TransAlta Power, L.P.

TransAlta Power, L.P.

May 04, 2007 09:00 ET

TransAlta Power, L.P. reports first quarter results

CALGARY, ALBERTA--(CCNMatthews - May 4, 2007) - TransAlta Power, L.P. (TransAlta Power) (TSX:TPW.UN) today announced cash available for distribution(1) of $15.9 million or $0.21 per unit for the first quarter 2007 compared to $12.7 million or $0.17 per unit for the first quarter 2006. Distributions paid to unitholders in cash and units were $0.20 per unit, which is consistent with distributions paid in the same period for 2006.

Net income for the three months ended March 31, 2007 was $10.8 million or $0.14 per unit, compared to net income of $13.7 million or $0.18 per unit for the same period in 2006. Net income was lower in the first quarter 2007 compared to the first quarter 2006 as a result of lower net earnings at TransAlta Cogeneration, L.P. which were primarily due to lower gas sales at Ottawa.

"Our first quarter 2007 results were accomplished through good plant operations, as reflected in higher year-over-year availability and production. This improvement was offset by lower opportunistic gas sales at Ottawa, which were expected," said Brian Burden, TransAlta Power, L.P. president and director. "We plan to continue to drive cash available for distribution by remaining focused on strong plant production and availability."

Distributions of $0.06625 per unit were also declared today and will be payable on each of June 30, 2007, July 31, 2007, and August 31, 2007 to unitholders of record at the close of business June 10, 2007, July 10, 2007, and August 10, 2007, respectively. Based on TransAlta Power's current operations, it is estimated that approximately 30 per cent of the 2007 cash distributions will be tax-deferred.

The complete first 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,

(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 3 of the first 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.

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.

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