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This presentation includes forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities
- legislation. All forward-looking statements are based on our beliefs as well as assumptions based on available information and on management’s experience and perception of
historical trends, current conditions, and expected future developments, as well as other factors deemed appropriate in the circumstances. Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as “may”, “will”, “can”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “project”, “forecast”, “foresee”, “potential”, “enable”, “continue”, or other comparable terminology. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other important factors that could cause actual results or outcomes to be materially different from those set forth in the forward-looking statements. In particular, this presentation contains, but is not limited to, forward-looking statements pertaining to: upside opportunities within the Alberta market, including as it pertains to the hydro assets; 2018 year-end EBITDA and CAFD of TransAlta Renewables; sources of free cash flow, including optimization of the coal portfolio between 2018 and 2020, the conversion of 2,360 MW to clean energy by 2022, and the receipt of $150 million annually in dividends from TransAlta Renewables; TransAlta obtaining full revenue of up to approximately $275 million from energy, ancillary and renewables credits following the expiry of the hydro power purchase arrangement (“PAA”); post-PPA power price in Alberta of approximately $55/MWh, capacity price of ~$6/kW-month and carbon price of $40/tonne; receipt of $100 to $200 million of free cash flow annually from Canadian coal post conversions; extent of emission intensity reduction and life extension from conversions; Tidewater Pipeline completion by late 2019, with Initial volumes of 130 MMcf/d with the potential to expand to 440 MMcf/d; benefits of fuel blending at Sundance and Keephills; the implementation of a capacity market in Alberta, the structure of the capacity market and the timing of implementation; the US wind development projects, including the capital cost and timing for construction and the closing of the Antrim wind project; growth opportunities from 2018 to beyond 2031, including behind the fence gas generation in Alberta, BC and Ontario, potential for growth in renewables, and greenfield development and acquisitions; and TransAlta having non-recourse debt of $1.2 billion in 2020. Factors that may adversely impact our forward-looking statements include risks relating to: legislative or regulatory developments, including as it pertains to the Alberta capacity market and Federal environmental legislation; high penetration of renewables and build out of gas; changes in economic and competitive conditions; inability to secure natural gas supply and the construction of a natural gas pipeline on terms satisfactory to the Company; the introduction of disruptive sources of energy or capacity; changes in the price for natural gas;; decreased demand for energy or capacity; availability of financing; fluctuations in market prices; the availability of fuel supplies required to generate electricity, including the availability and cost of natural gas within Alberta; legislative changes, including as it pertains to the capacity market in Alberta; changes to the relationship with, or ownership of, TransAlta Renewables; wind and hydro resources being less than long term average; reductions to our capacity factors; our ability to contract our generation for prices that will provide expected returns; risks associated with development projects and acquisitions, including permitting, labour and engineering risk associated with the coal to gas conversions; increased costs or delays in the construction or commissioning of pipelines to the converted units. The foregoing risk factors, among others, are described in further detail in the Risk Management section of our Management Discussion and Analysis and under the heading “Risk Factors” in our Annual Information Form. Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this document are made only as of the date hereof and we do not undertake to publicly update these forward-looking statements to reflect new information, future events
- r otherwise, except as required by applicable laws. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect the Corporation's expectations
- nly as of the date of this presentation. The purpose of the financial outlooks contained in this presentation is to give the reader information about management's current
expectations and plans and readers are cautioned that such information may not be appropriate for other purposes. In light of these risks, uncertainties, and assumptions, the forward-looking events might occur to a different extent or at a different time than we have described, or might not occur at all. We cannot assure that projected results or events will be achieved. Certain financial information contained in this presentation, including EBITDA and CAFD, may not be standard measures defined under International Financial Reporting Standards (“IFRS”) and may not be comparable to similar measures presented by other entities. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. For further information on non-IFRS financial measures we use, see the section entitled “Reconciliation of Non-IFRS Measures” contained in our most recently filed Management's Discussion and Analysis, filed with Canadian securities regulators on www.sedar.com and the Securities and Exchange Commission on www.edgar.com. Unless otherwise specified, all dollar amounts are expressed in Canadian dollars.