Slide 1: Investor Presentation
Investor Presentation Big Horn, Alberta SEPTEMBER 2026
Slide 2: Forward-looking statements and non-IFRS measures
Forward - looking statements and non - IFRS measures This presentation includes "forward - looking information," within the meaning of applicable Canadian securities laws, and "forward - looking statements," within the meaning of applicable United States securities laws, including the Private Securi
Slide 3: TransAlta Overview
TransAlta Overview Interlakes , Alberta 3
Slide 4: TransAlta at a Glance
TransAlta at a Glance ~ 9,300 MW Diversified portfolio • 92 generating facilities • Canada, United States and Australia $ 10 billion 115 years • Hydro, thermal, wind, Enterprise value 1 Generation experience solar, battery Strong balance sheet and Across diverse capital discipline technologies ~ $40
Slide 5: High-Quality Diverse Portfolio
High - Quality Diverse Portfolio Hydro Future Gas Conversion 1 25 Facilities 1 Facility 923 MW ~700 MW Reasonably sized Wind, Solar and Battery geographies toGas Natural scale 36 Facilities within 30 Facilities 2,587 MW 5,144 MW Technology: WIND SOLAR HYDRO BATTERY FUTURE GAS CONVERSION 1 NATURAL GA
Slide 6: Our Value Proposition
Safe and reliable operator Our Value Diversified portfolio Proposition High potential legacy energy sites Positioned for growth Financial strength and flexibility Centralia, Washington 6 6
Slide 7: Solid Contracted Base
Solid Contracted Base Weighted Average Contract Life of 9 Years 1 Across Geographies and Fuels Fleet Capacity is 51% Contracted 88 498 1,790 Contracted 1,024 Contracted MW by 2,289 MW by 2,158 Region Fuel 1,223 Australia U.S. Alberta Rest of Canada Hydro Wind and Solar Gas Total: 4,535 MW Our contra
Slide 8: Power Demand Is Accelerating
Power Demand Is Accelerating U.S. Canada Australia 40 to 100 GW of new peak load demand Canada’s electricity demand is Western Australia grid contemplates in U.S. over the next five years 1,2 expected to rise ~62% between ~5 times electricity requirement due 2025 and 2050 3 to anticipated new indust
Slide 9: Balance Required in Evolving Power Industry
Balance Required in Evolving Power Industry Reliability Affordability Energy Evolution Speed Decarbonization 9
Slide 10: Strategic Priorities
Strategic Priorities Operate with excellence to maximize value of our base business Safe reliable operations $ Optimize Alberta fleet Enhance financial flexibility Grow with discipline to maximize value for shareholders Advance legacy site projects Pursue accretive M&A Develop greenfield projects Ke
Slide 11: Strategic Priority: Safe Reliable Operations
Strategic Priority: Safe Reliable Operations South Hedland, Western Australia 11
Slide 12: Reliable Operations
Reliable Operations 18 Total Recordable Injury Frequency (TRIF) 0.9 16 0.8 14 0.7 Industry leading safety Recordable Injuries 12 0.6 10 0.5 TRIF 8 0.4 6 0.3 4 0.2 2 0.1 Diverse portfolio of technologies, jurisdictions, 0 0 lifecycle stages and commercial arrangements 2021 2022 2023 2024 2025 Recorda
Slide 13: Strategic Priority: Optimize Alberta Fleet
Strategic Priority: Optimize Alberta Fleet Barrier, Alberta 13
Slide 14: Our Strong Position in the Alberta Market
Our Strong Position in the Alberta Market Fleet Evolution Current Portfolio Position 755 844 844 2020 2025 265 938 Installed Installed Hydro/Storage Wind Dispatchable Gas Cogen Gas MW MW 2,666 416 2,712 Assets 18 13 7 6 844 MW 755 MW 2,712 MW 938 MW Total: 4,191 MW Total: 5,249 MW Baseload and Inter
Slide 15: Hedging Strategy Mitigates Downside and Captures Upside
Hedging Strategy Mitigates Downside and Captures Upside 250 2,800 2,600 200 2,400 Volume Hedged (GWh) 2,200 150 $/MWh 2,000 100 1,800 1,600 50 1,400 0 1,200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 20
Slide 16: Portfolio Management Extracts Premium Pricing
Portfolio Management Extracts Premium Pricing 1 34% Average realized hydro merchant Realized energy and ancillary prices premium to spot 300 250 1 22% 200 Average realized gas merchant $ per MWh premium to spot 150 100 1 50 57% Average hydro ancillary services 0 price to spot Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 17: TransAlta Well Positioned for Restructured Energy Market (2028+)
TransAlta Well Positioned for Restructured Energy Market (2028+) 1 New Reliability Products and Pricing Framework TransAlta’s Positioning Regulations 1 Offer cap increase from $999.99/MWh to New 30 - minute ramping product Higher offer caps allow for the capture $1,500/MWh from new market inception
Slide 18: Role of TransAlta's Gas-Fired Steam Units in the Alberta Market
Role of TransAlta’s Gas -Fired Steam Units in the Alberta Market Total Installed 1 Capacity Limitations Alberta Power Market 2025 Capacity Capacity 1 Wind, Solar and 8,223 MW Limited duration and fuel intermittency Other 899 MW Water flow and reservoir capacity Hydro Simple and Combined 4,973 MW Eco
Slide 19: Gas-Fired Steam Units Are Flexible and Designed To Operate Above 90%
TransAlta’s Gas -Fired Steam Units Are Flexible and Designed To Operate Above 90% 91.9% 3 - year average Demonstrated ability to exceed 90% availability across CTG fleet Lower capacity factors are the result of Unit operation adjusted to a deliberate strategy that can be current market demand adjust
Slide 20: TransAlta Alberta Power Price Forecast
TransAlta Alberta Power Price Forecast Actual and forecast annual average power price ($ per MWh) 1 Annual demand expected to grow at 1.5% per year through $162 2029 driven by population growth and electrification 2 $134 $102 Incremental demand growth accelerates market tightening $63 $44 TransAlta
Slide 21: Strategic Priority: Grow with Discipline
Strategic Priority: Grow with Discipline Horizon Hill, Oklahoma 21
Slide 22: Growth Focused in Core Geographies
Growth Focused in Core Geographies Leverage our competitive advantages Legacy site opportunities Strategic M&A Utilizing existing infrastructure Recontracting advantage Grid firming projects Legacy site opportunities Understood regulatory Alberta Behind - the - fence opportunities environments Site
Slide 23: Alberta Data Centre Advantage
Alberta Data Centre Advantage Ample availability of natural gas Existing local gas supply from WCSB Colder climate with low relative humidity supports lower operating costs Abundant water supply Speed to power advantage Excess capacity in the market Supportive regulatory environment Federal and Prov
Slide 24: Data Centre Memorandum of Understanding
Data Centre Memorandum of Understanding Location Keephills Counterparties CPP Investments and Wabamun Lake Brookfield Phase I 230 MW Fuel Grid+ Phase II ~1 GW 1 Phase I COD 2027+ Sundance Available transmission interconnection Existing gas lines to Keephills TransAlta Owned Land Rezoned for Data Cen
Slide 25: Advancing Generation Alternatives for 2030+
Advancing Generation Alternatives for 2030+ Repowering Development Projects Advanced Staged Development Project Development projects Keephills 1 Repower submitted as P lanned Units Location Keephills , Alberta under CER Capacity ~800 MW Fuel Natural Gas Technology 2x1 Combined Cycle Keephills Flipi
Slide 26: Centralia Coal-To-Gas Conversion
Centralia Coal -To-Gas Conversion Location Centralia, Washington Fuel Natural Gas Capacity ~700 MW Customer Puget Sound Energy Term 16 years Capital ~US$600 million COD H2 2028 Build Multiple 1 ~5.5 times Unique power solution to support critical reliability in the region Permits submitted, prelimin
Slide 27: Centralia Will Be Simplified Through Boiler Conversion
Centralia Will Be Simplified Through Boiler Conversion Coal Operation Scrubber System Steam Precipitators Boiler Coal Generator Transmission Mills Steam Turbine Ash System Condenser Ash System Water Cooling Tower Coal To Gas Boiler Conversion Steam Natural Gas Generator Boiler Steam Turbine Transmis
Slide 28: Track Record of Strategic Acquisitions
Track Record of Strategic Acquisitions TransAlta M&A 2023 to Current Criteria Colorado Gas Portfolio 1 Far North Heartland TransAlta Renewables Assets attractively Continued growth in Contrarian view ahead Simplified corporate positioned for Strategic Rationale core geography with of recalibration o
Slide 29: Colorado Gas Acquisition Highlights
Colorado Gas Acquisition Highlights Adds scale with expected addition of approximately US$80 million ($110 million) 1 per year of low risk, high - quality Adjusted EBITDA with availability incentive payments upside Expected to be immediately accretive to free cash flow per share in the first full -
Slide 30: Colorado Gas Asset Overview
Colorado Gas Asset Overview Mountain Peak Canyon Peak Power Power Capacity 162 MW 156 MW Expected COD September 2025 Q3 2026 Six GE Six GE Technology LM2500XPRESS LM2500XPRESS Denver Gas Turbines Gas Turbines Contract Term 30 Years 25 Years CORE Electric Customer United Power, Inc. Cooperative Custo
Slide 31: Strategic Priority: Enhance Financial Flexibility
Strategic Priority: Enhance Financial Flexibility Calgary, Alberta 31
Slide 32: Balance Sheet Overview
Balance Sheet Overview Strong financial foundation Supportive Debt Maturity Profile Signif icant Access to Capital STABLE CREDIT RATINGS Secured Project Debt CAD Notes USD Notes $800 $0.3 $600 Millions $400 $1.5 $200 Billions 3 $0 Cash Undrawn credit facilities 2026 2027 2028 2029 2030 2031 2032 203
Slide 33: Potential Impact of Alberta Load Growth and Centralia to 2029 Adjusted EBITDA
Potential Impact of Alberta Load Growth and Centralia and Phase I data Centralia to 2029 Adjusted EBITDA centre would increase contracted 2029 Potential Adjusted EBITDA Uplift 1 cashflows ~$ 30 0 Million ~1,300 MW P otential for ~$150 Million ~1,100 MW merchant adjusted EBITDA uplift with ~$200 Mill
Slide 34: 2026 Performance
2026 Performance Kananaskis, Alberta 34
Slide 35: Delivered Solid Performance in Second Quarter
Delivered Solid Performance in Second Quarter Results and Financial Position Business Highlights and Strategic Priorities Adjusted EBITDA 1 of $291 million Data centre development in Alberta progressing FCF 1 of $ 143 million or $ 0.47 /share Announced execution of agreement to acquire fully contrac
Slide 36: TransAlta Segmented Results
TransAlta Segmented Results Hedging position and emissions credits partially Three and Six Months Ended June 30, 2026 ($ millions) offset low Alberta power prices and 1 contract expiry at Q2 2026 Q2 2025 Adjusted EBITDA H1 2026 H1 2025 Centralia 87 126 Hydro 122 173 90 89 Wind and Solar 185 191 142
Slide 37: Alberta Hedging Position
Alberta Hedging Position Hedges continue to provide upside 80 7,000 above forward prices 6,000 60 Volume (GWh) 5,000 Price ($/MWh) 4,000 40 3,000 20 2,000 Substantially hedged 1,000 for balance of year and into 2027 0 0 Q3 2026 Q4 2026 Balance of Year 2026 Full Year 2027 1 Volume Forward price Avera
Slide 38: 2026 Outlook
2026 Outlook ($ millions) Range Adjusted EBITDA 1 950 to 1,050 FCF 1 350 to 450 FCF ($/share) 1 1.18 to 1.51 Energy Marketing Adjusted Revenues 1 110 to 130 Contracted fleet and strong Sustaining Capital 2 140 to 160 hedge position provide stable cash flows Market Range Alberta spot 40 to 60 ($/MWh)
Slide 39: 2026 Priorities
2026 Priorities Financial and Operational Advancing strategic initiatives A djusted EBITDA 1 of $950 - $1,050 m illion Improve leading and lagging safety performance FCF 1 of $ 350 - $ 450 million Optimize the Alberta merchant fleet Strong safety, operational and Annualized dividend of $0.28 per sha
Slide 40: Slide Notes
Slide Notes Slide 4 information. . Further assumptions and risks underlying this information are (3) Adjusted EBITDA is a non - IFRS measure, see the forward - looking statements (1) Enterprise value and market capitalization based on the share price as of close described on slide two, Forward - loo