TransAlta Corp. said Wednesday it will acquire two fully contracted natural-gas peaking facilities in Colorado for US$1 billion [1, 2].
The acquisition allows the Calgary-based power producer to expand its generation portfolio through long-term tolling agreements while raising significant new capital for growth [1, 3].
The deal includes the purchase of the Mountain Peak Power plant, which has a capacity of 162 MW [3], and the Canyon Peak Power plant, which provides 156 MW [3]. Together, the two assets provide a total capacity of 318 MW [1]. The facilities are located near Denver, Colorado, and were previously owned by Blackstone [1, 2].
To help fund the expansion, TransAlta is launching a concurrent bought-deal offering of common shares. While one report cited the offering at US$250 million [3], other sources said the equity offering is valued at US$350 million [1, 2].
Natural-gas peaking plants are designed to run only when there is high demand for electricity or when other power sources fail. Because these specific assets are fully contracted, they provide the buyer with predictable revenue streams, a strategy TransAlta is using to stabilize its U.S. footprint.
The company said the move is part of a broader effort to diversify its energy assets. By integrating these Colorado plants, TransAlta increases its operational reach in the U.S. energy market while utilizing the share offering to maintain a flexible balance sheet.
“TransAlta Corp. said Wednesday it will acquire two fully contracted natural-gas peaking facilities in Colorado for US$1 billion”
This acquisition signals TransAlta's strategic pivot toward low-risk, contracted cash flows in the U.S. market. By acquiring 'peaking' plants—which are essential for grid reliability during demand spikes—the company secures a critical role in regional energy stability without the volatility of open-market pricing. The concurrent equity raise suggests the company is prioritizing a balanced capital structure to avoid over-leveraging during this expansion.
