TransAlta Renewables Reports Second Quarter Results for 2014

CALGARY, ALBERTA--(Marketwired - July 29, 2014) - TransAlta Renewables Inc. (the "Company") (TSX:RNW) today reported second quarter Comparable EBITDA⁽¹⁾ of $35.2 million. Net Earnings for the second quarter were $5.9 million, or $0.05 per share.

"Our second quarter results came in below Q1, but are fully in line with our expectations as seasonal wind patterns tend to put downward pressure on our second and third quarter results. We remain on track to deliver a solid first year", said Brett Gellner, President. "We also continue to focus on our strategy to grow TransAlta Renewables."

Historically, financial statements have not been prepared by TransAlta for the assets of the Company, as they had not been operated as a separate business by TransAlta. Accordingly, the financial statements for periods prior to the initial public offering ("IPO") on August 9, 2013, reflect the financial statements for the assets in a manner consistent with how TransAlta managed the assets and as though the assets had been a separate Corporation. Therefore, historical financial information is not directly comparable to current results due to the implementation of certain commercial arrangements between the Company and TransAlta Corporation that took effect upon closing of the Company's IPO, including the entering into of firm priced power purchase agreements for generating facilities whose power was previously sold on a merchant basis. Prior to the IPO, these commercial arrangements did not exist and the Company's assets were held directly or indirectly by TransAlta. More details in regards to the basis of preparation can be found in Note 1 of our 2013 audited consolidated financial statements.

Summary Results

Q2 2014

• Comparable EBITDA of $35.2 million
• Funds from operations of $26.9 million
• Production of 743 GWh compared to732 GWh for the same period last year

Year-to-Date 2014

• Comparable EBITDA of $90.9 million
• Funds from operations of $73.3 million
• Production of 1,724 GWh compared to 1,500 GWh for the same period last year

The following table depicts key financial results and statistical operating data:

Second Quarter 2014 Highlights

In $CAD thousands, unless otherwise stated

3 months ended