Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 302

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 302
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 generation facilities were constructed many years ago and may require significant capital expenditures to maintain peak reliability or operations. Newer facilities also require various levels of capital expenditures to maintain peak reliability or operations. There can be no assurance that our maintenance program will be able to detect potential failures in our facilities before they occur or eliminate all adverse consequences in the event of failure. As well, we are exposed to procurement risk for specialized parts that may have long lead times. If we are unable to procure these parts when they are needed for maintenance activities, we could face an extended period where our equipment is unavailable to produce electricity. Further, if a manufacturer is unable or unwilling to provide satisfactory maintenance or warranty support on reasonable terms, we may have to enter into alternative arrangements with other providers or perform the services ourselves. These arrangements could be more expensive to us than our current arrangements and if we are unable to enter into satisfactory alternative arrangements, our inability to access technical expertise or parts could have a material adverse effect on us. TransAlta manages this risk with our capital spares policy. While we maintain an inventory of, or otherwise make arrangements to obtain, spare parts to replace critical equipment and maintain insurance for property damage and business interruption to protect against certain operating risks, these protections may not be adequate to cover lost revenues or increased expenses and penalties that could result if we were unable to operate our generation facilities at a level necessary to comply with our contracts. In addition, circumstances could arise in the future whereby the Company may be obligated to produce power at a cost that exceeds the revenues being derived therefrom. There can be no assurance that any applicable insurance coverage would be adequate to protect our business from material adverse effects. In addition, there can be no assurance that we will be able to restore equipment or assets that have reached the end of their useful lives.

We manage our generation equipment and technology risk by:

| • |     | Operating our facilities within defined industry standards that optimize availability over their 
 commercial operating life;                                                                       |

| • |     | Performing preventive maintenance in accordance with applicable industry practices, major equipment 
 supplier recommendations and our operating experience;                                              |

| • |     | Adhering to comprehensive maintenance programs and regular turnaround schedules; |

| • |     | Adjusting maintenance plans by facility to reflect equipment type, age and commercial risk; |

| • |     | Having adequate business interruption insurance in place to cover extended forced outages; |

| • |     | Having clauses in our PPAs and other long-term contracts that allow us to declare force majeure in