TransAlta and MidAmerican Create New Partnership to Develop and Build Natural Gas-Fueled Power Projects in Canada

Fri Oct 26, 2012 7:50am EDT

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TransAlta Corporation (TSX:TA)(NYSE:TAC) and MidAmerican Energy Holdings
Company announced today the creation of a new strategic partnership
through which the two companies will work together to develop, build and
operate new natural gas-fueled electricity generation projects in Canada.

    This partnership builds on an existing successful relationship. The
extensive power development and operating experience of both companies,
combined with TransAlta's deep knowledge of the Canadian markets and
MidAmerican's financial strength, is expected to accelerate gas-fueled
power development for both partners.

    "The creation of this partnership is a new and exciting development in
our growth strategy and better positions the two companies to pursue
significant growth opportunities in Canada," said Dawn Farrell, TransAlta
president and CEO. "Studies are showing that more than $200 billion worth
of new investment in power generation is needed in Canada over the next
20 years. MidAmerican is a strong partner to enable us to capture a
sizeable share of that market opportunity, and this project will build
off our already existing business relationship, which dates back to

    "At MidAmerican, we have been seeking an entry point to the Canadian
electricity generation market, where we see strong potential for growth,"
said Greg Abel, chairman, president and CEO of MidAmerican. "We are
joining forces with a company that has more than 100 years of history and
a well- established reputation for building and operating excellent power
projects. Our two companies also have similar cultures and a shared
commitment to safe, reliable operations. The partnership will bring two
strong development teams together to deliver clean, highly efficient
power to the region."

    The agreement encompasses all new natural gas-fueled generation
opportunities considered by either TransAlta or MidAmerican in Canada,
including TransAlta's proposed Sundance 7 project, an up to 800-megawatt
project based in Alberta, Canada. All development and construction or
acquisition of approved projects will be funded on a 50-50 basis, and
TransAlta will be responsible for construction management, operation and
maintenance of projects that proceed.

    About the Partners:

    An alliance and partnership already exists between TransAlta and
MidAmerican through CE Generation, LLC, a limited company in which
membership interests are equally owned by MidAmerican and TransAlta
Investments USA Inc.

    TransAlta is a power generation and wholesale marketing company focused
on creating long-term shareholder value. TransAlta maintains a
low-to-moderate risk profile by operating a highly contracted portfolio
of assets in Canada, the U.S. and Australia. TransAlta's focus is to
efficiently operate geothermal, wind, hydro, natural gas and coal
facilities in order to provide customers with a reliable, low-cost source
of power. For 100 years, TransAlta has been a responsible operator and a
proud contributor to the communities in which it works and lives.
TransAlta is recognized for its leadership on sustainability by the Dow
Jones Sustainability North America Index, the FTSE4Good Index and the
Jantzi Social Index. TransAlta is Canada's largest investor-owned
renewable energy provider. Information about TransAlta is available at

    MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a
global provider of energy services. Through its energy-related
businesses, MidAmerican provides electric and natural gas service to more
than 6.9 million customers worldwide. These businesses are Pacific Power,
Rocky Mountain Power and PacifiCorp Energy, comprising PacifiCorp;
MidAmerican Energy Company; Northern Powergrid Holdings Company; Northern
Natural Gas Company; Kern River Gas Transmission Company; MidAmerican
Renewables; and CalEnergy Philippines. Information about MidAmerican is
available at

Media inquiries:
Stacey Hatcher, Senior Corporate Relations Advisor
Cell: 587-216-2242 / Toll-free media number 1-855-255-9184

Investor inquiries:
Jess Nieukerk
Director, Investor Relations
MidAmerican Energy Holdings Company
Media inquiries:
Ann Thelen
Director, Communications and Media Relations

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