Coal, Wind

TransAlta expands wind project

17 July 2007 — TransAlta Corp. amended its power purchase agreement with New Brunswick Power Distribution and Customer Service Corporation from 75 MW to 96 MW. TransAlta also signed a purchase and sale agreement with Vector Wind Energy, a wholly owned subsidiary of Canadian Hydro Developers Inc., for its Fairfield Hill wind power site. Total capital costs for the Kent Hills wind power project will increase by $40 million to $170 million.

Under the purchase and sale agreement, TransAlta will acquire Canadian Hydro’s Fairfield Hill wind power site, including the option to develop the site at a future date. Terms of the agreement were not disclosed.

TransAlta will install seven additional turbines at its Kent Hills site, resulting in a total of 32 turbines, producing 96 MW. The project is subject to regulatory and environmental approvals. Construction of the expanded Kent Hills site is expected to commence by early 2008 with commercial operations beginning by the end of the same year.