TransAlta Acquires Two Gas Power Plants in Colorado for US$1 Billion
Calgary-based TransAlta Corp. has announced a landmark deal to purchase two natural gas power plants in Colorado for a total of US$1 billion. The acquisition marks a significant expansion of the company's presence in the United States energy market, aligning with its strategic focus on natural gas and renewable energy assets.
The two plants, located in Colorado, have a combined generating capacity of approximately 1,200 megawatts. TransAlta expects the deal to close by the end of the third quarter of 2026, subject to regulatory approvals and customary closing conditions. The company plans to finance the acquisition through a combination of debt and existing cash reserves.
John Kousinioris, President and CEO of TransAlta, stated: "This acquisition is a key step in our growth strategy, strengthening our competitive position in the U.S. power market. These plants are well-positioned to support grid reliability and the transition to cleaner energy."
The move comes as TransAlta continues to shift its portfolio toward lower-carbon energy sources, including wind, solar, and natural gas. The company has set a target to reduce its greenhouse gas emissions by 50% by 2030, compared to 2015 levels.
Colorado has been a growing market for natural gas power generation, driven by increasing electricity demand and the retirement of older coal-fired plants. The acquisition is expected to enhance TransAlta's operational efficiency and provide stable cash flows from long-term power purchase agreements.
Analysts have responded positively to the deal, noting that it bolsters TransAlta's balance sheet and diversifies its geographic footprint. Shares of TransAlta rose 2.5% on the Toronto Stock Exchange following the announcement.
The transaction is subject to approval from the Federal Energy Regulatory Commission (FERC) and other regulatory bodies. TransAlta expects to finalize the acquisition by September 2026.
