TransAlta Power, L.P.

TransAlta Power, L.P.

August 02, 2006 16:34 ET

TransAlta Power, L.P. announces normal course issuer bid program

CALGARY, ALBERTA--(CCNMatthews - Aug. 2, 2006) - TransAlta Power, L.P. (TSX:TPW.UN) announced today it has received regulatory approval for its normal course issuer bid program.

TransAlta Power has the approval to purchase, for the purpose of cancelling, up to 3,760,000 of its units. The units represent approximately 5 per cent of the 75,284,020 units issued and outstanding as of July 25, 2006.

The normal course issuer bid program will begin on Aug. 4, 2006 and continue until Aug. 3, 2007, or such earlier date as TransAlta Power may complete its purchases. Purchases will be made on the open market through the Toronto Stock Exchange at the market price of such units at the time of acquisition. TransAlta Power may also issue put options to facilitate the purchase of units pursuant to the normal course issuer bid program provided that no such put options may be used without the prior consent of the Toronto Stock Exchange.

Proceeding with the normal course issuer bid will give TransAlta Power the flexibility to purchase its units if it determines that, as a result of the difference between TransAlta Power's view of the fundamental value of the units and the market price, it would be an attractive and appropriate use of funds in light of potential benefits to remaining unitholders.

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.

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 Second Quarter Report 2006 to shareholders. 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.

Contact Information

  • TransAlta Corporation - Media inquiries
    Deanne Carson
    Phone: (403) 267-7306
    Pager: (403) 213-7041
    TransAlta Corporation - Investor inquiries
    Mardell Van Nieuvenhuyse
    Senior Analyst, Investor Relations
    Phone: (403) 267-2520 or 1-800-387-3598 in Canada and U.S.
    (403) 267-2590 (FAX)