TransAlta Power, L.P.
TSX : TPW.UN

TransAlta Power, L.P.

November 12, 2007 09:00 ET

TransAlta Power, L.P. reports third quarter results and declares distributions

CALGARY, ALBERTA--(Marketwire - Nov. 12, 2007) - TransAlta Power, L.P. (TransAlta Power) (TSX:TPW.UN) today announced cash available for distribution(1) increased to $16.5 million or $0.22 per unit for the third quarter 2007 compared to $13.2 million or $0.18 per unit for the third quarter 2006. Distributions paid to unitholders in cash and units were $0.20 per unit, consistent with the distributions paid in the same period for 2006.

For the nine months ended Sept. 30, 2007, TransAlta Power reported cash available for distribution(1) of $47.4 million or $0.63 per unit compared to $38.6 million or $0.51 per unit for the same period in 2006. Distributions per unit were $0.60 as of the third quarter in both 2007 and 2006.

"In the third quarter cash flow available for distribution(1) increased due to higher distributions from TransAlta Cogeneration as a result of lower capital and working capital requirements in the quarter," said Brian Burden, President and director of the general partner of TransAlta Power. "During the quarter, significant resources were dedicated to achieve maximum value for unitholders from the strategic review process and on a natural gas agreement for the Ottawa Cogeneration Power Plant. Both endeavors were successfully completed subsequent to the quarter-end."

On Oct. 15 2007, TransAlta Power announced it had entered into a support agreement with Cheung Kong Infrastructure Holdings Limited (CKI) pursuant to which CKI has agreed to offer $8.38 in cash per unit to acquire all of the outstanding limited partnership units of TransAlta Power. The all-cash transaction is valued at approximately $629 million, excluding debt. The offer made by an indirect wholly-owned subsidiary of CKI by way of a take-over bid expires at 5:00 pm (Mountain) on Dec. 4, 2007, unless withdrawn or extended.

TransAlta Power will continue to declare and pay distributions in accordance with prior practice until the transaction with CKI is completed. Distributions of $0.06625 per unit were declared and will be payable on each of Dec. 31, 2007, Jan. 31, 2008, and Feb. 29, 2008 to unitholders of record at the close of business Dec. 10, 2007, Jan.10, 2008, and Feb. 10, 2008, respectively. If the transaction with CKI is extended and completed after the December record date, unitholders of record on the record date of Dec. 10, 2007, will be paid the entire distribution for December. Based on TransAlta Power's current operations, it is estimated that approximately 30 per cent of the 2007 cash distributions will be tax-deferred. On Nov. 1, 2007 TransAlta Power announced the termination of its Distribution Reinvestment & Optional Unit Purchase Plan (DRIP). The last distribution qualifying for the DRIP plan was paid on Oct. 31, 2007.

On Oct. 12, 2007, TransAlta Power announced TransAlta Cogeneration L.P. had 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 ensures continued plant operations following the expiry of long term natural gas supply contracts. The agreement will be in effect from Nov. 1, 2007 until Dec. 31, 2012.

The complete third quarter report including Management's Discussion and Analysis and unaudited financial statements are available by clicking on the Quarterly Reports tab on the left side of our website, www.transaltapower.com.

(1) Cash available for distribution is a measure of TransAlta Power's ability to make distributions to unitholders based on operating results. It is not defined under Generally Accepted Accounting Principles (GAAP). For a further discussion of this non-GAAP term including a reconciliation of cash flow from operations, see page 4 of the second quarter 2007 Management's Discussion and Analysis.

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 1,352 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. TransAlta Corporation (TSX: TA; NYSE: TAC) owns 50.01 per cent of TransAlta Cogeneration and remains the managing partner.

This news release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of TransAlta Power, L.P. and TransAlta Cogeneration, L.P. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward looking statements. Some of the factors that could cause such differences include legislative or regulatory developments, competition, cost of fuel necessary to produce electricity, global capital markets activity, changes in prevailing interest rates, currency exchange rates, inflation levels and general economic conditions in geographic areas where TransAlta Cogeneration, L.P. operates. For further information on risks or any material assumptions utilized in making these forward looking statements refer to TransAlta Power, L.P.'s Annual Report, Management's Discussion and Analysis under the headings "Risk Factors and Risk Management" and "Critical Accounting Policies and Estimates" and under the heading "Outlook" in TransAlta Power, L.P.'s First Quarter Management's Discussion and Analysis. TransAlta Power, L.P. undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Note: All financial figures are in Canadian dollars unless noted otherwise.

Contact Information