AIMCo-backed TransAlta to acquire U.S. wind projects

TransAlta Renewables Inc (TSX: RNW) has agreed to acquire two wind development projects in New Hampshire and Pennsylvania, reflecting 29 megawatts and 90 megawatts, respectively. The total cost of the projects is about US$240 million, of which about 70 percent will be funded in 2018 and the rest in 2019. Commercial operation is expected in 2019’s second half. TransAlta, a Calgary-based renewable power producer, said the deal provides asset and geographic diversification. TransAlta is backed by Alberta Investment Management Corp (AIMCo). AIMCo invested $200 million in the business in 2015.

PRESS RELEASE

TransAlta Renewables Announces Acquisition of Two U.S. Wind Projects

CALGARY, Feb. 20, 2018 /CNW/ – TransAlta Renewables Inc. (“TransAlta Renewables” or the “Company”) (TSX: RNW) announced today that it has entered into an arrangement to acquire two construction-ready projects in the Northeast United States.

The wind development projects consist of: (i) a 90 MW project located in Pennsylvania which has a 15-year Power Purchase Agreement (“PPA”) and (ii) a 29 MW projected located in New Hampshire with two 20-year PPAs. All three counterparties have S&P credit ratings of A+ or better.

Total cost of the two projects is estimated to be US$240 million, of which approximately 70% will be funded in 2018 and the remainder in 2019. The commercial operation date for both projects is expected during the second half of 2019.

“This acquisition demonstrates our commitment to grow and diversify our cash flows through the addition of long-term contracted assets with high quality counterparties, and expands our presence in the United States,” said President John Kousinioris.

TransAlta Renewables will fund the acquisition and construction costs using its existing liquidity and tax equity.

Investment Highlights:

Accretive to cash available for distribution per share.
Aligns with TransAlta’s and TransAlta Renewables’ strategy of acquiring contracted renewable power generation assets that provide stable cash flow through long-term power purchase agreements with creditworthy counterparties.
Delivers growth that creates long-term shareholder value.
Provides additional geographic and asset diversification.

The acquisition of the projects is subject to a number of closing conditions, including customary regulatory approvals and, in the case of the New Hampshire project, the receipt of a favourable regulatory determination in relation to the permitting of the project.

About TransAlta Renewables Inc.

TransAlta Renewables is among the largest of any publicly traded renewable independent power producers (“IPP”) in Canada. Our asset platform and economic interests are diversified in terms of geography, generation and counterparties and consist of interests in 18 wind facilities, 13 hydroelectric facilities, seven natural gas generation facilities and one natural gas pipeline, representing an ownership interest of 2,316 MW of net generating capacity, located in the provinces of British Columbia, Alberta, Ontario, Québec, New Brunswick, the State of Wyoming and the State of Western Australia. Our objectives are to (i) create stable, consistent returns for investors through the ownership of, and investment in, highly contracted renewable and natural gas power generation and other infrastructure assets that provide stable cash flow primarily through long-term contracts with strong counterparties; (ii) pursue and capitalize on strategic growth opportunities in the renewable and natural gas power generation and other infrastructure sectors; (iii) maintain diversity in terms of geography, generation and counterparties; and (iv) pay out 80 to 85 per cent of cash available for distribution to the shareholders of the Company on an annual basis.

For further information: Investor Inquiries: Sally Taylor, Manager, Investor Relations, Phone: 1-800-387-3598 in Canada and U.S., Email: investor_relations@transalta.com; Media Inquiries: Stacey Hatcher, Manager, Communications, Toll-free media number: 1-855-255-9184, Email: ta_media_relations@transalta.com

Photo courtesy of TransAlta Renewables Inc