TransAlta Declares Force Majeure on Keephills 1 Power Plant

Tue Mar 26, 2013 7:45am EDT

* Reuters is not responsible for the content in this press release.

  CALGARY, ALBERTA, Mar 26 (MARKET WIRE) --
TransAlta Corporation (TSX:TA)(NYSE:TAC) today announced that it has
declared force majeure due to a winding failure found in the generator of
its 395 megawatt Keephills 1 power plant (the "Unit") located near
Wabamun, Alberta. TransAlta is working with the original equipment
manufacturer of the generator to safely return the Unit to service, which
is currently expected to be on or about April 21, 2013.

    TransAlta has given notice under the Power Purchase Arrangement ("PPA")
to the PPA buyer and the Balancing Pool of a High Impact Low Probability
("HILP") Force Majeure event. In the event of a force majeure, TransAlta
is entitled to continue to receive its PPA capacity payment and is
protected under the terms of the PPA from having to pay availability
penalties. As a result, TransAlta does not expect the outage to have a
material financial impact on the corporation.

    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 United States 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 over 100 years, TransAlta has been a responsible operator
and a proud contributor to the communities in which it works and lives.
TransAlta has been selected by Jantzi-Sustainalytics as one of Canada's
Top 50 Socially Responsible Companies since 2009 and is recognized
globally for its leadership on sustainability and corporate
responsibility standards by FTSE4Good. TransAlta is Canada's largest
investor-owned renewable energy provider.

    This news release may contain forward-looking statements, including
statements regarding the condition of the generator at the Unit, the
characterization of the outage at the Unit as a force majeure event, the
time required to repair the Unit and the financial impact of the outage
on TransAlta. These statements are based on TransAlta's belief and
assumptions based on information available at the time the assumption was
made. These statements are subject to a number of risks and uncertainties
that may cause actual results to differ materially from those
contemplated by the forward-looking statements. Some of the factors that
could cause such differences include, without limitation, unexpected
complications and delays in carrying out the repairs to the generator in
the Unit.

Contacts:
Media inquiries:
TransAlta Corporation
Stacey Hatcher
Senior Corporate Relations Advisor
Toll Free Media Number: 1-855-255-9189
TA_Media_Relations@transalta.com

Investor inquiries:
TransAlta Corporation
Brent Ward
Director, Corporate Finance & Investor Relations
(403) 267-2519
brent_ward@transalta.com

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