TransAlta Power, L.P.

TransAlta Power, L.P.

October 12, 2007 16:30 ET

TransAlta Cogeneration L.P. signs agreement with the OEFC for its Ottawa facility

CALGARY, ALBERTA--(Marketwire - Oct. 12, 2007) - TransAlta Power, L.P. (TSX:TPW.UN) ("TPW") announced today TransAlta Cogeneration L.P. has signed an agreement amending its original power purchase agreement (PPA) with the Ontario Electricity Financial Corporation (OEFC) for its Ottawa Cogeneration Power Plant.

The agreement was entered into to ensure continued plant operations following the expiry of long term natural gas supply contracts. The agreement will be in effect from November 1, 2007 until December 31, 2012.

"This agreement benefits Ontario electricity consumers by continuing to provide much needed services to the region and allows us to ensure the economic stability of Ottawa's operations," said Brian Burden, TransAlta Power L.P. President and Director.

The 68 MW Ottawa Cogeneration Power Plant was commissioned in 1992 and supplies thermal energy to hospitals within the region. It also provides electricity to Ontario's provincial power grid under a long-term PPA with the OEFC and supplies sufficient electricity to power 65,000 households.

TransAlta Power, L.P. owns a 49.99 per cent interest in TransAlta Cogeneration, L.P., which owns interests in five gas-fired cogeneration facilities in Ontario, Alberta and Saskatchewan and in a coal-fired, mine-mouth facility in Alberta. These facilities have a total generating capacity of 1,362 megawatts of electric power, all of which is sold under long-term contracts to high-quality counterparties. TransAlta Cogeneration's net ownership is 815 megawatts.

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