<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>p08-1295exh_2.txt
<DESCRIPTION>EXHIBIT 2
<TEXT>
                                                                       Exhibit 2

29 July 2008

William D. Anderson
Chair of the Special Committee
c/o Maryse St. - Laurent
Corporate Secretary
TransAlta Corporation
110 - 12th Avenue SW
Calgary, AB Canada
T2P 2M1

Dear Special Committee

PROPOSAL BY LS POWER EQUITY PARTNERS/GLOBAL INFRASTRUCTURE PARTNERS

The  Children's  Investment  Master  Fund  ("TCI")  is a  major  shareholder  in
TransAlta  Corporation  ("TransAlta"),  owning  approximately 4.3% of the issued
shares.

TCI believes  that the public  proposal by LS Power  Equity  Partners and Global
Infrastructure  Partners  published  on 21 July 2008 to  acquire  TransAlta  for
Cdn$39 per share, significantly undervalues the company.

TCI urges the Special  Committee to immediately  undertake a review of strategic
alternatives,  complete  this  expeditiously  and  take all  necessary  steps to
maximise value for shareholders.

Further, TCI agrees with the  representations  made to you by Seneca Capital in
its  public letter dated 22 July 2008.

TCI  would  welcome  an open and  direct  dialogue  with the  Special  Committee
throughout the strategic review process.

Yours faithfully


/s/ Philip Green

Philip Green
Partner



--------------------------------------------------------------------------------
The  Children's  Investment  Fund  Management  (UK) LLP is a  limited  liability
partnership  registered in England and Wales with registered number 0C304797.  A
list of  members'  names is open to  inspection  at its  registered  office  and
principal place of business 7 Clifford Street,  London,  W1S 2WE,  England.  The
Children's  Investment  Fund  Management (UK) LLP is authorised and regulated by
the Financial Services Authority.

</TEXT>
</DOCUMENT>
