TransAlta acquires Colorado gas plants

TransAlta Corp. announced its acquisition of two natural gas-fired peaking facilities, Mountain Peak Power and Canyon Peak Power, from Blackstone for approximately $1 billion. These facilities, located near Denver, United States — Colorado, have a combined capacity of 318 megawatts and are fully contracted under long-term tolling agreements for over 25 years. The deal includes assuming $750 million in project-level debt and raising about $250 million in equity through a C$350 million bought deal share offering, underwritten by Canadian Imperial Bank of Commerce — CIBC Capital Markets and Royal Bank of Canada — RBC Capital Markets. The acquisition is expected to generate about $80 million in annual adjusted core profit and $33 million in free cash flow, and is projected to be immediately accretive to TransAlta's free cash flow per share. The transaction is anticipated to close in early Q4 2026, subject to Canyon Peak Power achieving commercial operations and regulatory approvals.