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TransAlta
Corporation

April
3, 2003



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|                                                        | TransAlta
      Corporation     |    | 
|------------------------------------------------------- | ------------------------------- | -- | 
|                                                        | 110
      - 12thAvenue
      SW |    | 
|                                                        | Box
      1900, Station "M"     |    | 
|                                                        | Calgary,
      Alberta T2P 2M1  |    | 
|                                                        | (403)
      267-7110            |    | 
|                                                        | www.transalta.com               |    | 
|                                                        |                                 |    | 
|TABLE
      OF CONTENTS                                 |                                 |    | 
|                                                        |                                 |    | 
|                                                        |                                 |    | 
|SPECIAL
      NOTE REGARDING FORWARD-LOOKING STATEMENTS |                                 | 2  | 
|GLOSSARY
      OF TERMS                                 |                                 | 2  | 
|Name
      and Incorporation                            |                                 | 3  | 
|Intercorporate
      Relationships                      |                                 | 3  | 
|BUSINESS
      OF TRANSALTA                             |                                 | 3  | 
|Overview                                                |                                 | 3  | 
|GENERAL
      DEVELOPMENT OF THE BUSINESS               |                                 | 4  | 
|Significant
      Events Since Dec. 31, 2002            |                                 | 4  | 
|Year-ended
      Dec. 31, 2002                          |                                 | 5  | 
|Year-ended
      Dec. 31, 2001                          |                                 | 5  | 
|Year-ended
      Dec. 31, 2000                          |                                 | 6  | 
|Generation
      Business Segment                       |                                 | 7  | 
|Sustainable
Development Initiatives                     |                                 | 15 | 
|Energy Marketing Business Segment                       |                                 | 15 | 
|Competitive
      Environment                           |                                 | 16 | 
|Competitive
Strengths                                   |                                 | 17 | 
|Capital Expenditures                                    |                                 | 18 | 
|Environmental Protection and Climate Change             |                                 | 18 | 
|Risk Factors                                            |                                 | 19 | 
|Employees                                               |                                 | 19 | 
|SELECTED CONSOLIDATED FINANCIAL INFORMATION             |                                 | 20 | 
|Dividends                                               |                                 | 21 | 
|MANAGEMENT'S
DISCUSSION & ANALYSIS                      |                                 | 21 | 
|MARKET FOR SECURITIES                                   |                                 | 21 | 
|DIRECTORS AND OFFICERS                                  |                                 | 21 | 
|Directors                                               |                                 | 21 | 
|Officers                                                |                                 | 23 | 
|AUDITORS, TRANSFER AGENT
      AND REGISTRAR            |                                 | 25 | 
|ADDITIONAL
INFORMATION                                  |                                 | 25 | 





1

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SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS



This Annual
Information Form contains both historical and forward -looking statements within
the meaning of Section 27A of theU.S.
Securities Actand Section 21 E of theU.S.
Exchange Act.
In some cases, forward -looking statement can be identified by terms such as "may",
"will", "believe", "except", "potential", "enable", "continue"
or other comparable terminology. These statements are not guarantees of
TransAlta's future performance and are subject to risks, uncertainties and
other important factors that could cause the Corporation's actual performance
to be materially different from those projected. Some of the risks,
uncertainties, and factors include, but are not limited to: legislative and
regulatory developments that could affect revenues, costs, the speed and degree
of competition entering the market; global capital markets activity; timing and
extent of changes in commodity prices, prevailing interest rates, currency
exchange rates, inflation levels and general economic conditions in geographic
areas where TransAlta operates; results of financing efforts; changes in
counterparty risk; and the impact of accounting policies issued by Canadian and
U.S. standard setters. Given these uncertainties, the reader should not place
undue reliance on these forward-looking statements.

These and
additional factors are described in more detail under "Risk Factors", and in
management's discussion and analysis of financial co ndition and results of
operations, which is hereby specifically incorporated by reference in this
Annual Information Form.



GLOSSARY
OF TERMS

This Annual
Information Form may include the following terms:

Alberta
PPAmeans
an Alberta government mandated power purchase arrangement;capacitymeans net maximum capacity that a unit can sustain over a period of time;gigawatt
hourorGWhmeans one
million kilowatt hours of electrical power;kilowattsorkWmeans 1,000 watts of electrical power;

kilowatt
hourorkWhmeans one hour during which one kilowatt of electrical power has been
continuously produced;

megawattorMWmeans 1,000 kilowatts of electrical power;

megawatt
hourorMWhmeans 1,000 kilowatt hours;

PPAmeans a power purchase arrangement having an initial term of five years or
greater;

wattmeans the scientific unit of electrical power, being the rate of energy use that
gives rise to the production of energy at a rate of one joule per second; and

watt houris a measure of energy production or consumption equal to one watt produced or
consumed for one hour.







2

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CORPORATE
STRUCTURE

Name and
Incorporation

TransAlta
Corporation ("TransAlta" or the "Corporation") is a corporation
amalgamated under theCanada
Business Corporations Act.
The registered office and principal place of business of TransAlta are at 110 -
12th Avenue S.W., Calgary, Alberta, Canada, T2R 0G7.

Intercorporate
Relationships

The principal
subsidiaries and affiliates of the Corporation and their respective
jurisdictions of formation are set out below.

Unless the context
otherwise requires, all references to the "Corporation" and to "TransAlta"
herein refer to TransAlta Corporation and its subsidiaries, including TransAlta
Utilities Corporation and TransAlta Energy Corporation.



BUSINESS
OF TRANSALTA

Overview

TransAlta and its
predecessors have been engaged in the production and sale of electric energy
since 1911. The Corporation is among Canada's largest non-regulated electric
generation and energy marketing companies with an aggregate net ownership
interest of over 8,700 MW of generating capacity operating and under
construction (of which approximately 1,200 MW is under construction) in
facilities having approximately 10,100 MW of aggregate generating capacity. The
Corporation is focused on generating electricity in Canada, the United States,
Mexico and Australia through its diversified portfolio of facilities fuelled by
coal, gas, hydro, wind and geothermal resources. The following is a brief
overview of the Corporation's principal facilities.

3

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In Alberta, the
Corporation holds an ownership interest of almost 5,200 MW of generating
capacity in coal-fired, gas-fired and hydroelectric facilities which are
operating and under construction. On Jan. 1, 2001, the Corporation's Alberta
coal-fired and hydroelectric generating plants began operating under the Alberta
government mandated power purchase arrangements ("Alberta PPAs"), which
established committed capacity and electrical energy generation requirements and
availability targets to be achieved by each coal-fired plant, energy and
ancillary services obligations for the hydroelectric plants, and the price at
which power would be supplied. The Corporation believes that it has positioned
itself to capitalize on opportunities created by the deregulation of the Alberta
energy market with its extensive facilities located in Alberta and its
experience as a developer of non-regulated independent power projects.

The Corporation
also has several gas-fired cogeneration facilities in Ontario, including a 575
MW facility in Sarnia, comprised of 135 MW of existing facilities and a 440 MW
facility which commenced commercial operation on March 27, 2003. In the United
States, the Corporation's principal facilities include the 1,404 MW coal-fired
plant in Centralia, Washington and the 248 MW Big Hanaford gas-fired facility,
which supply electricity in the Pacific Northwest. The Corporation also recently
completed the acquisition of a 50 per cent interest in CE Generation, LLC ("CE
Generation"), which has an aggregate net ownership interest of 756 MW of
electrical generating capacity in power plants in operation in the states of
California, Texas, Arizona and New York. In Mexico, the Corporation has two
facilities under construction with a combined capacity of 511 MW. The 252 MW
Campeche facility is expected to commence commercial operations in the second
quarter of 2003 and the 259 MW Chihuahua facility is expected to commence
commercial operations in the third quarter of 2003. The Corporation also an
ownership interest of 280 MW of electrical generating capacity in two power
plants in Australia.

On April 29, 2002,
the Corporation completed the sale of its Alberta-based transmission business to
AltaLink, L.P. The sale was carried out to further the Corporation's strategy
of focusing on developing a portfolio of generation assets capable of realizing
the Corporation's financial objectives. The transmission business segment was
reclassified as a discontinued operation upon the announcement in July 2001 of
the agreement to sell the business.

The Corporation is
organized into two business segments: Generation and Energy Marketing. The

Generation group
is responsible for constructing, operating and maintaining power generation
facilities. The Energy Marketing group is responsible for managing the sale of
production and market risks associated with the Corporation's generation
assets and for non-asset backed trading activities. Both segments are supported
by a corporate group, which includes finance, treasury, legal, human resources
and other administrative functions. The corporate group is also responsible for
the Corporation's sustainable development initiatives, including investments
in renewable energy resources.

GENERAL
DEVELOPMENT OF THE BUSINESS

The significant
events and conditions affecting TransAlta's business during the last three
financial years are summarized below. A number of these events and conditions
are discussed in greater detail under the heading "Business of TransAlta" in
this Annual Information Form.

Significant
Events Since Dec. 31, 2002

- On
      March 21, 2003 TransAlta announced that it had completed an offering of 15
      million common shares for gross proceeds of $240 million. The offering
      includes an option for the underwriters to purchase a further 2.25 million
      common shares for gross proceeds of $36 million, exercisable until April
      18, 2003.
- On
Jan. 29, 2003, TransAlta announced the completion of the acquisition from El
Paso Merchant Energy North
America Company ("El Paso") of a 50 per cent interest in CE Generation, for
total consideration of approximately US$240 million, which included
approximately US$35 million for working capital. See "Business of TransAlta
- Generation Business - United States".

4

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- On
      Jan. 13, 2003, the Corporation completed the acquisition from EPCOR
      Utilities Inc. and certain of its affiliates (collectively, "EPCOR")
      of a 50 per cent interest in EPCOR's 450 MW Genesee 3 facility currently
      under construction southwest of E dmonton, Alberta, for estimated total
      consideration upon completion of construction of the project of
      approximately $395 million. EPCOR will continue to manage the construction
      of the project and will operate the facility upon its commercial
      operation, which is currently scheduled for early 2005. The Corporation
      also announced that it has granted to EPCOR: (i) an option, exercisable
      until Dec. 31, 2005, to co -develop the Corporation's 450 MW Centennial
      1 project (formerly known as Keephills 3) at a price of 50 per cent of
      expenditures to the date of the option exercise,plus
      50 per cent of future project development costs; and (ii) an option,
      exercisable until March 2004, to purchase a 50 per cent interest in the
      Corporation's 575 MW Sarnia facility at a price equal to 50 per cent of
      the undepreciated capital cost of the Sarnia facility as at the date of
      closing.

Year-ended
Dec. 31, 2002

- On Dec. 6,
    2002, the Corporation completed the acquisition of all of the outstanding
    securities of Vision Quest Windelectric Inc. ("Vision Quest") not
    already owned by the Corporation for total consideration of approximately
    $55 million, bringing the Corporation's total investment in the wind power
    company to approximately $69 million. Vision Quest, now a wholly owned
    subsidiary of the Corporation, owns and operates 67 wind turbine power
    plants in Alberta with an aggregate 44 MW of total peak capacity. Vision
    Quest also owns a 50 per cent interest in the McBride Lake joint venture
    project (near Fort MacLeod, Alberta), with 75 MW under construction. Vision
    Quest also has interests in wind power resources in several other provinces
    and holds electricity retailer licenses in Ontario. See "Business of
    TransAlta - Sustainable Development Initiatives".
- In November
    2002, TransAlta announced that it had decided to implement a phased
    decommissioning of its 537 MW coal-fired Wabamun facility located west of
    Edmonton, Alberta. See "Business of TransAlta - Generation Business -
    Alberta".
- In August 2002,
    TransAlta completed construction of its 248 MW Big Hanaford gas-fired
    facility in Centralia, Washington, at a cost of approximately US$210
    million. The Big Hanaford facility increased TransAlta's total capacity at
    the Centralia site from 1,404 MW to 1,652 MW. See "Business of TransAlta
    - Generation Business - United States".
- In April 2002,
    TransAlta completed the sale of its Alberta-based transmission business to
    AltaLink, L.P.

Year-ended
Dec. 31, 2001

- In September
    2001, TransAlta sold its 60 per cent interest in the 118 MW Fort
    Saskatchewan gas-fired cogeneration facility to TransAlta Cogeneration, L.P.
    for net proceeds of $35 million. See "Business of TransAlta - Generation
    Business - TransAlta Cogeneration, L.P. and TransAlta Power, L.P."
- In August 2001,
    TransAlta sold its 45 MW gas-fired Fort Nelson power plant for proceeds of
    approximately $44 million.

5

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- In June 2001,
    TransAlta completed the sale of its composter facility in Edmonton, Alberta
    for proceeds for $97 million.
- In March 2001,
    TransAlta announced that it had won a competitive bid to build and operate a
    259 MW gas-fired combined cycle facility in Chihuahua, Mexico. See "Business
    of TransAlta -Generation Business - Mexico".
- In February
    2001, TransAlta announced a proposal for a $1.8 billion, 900 MW expansion at
    its Keephills facility, now referred to as the Centennial Project.
- On Jan. 1,
    2001, TransAlta's Alberta coal-fired and hydroelectric generating plants
    began operating under the Alberta PPAs, which established committed capacity
    and electrical energy generation requirements and availability targets to be
    achieved by each coal-fired plant, energy and ancillary services obligations
    for the hydroelectric plants, and the price at which power would be supplied.See
    "Business of TransAlta - Generation Business - Alberta".
- Effective
    January 2001, TransAlta completed the sale of its 265 MW power plant located
    at Syncrude Canada Ltd.'s Mildred Lake Site near Fort McMurray, Alberta
    for proceeds of $65 million.

Year-ended
Dec. 31, 2000

- In August 2000,
    TransAlta completed the sale of its Alberta distribution and retail business
    segment to UtiliCorp Canada Corp. for proceeds of approximately $857
    million.
- In May 2000,
    TransAlta completed the acquisition of the Centralia coal-fired generating
    power plant and adjacent mining operations located in Centralia, Washington.
    See "Business of TransAlta -Generation Business - United States".
- In May 2000,
    TransAlta and Mexico's Comision Federal de Electricidad entered into a
    25-year contract for all of the output of the 252 MW dual fuel (gas and
    diesel), combined-cycle plant in Campeche, Mexico. See "Business of
    TransAlta - Generation Business - Mexico".
- In March 2000,
    TransAlta completed the sale of its New Zealand operations for proceeds of
    approximately $605 million.

6

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Generation
Business Segment

The following
table summarizes the Corporation's generation facilities operating and under
construction:

|                      |                                                          | Capacity | Ownership      |               |                          | Contract           | 
|--------------------- | -------------------------------------------------------- | -------- | -------------- | ------------- | ------------------------ | ------------------ | 
|Region                | Facility                                                 | (MW)     | (%)            | Fuel          | Revenue
      Source     | Expiry
      Date  | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|Canada                | Keephills                                                | 766      | 100            | Coal          | Alberta
      PPA        | 2020               | 
|Alberta               | Sheerness                                                | 756      | 50             | Coal          | Alberta
      PPA        | 2020               | 
|(21
      facilities) | Sundance                                                 | 2,020    | 100            | Coal          | Alberta
      PPA        | 2017,
      2020   | 
|                      | Wabamun                                                  | 398      | 100            | Coal          | Alberta
      PPA        | 2003               | 
|                      | Genesee
      3(1)                                       | 450      | 50             | Coal          | Merchant                 | --                 | 
|                      | Fort
      Saskatchewan                                  | 118      | 30             | Gas           | Long-Term
      Contract | 2019               | 
|                      |                                                          |          |                |               | ("LTC")                  |                    | 
|                      | Meridian                                                 | 220      | 50             | Gas           | LTC                      | 2024               | 
|                      | Poplar
      Creek                                       | 356      | 100            | Gas           | LTC
      and Merchant   | 2024               | 
|                      | Hydro
      assets(2)                                    | 801      | 100            | Hydro         | Alberta
      PPA        | 2013
      to 2020 | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          | 5,885    |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|Ontario               | Mississauga                                              | 108      | 50             | Gas           | LTC                      | 2017               | 
|(4
      facilities)  | Ottawa                                                   | 68       | 50             | Gas           | LTC                      | 2012               | 
|                      | Sarnia                                                   | 575      | 100            | Gas           | LTC
      and Merchant   | 2022               | 
|                      | Windsor-Essex                                            | 68       | 50             | Gas           | LTC
      and Merchant   | 2016               | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          | 819      |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      | Total
      Canada                                       | 6,704    |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|United
      States   | Centralia,
      WA                                      | 1,404    | 100            | Coal          | Merchant                 | -                  | 
|(16
      facilities) | Big
      Hanaford, WA                                   | 248      | 100            | Gas           | Merchant                 | -                  | 
|                      |                                                          |          |                |               |                          |                    | 
|                      | Binghamton,
      NY                                     | 47       | 100            | Gas           | Merchant                 | -                  | 
|                      | Power
      Resources, TX                                | 200      | 50             | Gas           | LTC                      | 2003               | 
|                      | Saranac,
      NY                                        | 240      | 37.5           | Gas           | LTC                      | 2009               | 
|                      | Yuma,
      AZ                                           | 50       | 50             | Gas           | LTC                      | 2024               | 
|                      | Geothermal
      assets(3)                               | 326      | 37.5
      -50 | Geothermal    | LTC
      and Merchant   | 2016
      to 2035 | 
|                      |                                                          |          |                |               |                          |                    | 
|                      | Total
      U.S.                                         | 2,515    |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|Mexico                | Campeche(1)                                              | 252      | 100            | Gas
      and | LTC                      | 2028               | 
|(2
      facilities)  |                                                          |          |                | diesel        |                          |                    | 
|                      | Chihuahua(1)                                             | 259      | 100            | Gas           | LTC                      | 2028               | 
|                      |                                                          |          |                |               |                          |                    | 
|                      | Total
      Mexico                                       | 511      |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|Australia             | Parkeston                                                | 110      | 50             | Gas           | LTC                      | 2016               | 
|(2
      facilities)  | Southern
      Cross                                     | 225      | 100            | Gas
      and | LTC                      | 2014               | 
|                      |                                                          |          |                | diesel        |                          |                    | 
|                      | Total
      Australia                                    | 335      |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|Total                 |                                                          | 10,065   |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|Notes:                |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|(1)                   | These
      facilities are currently under construction. |          |                |               |                          |                   
|(2)                   | Comprised
      of 13 facilities.                        |          |                |               |                          |                    | 
|(3)                   | Comprised
      of 10 facilities.                        |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          |                |               |                          |                    | 
|                      |                                                          |          | 7              |               |                          |                    | 

---

Canada:
Alberta

Coal-fired
facilities

The following
table summarizes the Corporation's Alberta coal-fired generation facilities:

|           |                            |                     | Ownership | Commissioning | 
|---------- | -------------------------- | ------------------- | --------- | ------------- | 
|Location   | Plant                      | Capacity
      (MW) | (%)       | Dates         | 
|           |                            |                     |           |               | 
|Wabamun(1) | Wabamun
      Unit No. 1   | 62                  | 100       | 1958          | 
|           | Wabamun
      Unit No. 2   | 57                  | 100       | 1956          | 
|           | Wabamun
      Unit No. 4   | 279                 | 100       | 1968          | 
|Sundance   | Sundance
      Unit No. 1  | 280                 | 100       | 1970          | 
|           | Sundance
      Unit No. 2  | 280                 | 100       | 1973          | 
|           | Sundance
      Unit No. 3  | 353                 | 100       | 1976          | 
|           | Sundance
      Unit No. 4  | 353                 | 100       | 1977          | 
|           | Sundance
      Unit No. 5  | 353                 | 100       | 1978          | 
|           | Sundance
      Unit No. 6  | 401                 | 100       | 1980          | 
|Keephills  | Keephills
      Unit No. 1 | 383                 | 100       | 1983          | 
|           | Keephills
      Unit No. 2 | 383                 | 100       | 1984          | 
|Sheerness  | Sheerness
      Unit No. 1 | 378                 | 50        | 1986          | 
|           | Sheerness
      Unit No. 2 | 378                 | 50        | 1990          | 
|Genesee(2) | Genesee
      3            | 450                 | 50        | -             | 
|           |                            |                     |           |               | 
|           | Total                      | 4,390               |           |               | 
|           |                            |                     |           |               | 
|Notes:     |                            |                     |           |               | 

(1) On Nov. 22, 2002,
TransAlta announced its decision to implement a phased decommissioning of its
Wabamun facility. The 139 MW unit three was removed from service effective Nov.
29, 2002. Units one and two are expected to be removed from service in 2004 and
unit four is expected to be removed from service upon expiry of its license in
2010.

(2) This facility is
currently under construction.

The Keephills,
Sundance and Wabamun facilities are located approximately 70 kilometers west of
Edmonton, Alberta. The Sheerness facility is located northeast of Calgary,
Alberta and is jointly owned by a subsidiary of the Corporation, TransAlta
Utilities Corporation and ATCO Power 2000 ("ATCO Power"). The Genesee 3
facility is currently under construction southwest of Edmonton and is jointly
owned by the Corporation and EPCOR. The Corporation's coal-fired plants are
all base-load plants, meaning that they are expected to operate for long periods
of time at maximum output. Availability, being the percentage of time that a
plant is operating or otherwise available for operation, is an important measure
of the economic success of a coal-fired plant. The historical average
availability over the past five years for the Corporation's coal-fired Alberta
plant units is as follows:

Availability
      (%)Plant
    High
    
    Low
    No.
      of UnitsKeephills
    91.1
    
    88.9
    2Sundance
    90.4
    
    86.7
    6Wabamun
    89.8
    
    64.1
    4Sheerness
    83.1
    
    81.9
    2


8

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The low
availability for Wabamun was a result of a shut down from August 2000 through
June 2001 to allow for the repair of unit four, due to cracking in its waterwall
tubing. TransAlta decommissioned unit three effective Nov. 29, 2002.

Fuel requirements
for TransAlta's coal-fired power plants are supplied by surface strip coal
mines (where mining is done in long, narrow strips) located in close proximity
to the plants. TransAlta owns two surface mines in Alberta that supply coal to
its thermal power plants other than Sheerness. The Whitewood mine supplies the
Wabamun plant and the Highvale mine supplies the Sundance and Keephills plants.
TransAlta estimates that the recoverable coal reserves contained in these mines
total 708 million tonnes, which is estimated to be sufficient to supply the
anticipated requirements of these plants for over 50 years.

Coal for the
Sheerness generating plant is provided from the adjacent Sheerness mine. The
coal reserves of the mine are owned, leased or controlled jointly by TransAlta
and ATCO Power. TransAlta and ATCO Power have also executed coal supply
agreements with Luscar Ltd., which owns a portion of the coal reserves and
operates the mine, to supply coal until 2026.

On Feb. 5, 2001,
the Corporation announced a proposal for a $1.8 billion, 900 MW expansion at its
Keephills facility. On Feb. 12, 2002, the Corporation received regulatory
approval to proceed with the expansion. The regulatory approval is currently
under appeal by a third party. The Corporation is in the process of updating a
feasibility study factoring in the impact of Alberta's transmission
constraints, environmental requirements that may be imposed by the EUB and
market conditions to determine whether to pursue the expansion. On Jan. 13,
2003, the Corporation announced that it has granted to EPCOR an option,
exercisable until Dec. 31, 2005, to purchase a 50 per cent interest in the
Corporation's 450 MW Centennial 1 project (formerly known as Keephills 3) at a
price of 50 per cent of expenditures to date plus 50 per cent of future
development costs.

On Jan. 13, 2003,
the Corporation completed the acquisitionfrom EPCOR
of a 50 per cent interest in EPCOR's 450 MW Genesee 3 facility currently under
construction southwest of Edmonton, Alberta, for consideration of approximately
$395 million. EPCOR will continue to manage the construction of the project and
will operate the facility upon its commercial operation, which is currently
scheduled for early in 2005.

Gas-fired
facilities

The following
table summarizes the Corporation's Alberta gas-fired generation facilities:

|                        |                    |                     | Ownership | Commissioning | 
|----------------------- | ------------------ | ------------------- | --------- | ------------- | 
|Location                | Plant              | Capacity
      (MW) | (%)       | Dates         | 
|                        |                    |                     |           |               | 
|Lloydminster            | Meridian           | 220                 | 50        | 1999          | 
|Fort
      McMurray     | Poplar
      Creek | 356                 | 100       | 2001          | 
|Fort
      Saskatchewan | Fort               | 118                 | 30        | 1999          | 
|                        | Saskatchewan       |                     |           |               | 
|Total                   |                    | 694                 |           |               | 
|                        |                    |                     |           |               | 

The Meridian
plant, a joint venture between the Corporation and Husky Oil Operations Ltd.,
sells electricity to Saskatchewan Power Corporation, a crown corporation owned
by the Province of Saskatchewan, and steam to the Husky Oil Lloydminster
Upgrader.

The Poplar Creek
plant provides electricity and steam to Suncor Energy Inc.'s oil sands
project. This 356 MW
cogeneration facility became fully operational in the first quarter of 2001 and
delivers approximately 200 MW of electricity and steam to Suncor. Any surplus
power not used by Suncor is available for sale by the Corporation to other
parties.

The Corporation
also holds an indirect interest in the 118 MW Fort Saskatchewan gas-fired
combined-cycle

9

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cogeneration
facility in Alberta, which provides electricity and steam to Dow Chemical Canada
Inc. The Corporation's interest in the Fort Saskatchewan facility is held
through TransAlta Cogeneration, L.P. ("TA Cogen"), an Ontario limited
partnership owned 50.01 per cent by TransAlta and 49.99 per cent by TransAlta
Power, L.P. ("TransAlta Power"), another Ontario limited partnership. See
"TransAlta Cogeneration, L.P. and TransAlta Power, L.P."

Hydroelectric
facilities

The following
table summarizes the Corporation's wholly owned Alberta hydroelectric
facilities:

|Location                 | Plant               | Capacity
      (MW) | Commissioning
      Dates | 
|------------------------ | ------------------- | ------------------- | ------------------------- | 
|                         |                     |                     |                           | 
|Bow
      River system   | Horseshoe           | 14                  | 1911                      | 
|                         | Kananaskis          | 19                  | 1913,
      1951          | 
|                         | Ghost               | 51                  | 1929,
      1954          | 
|                         | Cascade             | 36                  | 1942,
      1957          | 
|                         | Barrier             | 13                  | 1947                      | 
|                         | Bearspaw            | 17                  | 1953-54                   | 
|                         | Pocaterra           | 15                  | 1955                      | 
|                         | Interlakes          | 5                   | 1955                      | 
|                         | Spray               | 103                 | 1951,
      1960          | 
|                         | Three
      Sisters | 3                   | 1951                      | 
|                         | Rundle              | 50                  | 1951,
      1960          | 
|North
      Saskatchewan |                     |                     |                           | 
|River
      system       | Brazeau             | 355                 | 1965,
      1967          | 
|                         | Bighorn             | 120                 | 1972                      | 
|                         |                     |                     |                           | 
|Total                    |                     | 801                 |                           | 
|                         |                     |                     |                           | 

The Corporation's
hydroelectric facilities are primarily peaking plants, meaning they are
generally only operated during times of peak demand. The productivity of these
facilities is measured by "capacity factor", which is the ratio of the net
electricity generated compared to the electricity that could have been generated
had the plant been operating continuously at full power.

Alberta
PPAs

All of the
Corporation's Alberta coal-fired and hydroelectric facilities began operating
under Alberta PPAs in January 2001.

These Alberta PPAs
established committed capacity and electrical energy generation requirements and
availability targets to be achieved by each coal-fired plant, energy and
ancillary services obligations for the hydroelectric plants, and the price at
which power would be supplied. The Corporation bears the risk or retains the
benefit of volume variances (except for those arising from events considered to
beforce
majeure,
in the case of the coal-fired plants) and any change in costs required to
maintain and operate the facilities.

Under the Alberta
Thermal PPAs for the formerly regulated coal-fired facilities, the Corporation
is exposed electricity price risk if production declines below contracted levels
(other than outages caused by an event offorce majeure).
In such circumstances, the Corporation must pay a penalty for the lost
production based upon a price equal to the 30-day trailing average of Alberta's
market electricity prices. This trailing average provision mitigates price
spikes that can occur as a result of sudden outages. The Corporation further
mitigates this exposure by maintaining contracted and uncontracted capacity in
the market, through operating and maintenance practices and through hedging
activities performed by the Energy Marketing group.

The Corporation's
hydroelectric facilities are not contracted on a facility-by-facility basis,
rather facilities are aggregated in a single Alberta PPA which provides for
energy and ancillary servicesobligations
based on hourly targets. These targeted amounts are met by the Corporation
through physical delivery or third party purchases.

10

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The Corporation's
compensation under the Alberta PPAs is based on a pricing formula which replaced
the cost of service regime applicable under historical utility regulation. Key
elements of the pricing formula are the amount of common equity deemed to form
part of the capital structure and the amount of risk premium attributable to
deemed common equity. Common equity is deemed to be 45 per cent of total capital
and the return on equity is set annually at a 4.5 per cent premium over the rate
on a 10-year Government of Canada bond.

The pricing
formula includes a provision for site restoration costs of the coal-fired
generating plants. The Alberta PPAs do not provide compensation for site
restoration costs related to the Corporation's hydroelectric structures. The
Corporation does not anticipate that its hydroelectric structures will be
dismantled because of the water supply, irrigation, flood control and recreation
related purposes they serve. Provisions are made for the removal of the hydro
generating equipment.

The expiry dates
for the Corporation's Alberta PPAs, other than the Alberta PPA for the Wabumun
facility, range from 2013 to 2020. The Alberta PPA for the Wabamun facility, of
which unit three was decommissioned by the Corporation, expires in 2003. The
Corporation holds various licenses from Alberta Environment and the Alberta
Energy and Utilities Board (the "EUB") for its respective facilities. The
Corporation has procured an extension of the licenses to operate the remainder
of the Wabamun facility until 2010 although it only intends to operate unit four
until that time. The Corporation intends to procure extensions of the licenses
for the other facilities upon the expiry of their respective Alberta PPAs. Upon
the expiry of the Alberta PPAs, the Corporation will be able to sell its power
output to the Alberta Power Pool and to third party purchasers through direct
sales agreements.

The Alberta PPAs
(together with legislation which applies thereto) permit the Balancing Pool,
directly or indirectly as successor to the power purchaser under the Alberta
PPAs, to terminate the Alberta PPAs in certain circumstances. These termination
provisions are similar to those found in some PPAs entered into by
government-related power purchasers. The Corporation will be entitled to receive
a lump sum payment in connection with any such termination, other than a
termination resulting from the Corporation's default. In any event, the
Corporation will thereafter be able to sell the output from any affected
facilities for its own account.

Canada:
Ontario

The Corporation's
Ontario generating facilities are summarized in the following table:

|            |               |                     | Ownership | Commissioning
|----------- | ------------- | ------------------- | --------- | -------------
|Location    | Plant         | Capacity
      (MW) | (%)       | Dates        
|            |               |                     |           |              
|Sarnia      | Sarnia        | 575                 | 100       | 2003         
|Ottawa      | Ottawa        | 68                  | 50.01     | 1992         
|Mississauga | Mississauga   | 108                 | 50.01     | 1992         
|Windsor     | Windsor-Essex | 68                  | 50.01     | 1996         
|            |               |                     |           |              
|Total       |               | 819                 |           |              
|            |               |                     |           |              

The Sarnia
facility includes 135 MW from the facilities acquired in 2002 and an additional
440 MW facility which commenced commercial operations on March 27, 2003. The
combined 575 MW facility will provide steam and electricity to nearby facilities
owned by Dow Chemical Canada Inc., Bayer Inc., Nova Chemicals (Canada) Ltd. and
Suncor Energy Products Inc. On Jan. 13, 2003, the Corporation announced that it
has granted to EPCOR an option,
exercisable until March 2004, to purchase a 50 per cent interest in the Sarnia
facility at a price equal to 50 per cent of the undepreciated capital cost, as
at the date of closing.

11

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The Ottawa plant
is a combined -cycle cogeneration facility designed to produce 68 MW of
electrical energy. This capacity is sold under a PPA with the Ontario
Electricity Financial Corporation ("OEFC"), an agency of the Province of
Ontario. This agreement expires in 2012. The Ottawa plant also provides steam to
the member hospitals and treatment centers of the Ottawa Health Sciences Centre,
National Defence Medical Centre and the Perley Hospital.

The Mississauga
plant is a combined-cycle cogeneration facility designed to produce 108 MW of
electrical energy. This capacity is contracted under a PPA with OEFC which
expires in 2017. The plant also supplies steam, compressed air, waste water
treatment and de-ionized water to the Boeing Canada Inc. manufacturing facility
located adjacent to the Mississauga plant.

The Windsor-Essex
plant is a combined-cycle cogeneration facility designed to produce 68 MW of
electrical energy. Currently, 50 MW of the capacity is sold under a PPA to OEFC.
This agreement expires in 2016. The Windsor-Essex plant also provides steam and
compressed air to Chrysler Canada Ltd.'s mini-van assembly facility in
Windsor.

The Corporation's
interest in the Mississauga, Ottawa and Windsor facilities in Ontario are held
through TA Cogen. See "TransAlta Cogeneration, L.P. and TransAlta Power, L.P."

United
States

The Corporation's
generation facilities in the United States are summarized in the following
table:

|               |                            |                     | Ownership | Commissioning
|-------------- | -------------------------- | ------------------- | --------- | -------------
|Location       | Plant                      | Capacity
      (MW) | (%)       | Dates        
|               |                            |                     |           |              
|Washington     | Centralia
      unit No. 1 | 702                 | 100       | 1971         
|               | Centralia
      unit No. 2 | 702                 | 100       | 1971         
|               | Big
      Hanaford         | 248                 | 100       | 2002         
|               |                            |                     |           |              
|New
      York | Binghamton                 | 47                  | 100       | 1992         
|               | Saranac                    | 240                 | 37.5      | 1994         
|               |                            |                     |           |              
|California     | Vulcan                     | 34                  | 50        | 1986         
|               | Del
      Ranch            | 38                  | 50        | 1989         
|               | Elmore                     | 38                  | 50        | 1989         
|               | Leathers                   | 38                  | 50        | 1990         
|               | CE
      Turbo             | 10                  | 50        | 2000         
|               | Salton
      Sea I         | 10                  | 50        | 1987         
|               | Salton
      Sea II        | 20                  | 50        | 1990         
|               | Salton
      Sea III       | 50                  | 50        | 1989         
|               | Salton
      Sea IV        | 39                  | 50        | 1996         
|               | Salton
      Sea V         | 49                  | 50        | 2000         
|               |                            |                     |           |              
|Texas          | Power
      Resources      | 200                 | 50        | 1988         
|               |                            |                     |           |              
|Arizona        | Yuma                       | 50                  | 50        | 1994         
|               |                            |                     |           |              
|Total          |                            | 2,515               |           |              
|               |                            |                     |           |              

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Centralia

The Corporation
owns a two-unit 1,404 MW coal-fired facility and adjacent mining operations
located in Centralia, Washington, south of Seattle, Washington. In August 2002,
the Corporation completed construction of its 248 MW Big Hanaford gas-fired
facility at Centralia, bringing TransAlta's total capacity at the Centralia
site to 1,652 MW.

Prior to the
acquisition of the Centralia plant and mine, the Corporation signed a number of
energy sales agreements for a portion of the plant's capacity. The Corporation
also sells power from the Centralia plant into the Western Electricity
Coordinating Council, and in particular, the U.S. Pacific Northwest energy
market. The Corporation's strategy is to balance contracted and non-contracted
sales of electricity to manage production and price risk.

The Centralia mine
produces approximately six million tonnes of coal annually, or approximately 85
per cent of the Centralia plant's annual coal requirements. The Centralia mine's
permitted coal reserves, being the amount of coal which can be mined under the
existing regulatory approval, are estimated to be 108 million tonnes as at Dec.
31, 2002, which represents approximately 18 years of supply at current
production levels. The Corporation currently imports the balance of its coal
requirements by rail using coal from the Powder River Basin, located in the U.S.
Rockies, provided under short-term contracts.

Binghamton

The Corporation
owns a 47 MW gas-fired peaking facility in Binghamton, New York. This facility
was commissioned in 1992 and is located near the Pennsylvania-New York border.
The Binghamton facility provides electricity to the New York Power Pool during
periods of high demand.

Pierce

During the period
from August 2001 to September 2002 the Corporation had seven simple cycle
gas-fired turbines at a temporary generation facility located near Fredrickson,
Washington. The Pierce facility was a short-term project that was designed to
address the energy needs in the U.S. Pacific Northwest. The turbines were leased
from General Electric and the plant was decommissioned in the fourth quarter of
2002.

CE
Generation

On Jan. 29, 2003,
TransAlta announced the completion of the acquisition from El Paso of a 50 per
cent interest in CE Generation, for total consideration of approximately US$240
million, which included approximately US$35 million for working capital. The CE
Generation acquisition includes the right to a 50 per cent interest in a
geothermal project currently under development in Imperial Valley, California.
If TransAlta elects to participate in the project, TransAlta has agreed to pay
to El Paso certain milestone payments of up to US$30 million.

CE Generation,
through its subsidiaries, is primarily engaged in the development, ownership and
operation of independent power production facilities in the United States using
geothermal and natural gas resources. CE Generation holds a net ownership
interest of approximately 756 MW in 13 facilities having an aggregate operating
capacity of 816 MW, including 326 MW of geothermal generation in California and
490 MW of gas-fired cogeneration in New York, Texas and Arizona.

CE Generation
affiliates currently operate ten geothermal facilities in the Imperial Valley in
California. Each of the geothermal facilitie s, excluding CE Turbo and Salton
Sea V, sells electricity pursuant to independent, long-term contracts which
provide for energy payments, capacity payments and capacity bonus payments.

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Salton Sea V is
currently a merchant facility, however it has a power purchase agreement to sell
approximately 23 MW of its net output. Available capacity from Salton Sea V and
CE Turbo is sold through market transactions.

CE Generation
affiliates currently operate three natural gas-fired facilities in Texas,
Arizona and New York, having an aggregate generation capacity of 490 MW. Each of
the facilities sells its output pursuant to PPAs.

Mexico

Campeche

On March22, 2000,
the Corporation and Mexico's state-owned Comision Federal de Electricidad ("CFE")
entered into a 25-year PPA for all of the output of the 252 MW dual fuel (gas
and diesel), combined -cycle plant in Campeche, Mexico. The Corporation has also
entered into a related gas transportation agreement with CFE. CFE bears the
price risk on fuel under the PPA. Construction of the Campeche plant began in
2001 and commercial operations are projected to commence in the first half of
2003.

In addition to the
PPA and gas transportation agreement, the Corporation has entered into a
corresponding 25-year fuel supply agreement with Pemex Gas y Petro Quimica
Basica.

Chihuahua

On March8, 2001,
TransAlta announced it had won a competitive bid to build and operate a 259 MW
gas-fired combined-cycle facility in Chihuahua, Mexico. The Corporation entered
into a 25-year PPA with CFE for all of the output of the plant. The Corporation
has also entered into a related gas transportation agreement with CFE. CFE bears
the price risk on fuel under the PPA. Construction of the plant began in the
third quarter of 2001 and commercial operations are projected to commence in the
third quarter of 2003.

Australia

The Corporation
holds interests in Western Australia consisting of: (i) the 110 MW Parkeston
generation facility through a 50/50 joint venture with Newmont Mining Limited;
and (ii) the 225 MW Southern Cross gas and diesel generation facilities. The
8.82 per cent interest in a 1,380 kilometer gas transmission pipeline that
delivers natural gas from the Australian northwest shelf producing area to
Western Australia was sold in early 2003.

TransAlta
Cogeneration, L.P. (TA Cogen) and TransAlta Power, L.P. (TransAlta Power)

The Corporation's
interest in the 118 MW Fort Saskatchewan gas-fired cogeneration facility in
Alberta, and the Mississauga, Ottawa and Windsor-Essex facilities in Ontario,
are held through TA Cogen, an Ontario limited partnership owned 50.01 per cent
by TransAlta and 49.99 per cent by TransAlta Power, another Ontario limited
partnership. The Corporation formed TA Cogen in 1998 to directly or indirectly
hold interests in generation facilities capable of producing stable cash flows
that would be distributed to TransAlta Power's unitholders. The partnership
units of TransAlta Power are publicly traded on the Toronto Stock Exchange.

The Corporation is
obligated to purchase all of the units of TA Cogen owned by TransAlta Power in
2018 at a price equal to the fair market value of the units, for cash, common
shares or a combination thereof. TEC has the option to purchase the Fort
Saskatchewan plant from TA Cogen at the then fair market value as determined by
independent valuators. On July 31, 2017, if TEC does not exercise this option,
TA Cogen has the option to sell the Fort Saskatchewan plant to TEC at book
value. If neither option is exercised, TA Cogen is obligated, at TEC's
expense, to use commercial efforts to sell the plant on or before Dec. 18, 2018.

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Sustainable
Development Initiatives

In 2000, TransAlta
established a plan to invest up to $100 million in sustainable development
initiatives. Investments will be made in new technologies to reduce carbon
emissions, to further environmental offset and credit use and to develop
renewable energy sources. Among its other environmental activities, TransAlta is
also developing methods of burning coal in a more environmentally-friendly and
efficient manner.

TransAlta is a
member of the Canadian Clean Power Coalition, which is committed to developing
and implementing clean coal technology projects in Canada before 2010.

As of Dec. 31,
2002, TransAlta had invested approximately $69 million in Vision Quest. Vision
Quest, now a wholly owned, independently operated subsidiary of the Corporation,
owns and operates 67 wind turbine power plants in Alberta with an aggregate of
44 MW of total peak capacity, and has a further 75 MW under construction in a
joint venture with ENMAX Corporation. Vision Quest also holds interests in wind
power projects in several other provinces and holds electricity retailer
licenses in Ontario. As of Dec. 31, 2002, TransAlta had invested approximately $7
million in other sustainable development initiatives.

The following
table summarizes Vision Quest's facilities operating and under construction:

|        |                       | Capacity | Ownership |      |                        | Contract         
|------- | --------------------- | -------- | --------- | ---- | ---------------------- | -----------------
|Region  | Facility              | (MW)     | (%)       | Fuel | Revenue
      Source   | Expiry
      Date
|        |                       |          |           |      |                        |                  
|Canada  |                       |          |           |      |                        |                  
|Alberta | Castle
      River    | 44       | 100       | Wind | LTC
      and Merchant | ---              
|        | McBride
      Lake(1) | 75       | 50        | Wind | LTC                    | ---              
|        |                       |          |           |      |                        |                  

Note:

(1) These facilities
are currently under construction.

Energy
Marketing Business Segment

The Energy
Marketing group provides a number of strategic functions to the Corporation,
including the following:

- Gathering and
    assessing market intelligence, enabling management to more effectively
    engage in strategic planning and decision making for the Corporation. This
    includes identifying and ranking markets which are the most attractive to
    enter, developing strategies and plans to effectively compete in each market
    where the Corporation operates, and identifying specific opportunities to
    develop or acquire assets that will capture value or mitigate risks in the
    electric generation business;
- Negotiating and
    entering into contractual agreements with customers for the sale of output
    from the Corporation's generating assets, including electricity, steam or
    other energy related commodities;
- Scheduling
    physical deliveries of natural gas supplies used to generate electricity and
    the electrical generation outputs from each asset to meet contractual
    obligations while managing the physical and financial risks associated with
    the generation and transmission of electrical energy, including during those
    periods of unplanned outages;
- Increasing the
    value of the electricity output from each generating asset through a variety
    of asset optimization strategies; and
- Recommending
    optimum maintenance schedules and operating levels according to current and
    anticipated market conditions that will maximize earnings from each of the
    generation assets.

15

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Beyond these
functions, the Energy Marketing group derives additional revenue and earnings
from the wholesale trading of electricity and other energy related commodities
and derivatives. An important factor in the group's trading success has been
the ability to access transmission capacity in selective markets, which allows
TransAlta to take advantage of price differentials between regional markets by
buying and selling energy at different locations and using transmission capacity
to deliver the energy from the lower value markets into higher value markets.

The group seeks to
manage and limit the Corporation's risk exposures from both financial and
physical positions, as well as counterparty risks. The key risk control
activities of the Energy Marketing group, in conjunction with other functions of
the Corporation, include: credit review, approval and reporting; risk
measurement, monitoring and reporting; validation of transactions; and trading
portfolio valuation monitoring and reporting.

The Corporation
uses mark-to-market valuation and the application of a value at risk (VAR)
determination for risk control practices for its trading portfolio . This
approach is a measure of assessing the potential trading losses that the
Corporation could experience at any given time due to fluctuations in energy
prices in each market. The Corporation's policy is to actively manage and
limit the group's aggregate VAR exposure to $10 million at any point in time.
The average daily VAR in 2002 was approximately $2.6 million ($1.2 million in
2001).

Competitive
Environment

As the largest
generator of electricity in Alberta, measured by capacity, and with generation
assets in Ontario, the U.S. Pacific Northwest, California, Arizona, Texas and
New York, Mexico and Australia, the Corporation believes it is well-positioned
to capitalize on opportunities in these regions. Alberta, located in Western
Canada, is the country's fourth largest province by population with
approximately three million residents representing 10 per cent of Canada's
total population. Alberta consumed approximately 50,000 GWh of electricity in
2002. As at Dec. 31, 2002, the aggregate installed capacity of generating
facilities in Alberta was 11,795 MW.

Ontario is Canada's
largest province with approximately 12 million residents representing
approximately 38 per cent of Canada's total population. Ontario consumed
approximately 151,400 GWh of electricity in 2002. Ontario Power Generation Inc.,
the successor to the generation business of Ontario's former integrated
electric utility, controls over two-thirds of Ontario's approximately 30,000MW of
installed capacity, the balance of which is owned by municipal electric
utilities and private independent power producers or industrial consumers.

Electrical
Utilities in the U.S. Pacific Northwest are organized into the Western
Electricity Coordinating Council ("WECC"). The WECC is the largest
geographically of the 10 regions in the North American Electric Reliability
Council and is divided into four subregions, of which Region 1 includes British
Columbia, Alberta, Washington, Oregon, Idaho, Montana, Utah, western Wyoming and
northern Nevada. This subregion is referred to as the Northwest Power Pool (the
"NWPP"). Approximately 363,700 GWh of electricity was generated in the NWPP
in 2002. According to the WECC, as of the end of 2002, aggregate generating
capacity of approximately 78,000 MW was located in the NWPP.

The Corporation
expects that the demand for electricity will continue to grow in its target
markets. In addition to increased demand, the market for electricity in some of
these regions has undergone deregulation. Legislation in Alberta and Ontario and
many states in the United States have mandated the unbundling of services
traditionally provided by vertically integrated utilities to promote competition
in the market for generation, transmission and distribution of electricity. More
recently, the pace of this process has slowed. These regulatory changes have
caused some integrated utilities to sell all or parts of their generation
assets. The Corporation believes that the combination of increased demand for
electricity, deregulation and the

16

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increased
availability of generation assets provides it with an opportunity to increase
its generation capacity and leverage its energy marketing capabilities.

In addition, the
Corporation believes that the demand for electricity in Mexico will continue to
grow in the next several years due to increased commercial and residential
consumption. The Corporation expects that the CFE will offer for tender more
independent power projects that are similar to those of the Corporation's in
Campeche and Chihuahua in order to meet this increase in demand for electricity.
The Mexico Secretary of Energy has stated that to guarantee the supply of energy
for the period of 2002 to 2011, Mexico must construct 61 new plants, with a
generation capacity of 28,862 MW.

Competitive
Strengths

The Corporation
believes it is well positioned to achieve its business strategy due to its
competitive strengths, which include the following:

Stable
cashflow base.In
2003, approximately 85 per cent of the Corporation's aggregate production is
contracted with counterparties that meet the Corporation's risk management
criteria. Approximately 59 per cent of the contracted output is sold under
Alberta PPAs, most of which expire from 2013 to 2020 and are ultimately backed
by the "Balancing Pool", an entity established by the Government of Alberta.
See

"Generation
Business - Alberta - Alberta PPAs".

Geographic
diversity.The
Corporation has a geographically diverse asset base with assets in Alberta and
Ontario, Canada, in certain parts of the United States, in Mexico and in
Australia.

Fuel
diversity.The
Corporation has a diverse mix of fuels used for electrical generation, including
coal, natural gas, hydro, geothermal and wind. The Corporation believes that
this mix reduces the impact on corporate performance in the event of external
events affecting one fuel source.

Contract
diversity.While
most of the Corporation's output is contracted long-term, the Corporation does
contract some output short-term, to take advantage of short-term markets.

Management
team.The
Corporation's management team has changed significantly in the last three
years, as the Corporation has moved from a largely Alberta-based and focused
regulated utility into an internationally focused and based deregulated
electricity developer, generator and marketer, and that team has substantial
industry, international and local market experience.

Energy
Marketing expertise.The
Corporation believes that its Energy Marketing group has enhanced returns from
its existing generation base and has allowed the Corporation to obtain more
favourable pricing for uncommitted electricity, secure fuel supply on a
cost-effective basis and fulfill electricity delivery obligations in the event
of an outage.

Financial
strength.The
Corporation has investment grade issuer ratings from Moody's Investor
Services, Inc., Standard & Poor's Corporation and Dominion Bond Rating
Service Limited. The Corporation expects that its financial strength will allow
it to continue to prudently take advantage of both acquisition opportunities and
development programs.

Ownership
or control of coal supply.The
Corporation owns, controls or leases extensive coal reserves in Alberta that
provide a long-term and stable source of fuel for approximately 85 per cent of
its coal-fired generation capacity in Alberta. The Corporation also owns a coal
mine near its Centralia facility, which currently provides approximately 85 per
cent of the fuel required at the Centralia facility. The Corporation's mines
in Alberta contain some of the cleanest burning coal in North America, averaging
0.28 per cent sulfur at the Whitewood mine and 0.19 per cent at the Highvale
mine. Coal with lower sulfur content emits less

17

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sulfur dioxide
when it is burned, thereby minimizing environmental degradation. By comparison,
the sulfur content of coal mined in the Powder River Basin of the U.S. Rockies
typically has sulfur content of about 0.45 per cent.

Capital
Expenditures

Capital
expenditures for property and investments (including acquisitions) by TransAlta
for the past five years were:

2002..$985.9 million1999$992.5 million2001..$1,256.3 million1998$574.2 million2000..$1,675.1 million


Capital
expenditures, including acquisitions completed at March 31, 2003, of
approximately $830 million are forecast for 2003.

Environmental
Protection and Climate Change

TransAlta is
subject to federal, provincial and local environmental laws, regulations and
guidelines concerning the generation and transmission of electrical and thermal
energy and surface mining. TransAlta is committed to complying with or exceeding
regulatory requirements and to minimizing the environmental impact of its
operations. TransAlta works with governments and the public to develop
appropriate frameworks to protect the environment and, at the same time, achieve
economic development.

Expenditures for
environmental protection are included in TransAlta's annual operating and
capital budget. TransAlta incurred environmental, health and safety expenditures
in the fiscal year ended Dec. 31, 2002 of approximately $34 million. These
amounts do not include capital expenditures of approximately $53 million
incurred by TransAlta in connection with the installation of a scrubber at its
Centralia co al-fired plant. This capital expenditure is a non-recurring event,
and was incurred to fulfill an obligation assumed by TransAlta in connection
with its acquisition of the Centralia plant.

TransAlta further
manages environmental risk through the implementation of an ISO-14001-based
environment, health and safety management system, designed to continuously
improve environmental performance. As of December 2002, 92 per cent of TransAlta's
Canadian plants had implemented the Management System.

In December 2002,
the Government of Canada agreed to ratify the Kyoto Protocol, which requires a
net reduction of Canadian emissions of greenhouse gases by six per cent from
1990 levels by 2008 to 2012. TransAlta is a significant emitter of carbon
dioxide, a greenhouse gas, and has been actively managing its emissions through
several initiatives. By 2002, TransAlta had reduced its worldwide net emissions
intensity (emissions/MWh) by 20 per cent from 1990 levels. An important
component of the program is offset projects which, through cost-effective
actions taken at third-party sites, reduce the Corporation's greenhouse gas
emissions on a net basis. Under Canada's Kyoto obligation, TransAlta expects
that offsets will need to be a significant component of the national response.

TransAlta's
climate change strategy addresses the potential competitive risks to its
fossil-fuelled generation plants from future public policy that could include
environmental controls, regulatory regimes, taxes or charges. The potential for
higher electricity prices exists if new policy does not permit cost-effective,
market-based approaches for reducing greenhouse gas emissions.

18

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TransAlta's
climate change strategy includes the following:

- Reducing
    emissions intensity by: improving the efficiency of TransAlta's existing
    operations; developing new high efficiency cogeneration facilities that
    produce lower overall emissions; acquiring a diverse portfolio of greenhouse
    gas offset projects; purchasing and building renewable energy; and investing
    in renewable energy projects;
- Participating
    in federal and provincial policy development;
- Developing and
    testing market-based approaches, such as the trading of emission reduction
    credits; and
- Investing in
    the development of clean coal technology as a long-term solution.

To date, TransAlta
does not believe that its competitive position in the wholesale generation
industry has been adversely affected by environmental concerns. TransAlta has
been increasing its development of gas-fired generation capacity, which
typically incurs lower environmental compliance costs and creates relatively
lesser environmental concerns than other forms of generation. TransAlta's
hydroelectric facilities have been in existence for a significant period of time
and tend to be smaller plants, thus mitigating the potential harm from a breach
at a facility. To date, TransAlta has successfully operated these facilities
without any significant incidents. TransAlta has historically relied upon
coal-fired generation as its most significant source of generation. While
environmental compliance can be more costly in relation to coal-fired plants,
and

TransAlta incurs
additional costs through the acquisition of offset credits, the cost of coal is
a balancing factor in favour of TransAlta, given TransAlta owns, leases or
controls the majority of coal used by its coal-fired plants, and with the
exception of purchased coal used at Centralia, the coal is mined adjacent to the
plants.

Along with its
competitors with similar fuel types, TransAlta is subject to risk from changes
to environmental regulations.

Risk
Factors

Regulatory and
political risks exist in all jurisdictions in which TransAlta operates,
including foreign jurisdictions. TransAlta seeks to manage these risks by
working with regulators and other stakeholders to try to resolve issues as
fairly and expeditiously as possible. For a discussion of risk factors affecting
TransAlta and risk management, reference is made to "Risk Factors and Risk
Management", located in TransAlta's Management Discussion and Analysis for
the year ended Dec. 31, 2002, which is incorporated by reference herein.

Employees

As of Dec. 31,
2002, the Corporation had 2470 full and part-time employees, of which 2049 were
employed in TransAlta's generation business and 125 were employed in TransAlta's
energy marketing business.

Approximately 1383
of the Corporation's employees belong to labour unions. The Corporation is
currently a party to eleven different collective bargaining agreements. Of its
eleven existing collective bargaining agreements, the Corporation has recently
renewed three of the agreements and anticipates negotiating renewed agreements
with five others in 2003. The three remaining agreements continue to be in force
until 2004 or 2005.

19

---

SELECTED
CONSOLIDA TED FINANCIAL INFORMATION

|Quarterly
      Revenue and Earnings (Loss) (unaudited) |                       |                       |          | in
      $millions except per share data
|------------------------------------------------------- | --------------------- | --------------------- | -------- | ----------------------------------------
|                                                        |                       |                       |          |                                         
|                                                        |                       |                       |          |                                         
|Quarter
      ended                                     | Revenues(1)
      (2) | Earnings
      (loss) | Net      | Earnings
      (loss)                   
|                                                        |                       | from                  | earnings | from                                    
|                                                        |                       | continuing            | (loss)   | continuing                              
|                                                        |                       | operations            |          | operations                              
|                                                        |                       |                       |          | per
      common                        
|                                                        |                       |                       |          | share                                   
|                                                        |                       |                       |          |                                         
|                                                        | $                     | $                     | $        | $                                       
|                                                        |                       |                       |          |                                         
|Dec.
      31, 2002                                     | 517.6                 | (59.6)                | (54.3)   | (0.38)                                  
|Sept.
      30, 2002                                    | 450.3                 | 73.4                  | 67.9     | 0.40                                    
|June
      30, 2002                                     | 336.3                 | 18.5                  | 124.9    | 0.08                                    
|March
      31, 2002                                    | 419.7                 | 45.7                  | 51.4     | 0.24                                    
|Dec.
      31, 2001                                     | 434.4                 | 36.7                  | 46.5     | 0.19                                    
|Sept.
      30, 2001                                    | 573.3                 | 36.7                  | 41.4     | 0.20                                    
|June
      30, 2001                                     | 605.2                 | 50.2                  | 59.1     | 0.28                                    
|March
      31, 2001                                    | 706.5                 | 59.0                  | 67.6     | 0.33                                    

|Three
      Year Summary                            | in
      $millions except per share data
|--------------------------------------------------- | ----------------------------------------
|                                                    |                                         
|                                                    |                                         
|                                                    | 2002                                    
|                                                    | $                                       
|Financial
      position (December 31):             |                                         
|Total
      assets                                  | 7419.6                                  
|Long-term
      debt (net of current
      portion)
|2351.2                                              | 2406.8                                  
|                                                    |                                         
|Preferred
      shares of a subsidiary              | -                                       
|Non-controlling
      interests                     | 263.0                                   
|Preferred
      securities                          | 451.7                                   
|Common
      shareholders' equity                   | 2039.6                                  
|Revenues
      and net earnings:                    |                                         
|Total
      revenues(1)(2)                          | 1723.9                                  
|Earnings
      from continuing operations           | 78.0                                    
|Earnings
      from continuing operations           |                                         
|applicable
      to common shareholders             | 57.1                                    
|Net
      earnings applicable to common             |                                         
|shareholders                                        | 189.9                                   
|Basic
      earnings per common share:              |                                         
|Continuing
      operations                         | 0.34                                    
|Net
      earnings                                  | 1.12                                    
|Diluted
      earnings per common share:            |                                         
|Continuing
      operations                         | 0.34                                    
|Net
      earnings                                  | 1.12                                    
|Dividends
      declared per common share           | 1.00                                    

Notes:

(1)Energy
Marketing revenues are presented on a net basis.

(2) Revenues reflect
the classification of the New Zealand, Alberta distribution and retail, Edmonton
Composter and transmission operations as discontinued.

20

---

Dividends

TransAlta's
Board of Directors considers several factors when reviewing the common share
dividend policy, including: earnings; cash flow; capital requirements; and the
expectations of shareholders. The payment and level of future dividends on the
common shares will be determined by the Board of Directors of TransAlta after
consideration of the relevant factors, including those referred to herein.
TransAlta has declared and paid the following dividends per share on its
outstanding common shares:

Dividends declared
per common share

2002
    2001
    2000
    1999
    1998$
    1.00
    $
    1.00
    $
    1.00
    $
    1.00
    $
    0.99




On Jan. 1, 2003
and April 1, 2003, TransAlta paid cash dividends of $0.25 per common share.

MANAGEMENT'S
DISCUSSION & ANALYSIS

Reference is made
to the section entitled "Management's Discussion & Analysis" set out
at pages 21 to 59 of TransAlta's 2002 Annual Report, which is specifically
incorporated by reference in this Annual Information Form.

MARKET
FOR SECURITIES

TransAlta's
common shares are listed on the Toronto Stock Exchange (the "TSX") under the
symbol "TA" and the New York Stock Exchange under the symbol "TAC".
TransAlta's preferred securities are listed on the TSX under the symbols "TA.PR.A",
"TA.PR.B" and "TA.PR.C".

DIRECTORS
AND OFFICERS

The names,
principal occupations and municipalities of residence of the directors and
officers of TransAlta,as well as the year each director first became a director are set out below.
Each director is appointed to serve until the next annual meeting of TransAlta
or until his or her successor is elected or appointed.

Directors

|Name
      and
      Municipality
      of
      Residence | Year
      First
      Became
      Director | Principal
      Occupation                                                            | Membership
      on
      Committees                                              
|---------------------------------------------------------- | -------------------------------------------- | ------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------
|                                                           |                                              |                                                                                       |                                                                                   
|William
      D. Anderson                                  | 2003                                         | President
of BCE Ventures, a subsidiary of BCE Inc.
      (telecommunications)        |                                                                                   
|Montreal,
      QC                                         |                                              |                                                                                       |                                                                                   
|                                                           |                                              |                                                                                       |                                                                                   
|Stanley
      J. Bright                                    | 1999                                         | Director of
MidAmerican Energy Company (electric and gas generation and distribution) | Audit and
Environment Committee ("AE Committee") Human Resources Committee ("HRC")
|Vero
      Beach, FL                                       |                                              |                                                                                       |                                                                                   





21

---

|Name
      and
      Municipality
      of
      Residence | Year
      First
      Became
      Director | Principal
      Occupation                                      | Membership
      on
      Committees
|---------------------------------------------------------- | -------------------------------------------- | --------------------------------------------------------------- | ------------------------------------
|                                                           |                                              |                                                                 |                                     
|Roderick
      S. Deane                                    | 2000                                         | Chair,
      Telecom Corp. of New Zealand Ltd.                  | AE
      Committee                  
|Wellington,
      NZ                                       |                                              | (telecommunications),
      also chair, Fletcher Building Ltd.  |                                     
|                                                           |                                              | (building)
      and ANZ Banking Group (New Zealand) Ltd.       |                                     
|                                                           |                                              | (banking)
      and Professor of Economics and Management,      |                                     
|                                                           |                                              | Victoria
      University (Wellington, NZ)                      |                                     
|                                                           |                                              |                                                                 |                                     
|Jack
      C. Donald                                       | 1993                                         | Chair,
      Parkland Income Trust and president and CEO of     | HRC                                 
|Red
      Deer, AB                                         |                                              | Parkland
      Properties Ltd. (petroleum refining and          | Nominating
      and                
|                                                           |                                              | marketing),
      also vice president and director of Brandt    | Corporate
      Governance          
|                                                           |                                              | Industries
      Ltd., Chair and a director of Canadian Western | Committee
      ("NCGC")            
|                                                           |                                              | Bank
      and a director of Ensign Resource Services Group     |                                     
|                                                           |                                              | Ltd.                                                            |                                     
|                                                           |                                              |                                                                 |                                     
|John
      T. Ferguson,                                    | 1981                                         | Chair,
      TransAlta Corporation (electric industry holding   | AE
      Committee                  
|F.C.A.                                                     |                                              | company),
      Chair, and a director of Princeton              | HRC                                 
|Edmonton,
      AB                                         |                                              | Developments
      Ltd. (commercial real estate                 | NCGC                                
|                                                           |                                              | development),
      and a director of Royal Bank of Canada      |                                     
|                                                           |                                              | and
      Suncor Energy Inc.                                    |                                     
|                                                           |                                              |                                                                 |                                     
|Gordon
      D. Giffin                                     | 2002                                         | Senior
      Partner of McKenna Long & Aldridge LLP             | NCGC                                
|Atlanta,
      GA                                          |                                              | (attorneys).
      From 1997 to 2001 he served as United        |                                     
|                                                           |                                              | States
      Ambassador to Canada. He is a director of          |                                     
|                                                           |                                              | Canadian
      National Railway Company, Canadian Imperial      |                                     
|                                                           |                                              | Bank
      of Commerce and Canadian Natural Resources,          |                                     
|                                                           |                                              | Ltd.                                                            |                                     
|                                                           |                                              |                                                                 |                                     
|Christopher                                                | 1994                                         | Vice
      president of Combined Heat and Power                 | AE
      Committee                  
|Hampson,
      C.B.E.                                      |                                              | Association,
      England (trade association), former Chair,   |                                     
|London,
      UK                                           |                                              | RMC
      Group PLC (heavy building materials) and former       |                                     
|                                                           |                                              | chair
      and a director, British Biotech PLC.                |                                     
|                                                           |                                              |                                                                 |                                     
|Charles
      H. Hantho,                                   | 1992                                         | Chair
      and a director, Camco Inc. (Appliance               | Chair
      of the HRC              
|C.M.,
      F.C.A.E.                                       |                                              | Manufacturer)
      and Hamilton Utilities Corp., and a         | NCGC                                
|Toronto,
      ON                                          |                                              | director
      of Inco Limited (mining) and Telemedia Corp.     |                                     
|                                                           |                                              | (media)                                                         |                                     
|                                                           |                                              |                                                                 |                                     
|Louis
      D. Hyndman,                                    | 1986                                         | Senior
      Partner of Field Atkinson Perraton LLP             | HRC                                 
|Q.C.                                                       |                                              | (barristers
      & solicitors), and a director of Canadian     | NCGC                                
|Edmonton,
      AB                                         |                                              | Urban
      Equities Ltd., Clarke Inc., EllisDon Inc., Enbridge |                                     
|                                                           |                                              | Inc.,
      Melcor Developments Ltd., and Meloche Monnex        |                                     
|                                                           |                                              | Inc.                                                            |                                     
|                                                           |                                              |                                                                 |                                     
|Donna
      Soble                                          | 1989                                         | Lawyer
      and corporate director. She is also a director of  | Chair
      of the NCGC             
|Kaufman                                                    |                                              | BCE
      Inc., Bell Canada, Bell Canada International Inc.,    | Member
      of HRC                 
|Toronto,
      ON                                          |                                              | Hudson's
      Bay Company, Public Sector Pension               |                                     
|                                                           |                                              | Investment
      Board and UPM-Kymmene Corp.                    |                                     
|                                                           |                                              |                                                                 |                                     
|John
      S. Lane                                         | 1993                                         | Corporate
      Director. He is also a director of AFP          | Chair
      of AE Committee         
|Toronto,
      ON                                          |                                              | Cuprum
      S.A., McLean Budden Ltd. and Ontario               | Member
      of the NCGC            
|                                                           |                                              | Teachers'
      Pension Plan Board.                             |                                     

22

---

|Name
      and
      Municipality
      of
      Residence | Year
      First
      Became
      Director            | Principal
      Occupation                                     | Membership
      on
      Committees
|---------------------------------------------------------- | ------------------------------------------------------- | -------------------------------------------------------------- | ------------------------------------
|                                                           |                                                         |                                                                |                                     
|Luis
      Vazquez Senties                                 | 2001                                                    | Chair
      of Group Diavaz (oilfield services and natural gas |                                     
|Mexico
      City, MX                                      |                                                         | distribution).
      He is also chair of CIA Mexicana de       |                                     
|                                                           |                                                         | Geofisica
      and a director of Compania Mexicana de Gas.    |                                     
|                                                           |                                                         |                                                                |                                     
|Ralph
      A. Thrall, Jr.                                 | 1981                                                    | President,
      McIntyre Ranching Co. Ltd. (cattle ranching)  | AE
      Committee                  
|Lethbridge,
      AB                                       |                                                         |                                                                |                                     
|                                                           |                                                         |                                                                |                                     
|Stephen
      G. Snyder                                    | 1996                                                    | President
      and chief executive officer                    |                                     
|Calgary,
      AB                                          |                                                         | TransAlta
      Corporation (electric industry holding         |                                     
|                                                           |                                                         | company).
      He is also a director of Canadian Imperial     |                                     
|                                                           |                                                         | Bank
      of Commerce.                                        |                                     
|                                                           |                                                         |                                                                |                                     
|                                                           |                                                         |                                                                |                                     
|Officers                                                   |                                                         |                                                                |                                     
|                                                           |                                                         |                                                                |                                     
|Name                                                       |                                                         | Principal
      Occupation                                     | Residence                           
|                                                          
|Stephen
      G. Snyder                                    |                                                         | President
      and Chief Executive Officer                    | Calgary,
      Alberta              
|Ian
      A. Bourne                                        |                                                         | Executive
      Vice-President and Chief Financial Officer     | Calgary,
      Alberta              
|James
      F. Dinning                                     |                                                         | Executive
      Vice- President                                | Calgary,
      Alberta              
|James
      W. Kemp                                        |                                                         | Executive
      Vice-President & Chief Technology Officer      | Calgary,
      Alberta              
|Thomas
      M. Rainwater                                  |                                                         | Executive
      Vice-President, Corporate Development and      | Calgary,
      Alberta              
|                                                           |                                                         | Marketing                                                      |                                     
|Robert
      M. Soeldner                                   |                                                         | Executive
      Vice-President, Operations                     | Calgary,
      Alberta              
|Kenneth
      S. Stickland                                 |                                                         | Executive
      Vice-President, Legal                          | Calgary,
      Alberta              
|Michael
      Williams                                     |                                                         | Senior
      Vice-President, Human Resources                   | Calgary,
      Alberta              
|Gregory
      Wilson                                       |                                                         | Senior
      Vice-President and Chief Information Officer      | Calgary,
      Alberta              
|Linda
      M. Chambers                                    |                                                         | President,
      Centralia Generation LLC and Centralia Mining | Olympia,                            
|                                                           |                                                         | LLC,
      subsidiaries of the Corporation                     | Washington                          
|Frederick
      M. Gallagher                               |                                                         | Managing
      Director and CEO, Vision Quest Windelectric     | Calgary,
      Alberta              
|                                                           |                                                         | Inc.,
      a subsidiary of the Corporation                    |                                     
|William
      D.A. Bridge                                  |                                                         | Vice
      -President, Development                             | Calgary,
      Alberta              
|Alister
      Cowan                                        |                                                         | Vice
      -President & Comptroller                            | Calgary,
      Alberta              
|Lonnie
      S. Enns                                       |                                                         | Vice
      -President, Energy Trading and Marketing            | Calgary,
      Alberta              
|Richard
      P. Langhammer                                | Vice
      -President, Alberta Thermal Plant Operations | Calgary,
      Alberta                                        
|Matthew
      J. Moorman                                   |                                                         | Vice
      -President, Commercial Management                   | Calgary,
      Alberta              
|Robert
      J.D. Page                                     |                                                         | Vice
      -President, Sustainable Development                 | Calgary,
      Alberta              
|Gregory
      P. Reinhart                                  |                                                         | Vice
      -President, Generation Human Resources              | Calgary,
      Alberta              
|Marvin
      J. Waiand                                     |                                                         | Vice
      -President & Treasurer                              | Calgary,
      Alberta              
|Brian
      Walls                                          |                                                         | Vice
      -President, Life Cycle Management                   | Calgary,
      Alberta              
|Richard
      W. Way                                       |                                                         | Vice
      -President, Regulatory Affairs                      | Calgary,
      Alberta              
|Alison
      T. Love                                       |                                                         | Corporate
      Secretary                                      | Calgary,
      Alberta              
|Frank
      Hawkins                                        |                                                         | Assistant
      Treasurer                                      | Calgary,
      Alberta              

23

---

All of the
directors and officers of TransAlta have held their present principal
occupations or executive positions with the same or associated firms for the
past five years, except for the following:

- Prior to April
    1998, John T. Ferguson was also CEO of Princeton Developments Ltd.
- Prior to May
    2000, Stanley J. Bright was Vice Chair of MidAmerican Energy Holdings
    Company and before January 1999 Mr. Bright was Chair and CEO of
    Iowa-Illinois Gas and Electric Company.
- Prior to April
    2000, Roderick S. Deane was also Chair of TransAlta New Zealand Limited and
    prior to October 1999, Dr. Deane was Chief Executive of Telecom Corporation
    of New Zealand Limited.
- From 1997 to
    2001, Gordon D. Giffin served as United States Ambassador to Canada.
- Prior to
    February 2000, John S. Lane was Senior Vice President, Investments, Sun Life
    Assurance Company of Canada.
- Prior to March
    2001, James W. Kemp was Vice President, Operations of Tractebel SA.
- Prior to
    October 2002, Thomas Rainwater was President, Praxis Solutions, Inc. and
    prior to February 2000 he was Vice-President, Central Region, Illinova
    Energy Partners, a division of Illinova Corporation.
- Prior to
    November 2002, Robert Soeldner was Vice President, Strategic Initiatives,
    New York Independent System Operator; prior to February 2001 he was Senior
    Director, Enron Europe, Ltd.; prior to August 1999, he was Director, Enron
    Energy Services; and prior to August 1998 he was General Manager, Enron
    International.
- Prior to
    January 2001, Kenneth Stickland was a senior partner at Burnet Duckworth
    & Palmer, Barristers & Solicitors.
- Prior to June
    2002, Michael Williams was Vice-President of EMEA HR, Lucent Technologies;
    prior to April 2001 he was senior director of EMEA HR, Cisco Systems; prior
    to September 1999 he was Senior Director of Customer Advocacy HR, Cisco
    Systems; prior to May 1999 he was Executive Vice President to Organizational
    Transformation, Newbridge Networks Corp; and prior to May 1998 he was Global
    Vice President of Human Resources and Quality, Newbridge Networks Corp.
- Prior to June
    2002, Gregory Wilson was Vice President and Chief Information Officer of
    United Dominion Industries and prior to August 1998 he was Group IT Director
    of Scientific Atlanta.
- Prior to
    February 2002, Matthew Moorman was Director of Financial Operations, IPP and
    prior to June 1998 he was Vice President Finance of Angus Reed.
- Prior to
    February 2002, Gregory Reinhart was Human Resources Director, IPP and prior
    to June 1999 he was Vice President of Human Resources of Engage Energy Ltd.
- Prior to
    February 2002, Brian Walls was Manager of IPP Commercial and prior to
    October 2001 he was director, Environmental Management with Tractebel Power
    SA.
- Prior to
    February 2001, Frank Hawkins was Director, Corporate Finance; prior to
    September 2000 he was Director, IPP Development; and prior to September 1998
    he was Director, International Project Development of TransCanada PipeLines
    Limited.

24

---

- Prior to
    October 2001, Alison Love was Vice-President, General Counsel and Corporate
    Secretary of Canadian Pacific Limited; prior to October 1998 she was
    Vice-President, Administrative Services and Special Projects; and
prior to July 1998 she was Corporate Secretary and Associate General Counsel of
TransCanada PipeLines Limited.

The directors and
officers of TransAltaand its
subsidiaries as a group beneficially own, directly or indirectly, less than one
per cent of each class or series of the outstanding securities of TransAlta.

AUDITORS,
TRANSFER AGENT AND REGISTRAR

Ernst & Young
LLP, Chartered Accountants, 1000, 440-2ndAvenue, S.W., Calgary, are the auditors of the Corporation.

The transfer agent
and registrar for TransAlta's common shares and preferred securities is CIBC
Mellon Trust Company in Vancouver, Calgary, Winnipeg, Toronto and Montreal. The
transfer agent and registrar for the common shares in the United States is
Mellon Investor Services LLC at its principal office in New York, N.Y.

ADDITIONAL
INFORMATION

Additional
information including compensation of directors and officers of TransAlta,
indebtedness of directors and officers of TransAlta, principal holders of
TransAlta's securities, options to purchase securities and interests of
insiders in material transactions, where applicable, is contained in TransAlta's
Management Proxy Circular dated March 14, 2003. Additional financial information
is provided in TransAlta's 2002 Annual Report which contains audited
comparative consolidated financial statements for the most recently completed
financial year and the Management Discussion and Analysis. The Management
Discussion and Analysis contained in the 2002 Annual Report is specifically
incorporated by reference and forms a part of this Renewal Annual Information
Form.

In 2002, TransAlta
adopted a procedure for employees, shareholders or others to report concerns or
complaints regarding accounting or auditing matters on an anonymous,
confidential basis to the Audit and Environment Committee of the Board of
Directors. Such submissions may be directed to the Audit and Environment
Committee c/o the Corporate Secretary of the Corporation.

When the
securities of TransAlta are in the course of distribution pursuant to a
preliminary short form prospectus or a short form prospectus, TransAlta will,
upon request to the Corporate Secretary, provide to any person or company the
following information:

- one copy this
    Annual Information Form, together with one copy of any document, or the
    pertinent pages of any document, incorporated by reference in this Annual
    Information Form;
- one copy of the
    comparative consolidated financial statements of TransAlta for its most
    recently completed financial year for which financial statements have been
    filed together with the accompanying report of the auditor and one copy of
    the most recent interim financial statements of TransAlta that have been
    filed, if any, for any period after the end of its most recently completed
    financial year;
- one copy of
    TransAlta's Management Proxy Circular in respect of its most recent annual
    meeting of its shareholders that involved the election of directors; and
- one copy of any
    other documents that are incorporated by reference into the preliminary
    short form prospectus or the short form prospectus and are not required to
    be provided under clauses (1), (2) or (3) above; or



25

---

At any other time,
TransAlta will, upon request, provide to any person or company one copy of any documents referred
to in clauses (1), (2) and (3) above, provided that TransAlta may require the
payment of a reasonable charge if the request is made by a person or company who
is not a security holder of TransAlta. For additional copies of this AIF or any
of the materials listed in this paragraph, please contact Investor Relations,
TransAlta Corporation at Box 1900, Station 'M', Calgary, Alberta, T2P 2M1;
telephone: 1-800-387-3598 in North America outside of Calgary, or (403) 267-2520
in Calgary and outside North America; fax: (403) 267-2590; or e-mail:
investor_relations@transalta.com.

26

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