Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 327

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 327
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. We cannot guarantee that losses

| TransAlta Corporation |     | 2024 Integrated Report |     | M149 |

Management’s Discussion and Analysis will not occur and such losses may be outside the parameters of our risk controls. Certain of the contracts to which we are a party require that we provide collateral against our obligations. We are exposed to risk under certain arrangements, including financial derivative contracts and electricity and natural gas purchase and sale contracts entered into for the purposes of hedging and proprietary trading. The terms and conditions of these contracts may require us to provide collateral when the fair value of these contracts is in excess of any credit limits granted by our counterparties and the contract obliges that we provide the collateral. The change in fair value of these contracts often occurs due to changes in commodity prices. These contracts include: (a) financial derivative contracts when forward commodity prices are more or less than contracted prices, depending on the transactions; (b) purchase agreements, when forward commodity prices are less than contracted prices; and (c) sales agreements, when forward commodity prices exceed contracted prices. Downgrades in our creditworthiness by certain credit rating agencies may decrease the credit limits granted by our counterparties and, accordingly, increase the amount of collateral that we may have to provide. Any increase in the amount of collateral provided by the Company could reduce our liquidity and materially adversely affect us. If counterparties to our contracts are unable to meet their obligations, we may be materially and adversely affected. If purchasers of our electricity and steam or other contractual counterparties default on their obligations, we may be materially and adversely affected. While we have procedures and controls in place to manage counterparty credit risk before entering into contracts, all contracts inherently contain default risk. Moreover, while we seek to monitor trading activities to ensure that the credit limits for counterparties are not exceeded, we cannot guarantee that a party will not default. If counterparties to our contracts are unable to meet their obligations, we could suffer a reduction in revenue that could have a material adverse effect on our business.

We manage our exposure to credit risk by:

| • |     | Establishing and adhering to policies that define credit limits based on the creditworthiness of 
 counterparties;                                                                                  |

| • |     | Contract term limits and restrictions on the credit concentration with any specific counterparty; |

| • |     | Requiring formal sign-off on contracts that include   
 commercial, financial, legal and operational reviews; |

| • |     | Requiring security instruments, such as parental guarantees, letters