plan was terminated effective June 30, 2024 and annuitized with the TransAlta Retirement Pension Plan Trust in October 2024. Plan assets and liabilities both totalling $23 million (US$17 million) were transferred to a new provider. The participant payments with a new provider commenced on Jan. 1, 2025. During 2023, the Company made a voluntary contribution of $4 million (US$3 million) to further improve the funded status of U.S. Defined Benefit Pension Plan for the Central