Transalta Corporation · TSX:TA

Transalta — TransAlta Power — Investor Presentation (February 2006)

14 slides from Transalta's investor presentation, February 2006

  1. Slide 1: TransAlta Power Investor Update February 2006

    TransAlta Power Presentation Investor Update February 2006

  2. 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

  3. Slide 3: Recent events

    Recent events • Ian Bourne remains President of TPW and on the Board • Tom Rainwater appointed President of TA Cogen • Four of six TPW Board members are independent (Rob Soeldner resigned) • Announced 2005 results including Ottawa impairment • Announced first half 2006 distributions at continuing le

  4. Slide 4: Financial review

    Financial review TransAlta Cogeneration, L.P. results ($ millions, unless otherwise 2004 2005 stated) Availability 93.0% 91.5% Total production (GWh) 5,284 5,693 Revenue $284 $361 Cost of fuel $114 $177 OM&A, depreciation, and $101 $108 interest expense Ottawa impairment $- $78 Net earnings $69 $(2)

  5. Slide 5: Distributable cash – TA Cogen

    Distributable cash – TA Cogen Cash available for 2004 2005 Total distribution ($ millions) Net earnings $69 $(2) $67 Plus: Depreciation and $64 $146 $210 amortization Less: Capital expenditures $11 $12 $23 Less: Debt repayments $4 $5 $9 CASH AVAILABLE FOR $118 $127 $245 DISTRIBUTION

  6. Slide 6: Ottawa impairment

    Ottawa impairment Impact at TA Cogen Book value prior to Dec. 31, 2005 $129 m Fair value of cash flows $ 51 m Write-down (book value – fair value) $ 78 m Why? • Gas contract expires Oct. 31, 2007; electricity contract expires 2012 • Structural change in gas costs • Reduced earnings 2008 – 2012 • Les

  7. Slide 7: Ottawa's contribution to cash flows

    Ottawa’s contribution to cash flows TA Cogen 2004 – 2005 Average TA Cogen 2006 – 2009 Average Operating Cash Flows Operating Cash Flows Ottawa Ottawa 10% 4% Ottawa declines offset by: • Gas sales over 2006 – 2007: Approx. $9m increase to cash in 2006 • New Windsor escalation index: $1.2m more per ye

  8. Slide 8: A look at 2006

    A look at 2006 • No change to portfolio • Gas sales from Ottawa secured • First half cash distributions tracking 2005 • Higher capital expenditures than 2005

  9. Slide 9: Capital expenditures

    Capital expenditures Year Capital Work completed/planned expenditures 2004 – 2005 $23 million • Sheerness uprate (total) • Major maintenance at Ft. Sask and Sheerness • Advance purchases for 2006 2006 $20 million - • Major maintenance at gas plants $25 million • Replacement of components 2007 – 2008

  10. Slide 10: Distributable cash - TPW

    Distributable cash - TPW $ millions, unless 2004 2005 otherwise stated Share of TA Cogen cash $59 $63 available for distribution Operating and interest $(1) $(2) expense Cash available for $58 $61 distribution Distributions in cash and $56 $59 units Retained cash $2 $2 Average units outstanding 70.6

  11. Slide 11: Appendix

    TransAlta Power

  12. Slide 12: TPW.UN structure

    TPW.UN structure TransAlta Public Power Ltd. (General Partner) 100% TA 0.01% 99.99% TransAlta Power, L.P. 50.01% 49.99% TransAlta Cogeneration, L.P. 50% Sheerness 60% Fort Sask. 50% Meridian 100% Ottawa 100% Mississauga 100% Windsor

  13. Slide 13: TPW.UN highlights

    TPW.UN highlights TransAlta Cogeneration = 807 MW 97% contracted (average duration approx. 14 years) 53% gas, 47% coal 56% (453 MW) in Alberta, 14% (110 MW) in Saskatchewan and 30% (244 MW) in Ontario Fort Saskatchewan (71 MW) gas-fired / cogen Dow Chemical Meridian Ottawa (68 MW) Sheerness (382 MW)

  14. Slide 14: Sales & supply contracts

    Sales & supply contracts 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Sheerness - 382 MW PPA Fuel Commodity Fort Saskatchewan - 71 MW Long-term contract Fuel Commodity Flow through Fuel Transportation Flow through Meridian - 110 MW Lon

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