November 19, 2012

Partnership to build natural gas powered generation stations

TransAlta Corporation is joining forces with an Iowa-based energy services provider to develop, build and operate new natural gas-fueled electricity generation projects in Canada.

“The creation of this partnership is a new and exciting development in our growth strategy and better positions the two companies to pursue significant growth opportunities in Canada,” said Dawn Farrell, TransAlta president and CEO.

“Studies are showing that more than $200 billion worth of new investment in power generation is needed in Canada over the next 20 years.

“MidAmerican is a strong partner to enable us to capture a sizeable share of that market opportunity, and this project will build off our already existing business relationship, which dates back to 2001.”

The agreement between TransAlta and MidAmerican Energy Holdings Company deals with all new natural gas-fueled generation opportunities considered by either TransAlta or MidAmerican in Canada.

All development and construction or acquisition of approved projects will be funded on a 50-50 basis, and TransAlta will be responsible for construction management, operation and maintenance of projects that proceed. This includes TransAlta’s proposed Sundance 7 project, which is an 800-megawatt project based in Alberta.

The project is scheduled for completion by 2016 or 2017

“At MidAmerican, we have been seeking an entry point to the Canadian electricity generation market, where we see strong potential for growth,” said Greg Abel, chairman, president and CEO of MidAmerican.

Gas-fired generation plants will be needed to produce electricity in Alberta’s oilsands and for liquefied natural gas export terminals on Canada’s West Coast.

JOC NEWS SERVICE

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