Transalta Corporation · TSX:TA
Transalta — TransAlta Power — Investor Presentation (December 2004)
20 slides from Transalta's investor presentation, December 2004
Slide 1: TransAlta Power, L.P. Fall 2004 Update
TransAlta Power, L.P. Fall 2004 Update December 2004
Slide 2: Forward looking statements
Forward looking statements This presentation 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 ma
Slide 3: Presentation outline
Presentation outline • Structure of TransAlta Power • Business model / Distributions / Governance • Plant analysis • Conclusions 3l
Slide 4: TPW.UN Structure
TPW.UN Structure Public TA TransAlta 100% Power, L.P. 49.99% 50.01% TransAlta Cogeneration, L.P. Cogen Facilities 50% Sheerness 60% Fort Sask. 50% Meridian 100% Ottawa 100% Mississauga 100% Windsor 4l
Slide 5: TPW.UN Business model
TPW.UN Business model • Own assets with operating track record; steady / predictable cash flow; highly rated counterparties • Co invest with TransAlta to leverage expertise and minimize cost structure • Steady growth in manageable and accretive increments • Diversify fuel, market and customer risk 5
Slide 6: TPW.UN Distributions
TPW.UN Distributions Distributable cash Income before Tax + Depreciation - CAPEX - repayment of debt When declaring distributions – Forecast future earnings ( including risks / opportunities) – Anticipate future CAPEX requirements – Assume acquisitions financed through new units / DRIP Distributions
Slide 7: TPW.UN Governance
TPW.UN Governance • 7 Member board ( 3 TransAlta management) • 5 Scheduled meetings per year; other as required • 3 Independent directors – Audit, governance, special committee – Fully utilize independent advisors – Must recommend all non-arm’s length transactions • Report annually against OSC guide
Slide 8: TPW.UN Highlights
TPW.UN Highlights • TransAlta Cogeneration = 802 MW • 97% Contracted (Average duration = 14 years) • 53% gas 47% coal • 56% (448MW) in Alberta, 14% (110 MW) in Saskatchewan and 30% (244MW) in Ontario Fort Saskatchewan Gas / Cogen Contract with DOW Meridian Gas/Cogen Sheerness Ottawa SaskPower/Husky
Slide 9: TPW.UN Plant Analysis
TPW.UN Plant Analysis 9% 47% Fort Sask. 14% Meridian Sheerness Mississauga 14% Ottawa Windsor 8% 8% Note: Percentages are based on Megawatts of capacity 9l
Slide 10: Assets - Sheerness
Assets - Sheerness Sheerness Commercial operation 1986 Alberta Electric contract 2020 Coal Luscar Availability (2003) 94% Electricity Sales Balancing Pool (AA) Issues Environmental Sheerness Opportunities Uprates & 378 MW Availability Financial data 2000-2003 Average Revenue $122 Million EBIT $66 mi
Slide 11: Assets – Fort Saskatchewan
Assets – Fort Saskatchewan Fort Commercial operation 1999 Saskatchewan Electric contract Alberta Gas Commodity 2019 Dow Supplied Gas Transportation Dow Supplied Availability (2003) 70 MW Fort 98% Sask. Electricity Sales Dow (A-) Steam Sales Dow (A-) Issues None Opportunities Availability Bonus Finan
Slide 12: Assets – Meridian
Assets – Meridian Commercial operation 1999 Meridian Electric contract 2024 Saskatchewan Gas Commodity Husky Provided Gas Transportation Husky, ATCO, MIP Availability (2003) 96.8% 110 MW Electricity Sales SaskPower (A) Steam Sales Husky (BBB) Meridian Issues None Opportunities Upgrader Expansion Fin
Slide 13: Assets – Mississauga
Assets – Mississauga Mississauga Commercial operation 1992 Electric contract Ontario Gas Commodity 2017 2012 Gas Transportation 2007 Availability (2003) 98% Electricity Sales OEFC (AA) Steam Sales Boeing Canada Issues Gas Contract Mississauga (2006) Opportunities Site Expansion Financial data 2000-2
Slide 14: Assets – Ottawa
Assets – Ottawa Ottawa Commercial operation 1992 Electric contract Ontario Gas Commodity 2012 2007 Gas Transportation 2007 Availability (2003) 95% Electricity Sales OEFC (AA) Steam Sales Ottawa Hospitals Issues Gas Contracts (2007) Opportunities Site Expansion Ottawa Financial data 2000-2003 Average
Slide 15: Assets – Windsor
Assets – Windsor Commercial operation Windsor 1996 Electric contract 2016 Ontario Gas Commodity 2014 Gas Transportation 2006 Availability (2003) 94% Electricity Sales OEFC (AA) Steam Sales Daimler Chrysler Issues None Opportunities Surplus capacity 20 MW Financial data 2000-2003 Average Revenue $34
Slide 16: Sales & Supply contracts
Sales & Supply contracts 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Mississauga - 108MW PPA Fuel Commodity Fuel Intermediation Fuel Transportation Windsor - 68MW PPA Fuel Commodity Fuel Transportation Ottawa - 68MW PPA Fuel Commodity
Slide 17: Conclusions
Conclusions • Good assets in good markets • Sales contracts with high quality counterparties • History of growth in distributions over past 5 years • Intent to continue accretive growth • Strong governance model 17l
Slide 18: Appendix
Appendix TransAlta
Slide 19: The Ontario gas contracts
The Ontario gas contracts Building Up Depleting Building Up Ceiling Ceiling Floor Account Account Account Gas Price Market Price of Gas Lower Limit Price Gas Price Paid by the LP Start of Gas End of Gas Supply Time Supply Contract Contact 19l
Slide 20: Thermal PPA - basic mechanics
Thermal PPA - basic mechanics Power Wh Pool M Ene e rgy rgy En R eve nue TransAlta Capacity Payment Generating Station Energy Payment PPA Passthrough $ Incentive/penalty $ Buyer Excess Energy $ FM and FM, law changes credit risk eliminating value Balancing Pool 20l
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