TransAlta Corp. is expanding its U.S. footprint through a $1 billion acquisition of two natural gas-fired peaking facilities in Colorado, strengthening its position in the Western U.S. power market and adding long-term contracted cash flow to its portfolio.
The Canadian power generator has agreed to acquire Mountain Peak Power LLC and Canyon Peak Power LLC from Blackstone. The two facilities, located near Denver, have a combined capacity of 318 megawatts and are backed by tolling agreements with investment-grade counterparties extending for more than 25 years.
Mountain Peak Power, a 162-MW facility, entered commercial operation in September 2025, while the 156-MW Canyon Peak Power plant is expected to begin commercial service in the third quarter of 2026. Both projects use GE LM2500XPRESS gas turbines and have 100% of their capacity contracted under fixed-capacity agreements that pass through fuel, operating, maintenance, and capital costs to customers.
TransAlta said the assets are expected to contribute approximately $110 million (US$80 million) in annual adjusted EBITDA and about $45 million (US$33 million) in annual free cash flow, with potential upside from availability incentive payments. The company expects the acquisition to be immediately accretive to free cash flow per share and sees opportunities to capture operational, insurance, and tax synergies.
The transaction includes the assumption of roughly US$750 million in project-level debt and a US$250 million equity component. To fund the acquisition, TransAlta simultaneously launched a bought-deal offering of 18.2 million common shares at C$19.20 per share, expected to raise approximately C$350 million in gross proceeds. Underwriters also received a 15% over-allotment option that could increase proceeds by about C$53 million.
Chief Executive Officer Joel Hunter said the acquisition establishes a strategic foothold in Colorado, a market the company views as having strong growth potential. He added that the long-term contracted cash flows could help fund future growth initiatives, including data center-related opportunities in Alberta and redevelopment efforts at the Centralia site.
The move continues TransAlta’s acquisition-driven growth strategy in North America. The company emphasized that the deal enhances its contracted generation profile, with a weighted average contract duration of 27 years, while improving business risk characteristics through stable, predictable revenue streams.
The acquisition is expected to close in the fourth quarter of 2026, subject to Canyon Peak achieving commercial operations and customary regulatory approvals.
