Business Context and Reporting Period
This Form 6-K filing by TransAlta Corporation covers the month of August 2002. TransAlta is Canada's largest non-regulated electric generation and marketing company, with over $7 billion in assets and 9,000 megawatts of capacity in operation or under construction. The company focuses on developing coal- and gas-fired generation in Canada, the U.S., and Mexico.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period. The document highlights the following capital metrics:
- Total Assets: More than $7 billion.
- Big Hanaford Project Cost: Cdn$340 million (US$215 million).
- Big Hanaford Capacity: 248 megawatts.
- Existing Site Capacity: 1,404 megawatts (coal-fired plant in Centralia, Washington).
Material Changes
The primary material event reported is the official start-up of the Big Hanaford power plant in Centralia, Washington. This 248-megawatt natural gas combined-cycle facility was completed on time and on budget. Construction began on April 10, 2001, following the project announcement on February 5, 2001.
Outlook, Risks, and Management Commentary
Management views the start-up of Big Hanaford as a milestone strengthening TransAlta's position in the U.S. Pacific Northwest power market. The filing includes a standard disclaimer regarding forward-looking statements, noting that actual results may differ due to risks including:
- Legislative or regulatory developments.
- Competition and global capital markets activity.
- Changes in interest rates, currency exchange rates, and inflation.
- General economic conditions in operating regions.
Investor Verification Checklist
- Verify the operational status and initial performance metrics of the Big Hanaford plant post-start-up.
- Confirm the final capital expenditure against the reported Cdn$340 million budget.
- Review subsequent filings for the impact of this new capacity on total revenue and EBITDA.
- Monitor regulatory developments in Washington state and the Pacific Northwest affecting natural gas generation.