<SEC-DOCUMENT>0001137171-13-000346.txt : 20131031
<SEC-HEADER>0001137171-13-000346.hdr.sgml : 20131031
<ACCEPTANCE-DATETIME>20131031134755
ACCESSION NUMBER:		0001137171-13-000346
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		14
CONFORMED PERIOD OF REPORT:	20130930
FILED AS OF DATE:		20131031
DATE AS OF CHANGE:		20131031

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TRANSALTA CORP
		CENTRAL INDEX KEY:			0001144800
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC SERVICES [4911]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15214
		FILM NUMBER:		131181944

	BUSINESS ADDRESS:	
		STREET 1:		110 12TH AVE SW BOX 1900 STATION M
		STREET 2:		CALGARY ALBERTA T2P 2MI
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P2M1
		BUSINESS PHONE:		403-267-4724

	MAIL ADDRESS:	
		STREET 1:		110-12TH AVENUE SW
		CITY:			CALGARY ALBERTA CANADA
		STATE:			A0
		ZIP:			T2P2M1
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>transalta6k10312013.htm
<DESCRIPTION>TRANSALTA CORPORATION - 6-K
<TEXT>
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     <TITLE>CA Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
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<P STYLE="margin: 0"></P>

<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-align: center">FORM 6-K<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</P>

<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-align: center">Report of Foreign Private Issuer</P>

<P STYLE="font: small-caps bold 12pt Times New Roman, Times, Serif; margin: 0 0 0.5in; text-align: center">Pursuant to Rule 13a-16
or 15d-16<BR>
of the Securities Exchange Act of 1934</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 24pt">For the month of October, 2013</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TRANSALTA CORPORATION</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Translation of registrant&#8217;s name into
English)</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>110-12<SUP>th</SUP> Avenue S.W., Box 1900,
Station &#8220;M&#8221;, Calgary, Alberta, T2P 2M1</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt">Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt">Form 20-F____ &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 40-F <U>X </U></P>

<P STYLE="font: 12pt/14pt Times New Roman, Times, Serif; margin: 0 0 9.6pt">Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____</P>

<P STYLE="font: 12pt/14pt Times New Roman, Times, Serif; margin: 0 0 9.6pt">Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 40.5pt; text-align: center; text-indent: 0in"><B>I</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">The documents listed
below in this Section and filed as Exhibits 13.1 and 13.2 to this form 6-K are hereby filed with the Securities and Exchange Commission
for the purpose of being and hereby are incorporated by reference into the following registration statements filed by TransAlta
Corporation under the Securities Act of 1933, as amended:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 44%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-decoration: underline; text-indent: 0in"><FONT STYLE="font-size: 11pt"><U>Form</U></FONT></TD>
    <TD STYLE="width: 56%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-decoration: underline; text-indent: 0in"><FONT STYLE="font-size: 11pt"><U>Registration No.</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><FONT STYLE="font-size: 11pt">S-8</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><FONT STYLE="font-size: 11pt">333-72454</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><FONT STYLE="font-size: 11pt">S-8</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><FONT STYLE="font-size: 11pt">333-101470</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><FONT STYLE="font-size: 11pt">F-10</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><FONT STYLE="font-size: 11pt">333-185157</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 40.5pt; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in; font-size: 12pt">13.1</TD>
    <TD STYLE="width: 85%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in; font-size: 12pt">Consolidated comparative interim unaudited financial statements of the registrant for the three month period ended September 30, 2013.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in; font-size: 12pt">13.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in; font-size: 12pt">Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations of the registrant as at and for the period ended September 30, 2013.</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 40.5pt; text-align: center; text-indent: 0in"><B>II</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0in">The document listed below in this Section
as 99.1 is being furnished, not filed, and will not be incorporated by reference into any registration statement filed by TransAlta
Corporation under the Securities Act of 1933, as amended.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 40.5pt; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in; font-size: 12pt">99.1</TD>
    <TD STYLE="width: 85%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in; font-size: 12pt">Press release dated October 31, 2013</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 40.5pt; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>Signatures</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 24pt">Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 9.9pt 0 3in; text-indent: 0.5in"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 9pt 0 0">&#9;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 36%">&nbsp;</TD>
    <TD STYLE="width: 24%">&nbsp;</TD>
    <TD STYLE="width: 40%"><B>TransAlta Corporation</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">By<U>:</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><I>/s/ Brett Gellner</I>&#9;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Brett Gellner</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Chief Financial Officer</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 9pt 0 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 0">Date: October 31, 2013</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in"><B>EXHIBIT INDEX</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in">13.1</TD>
    <TD STYLE="width: 85%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><A HREF="q3finsex13-1.htm">Consolidated comparative interim unaudited financial statements of the registrant for the three month period ended September 30, 2013.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in">13.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><A HREF="mdaex13-2.htm">Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations of the registrant as at and for the period ended September 30, 2013.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in">31.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><A HREF="ceo.htm">Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in">31.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><A HREF="cfo.htm">Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</A>.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in">32.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><A HREF="ceoex32-1.htm">Certification of Chief Executive Officer regarding Periodic Report Containing Financial Statements.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in">32.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><A HREF="cfoex32-2.htm">Certification of Chief Financial Officer regarding Periodic Report Containing Financial Statements.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in">99.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-indent: 0in"><A HREF="newsreleaseex99-1.htm">Press release dated October 31, 2013.</A></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-13.1
<SEQUENCE>2
<FILENAME>q3finsex13-1.htm
<DESCRIPTION>CONSOLIDATED COMPARATIVE INTERIM UNAUDITED FINANCIAL STATEMENTS OF THE REGISTRANT FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2013.
<TEXT>
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     <TITLE>CA Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
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    <TD NOWRAP COLSPAN="5" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>TRANSALTA CORPORATION</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="9" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black"><B>CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="6" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black"><I>(in millions of Canadian dollars except per share amounts)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Unaudited</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><I>(Restated)*</I></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><I>(Restated)*</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Revenues </FONT><FONT STYLE="font-size: 7pt"><I>(Note 8)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>623</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">522</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1,705</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1,564</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Fuel and purchased power </FONT><FONT STYLE="font-size: 7pt"><I>(Note 9)</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>260</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">191</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>648</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">508</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Gross margin</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>363</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">331</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1,057</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1,056</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Operations, maintenance, and administration<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 9)</FONT></I></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>128</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">118</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>376</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">379</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Depreciation and amortization</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>124</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">122</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>382</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">390</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Asset impairment charges (reversals) </FONT><FONT STYLE="font-size: 7pt"><I>(Note 10)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(41)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">324</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Inventory writedown (reversal) </FONT><FONT STYLE="font-size: 7pt"><I>(Note 18)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(8)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>21</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">34</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Restructuring provision </FONT><FONT STYLE="font-size: 7pt"><I>(Note 21)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Taxes, other than income taxes</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">8</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>22</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">22</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Operating income (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>118</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">132</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>277</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(93)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Finance lease income</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>34</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Equity income (loss) </FONT><FONT STYLE="font-size: 7pt"><I>(Note 11)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(5)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(5)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Sundance Units 1 and 2 return to service </FONT><FONT STYLE="font-size: 7pt"><I>(Note 5)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(15)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(7)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(15)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(254)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Gain on sale of assets<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 6)</FONT></I></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>10</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Other income</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Foreign exchange gain (loss)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(6)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(7)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Loss on assumption of pension obligations </FONT><FONT STYLE="font-size: 7pt"><I>(Note 4)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(29)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Gain on sale of collateral </FONT><FONT STYLE="font-size: 7pt"><I>(Note 7)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">15</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">15</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net interest expense<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Notes 12 and 16)</FONT></I></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(65)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(58)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(190)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(182)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Earnings (loss) before income taxes</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>45</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">85</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>80</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(517)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Income tax expense </FONT><FONT STYLE="font-size: 7pt"><I>(Note 13)</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>48</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">14</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>41</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">91</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Net earnings (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">71</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>39</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(608)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Net earnings (loss) attributable to:</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">TransAlta shareholders</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">64</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>23</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(633)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">7</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>16</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">25</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">71</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>39</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(608)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="6" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 7.5pt">Net earnings (loss) attributable to TransAlta shareholders</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">64</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>23</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(633)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Preferred share dividends </FONT><FONT STYLE="font-size: 7pt"><I>(Note 25)</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">8</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>28</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">21</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="7" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Net earnings (loss) attributable to common shareholders</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">56</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(5)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(654)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="7" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Weighted average number of common shares </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>outstanding in the period </B><I>(millions)</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>266</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">234</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>262</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">229</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="7" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Net earnings (loss) per share attributable to common </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>shareholders, basic and diluted</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(0.03)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">0.24</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(0.02)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(2.86)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="5" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="5" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">See accompanying notes.</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 18%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 12%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"></P>


<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="color: red; font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="7" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>TRANSALTA CORPORATION</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="6" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 49%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(in millions of Canadian dollars)</I></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Unaudited</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><I>(Restated)*</I></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><I>(Restated)*</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Net earnings (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">71</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>39</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(608)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Net actuarial gains (losses) on defined benefit plans, net of tax<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>17</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(4)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>28</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(26)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Losses on derivatives designated as cash flow hedges, net of tax<SUP>(2)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(5)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(7)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Reclassification of losses on derivatives designated as cash flow </FONT><BR>
<FONT STYLE="font-size: 7.5pt">hedges to non-financial assets, net of tax<SUP>(3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Total items that will not be reclassified subsequently to </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>net earnings</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>17</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(7)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>29</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(30)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Gains (losses) on translating net assets of foreign operations</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(16)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(49)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>16</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(36)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Gains (losses) on financial instruments designated as hedges of </FONT><BR>
<FONT STYLE="font-size: 7.5pt">foreign operations, net of tax<SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>15</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">36</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(14)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">25</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Gains (losses) on derivatives designated as cash flow hedges, </FONT><BR>
<FONT STYLE="font-size: 7.5pt">net of tax<SUP>(5)</SUP></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(47)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(25)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(20)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(14)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Reclassification of (gains) losses on derivatives designated as </FONT><BR>
<FONT STYLE="font-size: 7.5pt">cash flow hedges to net earnings, net of tax<SUP>(6)</SUP></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>35</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">62</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(4)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">14</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 7.5pt">&nbsp;</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: right">Other comprehensive income (loss) of equity
        investees, net of tax<SUP>(7)</SUP></P></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(2)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(2)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Total items that will be reclassified subsequently to </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>net earnings</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(13)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">22</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(22)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(13)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Other comprehensive income (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">15</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(43)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Total comprehensive income (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">86</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>46</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(651)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Total comprehensive income (loss) attributable to:</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Common shareholders</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>5</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">78</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>23</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(670)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Non-controlling interests</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(4)</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">8</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>23</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">19</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">86</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>46</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(651)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="10" STYLE="font: italic 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(1) Net of income tax expense of 6 and 10 for the three and nine months ended Sept. 30, 2013 (2012 - 2 and 10 recovery), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="10" STYLE="font: italic 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(2) Net of income tax of nil for the three and nine months ended Sept. 30, 2013 (2012 - 3 and 3 recovery), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="10" STYLE="font: italic 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(3) Net of income tax recovery of nil and 1 for the three and nine months ended Sept. 30, 2013 (2012 - 1 and 1 recovery), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="10" STYLE="font: italic 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(4) Net of income tax expense of 2 and 2 recovery for the three and nine months ended Sept. 30, 2013 (2012 - 5 and 3 expense), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="10" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(5) Net of income tax recovery of 22 and 26 for the three and nine months ended Sept. 30, 2013 (2012 - 4 and 6 expense), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="10" STYLE="font: italic 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(6) Net of income tax recovery of 8 and 3 for the three and nine months ended Sept. 30, 2013 (2012 - 9 recovery and 13 expense), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="10" STYLE="font: italic 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(7) Net of income tax of nil for the three and nine months ended Sept. 30, 2013 (2012 - 1 and 1 recovery), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">See accompanying notes.</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 2 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: bottom; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>TRANSALTA CORPORATION</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: 8pt Arial, Helvetica, Sans-Serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="8" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(in millions of Canadian dollars)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 41%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Sept. 30, 2013</B></FONT></TD>
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Dec. 31, 2012</FONT></TD>
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Jan. 1, 2012</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Unaudited</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><I>(Restated)*</I></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><I>(Restated)*</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Cash and cash equivalents<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 17)</FONT></I></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>55</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">27</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">49</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Accounts receivable</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>457</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">597</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">541</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Current portion of finance lease receivable</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Collateral paid </FONT><FONT STYLE="font-size: 7pt"><I>(Note 16)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>19</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">19</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">45</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Prepaid expenses</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>24</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">7</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">8</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Risk management assets </FONT><FONT STYLE="font-size: 7pt"><I>(Notes 15 and 16)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>104</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">201</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">391</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Inventory </FONT><FONT STYLE="font-size: 7pt"><I>(Note 18)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>103</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">93</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">92</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Income taxes receivable</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>6</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>771</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">949</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1,131</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Investments </FONT><FONT STYLE="font-size: 7pt"><I>(Note 11)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>183</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">172</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">193</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Long-term receivable</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">18</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Long-term portion of finance lease receivable</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>365</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">357</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">42</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Property, plant, and equipment </FONT><FONT STYLE="font-size: 7pt"><I>(Note 19)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 4.5pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Cost</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>11,878</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">11,481</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">11,386</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 4.5pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Accumulated depreciation</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(4,740)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(4,437)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(4,115)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>7,138</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">7,044</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">7,271</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Goodwill</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>447</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">447</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">447</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Intangible assets</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>280</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">284</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">276</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Deferred income tax assets</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>55</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">50</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">169</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Risk management assets </FONT><FONT STYLE="font-size: 7pt"><I>(Notes 15 and 16)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>199</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">69</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">99</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Other assets </FONT><FONT STYLE="font-size: 7pt"><I>(Note 20)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>97</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">90</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">90</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Total assets</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9,535</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9,462</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9,736</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Accounts payable and accrued liabilities</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>453</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">495</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">463</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="6" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Current portion of decommissioning and other provisions<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 21)</FONT></I></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>20</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">33</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">99</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Collateral received </FONT><FONT STYLE="font-size: 7pt"><I>(Note 16)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">16</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Risk management liabilities<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Notes 15 and 16)</FONT></I></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>79</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">167</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">208</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Income taxes payable</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>12</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">6</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">22</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Dividends payable </FONT><FONT STYLE="font-size: 7pt"><I>(Notes 24 and 25)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>81</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">75</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">67</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Current portion of finance lease obligation </FONT><FONT STYLE="font-size: 7pt"><I>(Note 4)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>8</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Current portion of long-term debt </FONT><FONT STYLE="font-size: 7pt"><I>(Notes 15, 16, and 22)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>518</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">607</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">316</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1,171</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1,385</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1,191</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Long-term debt </FONT><FONT STYLE="font-size: 7pt"><I>(Notes 15, 16, and 22)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>3,599</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3,610</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3,721</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Finance lease obligation </FONT><FONT STYLE="font-size: 7pt"><I>(Note 4)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>18</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Decommissioning and other provisions<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 21)</FONT></I></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>295</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">279</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">283</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Deferred income tax liabilities</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>418</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">433</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">486</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Risk management liabilities<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Notes 15 and 16)</FONT></I></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>290</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">106</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">142</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Deferred credits and other long-term liabilities </FONT><FONT STYLE="font-size: 7pt"><I>(Note 23)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>280</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">301</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">281</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Equity</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 8.1pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Common shares<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 24)</FONT></I></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2,887</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2,726</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2,273</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 8.1pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Preferred shares </FONT><FONT STYLE="font-size: 7pt"><I>(Note 25)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>781</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">781</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">562</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 8.1pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Contributed surplus</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 8.1pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Retained earnings (deficit)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(591)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(362)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">524</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 8.1pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Accumulated other comprehensive loss<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 26)</FONT></I></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(136)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(136)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(94)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Equity attributable to shareholders</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2,950</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3,018</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3,274</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Non-controlling interests<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 14)</FONT></I></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>514</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">330</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">358</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Total equity</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>3,464</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3,348</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3,632</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>

<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Total liabilities and equity</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9,535</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9,462</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9,736</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 41%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Contingencies<I> (Note 27)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Commitments<I> (Note 28)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Subsequent events<I> (Note 31)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">See accompanying notes.</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt"><B>TRANSALTA CORPORATION</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt"><B>CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 7pt"><I>(in millions of Canadian dollars)</I></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt"><B>9 months ended Sept. 30, 2013</B></FONT></TD>
    <TD NOWRAP COLSPAN="8" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Unaudited</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>Common shares</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>Preferred shares</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>Contributed </B></FONT><BR>
<FONT STYLE="font-size: 7pt"><B>surplus</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>Retained deficit</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>Accumulated other </B></FONT><BR>
<FONT STYLE="font-size: 7pt"><B>comprehensive </B></FONT><BR>
<FONT STYLE="font-size: 7pt"><B>income (loss)<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>Attributable to </B></FONT><BR>
<FONT STYLE="font-size: 7pt"><B>shareholders</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>Attributable to </B></FONT><BR>
<FONT STYLE="font-size: 7pt"><B>non-controlling </B></FONT><BR>
<FONT STYLE="font-size: 7pt"><B>interests</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Balance, Dec. 31, 2012</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">2,726</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">781</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">9</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(362)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(136)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">3,018</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">330</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">3,348</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Net earnings (loss)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">23</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">23</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">16</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">39</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Other comprehensive income (loss):</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: -4.7pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Net gains on translating net assets of </FONT><BR>
<FONT STYLE="font-size: 7pt">foreign operations, net of hedges and of tax</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">2</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">2</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Net gains (losses) on derivatives designated </FONT><BR>
<FONT STYLE="font-size: 7pt">as cash flow hedges, net of tax</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(30)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(30)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">7</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(23)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 4.5pt; text-align: left; text-indent: -4.5pt"><FONT STYLE="font-size: 7pt">Net actuarial gains on defined benefits plans, net of tax</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">28</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">28</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">28</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Total comprehensive income</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">23</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">23</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">23</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">46</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Common share dividends</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(228)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(228)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(228)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Preferred share dividends</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(28)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(28)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(28)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Formation of TransAlta</P>
        <P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Renewables Inc. <I>(Note 3)</I></P></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">4</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">4</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">206</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">210</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Distributions to non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(45)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(45)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Common shares issued</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">161</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">161</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">161</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt"><B>Balance, Sept. 30, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>2,887</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>781</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>9</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>(591)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>(136)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>2,950</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>514</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>3,464</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 32%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">9 months ended Sept. 30, 2012</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt"><I>(Restated)*</I></FONT></TD>
    <TD NOWRAP COLSPAN="8" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Unaudited</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">Common shares</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">Preferred shares</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">Contributed </FONT><BR>
<FONT STYLE="font-size: 7pt">surplus</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">Retained </FONT><BR>
<FONT STYLE="font-size: 7pt">earnings</FONT><BR>
<FONT STYLE="font-size: 7pt">(deficit)</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">Accumulated other </FONT><BR>
<FONT STYLE="font-size: 7pt">comprehensive </FONT><BR>
<FONT STYLE="font-size: 7pt">income (loss)<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">Attributable to </FONT><BR>
<FONT STYLE="font-size: 7pt">shareholders</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">Attributable to </FONT><BR>
<FONT STYLE="font-size: 7pt">non-controlling </FONT><BR>
<FONT STYLE="font-size: 7pt">interests</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Balance, Dec. 31, 2011</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">2,273</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">562</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">9</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">524</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(94)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">3,274</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">358</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">3,632</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Net loss</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(633)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(633)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">25</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(608)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Other comprehensive income (loss):</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Net losses on translating net assets of </FONT><BR>
<FONT STYLE="font-size: 7pt">foreign operations, net of hedges and of tax</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(11)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(11)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(11)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Net gains (losses) on derivatives designated as </FONT><BR>
<FONT STYLE="font-size: 7pt">cash flow hedges, net of tax</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">2</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">2</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(6)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(4)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Net actuarial losses on defined benefits plans, </FONT><BR>
<FONT STYLE="font-size: 7pt">net of tax</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(26)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(26)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(26)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Other comprehensive loss of equity investees</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(2)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(2)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(2)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Total comprehensive income</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(633)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(37)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(670)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">19</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(651)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Common share dividends</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(198)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(198)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(198)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Preferred share dividends</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(21)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(21)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(21)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Distributions to non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(42)</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(42)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Common shares issued</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">404</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">404</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">404</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Preferred shares issued</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">219</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">219</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">219</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Balance, Sept. 30, 2012</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">2,677</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">781</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">9</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(328)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">(131)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">3,008</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">335</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">3,343</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="9" STYLE="font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt"><I>(1) Refer to Note 26 for details on components of, and changes in, Accumulated other comprehensive income (loss).</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">See accompanying notes.</FONT></TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 52%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>TRANSALTA CORPORATION</B></FONT></TD>
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    <TD NOWRAP STYLE="width: 7%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="width: 11%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B></FONT></TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(in millions of Canadian dollars)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>3 months ended Sept. 30</B></FONT></TD>
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    <TD NOWRAP COLSPAN="3" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9 months ended Sept. 30</B></FONT></TD></TR>
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    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD>
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    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD></TR>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Unaudited</FONT></TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><I>(Restated)*</I></FONT></TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><I>(Restated)*</I></FONT></TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Operating activities</B></FONT></TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net earnings (loss)</FONT></TD>
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    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(3)</B></FONT></TD>
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    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">71</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>39</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(608)</FONT></TD></TR>
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    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Depreciation and amortization </FONT><FONT STYLE="font-size: 7pt"><I>(Note 29)</I></FONT></TD>
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    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>141</B></FONT></TD>
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    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">129</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>425</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">419</FONT></TD></TR>
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    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Gain on sale of assets </FONT><FONT STYLE="font-size: 7pt"><I>(Note 6)</I></FONT></TD>
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    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
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    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(3)</FONT></TD></TR>
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    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Accretion of provisions </FONT><FONT STYLE="font-size: 7pt"><I>(Note 21)</I></FONT></TD>
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    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>4</B></FONT></TD>
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    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">5</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>13</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">14</FONT></TD></TR>
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    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Decommissioning and restoration costs settled </FONT><FONT STYLE="font-size: 7pt"><I>(Note 21)</I></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(6)</B></FONT></TD>
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    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(12)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(19)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(25)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Deferred income tax expense </FONT><FONT STYLE="font-size: 7pt"><I>(Note 13)</I></FONT></TD>
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    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>38</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">82</FONT></TD></TR>
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    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(15)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">77</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>44</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">102</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Unrealized foreign exchange (gain) loss</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(4)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">7</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Provisions</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>10</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">19</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>10</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">17</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Asset impairment charges (reversals) </FONT><FONT STYLE="font-size: 7pt"><I>(Note 10)</I></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(41)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">324</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Sundance Units 1 and 2 return to service </FONT><FONT STYLE="font-size: 7pt"><I>(Notes 5 and 10)</I></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>15</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>15</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">43</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Equity (income) loss, net of distributions received </FONT><FONT STYLE="font-size: 7pt"><I>(Note 11)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Other non-cash items</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>8</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(12)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>16</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(9)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Cash flow from operations before changes in working capital</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>176</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">233</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>540</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">368</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Change in non-cash operating working capital balances </FONT><FONT STYLE="font-size: 7pt"><I>(Note 30)</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>77</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(219)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>61</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(93)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Cash flow from operating activities</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>253</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">14</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>601</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">275</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Investing activities</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Additions to property, plant, and equipment </FONT><FONT STYLE="font-size: 7pt"><I>(Note 19)</I></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(160)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(173)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(442)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(485)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Additions to intangibles</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(8)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(9)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(21)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(27)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Acquisition of finance lease</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(312)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(312)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Addition to equity investments</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(10)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Proceeds on sale of property, plant, and equipment<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 19)</FONT></I></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>10</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Proceeds on sale of assets </FONT><FONT STYLE="font-size: 7pt"><I>(Note 6)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Resolution of certain outstanding tax matters</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Realized gains (losses) on financial instruments</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>16</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net increase (decrease) in collateral received from counterparties</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(9)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(12)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net decrease in collateral paid to counterparties</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">18</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">27</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Decrease in finance lease receivable</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Other</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(8)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Change in non-cash investing working capital balances</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(16)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(17)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(18)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Cash flow used in investing activities</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(150)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(483)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(460)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(822)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Financing activities</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net increase (decrease) in borrowings under credit facilities<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 22)</FONT></I></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(299)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">301</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(170)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">514</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Repayment of long-term debt </FONT><FONT STYLE="font-size: 7pt"><I>(Note 22)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(307)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(8)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(312)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Dividends paid on common shares<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 24)</FONT></I></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(18)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(64)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(86)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Dividends paid on preferred shares </FONT><FONT STYLE="font-size: 7pt"><I>(Note 25)</I></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(7)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(28)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(21)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Net proceeds on issuance of common shares</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">292</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">293</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Net proceeds on issuance of preferred shares</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">217</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">217</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt; color: black">Net proceeds on sale of non-controlling interest in subsidiary </FONT><FONT STYLE="font-size: 7pt"><I>(Note 3)</I></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>207</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>207</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Realized gains on financial instruments</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">10</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">10</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Distributions paid to subsidiaries' non-controlling interests </FONT><FONT STYLE="font-size: 7pt"><I>(Note 14)</I></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(8)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(9)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(43)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(42)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Decrease in finance lease obligation</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(7)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Other</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(5)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Cash flow from (used in) financing activities</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(115)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">478</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(113)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">568</FONT></TD></TR>
</TABLE>

<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Cash flow from (used) in operating, investing, and financing activities</B></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid"><FONT STYLE="font-size: 7.5pt"><B>(12)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; border-top: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">9</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; border-top: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid"><FONT STYLE="font-size: 7.5pt"><B>28</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; border-top: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">21</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Effect of translation on foreign currency cash</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Increase (decrease) in cash and cash equivalents</B></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(12)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">10</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>28</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">22</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Cash and cash equivalents, beginning of period</B></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>67</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">61</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>27</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">49</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Cash and cash equivalents, end of period</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>55</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">71</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>55</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">71</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 52%; padding-right: 5.4pt; padding-left: 5.4pt; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 7.5pt">Cash income taxes paid (recovered)</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>8</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 7.5pt">(3)</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>33</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 7.5pt">24</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Cash interest paid</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>39</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">48</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>158</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">162</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">See accompanying notes.</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">NOTES
TO condensed CONSOLIDATED FINANCIAL STATEMENTS</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">(Unaudited)</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>(Tabular amounts in millions of Canadian
dollars, except as otherwise noted)</I></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: none">1.
ACCOUNTING POLICIES</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>A. Basis of Preparation</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 150%">These unaudited
interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard </FONT>(&#8220;IAS&#8221;)
<FONT STYLE="line-height: 150%">34 <I>Interim Financial Reporting</I> using the same accounting policies as those used in TransAlta
Corporation&#8217;s (&#8220;TransAlta&#8221; or &#8220;the Corporation&#8221;) most recent annual consolidated financial statements,
except as outlined in </FONT><BR>
<FONT STYLE="line-height: 150%">Note 2(A). These unaudited interim condensed consolidated financial statements do not include all
of the disclosures included in the Corporation&#8217;s annual consolidated financial statements. Accordingly, these should be read
in conjunction with the Corporation&#8217;s most recent annual consolidated financial statements which is available on SEDAR at
www.sedar.com. </FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 150%">The unaudited
interim condensed consolidated financial statements include the accounts of the Corporation and the subsidiaries that it controls.
Refer to the discussion on the adoption of International Financial Reporting Standards (&#8220;IFRS&#8221;) </FONT>10 <I>Consolidated
Financial Statements</I>, found in Note 2(A) for information on the impacts of applying the new IFRS definition of control.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The unaudited interim condensed consolidated
financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities, which
are stated at fair value.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">These unaudited interim condensed consolidated
financial statements reflect all adjustments which consist of normal recurring adjustments and accruals that are, in the opinion
of management, necessary for a fair presentation of results. TransAlta&#8217;s results are partly seasonal due to the nature of
the electricity market and related fuel costs. Higher maintenance costs are ordinarily incurred in the second and third quarters
when electricity prices are expected to be lower, as electricity prices generally increase in the winter months in the Canadian
market.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">These unaudited interim condensed consolidated
financial statements were authorized for issue by the Board of Directors on<BR>
Oct. 31, 2013.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>B. Use of Estimates</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The preparation of these condensed consolidated
financial statements in accordance with IFRS requires management to use judgment and make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed
consolidated financial statements and the reported amounts of revenues and expenses during the period. These estimates are subject
to uncertainty. Actual results could differ from these estimates due to factors such as fluctuations in interest rates, foreign
exchange rates, inflation and commodity prices, and changes in economic conditions, legislation, and regulations. Refer to Note
2(W) of the 2012 annual consolidated financial statements for a more detailed discussion of the critical
accounting judgments and key sources of estimation uncertainty.</P>


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>




<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">2.
ACCOUNTING CHANGES</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>A. Adoption of New or Amended IFRS</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Jan. 1, 2013, the Corporation adopted
the following new accounting standards that were previously issued by the International Accounting Standards Board (&#8220;IASB&#8221;):</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>I. IFRS 10 <I>Consolidated Financial
Statements </I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRS 10 replaces the parts of IAS 27 <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-weight: normal"><I>Consolidated</I></FONT><I><B>
</B><FONT STYLE="font-weight: normal">and Separate</FONT></I> <I>Financial Statements </I>that</FONT><B> </B><FONT STYLE="font-weight: normal">deal
with consolidated financial statements</FONT><B> </B>and Standing Interpretations Committee <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-weight: normal">(&#8220;SIC&#8221;)</FONT><B>
</B>Interpretation 12 <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-weight: normal"><I>Consolidation - Special Purpose
Entities</I>.</FONT><B> </B><FONT STYLE="font-weight: normal">IFRS 10</FONT><B><I> </I></B>defines the principle of control, establishes
control as the basis for determining when entities are to be consolidated, and provides guidance on how to apply the principle
of control to identify whether an investor controls an investee. Under IFRS 10, an investor controls an investee when it has all
of the following: (i) power over the investee; (ii) exposure, or rights, to variable returns from the investee; and (iii) the ability
to affect those returns.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRS 10 was applied retrospectively by the
Corporation by reassessing whether, on Jan. 1, 2013, the Corporation had control of all of its previously consolidated entities.
As a result of adopting IFRS 10, no changes arose in the entities controlled and consolidated by the Corporation.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>II. IFRS 11 <I>Joint Arrangements</I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRS 11 replaces IAS 31 <I>Interests in
Joint Ventures</I> and SIC-13 <I>Jointly Controlled Entities - Non-Monetary Contributions by Venturers</I>. IFRS 11 provides for
a<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B> </B><FONT STYLE="font-weight: normal">principles-based approach to
the accounting for joint arrangements that requires an entity to recognize its contractual rights and obligations arising from
its involvement in joint arrangements. A joint arrangement is an arrangement in which two or more parties have joint control. Under
IFRS 11, joint arrangements are classified as either a joint operation or a joint venture, whereas under IAS 31, they were classified
as a jointly controlled asset, jointly controlled operation or a jointly controlled entity. IFRS 11 requires the use of the equity
method of accounting for interests in joint ventures, whereas IAS 31 permitted a choice of the equity method or proportionate consolidation
for jointly controlled entities. Under IFRS 11, for joint operations, each party recognizes its respective share of the assets,
liabilities, revenues, and expenses of the arrangement, generally resulting in proportionate consolidation accounting.&nbsp; </FONT></FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">IFRS 11
was applied retrospectively by the Corporation by reassessing the type of, and accounting for, each joint arrangement in existence
at Jan. 1, 2013. No significant impacts resulted.</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>III. IFRS 12 <I>Disclosure of Interests
in Other Entities</I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRS 12 contains enhanced disclosure requirements
about an entity&#8217;s interests in subsidiaries, joint arrangements, associates, and consolidated and unconsolidated structured
entities (special purpose entities). The objective of IFRS 12 is that an entity should disclose information that helps financial
statement users evaluate the nature of, and risks associated with, its interests in other entities and the effects of those interests
on its financial statements. Disclosures arising from the adoption of IFRS 12 can be found in Notes 11, 14, and 22.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>


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    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>IV. IFRS 13 <I>Fair Value Measurement</I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRS 13 establishes a single source of guidance
for all fair value measurements required by other IFRS, clarifies the definition of fair value, and enhances disclosures about
fair value measurements. IFRS 13 applies when other IFRS require or permit fair value measurements or disclosures. IFRS 13 specifies
how an entity should measure fair value and disclose fair value information. It does not specify when an entity should measure
an asset, a liability, or its own equity instrument at fair value. The Corporation&#8217;s adoption of IFRS 13, prospectively on
Jan. 1, 2013, did not have a material financial impact upon the consolidated financial position or results of operations, however,
certain new or enhanced disclosures are required and can be found in Note 15.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>V. IAS 1 <I>Presentation of Financial
Statements</I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amendments to IAS 1 <I>Presentation of Financial
Statements</I> issued in June 2011 were intended to improve the consistency and clarity of the presentation of items of comprehensive
income by <FONT STYLE="color: black">requiring that items presented in Other Comprehensive Income (Loss) (&#8220;OCI&#8221;) be
grouped on the basis of whether they are subsequently reclassified from OCI to net earnings or not. </FONT>The <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-weight: normal">Consolidated
Statements of Comprehensive Income (Loss) have been reorganized to comply with the required groupings. </FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>VI. IAS 19 <I>Employee Benefits</I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amendments to IAS 19 <I>Employee Benefits</I>
are intended to improve the recognition, presentation, and disclosure of defined benefit plans<FONT STYLE="color: black">. The
amendments require the recognition of changes in defined benefit obligations and in fair value of plan assets when they occur,
thus eliminating the &#8220;corridor approach&#8221; previously permitted</FONT>. All actuarial gains and losses must be recognized
immediately through other comprehensive income and the net pension liability or asset recognized at the full amount of the plan
deficit or surplus. Additional changes relate to the presentation, into three components, of changes in defined benefit obligations
and plan assets: service cost and net interest cost is recognized in net earnings and remeasurements are recognized in other comprehensive
income. The net interest cost introduced in these amendments removes the concept of expected return on plan assets that was previously
recognized in net earnings.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-weight: normal">The
Corporation calculates the net interest cost for its defined benefit plans by applying the discount rate at the beginning of the
reporting period to the net defined benefit liability at the beginning of the reporting period. An expected return on plan assets
is no longer calculated and recognized as part of pension expense.</FONT> The elimination of the corridor method had no impact
as the Corporation has, since the adoption of IFRS, recognized actuarial gains and losses in OCI in the period in which they occurred.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">On adoption,
the Corporation applied the amendments retrospectively. The impacts as at Dec. 31, 2012 and Jan 1, 2012, respectively, were an
increase in the cumulative prior periods&#8217; pre-tax pension expense of $17 million and $11 million ($12 million and $8 million
after-tax, respectively), as a result of the application of the net interest cost requirements. </FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three and nine months ended Sept.
30, 2012, Operations, maintenance, and administration expense increased by $1 million and $4 million, respectively, as a result
of increased pension expense. Net after-tax actuarial losses on defined benefit plans as reported in OCI decreased by $1 million
and $3 million, respectively, and basic and diluted net earnings per share attributable to common shareholders decreased by nil
and $0.01, respectively.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>VII. Interpretation 20 <I>Stripping Costs
in the Production Phase of a Surface Mine (&#8220;IFRIC 20&#8221;)</I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRIC 20 clarifies the requirements for
accounting for stripping costs in the production phase of a surface mine. Stripping costs are costs associated with the process
of removing waste from a surface mine in order to gain access to mineral ore deposits. The Interpretation clarifies when production
stripping should lead to the recognition of an asset and how that asset should be measured, both initially and in subsequent periods.</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation recognizes a stripping activity
asset for its Highvale mine when all of the following are met: (i) it is probable that the future benefit associated with improved
access to the coal reserves associated with the stripping activity will be realized; (ii) the component of the coal reserve to
which access has been improved can be identified; and (iii) the costs related to the stripping activity associated with that component
can be measured reliably. Costs include those directly incurred to perform the stripping activity as well as an allocation of directly
attributable overheads. The resulting stripping activity asset is amortized on a<BR>
unit-of-production basis over the expected useful life of the identified component that it relates to. The amortization is recognized
as a component of the standard cost of coal inventory.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As required by the transitional provision
of IFRIC 20, the Interpretation was applied by the Corporation to production stripping costs incurred on or after Jan. 1, 2011,
which will be the earliest comparative period presented within the Corporation&#8217;s annual financial statements for the year
ended Dec. 31, 2013 which will result in adjustments to the 2012 earnings. The impacts on the Condensed Consolidated Statements
of Financial Position as at Dec. 31, 2012 were to recognize $9 million in costs as a stripping activity asset, increase coal inventory
by $2 million, both classified within Inventory, increase Deferred income tax liabilities by $3 million, and decrease Retained
deficit by $8 million. The impacts on the Condensed Consolidated Statements of Financial Position as at<BR>
Jan. 1, 2012 were to recognize $9 million in costs as a stripping activity asset, decrease coal inventory by $2 million, both classified
within Inventory, increase Deferred income tax liabilities by $2 million, and increase Retained earnings by $5 million.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The impact of this change in accounting
policy on the Condensed Consolidated Statement of Earnings (Loss) for the three and nine months ended Sept. 30, 2012 was a reduction
of $1 million in Fuel and purchased power.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>VIII. IFRS 7 <I>Financial Instruments:
Disclosures</I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&#9;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amendments to IFRS 7 include disclosures
about all recognized financial instruments that are set off in accordance with IAS 32. The amendments also require disclosure of
information about recognized financial instruments subject to enforceable master netting arrangements and similar agreements even
if they are not set off under IAS 32. The resulting disclosures can be found in Note 16.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>IX. Annual Improvements 2009-2011</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In May 2012, the IASB issued a collection
of necessary, non-urgent amendments to several IFRS resulting from its annual improvements process. The amendments, as applicable,
have been applied by the Corporation on Jan. 1, 2013. None of the amendments, which are generally technical and narrow in scope,
had a material financial impact upon the consolidated financial position or results of operations.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>B. Current Accounting Changes </B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>I. Change in Estimates - Useful Lives</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the first quarter, management completed
a comprehensive review of the estimated useful lives of the hydro assets, having regard for, among other things, the economic life
cycle maintenance program, and existing condition of the assets. As a result, depreciation was reduced by $2 million and $4 million
for the three and nine months ended Sept. 30, 2013. Pre-tax depreciation expense is expected to be reduced by $5 million for the
year ended Dec. 31, 2013 and by $5 million annually thereafter.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>II. Leases</B></P>

<P STYLE="font: 7pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Leases are classified as finance leases
whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Property, plant and
equipment (&#8220;PP&amp;E&#8221;) under finance leases are initially recognized at their fair value at the inception of the lease,
or if lower, at the present value of the minimum lease payments. The corresponding liability is included in the Condensed Consolidated
Statements of Financial Position as a finance lease obligation. Lease payments are apportioned between interest expense and reduction
of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability.</P>


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<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">C. Future Accounting Changes</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Additional new or amended accounting standards
that have been previously issued by the IASB but are not yet effective, and have not been applied by the Corporation, are as follows:
IFRS 9 <I>Financial Instruments</I>, IAS 32 <I>Financial Instruments: Presentation</I>, and <I>Investment Entities</I> (Amendments
to IFRS 10 and 11 and IAS 27). Please refer to Note 3(D) of the Corporation&#8217;s 2012 annual consolidated financial statements
for more information.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">3.
TRANSALTA RENEWABLES INC.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On May 28, 2013 the Corporation formed a
new subsidiary, TransAlta Renewables Inc. (&#8220;TransAlta Renewables&#8221;), to provide investors with the opportunity to invest
directly in a highly contracted portfolio of renewable power generation facilities. &nbsp;The Corporation retains control over
TransAlta Renewables, and therefore consolidates TransAlta Renewables.&nbsp; As a result, any loans outstanding or transactions
between the Corporation and TransAlta Renewables are eliminated on consolidation in the financial statements.&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>A. Transfer of Generating Assets</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Aug. 9, 2013, the Corporation transferred
28 indirectly owned wind and hydroelectric generating assets to TransAlta Renewables through the sale of all the issued and outstanding
shares of two subsidiaries: Canadian Hydro Developers, Inc. (&#8220;CHD&#8221;) and Western Sustainable Power Inc. As consideration
for the transfer, the Corporation received: i) 66.7 million common shares of TransAlta Renewables valued at $10 per share for total
share consideration of $667 million; ii) a Closing Note receivable in the amount of $187 million; iii) a Short Term Note receivable
in the amount of $250 million; iv) an Acquisition Note receivable in the amount of $30 million; and v) an Amortizing Loan receivable
in the amount of $200 million.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>B. Initial Public Offering of Common
Shares</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On July 31, 2013, TransAlta Renewables filed
a final prospectus to qualify the distribution of 20.0 million of its common shares, to be issued pursuant to the terms of an Underwriting
Agreement at a price of $10.00 per common share (the &quot;Offering&quot;). TransAlta Renewables granted to the underwriters an
option (the &quot;Over-Allotment Option&quot;), exercisable in whole or in part for a period of<BR>
30 days following Closing, to purchase, at the Offering price, up to an additional 3.0 million common shares (representing<BR>
15 per cent of the common shares offered under the prospectus).</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 150%">On</FONT>
Aug. 29, 2013, TransAlta Renewables completed the Offering and issued 20.0 million common shares for gross proceeds of<BR>
$200 million. <FONT STYLE="line-height: 150%">The net proceeds of the Offering were used by TransAlta Renewables to repay the $187
million Closing Note issued to the Corporation. On</FONT> Aug. 29, 2013, the underwriters <FONT STYLE="line-height: 150%">exercised
their Over-Allotment Option in part&nbsp;to purchase an additional </FONT><BR>
<FONT STYLE="line-height: 150%">2.1 million common shares at the offering price of $10.00 per common share for gross proceeds of
$21.0 million. TransAlta Renewables used the net proceeds received from the partial exercise of the Over-Allotment Option to repay
a portion of the&nbsp;amount outstanding under&nbsp;the Acquisition&nbsp;Note issued to TransAlta. The remaining principal amount
of $9.0&nbsp;million&nbsp;outstanding under the&nbsp;Acquisition Note after such payment has been converted into 0.9 million&nbsp;common
shares of TransAlta Renewables on the basis of one common share for each $10.00 owing to the Corporation&nbsp;under the&nbsp;Acquisition
Note. After completion of the transactions, the Corporation owns 92.6 million common shares of TransAlta Renewables, representing
an 80.7 per cent ownership interest. In total, the Corporation received $207 million in cash consideration net of commissions and
expenses.</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Effective Aug. 9, 2013, the net earnings
and total comprehensive income (loss) attributable to the 19.3 per cent divested interest are reflected in net earnings (loss)
attributable to non-controlling Interests and total comprehensive income (loss) attributable to non-controlling Interests, respectively,
on the Condensed Consolidated Statement of Earnings (Loss) and on the Condensed Consolidated Statement of Comprehensive Income
(Loss), respectively.</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The excess of consideration received over
the net book value of the Corporation&#8217;s divested interest was $4 million and was recorded in Retained earnings (deficit).
As at Sept. 30, 2013, the net assets attributable to the 19.3 per cent divested interest are reflected in Equity Attributable to
Non-controlling Interests in the Condensed Consolidated Statement of Financial Position.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">4.
SUNHILLS MINING LIMITED PARTNERSHIP</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Effective Jan. 17, 2013, the Corporation
assumed, through its wholly owned SunHills Mining Limited Partnership (&#8220;SunHills&#8221;), operations and management control
of the Highvale Mine from Prairie Mines and Royalty Ltd. (&#8220;PMRL&#8221;). PMRL employees working at the Highvale Mine were
offered employment by SunHills which agreed to assume responsibility for certain pension plan and pension funding obligations,
which the Corporation previously funded through the payments made under the PMRL mining contracts. As a result, a pre-tax loss
of $29 million was recognized during the first quarter, along with the corresponding liabilities.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation also entered into finance
leases for mining equipment that was in use, or committed to, by PMRL for mining operations. As a result, $4 million and $33 million
in mining equipment have been capitalized to PP&amp;E and the related finance lease obligations recognized during three and nine
months ended Sept. 30, 2013. At the end of the lease terms, the Corporation is eligible to purchase the assets, for a nominal amount.
The amounts payable under the finance leases are as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>As at</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Sept. 30, 2013</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 44%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 18%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Minimum</B><BR>
<B>lease </B><BR>
<B>payments</B></TD>
    <TD STYLE="width: 26%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Present value of </B><BR>
<B>minimum lease </B><BR>
<B>payments</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Within one year</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>9</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>8</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Second to fifth years inclusive</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>19</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>18</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>28</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>26</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Less: interest cost</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total finance lease obligation</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>26</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>26</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Included in the Condensed Consolidated Statements of Financial Position as:</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 8pt">Current portion of finance lease obligation</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>8</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 8pt">Non-current finance lease obligation</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>18</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>26</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">5.
SUNDANCE UNITS 1 AND 2 RETURN TO SERVICE</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In December 2010, Units 1 and 2 of the Corporation&#8217;s
Sundance facility were shut down due to conditions observed in the boilers at both units. On July 20, 2012, an arbitration panel
concluded that Unit 1 and Unit 2 were not economically destroyed under the terms of the PPA and the Corporation was required to
restore the facility to service. For the three and nine months ended Sept. 30, 2012, the pre-tax income statement impact of the
ruling that has been recorded under the caption &#8220;Sundance Units 1 and 2 return to service&#8221; in the Condensed Consolidated
Statement of Earnings (loss) was $7 million and $254 million, respectively.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the third quarter of 2013, $15 million
of components were retired as a result of the work completed on the Sundance Unit 1 return it to service. Unit 1 returned to service
on Sept. 2, 2013. Sundance Unit 2 was returned to service on Oct. 4, 2013. The Corporation has issued notices to buyers regarding
the cessation of the force majeure for the two units.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">6.
ACQUISITIONS AND DISPOSALS</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>A. Acquisitions </B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Sept. 28, 2012, the Corporation acquired
the 125 MW Solomon power station located in Western Australia from Fortescue Metals Group Ltd. (&#8220;Fortescue&#8221;) for U.S.
$318 million. The power station is currently under construction and is expected to be commissioned in the fourth quarter of 2013.
The facility is fully contracted with Fortescue under a long-term Power Purchase Agreement (&#8220;Agreement&#8221;) with an initial
term of 16 years commencing in October 2012, after which Fortescue will have the option to either extend the Agreement for an additional
five years under the same terms, or to acquire the facility. The Corporation has accounted for the facility and associated Agreement
as a finance lease with TransAlta being the lessor.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>B. Disposals </B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three and nine months ended Sept.
30, 2013, the Corporation realized a pre-tax gain of nil and $10 million, respectively, relating to the sale of land.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three and nine months ended Sept.
30, 2012, the Corporation realized a pre-tax gain of nil and $3 million, respectively, related to the sale of its biomass facility
in 2011. The gain resulted from the release of the remaining consideration related to the achievement of the Environmental Attribute
Conditions by the purchaser.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">7.
GAIN ON SALE OF COLLATERAL</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During September 2012, the Corporation sold
its claim against MF Global Inc. pertaining to the return of U.S. $36 million of collateral that had been posted by the Corporation,
for net proceeds of U.S. $33 million. <FONT STYLE="line-height: 150%">During 2011, a reserve of U.S. $18 million was taken on the
collateral when the parent company of MF Global Inc. filed for bankruptcy protection. As a result, a pre-tax gain of </FONT><BR>
<FONT STYLE="line-height: 150%">$15 million ($11 million after tax) was realized. The claim, filed during the first quarter of
2012, related primarily to the Corporation&#8217;s collateral on foreign futures transactions. </FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">8.
OPERATING LEASES</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Several of the Corporation&#8217;s Power
Purchase Arrangements (&#8220;PPAs&#8221;) and other long-term contracts meet the criteria of operating leases. Total rental income,
including contingent rent, related to these contracts reported in Revenues in the Condensed Consolidated Statements of Earnings
(Loss) for the three and nine months ended Sept. 30, 2013, was $51 million (Sept. 30, 2012 - $52 million), and $154 million (Sept.
30, 2012 - $134 million), respectively.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">9.
EXPENSES BY NATURE</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Expenses classified by nature are as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>3 months ended Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3 months ended Sept. 30, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: italic 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><I>(Restated)*</I></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 16%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Fuel and purchased power</B></TD>
    <TD STYLE="width: 24%; border-bottom: Black 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid"><B>Operations, maintenance, and administration</B></TD>
    <TD STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid">Fuel and purchased power</TD>
    <TD STYLE="width: 19%; border-bottom: Black 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid">Operations, maintenance, and administration</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Fuel</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>220</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">169</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Purchased power</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>23</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Salaries and benefits</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>61</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">66</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Depreciation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>16</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Other operating expenses</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>67</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">52</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>260</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>128</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">191</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">118</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>9 months ended Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9 months ended Sept. 30, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: italic 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><I>(Restated)*</I></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 34%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 11%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Fuel and purchased power</B></TD>
    <TD STYLE="width: 18%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Operations, maintenance, and administration</B></TD>
    <TD STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: Black 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid">Fuel and purchased power</TD>
    <TD STYLE="width: 18%; border-bottom: Black 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid">Operations, maintenance, and administration</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Fuel</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>540</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">433</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Purchased power</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>62</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">45</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Salaries and benefits</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>4</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>188</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">201</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Depreciation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>42</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">27</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Other operating expenses</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>188</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">178</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>648</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>376</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">508</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">379</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">10.
ASSET IMPAIRMENT CHARGES AND REVERSALS</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><B>A.</B></TD><TD STYLE="text-align: left"><B>Renewables</B></TD></TR></TABLE>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three and nine months ended Sept.
30, 2013, the Corporation recognized a total pre-tax impairment charge of $4 million related to three contracted hydro assets within
the renewables fleet. The assets were impaired primarily due to an increase in future capital and operating expenses that resulted
from the completion of condition assessments. The annual impairment assessments are based on estimates of fair value less costs
to sell derived from long range forecasts. The impairment losses are included in the Generation Segment.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three and nine months ended Sept.
30, 2012, the Corporation recognized a pre-tax impairment charge of nil and<BR>
$18 million, respectively, related to five assets within the renewables fleet.&nbsp; The impairments resulted from the completion
of the annual impairment assessment based on estimates of fair value less costs to sell, derived from the long range forecasts
and prices evidenced in the market place.&nbsp; The assets were impaired primarily due to expectations regarding lower market prices.&nbsp;
The impairment losses were included in the Generation Segment.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><B>B.</B></TD><TD STYLE="text-align: left"><B>Alberta Merchant</B></TD></TR></TABLE>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As part of the annual impairment review
and assessment process in 2013, it was determined that the Corporation&#8217;s Alberta plants that have significant merchant capacity
should be considered one cash-generating unit (the &#8220;Alberta merchant CGU&#8221;).&nbsp; Previously, each plant was assessed
for impairment individually. The reasons for this change include consideration of the Final Regulations published by the Canadian
federal government in September 2012 governing Greenhouse Gas emissions and the 50-year total life for Canadian coal-fired power
plants; and the Corporation&#8217;s refinement of its risk management approach and practices regarding its Alberta wholesale market
price exposure. The Final Regulations confirmed additional operating time and increased flexibility for the Corporation&#8217;s
Alberta coal plants and led, in part, to the Corporation broadening its view on the management of its Alberta wholesale market
price exposure. While no impairment losses were recognized in 2013 for the Alberta merchant CGU, total pre-tax impairment losses
of $23 million that were recognized previously on renewables plants that now form part of the Alberta merchant CGU were reversed.
The Alberta merchant CGU&#8217;s recoverable amount was based on an estimate of fair value less costs to sell using a discounted
cash flow methodology and based on the Corporation&#8217;s long range forecasts and prices evidenced in the market place. The pre-tax
reversal is recognized in the Generation Segment.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><B>C.</B></TD><TD STYLE="text-align: left"><B>Sundance Units 1 and 2</B></TD></TR></TABLE>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 150%">During the
three months ended Sept. 30, 2012, the Corporation reversed $41 million of the $43 million impairment losses previously taken on
Sundance Units 1 and 2 during the second quarter. The reversal arose as a result of the additional years of merchant operations
expected to be realized at Units 1 and 2 due to amendments to Canadian federal regulations requiring that coal-fired plants be
shut down after a maximum of 50 years of operation. The previous draft regulations proposed shut down after 45 years. The recoverable
amount was based on an estimate of fair value less costs to sell, derived from the cash flows expected to result over the revised
useful life of the Units, taking into consideration the provisions of the PPA and prices evidenced in the market place.</FONT>
The impairment assessment was based on an estimate of fair value less costs to sell, derived from the cash flows expected to result
under the provisions of the PPA. <FONT STYLE="line-height: 150%">The loss and reversal were included in the Generation Segment.</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><B>D.</B></TD><TD STYLE="text-align: left"><B>Centralia Thermal</B></TD></TR></TABLE>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The TransAlta Energy Bill and a Memorandum
of Agreement was signed on Dec. 23, 2011 that provided a framework for the orderly transition from coal-fired energy produced at
Centralia Thermal and the shutdown of the units in 2020 and 2025. On<BR>
July 25, 2012, the Corporation announced that it entered into a long-term power agreement to provide electricity from the Centralia
Thermal plant to Puget Sound Energy (&#8220;PSE&#8221;) from December 2014 until the facility is fully retired in 2025.&nbsp; As
a result of these agreements, the Corporation recognized a pre-tax impairment charge of nil and $347 million included in the Generation
Segment during the three and nine months ended Sept. 30, 2012, respectively.&nbsp; The impairment assessment was based on whether
the carrying amount of the Centralia Thermal plant was recoverable based on an estimate of fair value less costs to sell.&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><B>E.</B></TD><TD STYLE="text-align: left"><B>Reversals</B></TD></TR></TABLE>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The impairment charges can be reversed in
future periods if the forecasted cash flows to be generated by the impacted plants improve.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">11.
INVESTMENTS</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation&#8217;s investments in joint
ventures accounted for using the equity method consist of its investments in<BR>
CE Generation, LLC (&#8220;CE Gen&#8221;), Wailuku River Hydroelectric, L.P (&#8220;Wailuku&#8221;), TAMA Transmission, and CalEnergy,
LLC (&#8220;CalEnergy&#8221;).</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Summarized financial information on the
results of operations and financial position relating to the Corporation&#8217;s pro-rata interests in CE Gen, Wailuku, TAMA Transmission,
and CalEnergy is as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>3 months ended Sept. 30</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>9 months ended Sept. 30</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 44%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2012</TD>
    <TD NOWRAP STYLE="width: 3%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Results of operations</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Revenues</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>39</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>86</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">84</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Expenses</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(37)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(34)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(91)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(89)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Proportionate share of net income (loss)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(5)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(5)</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Summarized financial information relating
to 100 per cent of CE Gen, including adjustments for the application of consistent accounting policies and the Corporation&#8217;s
purchase price adjustments, is as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 10pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 10pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>3 months ended Sept. 30</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>9 months ended Sept. 30</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 43%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2012</TD>
    <TD NOWRAP STYLE="width: 3%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Revenues</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>77 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">62 </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>167 </B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">160 </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Depreciation and amortization</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>21 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21 </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>64 </B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">64 </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Interest expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>6 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5 </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>16 </B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17 </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Income tax expense (recovery)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>9 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4 </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(10)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(12)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net income (loss) from continuing operations</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>4 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1 </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(9)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(11)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Other comprehensive loss</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(1)</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total comprehensive income (loss)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>4 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">- </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(9)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(13)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Distributions received</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">- </TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">- </TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Verdana, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 52%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>As at</B></TD>
    <TD NOWRAP STYLE="width: 17%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="width: 3%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Current assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>135</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">93</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>647</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">675</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Current liabilities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(82)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(62)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term liabilities</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(383)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(409)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: italic 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><I>Net assets</I></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>317</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">297</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Additional items included above</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cash and cash equivalents</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>54</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">27</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Current financial liabilities<FONT STYLE="font-size: 9pt"><SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(40)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(35)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term financial liabilities<FONT STYLE="font-size: 9pt"><SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(217)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(233)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(1) Excludes trade and other payables and provisions</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">A reconciliation of the carrying amount to
the Corporation&#8217;s 50 per cent interest in the CE Gen joint venture is as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>As at</B></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 56%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt Arial, Helvetica, Sans-Serif; text-align: left">Net assets</TD>
    <TD NOWRAP STYLE="width: 18%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: right"><B>317</B></TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt Arial, Helvetica, Sans-Serif; text-align: right">297</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Less: minority interest in CE Gen</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(13)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(14)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Less: 50 per cent of CE Gen's net assets not owned by the Corporation</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(125)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(116)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net investment</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>179</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">167</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 15 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">CE Gen&#8217;s ability to make distributions
to its owners, including the Corporation, is restricted by covenants and conditions, including principal and interest funding deposit
requirements, imposed by certain project-related debt agreements.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">At Sept. 30, 2013 the carrying amount of
the Corporation&#8217;s net investment in CalEnergy, TAMA Transmission and Wailuku is<BR>
$4 million (Dec. 31, 2012 - $5 million).</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">12.
NET INTEREST EXPENSE</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The components of net interest expense are
as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 49%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD>
    <TD STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Interest on debt</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>61</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">54</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>179</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">168</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Capitalized interest</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 28.65pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(2)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Ineffectiveness on hedges</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Interest expense</B></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>61</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">53</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>177</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">168</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Accretion of provisions<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 20)</FONT></I></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">5</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>13</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">14</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Net interest expense</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>65</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">58</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>190</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">182</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation capitalizes interest during
the construction phase of growth capital projects. The capitalized interest in 2013 and 2012 related to the New Richmond wind farm.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">13.
INCOME TAXES</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The components of income tax expense (recovery)
are as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 56%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Current income tax expense</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>10</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">10</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>35</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">18</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Adjustments in respect of current income tax of previous years</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Adjustments in respect of deferred income tax of previous years</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(3)</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(3)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Deferred income tax expense (recovery) related to the origination and reversal of temporary differences</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">8</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(28)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(77)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Deferred income tax expense (recovery) resulting from changes in </FONT><BR>
<FONT STYLE="font-size: 7.5pt">tax rates or laws</FONT><FONT STYLE="font-size: 6.5pt"><SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(7)</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">7</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">(Benefit) reduction arising from previously unrecognized tax loss, tax credit, or temporary difference of a prior period used to reduce current income tax expense</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(11)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Benefit arising from previously unrecognized tax loss, tax credit, or temporary difference of a prior period used to reduce deferred income tax expense</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(4)</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(14)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Deferred income tax expense arising from the writedown of deferred </FONT><BR>
<FONT STYLE="font-size: 7.5pt">income tax assets</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>40</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>40</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">169</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Income tax expense</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>48</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">14</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>41</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">91</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="6" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(1) On June 20, 2012 , the Ontario budget bill froze the Ontario general corporate tax rate at 11.5%. The Corporation had been using the previously substantively enacted tax rate of 10.0%. During 2013, the Corporation adjusted the deferred tax rate to incorporate the Ontario M&amp;P tax credit, which reduced the corporate tax rate back to 10.0%.</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-align: left">&nbsp;</P>


<!-- Field: Page; Sequence: 16 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Presented in the Condensed Consolidated Statements
of Earnings (Loss) as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 56%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Current income tax expense</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>10</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">13</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>36</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Deferred income tax expense</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>38</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1</FONT></TD>
    <TD NOWRAP STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">82</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Income tax expense</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>48</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">14</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>41</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">91</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three and nine months ended Sept.
30, 2013, respectively, $40 million (2012 - nil and $169 million) of deferred income tax assets were written off related to the
tax benefits of losses associated with the Corporation&#8217;s U.S. operations. The Corporation wrote these assets off as it was
no longer considered probable that sufficient taxable income would be available from the Corporation&#8217;s U.S. operations to
utilize the underlying tax losses. An increase in future U.S. income will allow the Corporation to write up deferred income tax
assets in future periods.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">14.
NON-CONTROLLING INTERESTS</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation&#8217;s subsidiaries and
operations that have non-controlling interests are as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 28%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 44%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Subsidiary/Operation</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Non-controlling interest</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">TransAlta Cogeneration L.P. (&quot;TA Cogen&quot;)</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">49.99% - Stanley Power Inc.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">TransAlta Renewables </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">19.30% - Public investors</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Kent Hills wind farm<SUP>(1)</SUP>&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">17% - Natural Forces Technologies Inc. </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(1) Owned by TransAlta Renewables.</I></FONT></TD>
    <TD NOWRAP STYLE="font: 10pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 10pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 10pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 150%">Summarized
financial information relating to TA Cogen and </FONT>TransAlta <FONT STYLE="line-height: 150%">Renewables, subsidiaries with significant
non-controlling interests, is as follows:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>3 months ended Sept. 30</B></TD>
    <TD COLSPAN="2" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>9 months ended Sept. 30</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 53%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><B>TA Cogen</B></P></TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2012</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2012</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Revenues</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>55</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">63</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>212</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">220</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net earnings (loss)</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(7)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>28</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">47</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total comprehensive income (loss)</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(5)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>42</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">36</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Amounts attributable to the non-controlling interest:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net earnings (loss)</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(3)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>14</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">24</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total comprehensive income (loss)</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(4)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>21</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Distributions paid to Stanley Power Inc.</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(6)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(12)</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(39)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(40)</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>TA Cogen</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>As at </B><BR>
<B>Sept. 30, 2013</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">As at<BR>
Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 53%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt Arial, Helvetica, Sans-Serif; text-align: left">Current assets</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: right"><B>110</B></TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt Arial, Helvetica, Sans-Serif; text-align: right">70</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>642</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">678</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Current liabilities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(130)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(75)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term liabilities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(73)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(87)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total equity</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(549)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(588)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Equity attributable to the non-controlling interest</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(272)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(290)</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 17 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>3 months ended Sept. 30</B></TD>
    <TD COLSPAN="2" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>9 months ended Sept. 30</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>TransAlta Renewables</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2013</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2013</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 51%; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: left"><B>Results of operations</B></TD>
    <TD NOWRAP STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 25%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Revenues</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>44 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>175 </B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net earnings </TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>36 </B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total comprehensive income </TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>37 </B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Amounts attributable to the non-controlling interests:</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Public investors</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net earnings </TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total comprehensive income </TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Natural Forces Technologies Inc.</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net earnings </TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2 </B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total comprehensive income </TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>- </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2 </B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Distributions paid to Natural Forces Technologies Inc.</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(1)</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(3)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Dividends paid to Public investors</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(5)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(5)</B></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>TransAlta Renewables</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>As at </B><BR>
<B>Sept. 30, 2013</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 53%; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: left"><B>Financial position</B></TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Current assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>57</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1,825</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Current liabilities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(78)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term liabilities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(716)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total equity</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(1,088)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Equity attributable to Natural Forces Technologies Inc.</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(39)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Equity attributable to Public investors</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(203)</B></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">15.
FINANCIAL INSTRUMENTS</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">A. Financial Assets and Liabilities -
Classification and Measurement</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Financial assets and financial liabilities
are measured on an ongoing basis at cost, fair value, or amortized cost.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">B. Fair Value of Financial Instruments</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">I. Energy Trading</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Energy trading includes risk management
assets and liabilities that are used in the Energy Trading and Generation segments in relation to trading activities and certain
contracting activities. To the extent applicable, changes in net risk management assets and liabilities for non-hedge positions
are reflected within earnings of the Energy Trading and Generation business segments.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following tables summarize the key factors
impacting the fair value of energy trading risk management assets and liabilities by classification level during the nine months
ended Sept. 30, 2013 and 2012, respectively:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Hedges</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Non-Hedges</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 35%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level I</B></FONT></TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level II</B></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level III</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level I</B></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level II</B></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level III</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level I</B></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level II</B></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level III</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net risk management assets (liabilities) at </FONT><BR>
<FONT STYLE="font-size: 7.5pt">Dec. 31, 2012</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(63)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">79</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">28</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">16</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">31</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Changes attributable to:</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Market price changes on existing </FONT><BR>
<FONT STYLE="font-size: 7.5pt">contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(25)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(5)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">13</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(22)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">8</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Market price changes on new contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(3)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(31)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(11)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(42)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Contracts settled</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">8</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(50)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(10)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(42)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(10)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Transfers out of Level III</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">28</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(28)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">28</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(28)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Net risk management assets </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>(liabilities) at Sept. 30, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(83)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(33)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>63</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(8)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(20)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(41)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Additional Level III information:</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Losses recognized in OCI</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(36)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(36)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Total gains included in earnings </FONT><BR>
<FONT STYLE="font-size: 7.5pt">before income taxes</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Unrealized losses included in earnings </FONT><BR>
<FONT STYLE="font-size: 7.5pt">before income taxes relating to net assets </FONT><BR>
<FONT STYLE="font-size: 7.5pt">held at Sept. 30, 2013</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(8)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(8)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 19 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt">Hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt">Non-Hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 37%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level I</FONT></TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level II</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level III</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level I</FONT></TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level II</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level III</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level I</FONT></TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level II</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level III</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net risk management assets (liabilities) at </FONT><BR>
<FONT STYLE="font-size: 7.5pt">Dec. 31, 2011</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(90)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(14)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">287 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">7 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">197 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(7)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Changes attributable to: </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Market price changes on existing </FONT><BR>
<FONT STYLE="font-size: 7.5pt">contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">47 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">12 </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(32)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">22 </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">15 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">34 </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Market price changes on new contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">5 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(15)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9 </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(10)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9 </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Contracts settled</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">10 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">6 </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(167)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(15)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(157)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(9)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Discontinued hedge accounting on </FONT><BR>
<FONT STYLE="font-size: 7.5pt">certain contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(20)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">15 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">5 </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(5)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">5 </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net risk management assets </FONT><BR>
<FONT STYLE="font-size: 7.5pt">(liabilities) at Sept. 30, 2012</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(48)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">4 </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">88 </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">28 </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">40 </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">32 </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Additional Level III information:</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Gains recognized in OCI</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">12 </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">12 </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Total gains (losses) included in earnings </FONT><BR>
<FONT STYLE="font-size: 7.5pt">before income taxes </FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(6)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">31 </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">25 </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Unrealized gains included in earnings </FONT><BR>
<FONT STYLE="font-size: 7.5pt">before income taxes relating to net assets </FONT><BR>
<FONT STYLE="font-size: 7.5pt">held at Sept. 30, 2012</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">16 </FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">16 </FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>a. Levels I, II, and III Fair Value Measurements
and transfers between Fair Value Levels</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>i. Level I </B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Fair values are determined using inputs
that are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Corporation has the ability
to access. In determining Level I fair values, the Corporation uses quoted prices for identically traded commodities obtained from
active exchanges such as the New York Mercantile Exchange.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>ii. Level II </B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Fair values are determined, directly or
indirectly, using inputs that are observable for the asset or liability.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Fair values falling within the Level II
category are determined through the use of quoted prices in active markets, which in some cases are adjusted for factors specific
to the asset or liability, such as basis, credit valuation, and location differentials. Energy Trading includes, in Level II, over-the-counter
derivatives with values based on observable commodity futures curves and derivatives with inputs validated by broker quotes or
other publicly available market data providers. Level II fair values are also determined using valuation techniques, such as option
pricing models and regression or extrapolation formulas, where the inputs are readily observable, including commodity prices for
similar assets or liabilities in active markets, and implied volatilities for options.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>iii. Level III </B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Fair values are determined using inputs
for the asset or liability that are not readily observable.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Energy Trading may enter into commodity
transactions for which market-observable data is not available. In these cases, Level III fair values are determined using valuation
techniques such as the Black-scholes, Mark-to-forecast, and Historical bootstrap models with inputs that are based on historical
data such as unit availability, transmission congestion, demand profiles for individual<BR>
non-standard deals and structured products, and/or volatilities and correlations between products derived from historical prices.</P>


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Energy Trading also has various contracts
with terms that extend beyond a liquid trading period. As forward market prices are not available for the full period of these
contracts, the value of these contracts is derived by reference to a forecast that is based on a combination of external and internal
fundamental modelling, including discounting.&nbsp; As a result, these contracts are classified in Level III.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation has a Commodity Exposure
Management Policy (&#8220;the Policy&#8221;), which governs both the commodity transactions undertaken in its proprietary trading
business and those undertaken to manage commodity price exposures in its generation business.&nbsp; The Policy defines and specifies
the controls and management responsibilities associated with commodity trading activities, as well as the nature and frequency
of required reporting of such activities. &nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Methodologies and procedures regarding energy
trading Level III fair value measurements are determined by the Corporation&#8217;s Risk Management department. Level III fair
values are calculated within the Corporation&#8217;s Energy Trading Risk Management system based on underlying contractual data
as well as observable and non-observable inputs.&nbsp; Development of non-observable inputs requires the use of judgment.&nbsp;
&nbsp;To ensure reasonability, system generated Level III fair value measurements are reviewed and validated by Risk Management
and Finance departments.&nbsp; Review occurs formally on a quarterly basis or more frequently if daily review and monitoring procedures
identify unexpected changes to fair value, or changes to key parameters.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The effect of using reasonably possible
alternative assumptions as inputs to valuation techniques from which the Level III energy trading fair values are determined at
Sept. 30, 2013 is estimated to be +/- $89 million (Dec. 31, 2012 - $26 million). Fair values are stressed for volumes and prices.&nbsp;
The volumes are stressed up and down one standard deviation from historically available production data.&nbsp; Prices are stressed
for longer term deals where there are no liquid market quotes using various internal and external forecasting sources to establish
a high and a low price range.&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Information about the significant unobservable
inputs used in determining Level III fair values is as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 19%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Description</B></FONT></TD>
    <TD STYLE="width: 18%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Fair value as at </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>Sept. 30, 2013</B></FONT></TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Valuation </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>Technique</B></FONT></TD>
    <TD STYLE="width: 28%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Unobservable input</B></FONT></TD>
    <TD NOWRAP STYLE="width: 18%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Range</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Unit contingent</FONT><BR>
<FONT STYLE="font-size: 7.5pt">power purchases</FONT></TD>
    <TD NOWRAP ROWSPAN="2" STYLE="border-bottom: black 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">12 </FONT></TD>
    <TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Historical bootstrap</FONT></TD>
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Price discount</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1 - 2 per cent</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Volumetric discount</FONT><FONT STYLE="font-size: 10pt"><SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1 - 8 per cent</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Long term power sale</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">149 </FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Long term </FONT><BR>
<FONT STYLE="font-size: 7.5pt">price forecast</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Illiquid future </FONT><BR>
<FONT STYLE="font-size: 7.5pt">power prices</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">$56.99 - $70.70</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Coal supply </FONT><BR>
<FONT STYLE="font-size: 7.5pt">revenue sharing</FONT></TD>
    <TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(8)</FONT></TD>
    <TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Black-scholes</FONT></TD>
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Volumes (MWh) </FONT></TD>
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">18 - 25 per cent of </FONT><BR>
<FONT STYLE="font-size: 7.5pt">available generation</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Illiquid future implied </FONT><BR>
<FONT STYLE="font-size: 7.5pt">volatilities in MidC power</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">28 per cent</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Unit contingent </FONT><BR>
<FONT STYLE="font-size: 7.5pt">power sales</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(4)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Black-scholes</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Illiquid future implied </FONT><BR>
<FONT STYLE="font-size: 7.5pt">volatilities in MidC power</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">44 per cent</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="5" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(1) A change in the volumetric discount, could, depending on other market dynamics, result in a directionally similar change in the </I></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><I>price discount. </I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>iv. Transfers between Fair Value Levels
</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Fair value Level transfers can occur where
the availability of inputs that are used to determine fair values have changed. A transfer from Level III to Level II occurs where
inputs that were not readily observable have become observable during the period. The Corporation&#8217;s policy is for Level transfers
to occur at the end of each period. &nbsp;During the nine months ended Sept. 30, 2013,<BR>
$28 million of fair value was transferred from Level III net risk management assets to Level II net risk management assets. The
trade terms of these contracts were originally beyond a liquid trading period where forward price forecasts were not available
for the full period of the contract. During the period, the contract terms were determined to be within a liquid trading period
where observable prices are available.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 79.45pt">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">II. Other Risk Management Assets and Liabilities</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other risk management assets and liabilities
primarily include risk management assets and liabilities that are used in hedging<BR>
non-energy trading transactions, such as interest rates, the net investment in foreign operations, and other foreign currency risks.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following tables summarize the key factors
impacting the fair value of other risk management assets and liabilities by classification level during the nine months ended Sept.
30, 2013 and 2012, respectively:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Hedges</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Non-Hedges</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 28%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Level I</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level II</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level III</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level I</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level II</B></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level III</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level I</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>Level II</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>Level III</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net risk management assets </FONT><BR>
<FONT STYLE="font-size: 7.5pt">(liabilities) at Dec. 31, 2012</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(50)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(49)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Changes attributable to: </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Market price changes on existing contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">31 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">31 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Market price changes on new contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">2 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">3 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Contracts settled</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">9 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">8 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><B>Net risk management assets </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>(liabilities) at Sept. 30, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>- </B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>- </B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>- </B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>2 </B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>- </B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>- </B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>(7)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><B>- </B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt">Hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt">Non-Hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7.5pt">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 31%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level I</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level II</FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level III</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level I</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level II</FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level III</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level I</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level II</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">Level III</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net risk management liabilities </FONT><BR>
<FONT STYLE="font-size: 7.5pt">at Dec. 31, 2011</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(50)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(50)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Changes attributable to: </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Market price changes on existing contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(31)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(31)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Market price changes on new </FONT><BR>
<FONT STYLE="font-size: 7.5pt">contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(56)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(56)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Contracts settled</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">23 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">23 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 7.5pt"><FONT STYLE="font-size: 7.5pt">Discontinued hedge accounting </FONT><BR>
<FONT STYLE="font-size: 7.5pt">on certain contracts</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">1 </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net risk management </FONT><BR>
<FONT STYLE="font-size: 7.5pt">liabilities at Sept. 30, 2012</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(113)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(1)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">(114)</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>a. Level II Fair Value Measurements</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Fair values are determined, directly or
indirectly, using inputs that are observable for the asset or liability.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Level II fair values of other risk management
assets and liabilities are determined using valuation techniques, such as discounted cash flow methods. The Corporation uses observable
inputs other than unadjusted quoted prices that are observable for the asset or liability, such as interest rate yield curves,
credit valuation adjustments, and currency rates. For certain financial instruments where insufficient trading volume or lack of
recent trades exists, the Corporation relies on similar interest or currency rate inputs and other third party information such
as credit spreads.</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>


<!-- Field: Page; Sequence: 22 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">III. Other Financial Assets and Liabilities</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The fair value of financial assets and liabilities
measured at other than fair value is as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Fair value</B></TD>
    <TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Total carrying value</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Level I</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Level II</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Level III</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Total </B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 59%; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: left; text-indent: 8.05pt"><B>Long-term debt<SUP>(1)</SUP> - Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="width: 7%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: center"><B>-</B></TD>
    <TD NOWRAP STYLE="width: 9%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: center"><B>4,193</B></TD>
    <TD NOWRAP STYLE="width: 9%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: center"><B>-</B></TD>
    <TD NOWRAP STYLE="width: 7%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: center"><B>4,193</B></TD>
    <TD NOWRAP STYLE="width: 9%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: center"><B>4,058</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 8pt">Long-term debt<SUP>(1)</SUP> - Dec. 31, 2012</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">4,426</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">4,426</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">4,157</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="6" STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>(1) Includes current portion and excludes $50 million of debt measured and carried at fair value.</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The fair values of the Corporation&#8217;s
debentures and senior notes are determined using prices observed in secondary markets.<BR>
Non-recourse and other long-term debt fair values are determined by calculating an implied price based on a current assessment
of the yield to maturity.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">The book
value of other short-term financial assets and liabilities (cash and cash equivalents, accounts receivable, collateral paid, accounts
payable and accrued liabilities, collateral received, and dividends payable) approximates fair value due to the liquid nature of
the asset or liability. </FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">C. Inception Gains and Losses</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The majority of derivatives traded by the
Corporation are based on adjusted quoted prices on an active exchange or extend beyond the time period for which exchange-based
quotes are available. The fair values of these derivatives are determined using inputs that are not readily observable. Refer to
Note 15(B) for fair value Level III valuation techniques used. In some instances, a difference may arise between the fair value
of a financial instrument at initial recognition (the &#8220;transaction price&#8221;) and the amount calculated through a valuation
model. This unrealized gain or loss at inception is recognized in net earnings (loss) only if the fair value of the instrument
is evidenced by a quoted market price in an active market, observable current market transactions that are substantially the same,
or a valuation technique that uses observable market inputs. Where these criteria are not met, the difference is deferred on the
Consolidated Statements of Financial Position in risk management assets or liabilities, and is recognized in net earnings (loss)
over the term of the related contract. The difference between the transaction price and the fair value determined using a valuation
model, yet to be recognized in net earnings (loss), and a reconciliation of changes during the nine months ended Sept. 30, 2013
is as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>As at</B></TD>
    <TD NOWRAP STYLE="width: 17%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 36%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Unamortized gain at beginning of year</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>5</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">New inception gains</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>173</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Amortization recorded in net earnings during the year</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Unamortized gain at end of period</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>178</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three months ended Sept. 30,
2013, the Corporation finalized the Centralia Coal plant contract with PSE. The contract was designated as an all-in-one cash flow
hedge.&nbsp; As a result, the contract was recognized as a risk management asset at fair value. The fair value was classified as
Level III, which resulted in the recognition of an inception gain. The inception gain was deferred and recorded as a risk management
liability.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 23 -->
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    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">16.
RISK MANAGEMENT ACTIVITIES</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>A. Risk Management Assets and Liabilities</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Aggregate risk management assets and liabilities
are as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>As at</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Net investment hedges</B></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Cash flow hedges</B></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Fair value hedges</B></TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Not designated as a hedge</B></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Total</B></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Risk management assets</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Energy trading</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Current</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">97</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">98</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">198</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Long-term</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">161</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">29</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">190</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">59</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total energy trading risk <BR>
management assets</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">162</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">126</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">288</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">257</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><B>Other</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Current</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Long-term</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total other risk <BR>
management assets</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Risk management liabilities</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Energy trading</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Current</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">26</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">46</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">72</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">141</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Long-term</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">252</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">23</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">275</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">70</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total energy trading risk <BR>
management liabilities</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">278</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">69</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">347</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">211</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><B>Other</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Current</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">26</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Long-term</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">36</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total other risk <BR>
management liabilities</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">22</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">22</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">62</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Net energy trading risk </B><BR>
<B>management assets (liabilities)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(116)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>57</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(59)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">46</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Net other risk management </B><BR>
<B>assets (liabilities)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(17)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>7</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(7)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(49)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Net total risk management </B><BR>
<B>assets (liabilities)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(133)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>7</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>59</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(66)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(3)</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Additional information on derivative instruments
has been presented on a net basis below.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>


<!-- Field: Page; Sequence: 24 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>I. Netting Arrangements</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Information about the Corporation&#8217;s
financial assets and liabilities that are subject to enforceable master netting arrangements or similar agreements is as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>As at</B></TD>
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 26%; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Current </B><BR>
<B>financial </B><BR>
<B>assets</B></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Long-term </B><BR>
<B>financial</B><BR>
<B>assets</B></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Current </B><BR>
<B>financial</B><BR>
<B>liabilities</B></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Long-term </B><BR>
<B>financial</B><BR>
<B>liabilities</B></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Current <BR>
financial <BR>
assets</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Long-term <BR>
financial <BR>
assets</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Current <BR>
financial <BR>
liabilities</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Long-term <BR>
financial<BR>
liabilities</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-top: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Gross amounts recognized </TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 8.05pt"><B>478 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>61 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(445)</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(92)</B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">522 </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">331 </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(452)</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(317)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Gross amounts set-off</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(275)</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(6)</B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>275 </B></TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>6 </B></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(252)</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(186)</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">252 </TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">186 </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>
        <P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Net amounts as presented in the Condensed
        Consolidated Statements of Financial Position<SUP>(1)</SUP></P></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>203 </B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>55 </B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(170)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(86)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">270 </TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">145 </TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(200)</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(131)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>&nbsp;</I></P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>(1) Excludes credit reserves.</I></P>
        <P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: right">&nbsp;</P></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>II. Hedges</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">a. Cash Flow Hedges</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">i. Energy Trading Risk Management</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain hedging relationships had previously
been de-designated and deemed ineffective for accounting purposes.&nbsp; The hedges were in respect of power production and the
associated gains remain in Accumulated Other Comprehensive Income (Loss) (&#8220;AOCI&#8221;) until the underlying production occurs
or until such time that the production has been assessed as highly probable not to occur.&nbsp; No gains related to these previously
de-designated hedges were reclassified to earnings during the three and nine months ended Sept. 30, 2013 (Sept. 30, 2012 - nil
and $75 million pre-tax gain, respectively).&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As at Sept. 30, 2013, cumulative gains of
$4 million, related to these and other cash flow hedges that were de-designated and no longer meet the criteria for hedge accounting,
continued to be deferred in AOCI and will be reclassified to net earnings as the forecasted transactions occur or if the forecasted
transactions are assessed as highly probable not to occur.&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">ii. Other</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the period the Corporation entered
into a foreign currency cash flow hedge on the U.S.$20 million CHD debenture.</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">iii. Cash Flow Hedge Impacts</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Over the next 12 months ended Sept. 30,
2014, the Corporation estimates that $34 million of after-tax losses will be reclassified from AOCI to net earnings. These estimates
assume constant natural gas and power prices, interest rates, and exchange rates over time; however, the actual amounts that will
be reclassified will vary based on changes in these factors.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">b. Net Investment Hedges</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three months ended Sept. 30,
2013, the Corporation de-designated the U.S.$20 million CHD debenture from its net investment hedge due to the formation of the
TransAlta Renewables subsidiary. The cumulative net foreign exchange gains (losses) up to the date of de-designation will remain
in OCI until a disposal of the related U.S. foreign operations.</P>


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    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">B. Nature and Extent of Risks Arising
from Financial Instruments</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following discussion is limited to the
nature and extent of certain risks arising from financial instruments, which are also more fully discussed in Note 17(B) of the
most recent annual consolidated financial statements.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">I. Commodity Price Risk</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Value at Risk (&#8220;VaR&#8221;) is the
most commonly used metric employed to track and manage the market risk associated with commodity and other derivatives. VaR is
used to determine the potential change in value of the Corporation&#8217;s proprietary trading portfolio, over a three day period
within a 95 per cent confidence level, resulting from normal market fluctuations. VaR is estimated using the historical variance/covariance
approach.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">a. Commodity Price Risk - Proprietary
Trading</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation&#8217;s Energy Trading Segment
conducts proprietary trading activities and uses a variety of instruments to manage risk, earn trading revenue, and gain market
information.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">VaR at Sept. 30, 2013 associated with the
Corporation&#8217;s proprietary energy trading activities was $2 million<BR>
(Dec. 31, 2012 - $2 million).</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">b. Commodity Price Risk - Generation</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Generation Segment utilizes various
commodity contracts and other financial instruments to manage the commodity price risk associated with its electricity generation,
fuel purchases, emissions, and byproducts, as considered appropriate. VaR at<BR>
Sept. 30, 2013 associated with the Corporation&#8217;s commodity derivative instruments used in generation hedging activities was<BR>
$6 million (Dec. 31, 2012 - $5 million). VaR at Sept. 30, 2013 associated with positions and economic hedges that do not meet hedge
accounting requirements was $8 million (Dec. 31, 2012 - $9 million).</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">II. Credit Risk</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Credit risk is the risk that customers or
counterparties will cause a financial loss for the Corporation by failing to discharge their obligations, and the risk to the Corporation
associated with changes in creditworthiness of entities with which commercial exposures exist.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation uses external credit ratings,
as well as internal ratings in circumstances where external ratings are not available, to establish credit limits for customers
and counterparties. The following table outlines the distribution, by credit rating, of certain financial assets as at Sept. 30,
2013:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 43%; border-bottom: windowtext 1pt solid; font: italic 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><I>(Per cent)</I></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 21%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Investment grade</B></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 22%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Non-investment grade</B></TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Total</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Accounts receivable</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">89</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">11</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>100</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Risk management assets</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">99</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>100</B></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation&#8217;s maximum exposure
to credit risk at Sept. 30, 2013, without taking into account collateral held or right of set-off, is represented by the carrying
amounts of accounts receivable and risk management assets as per the Condensed Consolidated Statements of Financial Position. Letters
of credit and cash are the primary types of collateral held as security related to these amounts.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The maximum credit exposure to any one counterparty
for commodity trading operations and hedging, excluding the California market receivables (Refer to Note 36 of the 2012 annual
consolidated financial statements), and including the fair value of open trading positions, net of any collateral held, at Sept.
30, 2013 was $18 million (Dec. 31, 2012 - $25 million).</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">At Sept. 30, 2013, TransAlta had one counterparty
whose net settlement position accounted for greater than 10 per cent of the total trade receivables outstanding. The Corporation
has evaluated the risk of default related to this counterparty to be minimal.</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">III. Liquidity Risk</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Liquidity risk relates to the Corporation&#8217;s
ability to access capital to be used for proprietary trading activities, commodity hedging, capital projects, debt refinancing,
and general corporate purposes.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A maturity analysis of the Corporation&#8217;s
financial liabilities is as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 47%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2013</B></TD>
    <TD STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2014</B></TD>
    <TD STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2015</B></TD>
    <TD STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2016</B></TD>
    <TD STYLE="width: 7%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2017</B></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2018 and thereafter</B></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Total</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Accounts payable and accrued liabilities</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">453</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">453</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Debt<SUP>(1)</SUP></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">311</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">209</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">672</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">29</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">793</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,097</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4,111</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Energy trading risk management (assets) liabilities</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2)</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(15)</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">38</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">59</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Other risk management (assets) liabilities</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(7)</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Interest on long-term debt<FONT STYLE="font-size: 9pt"><SUP>(2)</SUP></FONT></TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">57</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">186</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">154</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">147</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">138</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">826</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,508</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Dividends payable</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">81</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">81</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>900</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>382</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>852</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>194</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>937</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2,954</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>6,219</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="8" STYLE="font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt"><I>(1) Excludes impact of hedge accounting and includes drawn credit facilities that are currently scheduled to mature in 2014 and 2017.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="8" STYLE="font: italic 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt"><I>(2) Not recognized as a financial liability on the Condensed Consolidated Statements of Financial Position.</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">C. Collateral and Contingent Features
in Derivative Instruments</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Collateral is posted in the normal course
of business based on the Corporation&#8217;s senior unsecured credit rating as determined by certain major credit rating agencies.
Certain of the Corporation&#8217;s derivative instruments contain financial assurance provisions that require collateral to be
posted only if a material adverse credit-related event occurs.&nbsp; If a material adverse event resulted in the Corporation&#8217;s
senior unsecured debt to fall below investment grade, the counterparties to such derivative instruments could request ongoing full
collateralization.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As at Sept. 30, 2013, the Corporation had
posted collateral of $75 million (Dec. 31, 2012 - $85 million) in the form of letters of credit on derivative instruments in a
net liability position. Certain derivative agreements contain credit-risk-contingent features, including a credit rating downgrade
to below investment grade, which if triggered would result in the Corporation having to post an additional<BR>
$89 million of collateral to its counterparties based upon the value of the derivatives at Sept. 30, 2013.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">17.
RESTRICTED CASH</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation has $3 million of cash and
cash equivalents at Sept. 30, 2013 (Dec. 31, 2012 - $2 million) that is not available for general use, all of which relates to
Project Pioneer.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 27 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">18.
INVENTORY</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Inventory held in the normal course of business
includes coal, emission credits, and natural gas, and is valued at the lower of cost and net realizable value. Inventory held for
trading, which also includes natural gas and purchased emission credits, is valued at fair value less costs to sell.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The classifications are as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 71%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; font: bold 8pt Arial, Helvetica, Sans-Serif; text-align: right"><B>Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="width: 1%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 14%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt Arial, Helvetica, Sans-Serif; text-align: right">Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>As at</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><I>(Restated)*</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Coal</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>72</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">78</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Deferred stripping costs</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>18</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Natural gas</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>5</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Purchased emission credits</TD>
    <TD NOWRAP STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>8</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: bold 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>103</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 8pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">93</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: italic 7.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three and nine months ended Sept.
30, 2013, coal inventory at the Corporation&#8217;s Centralia plant was written down by<BR>
$5 million (Sept. 30, 2012 - $8 million reversal) and $21 million (Sept. 30, 2012 - $34 million writedown), respectively, to its
net realizable value.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">19.
PROPERTY, PLANT, AND EQUIPMENT</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A reconciliation of the changes in the carrying
amount of PP&amp;E is as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 28%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 5%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>Land</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>Thermal generation</B></FONT></TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>Gas generation</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>Renewable generation</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>Mining property and equipment</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>Assets under construction</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>Capital spares and other<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="width: 6%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">As at Dec. 31, 2012</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">75</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">2,874</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">996</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">2,004</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">517</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">342</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">236</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">7,044</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">Additions</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>430</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>12</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>442</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">Additions - finance lease <I>(Note 4)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>33</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>33</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">Asset impairment </FONT><BR>
<FONT STYLE="font-size: 7.5pt">(charges) reversals <I>(Note 10)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>19</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>18</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">Depreciation</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(193)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(74)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(68)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(41)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(10)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(386)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">Revisions and additions to </FONT><BR>
<FONT STYLE="font-size: 7.5pt">decommissioning</FONT><BR>
<FONT STYLE="font-size: 7.5pt">and restoration costs</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(7)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(6)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">Retirement of assets</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(20)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(4)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(25)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">Change in foreign exchange rates</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>12</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(11)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>4</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">Transfers</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>181</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>24</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>223</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>55</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>(496)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>25</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>14</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>As at Sept. 30, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>78</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>2,852</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>926</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>2,178</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>564</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>276</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>264</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-weight: bold"><FONT STYLE="font-size: 7.5pt"><B>7,138</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="9" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(1) Includes major spare parts and stand-by equipment available, but not in service, and spare parts used for routine, preventative or planned maintenance.</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three and nine months ended Sept.
30, 2013, the Corporation capitalized nil and $2 million (Sept. 30, 2012 - $1 million and $2 million) of interest to PP&amp;E at
a weighted average rate of nil and 5.46 per cent (Sept. 30, 2012 - 5.43 and 5.39 per cent), respectively.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 28 -->
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    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">20.
OTHER ASSETS</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The components of other assets are as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 41%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>As at</B></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 18%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Sept. 30, 2013</B></TD>
    <TD STYLE="width: 16%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Deferred licence fees</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>18</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">21</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Project development costs</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>35</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">35</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Deferred service costs</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>19</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">19</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Long-term prepaids</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>18</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">5</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Keephills Unit 3 transmission deposit</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>6</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Other</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>1</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Total other assets</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>97</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">90</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">21.
DECOMMISSIONING AND OTHER PROVISIONS</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The change in decommissioning and other
provision balances is outlined below:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 21%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Decommissioning and restoration</B></TD>
    <TD NOWRAP STYLE="width: 16%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Restructuring</B></TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Other</B></TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Total</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Balance, Dec. 31, 2012</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">262</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">312</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Liabilities incurred in period</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">28</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">31</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Liabilities settled in period</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(19)</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(5)</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(24)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Accretion <FONT STYLE="font-size: 7.5pt"><I>(Note 12)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">13</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">13</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Revisions in estimated cash flows <FONT STYLE="font-size: 7.5pt"><I>(Note 19)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">4</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">1</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">5</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Revisions in discount rates <FONT STYLE="font-size: 7.5pt"><I>(Note 19)</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(10)</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(10)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Reversals</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(3)</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(11)</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(14)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Change in foreign exchange rates</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">255</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">60</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">315</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Less: current portion</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>15</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>5</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>20</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Balance, Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>240</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>55</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>295</B></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 150%">The r</FONT>estructuring
provision relates to the Corporation&#8217;s 2012 restructuring of resources as part of its ongoing strategy to continuously improve
operational excellence and accelerate growth.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other provisions include an amount related
to a portion of the Corporation&#8217;s fixed price commitments under several natural gas transportation contracts for firm transportation
that is not expected to be used. Accordingly, the unavoidable costs of meeting these obligations exceed the economic benefits expected
to be received. The contracts extend to 2018.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other provisions also include provisions
arising from ongoing business activities and include amounts related to commercial disputes between the Corporation and customers
or suppliers. Information about the expected timing of settlement and uncertainties that could impact the amount or timing of settlement
has not been provided as this may impact the Corporation&#8217;s ability to settle the provisions in the most favourable manner.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 29 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">22.
LONG-TERM DEBT</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>A. Debt and Letters of Credit</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The amounts outstanding are as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">As at</TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 47%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Carrying value</B></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Face value</B></TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Interest<SUP>(1)</SUP></B></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Carrying value</TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Face value</TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Interest<SUP>(1)</SUP></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Credit facilities<SUP>(2)</SUP></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>791</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>791</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2.5%</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">950</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">950</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2.4%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Debentures</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>842</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>851</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>6.6%</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">839</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">851</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">6.6%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Senior notes<SUP>(3)</SUP></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2,079</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2,060</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>5.6%</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2,017</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">1,990</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">5.6%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Non-recourse<SUP>(4)</SUP></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>375</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>379</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>5.9%</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">375</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">380</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">5.9%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Other</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>30</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>30</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>6.3%</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">36</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">36</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">6.5%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>4,117</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>4,111</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">4,217</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">4,207</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Less: recourse current portion</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(518)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(518)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(606)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(606)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Less: non-recourse current portion</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(1)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(1)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Total long-term debt</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>3,599</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>3,593</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3,610</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3,600</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="6" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(1) Interest is an average rate weighted by principal amounts outstanding before the effect of hedging.</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="8" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(2) Composed of bankers' acceptances and other commercial borrowings under long-term committed credit facilities. Includes U.S.$300 million at Sept. 30, 2013 (Dec. 31, 2012 - U.S.$300 million).</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(3) U.S. face value at Sept. 30, 2013 - U.S.$2.0 billion (Dec. 31, 2012 - U.S.$2.0 billion).</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(4) Includes U.S.$20 million at Sept. 30, 2013 (Dec. 31, 2012 - U.S.$20 million).</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">TransAlta has a total of $2.1 billion (Dec.
31, 2012 - $2.0 billion) of committed credit facilities, of which $1.0 billion<BR>
(Dec. 31, 2012 - $0.8 billion) is not drawn, and is available as of Sept. 30, 2013, subject to customary borrowing conditions.&nbsp;In<BR>
May 2013, the Corporation completed a renewal of its four-year revolving $1.5 billion committed syndicated credit facility and
extended its maturity by one year to 2017. In June 2013, the U.S.$300 million bilateral credit facility was renewed for a four-year
term to 2017. The Corporation also has $240 million in committed bilateral credit facilities, all of which matures in the fourth
quarter of 2014. The net proceeds received by the Corporation from the sale of the non-controlling interest in TransAlta Renewables
was used to pay down the credit facilities. In addition to the $1.0 billion available under the credit facilities, TransAlta has<BR>
$52 million of available cash and cash equivalents.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Letters of credit are issued to counterparties
under various contractual arrangements with the Corporation and certain subsidiaries of the Corporation. If the Corporation or
its subsidiary does not perform under such contracts, the counterparty may present its claim for payment to the financial institution
through which the letter of credit was issued. Any amounts owed by the Corporation or its subsidiaries under these contracts are
reflected in the Consolidated Statements of Financial Position. All letters of credit expire within one year and are expected to
be renewed, as needed, in the normal course of business. The total outstanding letters of credit as at Sept. 30, 2013 was $348
million (Dec. 31, 2012 - $336 million) with no (Dec. 31, 2012 - nil) amounts exercised by third parties under these arrangements.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>B. Restrictions</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Debt agreements of $9 million related to
the Windsor plant, owned by the Corporation&#8217;s TA Cogen subsidiary, include principal and interest funding provisions that
restrict the Corporation&#8217;s ability to access funds generated by the operations of the plant. The Corporation has provided
a letter of credit in the amount of the funding requirements, thereby permitting it to access the funds.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Debentures of $340 million issued by the
Corporation&#8217;s CHD subsidiary include restrictive covenants requiring the proceeds received from the sale of assets to be
reinvested into similar renewables assets.</P>


<!-- Field: Page; Sequence: 30 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">23.
DEFERRED CREDITS AND OTHER LONG-TERM LIABILITIES</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The components of deferred credits and other
long-term liabilities are as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>As at</B></TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 23%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Dec. 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Deferred coal revenues</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>51</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">51</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Defined benefit obligations</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>199</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">220</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Long-term incentive accruals</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>13</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">15</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Other</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>17</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">15</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Total deferred credits and other long-term liabilities</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>280</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">301</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.75pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">24.
COMMON SHARES</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">A. Issued and Outstanding</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">TransAlta is authorized to issue an unlimited
number of voting common shares without nominal or par value.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A reconciliation of changes in common shares
is as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>3 months ended Sept. 30</B></TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>9 months ended Sept. 30</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>2013</B></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">2012</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>2013</B></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 26%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Common shares </B><I>(millions)</I></TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Amount</B></TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Common <BR>
shares <BR>
<I>(millions)</I></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Amount</TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Common shares </B><I>(millions)</I></TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Amount</B></TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Common <BR>
shares <BR>
<I>(millions)</I></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Amount</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Issued and outstanding, beginning of period</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>262.1</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2,836</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">227.0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2,338</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>254.7</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2,730</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">223.6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2,274</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Issued under the dividend <BR>
reinvestment and share purchase plan</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>4.2</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>55</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2.9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">48</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>11.6</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>161</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">6.2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">110</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Issued under the PSOP</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Issued under public offering</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">21.2</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">295</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">21.2</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">295</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>266.3</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2,891</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">251.1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2,681</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>266.3</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2,891</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">251.1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2,681</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 4.9pt; text-align: left;  font-size: 8pt; text-indent: -4.9pt">Amounts receivable under <BR>
Employee Share Purchase Plan</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(4)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(4)</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(4)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(4)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Issued and outstanding, end of period</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>266.3</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2,887</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">251.1</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2,677</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>266.3</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2,887</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">251.1</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2,677</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 31 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>B. Dividends</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following table summarizes the common
share dividends declared or paid within the nine months ended Sept. 30:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 18%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Date </B><BR>
<B>declared</B></TD>
    <TD STYLE="width: 1%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Payment </B><BR>
<B>date</B></TD>
    <TD STYLE="width: 16%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Dividend per </B><BR>
<B>share </B><FONT STYLE="font-size: 7pt"><I>($)</I></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Total </B><BR>
<B>dividends</B></TD>
    <TD STYLE="width: 14%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Dividends</B><BR>
<B>paid in cash</B></TD>
    <TD STYLE="width: 22%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Dividends paid </B><BR>
<B>in shares</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-style: italic"><I>2013</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; text-indent: 8pt">July 23, 2013</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Oct. 1, 2013</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.29</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">77</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">51</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">26</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; text-indent: 8pt">Apr. 22, 2013</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">July 1, 2013</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.29</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">76</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">21<SUP>(1)</SUP></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">55</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; text-indent: 8pt">Jan. 28, 2013</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Apr. 1, 2013</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">75</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">53</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; text-indent: 8pt">Oct. 24, 2012</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Jan. 1, 2013</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.29</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">73</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">20</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">53</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-style: italic"><I>2012</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; text-indent: 8pt">July 13, 2012</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Oct. 1, 2012</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.29</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">67</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">18</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">49</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; text-indent: 8pt">Apr. 25, 2012</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">July 1, 2012</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.29</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">66</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">18</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">48</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; text-indent: 8pt">Jan. 25, 2012</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Apr. 1, 2012</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">65</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">43</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; text-indent: 8pt">Oct. 27, 2011</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Jan. 1, 2012</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.29</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">65</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">45</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">20</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(1) Dividends of $20 million were paid out on June 28, 2013.</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation suspended the Premium Dividend<SUP>TM</SUP>
component of its Premium Dividend<SUP>TM</SUP>, Dividend Reinvestment and Optional Common Share Purchase Plan (&#8220;the Plan&#8221;)
following the payment of the quarterly dividend on July 1, 2013. The Corporation&#8217;s Dividend Reinvestment and Optional Common
Share Purchase Plan, separate components of the Plan, remain effective in accordance with their current terms, discussed more fully
in Note 28(C) of the most recent annual consolidated financial statements.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Oct. 1, 2013, 1.9 million common shares
were issued for dividends reinvested.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">There have been no other transactions involving
common shares between the reporting date and the date of completion of these condensed consolidated financial statements.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">25.
PREFERRED SHARES</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">A. Issued and Outstanding</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">TransAlta is authorized to issue an unlimited
number of first preferred shares, and the Board of Directors is authorized to determine the rights, privileges, restrictions and
conditions attaching to such shares, subject to certain limitations.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Preferred shares outstanding are as follows:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>As at </B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>Sept. 30, 2013</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">Dec. 31, 2012</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 40%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Cumulative Redeemable Rate Reset <BR>
First Preferred Shares</TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Number of shares </B><FONT STYLE="font-size: 6.5pt"><I>(millions)</I></FONT></TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Amount</B></TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Number of shares <FONT STYLE="font-size: 6.5pt"><I>(millions)</I></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Amount</TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Dividend rate per share </B><I>($)</I></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Redemption price per share </B><I>($)</I></TD></TR>
<TR STYLE="background-color: white">
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Series A</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">293</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">293</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">1.15 </TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">25.00 </TD></TR>
<TR STYLE="background-color: white">
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Series C</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">269</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">269</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">1.15 </TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">25.00 </TD></TR>
<TR STYLE="background-color: white">
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Series E</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">219</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">219</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">1.25 </TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">25.00 </TD></TR>
</TABLE>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="background-color: white">
    <TD NOWRAP STYLE="vertical-align: bottom; width: 40%; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Issued and outstanding, end of period</B></TD>
    <TD NOWRAP STYLE="width: 9%; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>32</B></TD>
    <TD NOWRAP STYLE="width: 9%; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>781</B></TD>
    <TD NOWRAP STYLE="width: 8%; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">32</TD>
    <TD NOWRAP STYLE="width: 8%; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">781</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 13%; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 13%; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify;  font-size: 8pt; font-weight: bold">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">B. Dividends</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 150%">The following
table summarizes the preferred share dividends </FONT>declared or paid within the nine months ended Sept. 30:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>Series A</B></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>Series C</B></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>Series E</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 14%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Date </B><BR>
<B>declared</B></TD>
    <TD STYLE="width: 2%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Payment </B><BR>
<B>date</B></TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Dividend per</B><BR>
<B>share </B><FONT STYLE="font-size: 7pt"><I>($)</I></FONT></TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Total </B><BR>
<B>dividends</B></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Dividend per</B><BR>
<B>share </B><FONT STYLE="font-size: 7pt"><I>($)</I></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Total </B><BR>
<B>dividends</B></TD>
    <TD STYLE="width: 21%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Dividend per</B><BR>
<B>share </B><FONT STYLE="font-size: 7pt"><I>($)</I></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Total </B><BR>
<B>dividends</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-style: italic"><I>2013</I></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">July 23, 2013</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Sept. 30, 2013</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">4</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.3125</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Apr. 22, 2013</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">June 30, 2013</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">4</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.3125</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Jan. 28, 2013</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">March 31, 2013</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.3125</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-style: italic"><I>2012</I></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">July 13, 2012</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Sept. 30, 2012</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Apr. 25, 2012</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">June 30, 2012</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Jan. 25, 2012</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">March 31, 2012</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.2875</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">0.3844<FONT STYLE="font-size: 9pt"><SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">4</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">- </FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt"><FONT STYLE="font-size: 7.5pt">- </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(1) Includes dividends of $0.0969 per share ($1 million in total) for the period from Nov. 29, 2011 to Dec. 31, 2011, which were accrued at Dec. 31, 2011.</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">26.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The components of, and changes in, AOCI
are presented below:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 66%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 10%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(Restated)*</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Currency translation adjustment</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Opening balance, Jan. 1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(38)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(28)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Gains (losses) on translating net assets of foreign operations</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>16</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(36)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Gains (losses) on financial instruments designated as hedges of foreign <BR>
operations, net of tax<SUP>(1)</SUP></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(14)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">25</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Balance, Sept. 30</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(36)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(39)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Cash flow hedges</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Opening balance, Jan. 1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(37)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(28)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Gains (losses) on derivatives designated as cash flow hedges, net of tax<SUP>(2)</SUP></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(30)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Balance, Sept. 30</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(67)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(26)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Employee future benefits</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Opening balance, Jan. 1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(61)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(38)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Net actuarial gains (losses) on defined benefit plans, net of tax<SUP>(3)</SUP></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>28</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(26)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Balance, Sept. 30</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(33)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(64)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Equity investees</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Opening balance, Jan. 1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Other comprehensive loss of equity investees, net of tax<SUP>(4)</SUP></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(2)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Balance, Sept. 30</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(2)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Accumulated other comprehensive loss</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(136)</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(131)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(1) Net of income tax recovery of 2 for the nine months ended Sept. 30, 2013 (2012 - 3 expense).</I></FONT></TD></TR>
</TABLE>

<!-- Field: Page; Sequence: 33 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(2) Net of income tax recovery of 30 for the nine months ended Sept. 30, 2013 (2012 - 15 expense).</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(3) Net of income tax expense of 10 for the nine months ended Sept. 30, 2013 (2012 - 10 recovery).</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 66%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>(4) Net of income tax of nil for the nine months ended Sept. 30, 2013 (2012 - 1 recovery).</I></FONT></TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">27.
CONTINGENCIES</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black; line-height: 150%">TransAlta
is occasionally named as a party in various claims and legal proceedings that arise during the normal course of its business. TransAlta
reviews each of these claims, including the nature of the claim, the amount in dispute or claimed, and the availability of insurance
coverage. There can be no assurance that any particular claim will be resolved in the Corporation&#8217;s favour or that such claims
may not have a material adverse effect on TransAlta</FONT><FONT STYLE="color: red">. </FONT><FONT STYLE="color: black; line-height: 150%">Inquiries
from regulatory bodies may also arise in the normal course of business, to which the Corporation responds as required.</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.75pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.75pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">28.
COMMITMENTS</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During March 2013, the New Richmond wind
farm commenced operations and as such, the 15 year long-term service agreement for repairs and maintenance became effective. The
future payments over the term of the agreement are approximately $42 million.</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">29.
SEGMENT DISCLOSURES</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">A. Reported Segment Earnings (Loss)</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal">Each business
segment assumes responsibility for its operating results to operating income. </FONT></P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>3 months ended Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Generation</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Energy </B><BR>
<B>Trading</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Corporate</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Total</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Revenues</TD>
    <TD NOWRAP STYLE="width: 46%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>601</B></TD>
    <TD NOWRAP STYLE="width: 9%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>22</B></TD>
    <TD NOWRAP STYLE="width: 11%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="width: 10%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>623</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Fuel and purchased power</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>260</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>260</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Gross margin</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>341</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>22</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>363</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Operations, maintenance, and administration</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>103</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>9</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>16</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>128</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Depreciation and amortization</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>118</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>6</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>124</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Asset impairment reversals</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(18)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(18)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Inventory writedown</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>5</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>5</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Restructuring provision</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(1)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(1)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Taxes, other than income taxes</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>7</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>7</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Intersegment cost allocation</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>4</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(4)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Operating income (loss)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>123</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>17</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(22)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>118</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Finance lease income</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>11</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>11</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Equity income</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Sundance Units 1 and 2 return to service</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(15)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(15)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Foreign exchange loss</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(6)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Net interest expense</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(65)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Earnings before income taxes</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>45</B></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>


<!-- Field: Page; Sequence: 34 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 26%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">3 months ended Sept. 30, 2012 <FONT STYLE="font-size: 7.5pt"><I>(Restated)*</I></FONT></TD>
    <TD NOWRAP STYLE="width: 37%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Generation</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Energy <BR>
Trading</TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Corporate</TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Revenues</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">538</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(16)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">522</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Fuel and purchased power</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">191</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">191</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Gross margin</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">347</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(16)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">331</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Operations, maintenance, and administration</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">90</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">118</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Depreciation and amortization</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">117</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">122</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Asset impairment reversals</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(41)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(41)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Inventory writedown reversal</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(8)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(8)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Taxes, other than income taxes</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">8</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Intersegment cost allocation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(3)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Operating income (loss)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">178</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(20)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(26)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">132</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Finance lease income</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">1</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Gain on sale of collateral</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">15</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Sundance Units 1 and 2 return to service</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(7)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Foreign exchange gain</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Net interest expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(58)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Loss before income taxes</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">85</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>9 months ended Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Generation</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Energy </B><BR>
<B>Trading</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Corporate</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Total</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 54%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Revenues</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>1,652</B></TD>
    <TD NOWRAP STYLE="width: 9%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>53</B></TD>
    <TD NOWRAP STYLE="width: 11%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="width: 10%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>1,705</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Fuel and purchased power</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>648</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>648</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Gross margin</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>1,004</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>53</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>1,057</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Operations, maintenance, and administration</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>308</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>23</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>45</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>376</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Depreciation and amortization</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>365</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>17</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>382</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Asset impairment reversals</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(18)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(18)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Inventory writedown</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>21</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>21</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Restructuring provision</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(2)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(1)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(3)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Taxes, other than income taxes</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>22</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>22</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Intersegment cost allocation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>11</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(11)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Operating income (loss)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>297</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>41</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(61)</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>277</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Finance lease income</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>34</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>34</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Equity loss</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(5)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(5)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Sundance Units 1 and 2 return to service</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(15)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(15)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Gain on sale of assets</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>10</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>10</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Foreign exchange loss</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(2)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Loss on assumption of pension obligations</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(29)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Net interest expense</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(190)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Earnings before income taxes</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>80</B></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 35 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 25%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">9 months ended Sept. 30, 2012 <FONT STYLE="font-size: 7.5pt"><I>(Restated)*</I></FONT></TD>
    <TD NOWRAP STYLE="width: 36%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">Generation</TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">Energy <BR>
Trading</TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">Corporate</TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Revenues</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">1,574</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(10)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">1,564</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Fuel and purchased power</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">508</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">508</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Gross margin</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">1,066</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(10)</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">1,056</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Operations, maintenance, and administration</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">295</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">63</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">379</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Depreciation and amortization</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">375</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">390</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Asset impairment charges</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">324</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">324</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Inventory writedown</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">34</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Taxes, other than income taxes</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">22</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Intersegment cost allocation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(10)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt; font-weight: bold"><B>-</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Operating income (loss)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">6</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(21)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(78)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(93)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Finance lease income</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">5</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Equity loss</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(5)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(5)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Gain on sale of assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">3</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Gain on sale of collateral</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">15</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Other income</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">1</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Foreign exchange loss</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(7)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Sundance Units 1 and 2 return to service</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(254)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Net interest expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(182)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Loss before income taxes</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center;  font-size: 8pt">(517)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Included in the Generation Segment results
for the three and nine months ended Sept. 30, 2013 are $4 million<BR>
(Sept. 30, 2012 - $4 million) and $16 million (Sept. 30, 2012 - $17 million) of incentives received under a Government of Canada
program in respect of power generation from qualifying wind and hydro projects.</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">B. Selected Condensed Consolidated Statements
of Financial Position Information</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Total segment assets</B></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Generation</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Energy </B><BR>
<B>Trading</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Corporate</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>Total</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Sept. 30, 2013</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>9,095</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>189</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>251</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>9,535</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Dec. 31, 2012 <FONT STYLE="font-size: 7.5pt"><I>(Restated)*</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">8,994</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">262</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">206</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">9,462</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 49%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 7.5pt; font-style: italic"><FONT STYLE="font-size: 7.5pt"><I>* See Note 2 for prior period restatements.</I></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">C. Depreciation and Amortization on the
Condensed Consolidated Statements of Cash Flows</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The reconciliation between depreciation
and amortization reported on the Condensed Consolidated Statements of Earnings and the Condensed Consolidated Statements of Cash
Flows is presented below:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>3 months ended Sept. 30</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>9 months ended Sept. 30</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 52%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2012</TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Depreciation and amortization expense on the Condensed <BR>
Consolidated Statement of Earnings</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>124</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">122</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>382</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">390</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Depreciation included in fuel and purchased power <FONT STYLE="font-size: 7.5pt"><I>(Note 7)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>16</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>42</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">27</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Other</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>1</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>1</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Depreciation and amortization expense on the Condensed <BR>
Consolidated Statements of Cash Flows</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>141</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">129</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>425</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">419</TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 36 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q3 2013</FONT>  <!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">30.
CHANGES IN NON-CASH OPERATING WORKING CAPITAL</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>3 months ended Sept. 30</B></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>9 months ended Sept. 30</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 28%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2012</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>2013</B></TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Source (use) of cash:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Accounts receivable</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(19)</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(67)</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>139</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">11</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Prepaid expenses</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>14</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">10</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(20)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(3)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Income taxes receivable</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">5</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(3)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(9)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Inventory</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>20</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(2)</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(10)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(17)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Accounts payable, accrued liabilities and provisions</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>62</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(167)</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>(50)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(61)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt">Income taxes payable</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">2</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>5</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(14)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left;  font-size: 8pt; font-weight: bold"><B>Change in non-cash operating working capital</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>77</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(219)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt; font-weight: bold"><B>61</B></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right;  font-size: 8pt">(93)</TD></TR>
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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">31.
SUBSEQUENT EVENTS &#9;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>A. Acquisition by TransAlta Renewables
</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Oct. 21, 2013, TransAlta Renewables announced
the acquisition, through a wholly owned subsidiary of TransAlta, of an economic interest in a 144 megawatt wind farm in Wyoming
for approximately U.S.$102 million from an affiliate of NextEra Energy Resources, LLC. &nbsp;The wind farm is fully operational
and contracted under a long-term PPA until 2028 with an investment grade counterparty. &nbsp;At closing, the economic interest
in the wind farm will be acquired by TransAlta Renewables from TransAlta in consideration for a payment equal to the original purchase
price of the acquisition.&nbsp;The Corporation will extend a U.S.$102 million loan to TransAlta Renewables to fund the acquisition.
The acquisition is subject to regulatory approvals and is expected to close by the end of December 2013.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>B. Western Australia Contract Extension</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Oct. 30, 2013, the Corporation announced
a long-term contract extension to supply power to the BHP Billiton Nickel West operations in Western Australia from its Southern
Cross Energy facilities.&nbsp; The extension is effective immediately and replaces the previous contract which was set to expire
at the beginning of 2014.&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P></FONT>


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<DOCUMENT>
<TYPE>EX-13.2
<SEQUENCE>3
<FILENAME>mdaex13-2.htm
<DESCRIPTION>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF THE REGISTRANT AS AT AND FOR THE PERIOD ENDED SEPTEMBER 30, 2013.
<TEXT>
<HTML>
<HEAD>
     <TITLE>CA Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%">&nbsp;<IMG SRC="image_001.jpg" ALT="[ex132002.gif]" ALIGN="TOP" HEIGHT="40.06" WIDTH="150.26"></TD>
    <TD STYLE="text-align: right; width: 50%"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">TRANSALTA
CORPORATION</FONT></P>
                                              <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">SECOND
QUARTER REPORT FOR 2013</FONT></P></TD></TR>
</TABLE>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>management&#8217;s
discussion and analysis</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">This Management&#8217;s Discus<FONT STYLE="line-height: normal">sion
and Analysis (&#8220;MD&amp;A&#8221;) contains forward-looking statements. These statements are based on certain estimates and
assumptions and involve risks and uncertainties. Actual results may differ materially. See the<BR>
Forward-Looking Statements section of</FONT> this MD&amp;A for additional information.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">This MD&amp;A
should be read in conjunction with the unaudited interim condensed consolidated financial statements of TransAlta Corporation as
at and for the three and nine months ended Sept. 30, 2013 and 2012, and should also be read in conjunction with the audited consolidated
financial statements and MD&amp;A contained within our 2012 Annual Report. In this MD&amp;A, unless the context otherwise requires,
&#8216;we&#8217;, &#8216;our&#8217;, &#8216;us&#8217;, the &#8216;Corporation&#8217;, and &#8216;TransAlta&#8217; refers to TransAlta
Corporation and its subsidiaries. The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (&#8220;IFRS&#8221;). All tabular amounts in the following discussion are in millions of Canadian dollars unless
otherwise noted. Certain financial measures included in this MD&amp;A do not have a standardized meaning as prescribed by IFRS.
These measures may not be comparable to similar measures presented by other issuers and should not be considered in isolation or
as a substitute for measures prepared in accordance with IFRS. See the Non-IFRS Measures section of this MD&amp;A for additional
information. This MD&amp;A is dated Oct. 31, 2013. Additional information respecting TransAlta, including its Annual Information
Form, is available on SEDAR at</FONT> <FONT STYLE="color: blue"><U>www.sedar.com</U></FONT>.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>rESULTS
OF OPERATIONS</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The results of operations are presented
on a consolidated basis and by business segment. We have three business segments: Generation, Energy Trading, and Corporate. In
this MD&amp;A, the impact of foreign exchange fluctuations on foreign currency denominated transactions and balances is discussed
with the relevant Condensed Consolidated Statements of Earnings (Loss) and Condensed Consolidated Statements of Financial Position
items. While individual line items in the Condensed Consolidated Statements of Financial Position may be impacted by foreign exchange
fluctuations, the net impact of the translation of these items relating to foreign operations to our presentation currency is reflected
in Accumulated Other Comprehensive Income (Loss) (&#8220;AOCI&#8221;) in the equity section of the Condensed Consolidated Statements
of Financial Position.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>highlights</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Third Quarter Highlights</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Strategic Highlights</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;
</FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Formation of TransAlta Renewables Inc. (&#8220;TransAlta Renewables&#8221;),
creating a vehicle for enhancing TransAlta&#8217;s strategy to grow in renewables.</FONT></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;
</FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">50 megawatt (&#8220;MW&#8221;) long-term contract with the Salt River
Project signed by our CalEnergy, LLC (&#8220;CalEnergy&#8221;) joint venture.</FONT></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;
</FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">74 MW 20-year long-term power supply contract with the Ontario Power
Authority for our Ottawa facility.</FONT></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;
</FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Restart of Sundance Unit 1 in September and Unit 2 in October.</FONT></P>




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<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Operational Financial Results</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Renewables: Comparable gross margin increased
$3 million to $91 million primarily as a result of the addition of the New Richmond wind farm, which more than offset low hydro
margins in the quarter.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gas: Comparable gross margin, including finance
lease income, increased $14 million to $102 million, primarily due to the addition of the Solomon power station.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Coal: Comparable gross margin, adjusted for
the impact of de-designated hedges, decreased $42 million, primarily as a result of higher coal costs at our Alberta coal Power
Purchase Arrangement (&#8220;PPA&#8221;) facilities and lower contract prices at Centralia Thermal.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Energy Trading: Comparable gross margin increased
$38 million due to strong trading performance across all markets.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable Operations, Maintenance, and Administration
(&#8220;OM&amp;A&#8221;): Comparable OM&amp;A increased $8 million<FONT STYLE="color: red"> </FONT>to </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">$124 million due to higher maintenance costs and lower expense recoveries.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">Overall availability, including
finance leases and equity investments, was 85.9 per cent compared to 90.9 per cent in 2012. Adjusting for economic dispatching
at Centralia Thermal, availability was 85.9 per cent compared to 91.7 per cent in 2012. The decrease is primarily due to
higher unplanned outages associated with the Keephills Unit 1 force majeure outage, which was partially offset by lower planned
outages at the Alberta coal PPA facilities and strong performance in the gas fleet.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings; color: black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">Overall production increased
933 gigawatt hours (&#8220;GWh&#8221;) 11,088 GWh compared to 2012. </FONT></TD></TR></TABLE>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Consolidated Highlights</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings; color: black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">Comparable Earnings Before
Interest, Taxes, Depreciation, and Amortization (&#8220;EBITDA&#8221;) increased $11 million in the
quarter to $266 million compared to 2012. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Funds from Operations (&#8220;FFO&#8221;) decreased
$59 million to $174 million compared to the prior year due to differences in timing of cash proceeds associated with power hedges
and coal inventories.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Debt balances declined by $343 million, primarily
due to the use of proceeds from the formation of TransAlta Renewables.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable earnings were $39 million ($0.15
per share), down slightly from $41 million ($0.18 per share) in 2012. The decrease is primarily due to higher net interest and
higher foreign exchange losses, partially offset by an increase in Comparable EBITDA. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Reported net loss attributable to common shareholders
was $9 million ($0.03 net loss per share), down from net earnings of $56 million ($0.24 net earnings per share) in 2012. The change
is driven by an increase in comparable gross margins of $3 million and the following non-comparable amounts, net of tax: </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower asset impairment reversals of $18 million
</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Reversal of inventory writedown of $18 million
recorded in 2012</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in gain on sale of collateral of
$11 million </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in impact of Sundance Units 1 and
2 return to service of $6 million</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in impact of write off of deferred
income tax assets of $40 million</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in loss on de-designated hedges of
$32 million</FONT></TD></TR></TABLE>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Year-To-Date Highlights</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Strategic Highlights</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Formation of TransAlta Renewables, creating
a vehicle for enhancing TransAlta&#8217;s strategy to grow in renewables.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">50 MW long-term contract with the Salt River
Project signed by CalEnergy.</FONT></TD></TR></TABLE>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">74 MW 20-year long-term power supply contract
with the Ontario Power Authority for our Ottawa facility.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Restart of Sundance Unit 1 in September and
Unit 2 in October.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">86 MW long-term contract with the City of
Riverside signed by CalEnergy.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Commercial operation of 68 MW long-term contracted
New Richmond wind farm.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Approval of long-term contract with Puget
Sound Energy (&#8220;PSE&#8221;) at Centralia Thermal.</FONT></TD></TR></TABLE>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Operational Financial Results</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Renewables: Comparable gross margin increased
$58 million to $308 million, primarily as a result of favourable prices and the addition of the New Richmond wind farm, which was
partially offset by lower wind and hydro volumes.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gas: Comparable gross margin, including finance
lease income, increased $43 million to $323 million, primarily due to the addition of the Solomon power station.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Coal: Comparable gross margin, adjusted for
the impact of de-designated hedges decreased $112 million, primarily as a result of lower prices at Centralia Thermal, higher coal
costs, and higher unplanned outages at Alberta coal PPA facilities. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Energy Trading: Comparable gross margin increased
$63 million due to strong trading performance across all markets.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">OM&amp;A: Comparable OM&amp;A decreased $5
million to $371 million, primarily due to cost savings from the restructuring undertaken in 2012, partially offset by higher maintenance
costs and lower expense recoveries<FONT STYLE="color: red">.</FONT></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">Overall availability, including
finance leases and equity investments, was 83.1 per cent compared to 88.1 per cent in 2012. Adjusting for economic dispatching
at Centralia Thermal, availability was 86.4 per cent compared to 90.3 per cent in 2012. The decrease is primarily due to
higher unplanned outages at the Alberta coal PPA facilities, primarily driven by the Keephills Unit 1 force majeure outage, partially
offset by lower planned outages at the Alberta coal PPA facilities.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings; color: black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">Overall production increased
1,972 GWh to 29,842 GWh compared to 2012. </FONT></TD></TR></TABLE>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Consolidated Highlights</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings; color: black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">Comparable EBITDA increased
$79 million to $780 million compared to 2012. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">FFO decreased $22 million to $550
million compared to 2012 primarily due to differences in timing of cash proceeds associated with power hedges and coal inventories.</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable earnings were $80 million ($0.31 per
share), up from $62 million ($0.27 per share) in 2012. The increase in comparable earnings is primarily due to higher gross margins
from Renewables, Gas, and Energy Trading.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Reported net loss attributable to common shareholders
were $5 million ($0.02 net loss per share), up from net losses attributable to common shareholders of $654 million ($2.86 net loss
per share) in 2012. The change is driven by an increase in comparable gross margins and the following non-comparable amounts, net
of tax:</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in asset impairment charges of $342
million</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in impact of Sundance Units 1 and
2 return to service of $178 million</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in impact of write off of deferred
income tax assets of $129 million</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in gain on sale of collateral of
$11 million</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/150% Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 8pt Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in loss on assumption of pension
obligations of $22 million due to the assumption of mining operations at the Highvale Mine and related pension obligations for
mine employees</FONT></TD></TR></TABLE>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; text-align: justify; margin-right: 0; margin-left: 1in">&nbsp;</P>


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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following table depicts key financial
results and statistical operating data:<A HREF="#note_ftn1" NAME="notea_ftnref1" STYLE="font-size: 65%; vertical-align: 35%">1</A></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 21%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 33%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Availability (%)<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>85.9</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">90.9</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>83.1</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">88.1</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Adjusted availability (%)<SUP>(1),(2)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>85.9</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">91.7</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>86.4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">90.3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Production (GWh)<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11,088</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">10,155</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>29,842</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">27,870</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Revenues</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>623</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">522</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,705</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,564</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gross margin<SUP>(3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>363</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">331</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,057</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,056</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable gross margin<SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>374</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">371</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,117</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,074</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Operating income (loss)<SUP>(3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>118</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">132</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>277</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(93)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable operating income<SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>125</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">126</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>355</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">302</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net earnings (loss) attributable to common shareholders</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">56</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(5)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(654)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net earnings (loss) per share attributable to common</FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">shareholders, basic and diluted</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(0.03)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.24</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(0.02)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(2.86)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable net earnings per share<SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.15</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.18</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.31</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.27</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable EBITDA<SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>266</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">255</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>780</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">701</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Funds from operations<SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>174</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">233</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>550</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">572</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Funds from operations per share<SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.65</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1.00</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2.10</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2.50</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash flow from operating activities</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>253</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">14</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>601</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">275</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Free cash flow<SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>49</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">79</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>134</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">55</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Dividends paid per common share</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.29</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.29</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.87</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.87</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 48%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>As at</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt">&nbsp;</TD>
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30, 2013</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Dec. 31, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Total assets</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9,535 </B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9,462 </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Total long-term liabilities</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4,900 </B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4,729 </FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>AVAILABILITY
&amp; PRODUCTION</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Availability for the three and nine months
ended Sept. 30, 2013 decreased compared to the same periods in 2012 primarily due to higher unplanned outages at the Alberta coal
PPA facilities, primarily driven by the Keephills Unit 1 force majeure outage, partially offset by lower planned outages at the
Alberta coal PPA facilities.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">(<FONT STYLE="font: 6.5pt Arial, Helvetica, Sans-Serif"><B>[1]</B></FONT>)
Availability and production includes all generating assets (generation operations, finance leases, and equity investments).</P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">(2) Adjusted
for economic dispatching at Centralia Thermal.</P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">(3) These
items are Additional IFRS Measures. Refer to the Additional IFRS Measures section of this MD&amp;A for further discussion of these
items.</P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">(4) These items are not defined under IFRS. Presenting these items from period to period provides management
and investors with the ability to evaluate earnings trends more readily in comparison with prior periods&rsquo; results. Refer
to the Non-IFRS Measures section of this MD&amp;A for further discussion of these items, including, where applicable, reconciliations
to measures calculated in accordance with IFRS.</P>



<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Production for the three months ended Sept.
30, 2013 increased 933 GWh compared to the same period in 2012 primarily due to lower economic dispatching at Centralia Thermal,
lower planned outages at the Alberta coal PPA facilities, higher PPA customer demand, and lower market curtailments, partially
offset by higher unplanned outages at the Alberta coal PPA facilities, primarily driven by the Keephills Unit 1 force majeure outage.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
production increased 1,972 GWh compared to the same period in 2012 primarily due to lower economic dispatching at Centralia Thermal,
lower planned outages at the Alberta coal PPA facilities, higher PPA customer demand, and lower market curtailments, partially
offset by higher unplanned outages at the Alberta coal PPA facilities, primarily driven by the Keephills Unit 1 force majeure outage,
and higher planned and unplanned outages at Centralia Thermal.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>NET
EARNINGs attributable to common shareholders</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The primary factors contributing to the
change in net earnings attributable to common shareholders for the three and nine months ended Sept. 30, 2013 are presented below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 53%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 24%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="width: 23%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net earnings (loss) attributable to common shareholders, 2012</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">56</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(654)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in Generation comparable gross margins</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(35)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(40)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Mark-to-market movements and de-designations </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">on hedges - Generation</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">29</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(22)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in Energy Trading gross margins</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">38</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">63</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Increase) decrease in operations, maintenance, </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">and administration costs</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(10)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Increase) decrease in depreciation and amortization expense</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(2)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">8</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in gain on sale of assets</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">7</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in asset impairment charges (reversal)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(23)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">342</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Increase) decrease in coal inventory writedown</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(13)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">13</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in finance lease income</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">10</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">29</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in restructuring provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in equity income</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Decrease) increase in foreign exchange gains (losses)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(8)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in loss on assumption of pension obligations</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(29)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in net interest expense</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(7)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(8)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Increase) decrease in impact of Sundance Units 1 and 2 </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">return to service</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(8)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">239</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Increase) decrease in income tax expense</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(34)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">50</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in net earnings attributable to non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">10</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in preferred share dividends</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(7)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in reserve on collateral</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(15)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(15)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Net loss attributable to common shareholders, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(5)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Generation comparable gross margins for
the three and nine months ended Sept. 30, 2013, excluding the impact of mark-to-market movements on de-designations, decreased
by $35 million and $40 million, respectively, compared to the same periods in 2012, as there was lower contract pricing at Centralia
Thermal, higher unplanned outages at the Alberta coal PPA facilities, and unfavourable coal pricing at the Alberta PPA coal facilities,
partially offset by favourable coal pricing at Centralia Thermal, increased volumes due to lower market curtailments, and lower
planned outages at Alberta PPA coal facilities.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Mark-to-market movements for the three months
ended Sept. 30, 2013 increased compared to the same period in 2012 due to a decrease in losses, primarily resulting from lower
contracted volumes.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
mark-to-market movements decreased compared to the same period in 2012 due to increased average spot rates relative to the contracted
prices, offset by a decrease in contracted volumes.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three and nine months ended Sept.
30, 2013, Energy Trading gross margin increased compared to the same periods in 2012 due to strong trading performance across all
markets and prudent management of risk.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">OM&amp;A costs for the three months ended
Sept. 30, 2013 increased compared to the same period in 2012 primarily due to higher maintenance costs.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
OM&amp;A decreased compared to the same period in 2012 primarily due to lower compensation costs as a result of restructuring in
the fourth quarter of 2012 and a continued focus on managing costs.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Depreciation and amortization expense for
the nine months ended Sept. 30, 2013 decreased compared to the same period in 2012 primarily due to a lower depreciable base caused
by asset impairments, the change in the economic useful lives of Alberta coal-fired plants resulting from amendments to Canadian
federal regulations in 2012, and an increase in asset retirements, partially offset by an increased asset base in our mining and
thermal operations and the commencement of commercial operations at our New Richmond wind farm.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The increase in the gain on sale of assets
in the nine months ended Sept. 30, 2013 compared to the same period in 2012 is due to the sale of land during the second quarter
of 2013.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Asset impairment reversal for the three
months ended Sept. 30, 2013 decreased compared to the same period in 2012 primarily due to the reversal of asset impairment charges
recognized on Sundance Units 1 and 2 in 2012 due to the change in the economic useful life of these assets and the recognition
of lower reversals in 2013.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
asset impairment charges decreased compared to the same period in 2012 primarily due to the recognition of asset impairment charges
on the Centralia Thermal plant and assets within our renewables fleet in 2012 in order to write these assets down to their fair
values and a reversal of asset impairment charges in 2013.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">C<FONT STYLE="color: black">oal inventory
has been written down to its net realizable value at our Centralia plant.&nbsp; The writedown for the three months ended Sept.
30, 2013 is higher </FONT>compared to the same period in 2012 due to a decrease in the future power prices that will be realized
in the period the coal will be consumed.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">C<FONT STYLE="color: black">oal inventory
writedown for nine months ended Sept. 30, 2013 is lower compared to the same period in 2012 due to an increase in power prices
in the Pacific Northwest.</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">Finance lease
income for the three and nine months ended Sept. 30, 2013 increased compared to the same periods in 2012 due to </FONT>the acquisition
of the Solomon Power station. We began receiving lease payments in the fourth quarter of 2012.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The restructuring provision for the three
and nine months ended Sept. 30, 2013 decreased compared to the same periods in 2012 due to a reversal of the provision as a result
of a reduction in our total expected costs.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Equity income for the three months ended
Sept. 30, 2013 increased compared to the same period in 2012 primarily due to favourable pricing, partially offset by higher planned
and unplanned outages at CE Generation, LLC (&#8220;CE Gen&#8221;).</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Foreign exchange gains for the three months
ended Sept. 30, 2013 decreased compared to the same period in 2012 primarily due to unfavourable changes in foreign exchange rates
as a result of the strengthening U.S. dollar.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
foreign exchange losses decreased compared to the same period in 2012 due to fluctuations in foreign exchange rates on open foreign
denominated financial instruments and translation in relation to foreign subsidiaries.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Pension obligations for the nine months
ended Sept. 30, 2013 increased compared to the same period in 2012 due to assuming certain pension obligations during the first
quarter related to assuming operating and management control of the Highvale Mine.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net interest expense for the three and nine
months ended Sept. 30, 2013 increased compared to the same periods in 2013 due to higher debt levels, unfavourable foreign exchange,
and higher interest rates.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The impact of the Sundance Units 1 and 2
return to service increased during the three months compared to the same period in 2012 due to asset retirements recognized during
the third quarter of 2013 partially offset by legal recoveries recognized in the prior year.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
the impact of the Sundance Units 1 and 2 return to service decreased compared to the same period in 2012 as the result of the arbitration
ruling was recorded during the second quarter of 2012.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Income tax expense for the three months
ended Sept. 30, 2013 increased compared to the same period in 2012 due to the impact of the write off of deferred income tax assets.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
income tax expense decreased compared to the same period in 2012 due to the income tax effect on non-comparable items that were
recorded during the second quarter of 2012.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Non-controlling interests for the three
and nine months ended Sept. 30, 2013 decreased primarily due to lower earnings at TransAlta Cogeneration, L.P (&#8220;TA Cogen&#8221;).</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The preferred share dividends for the three
and nine months ended Sept. 30, 2013 increased compared to the same periods in 2012 due to a higher balance of preferred shares
outstanding during 2013.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In 2012, we sold our claim against MF Global
Inc. pertaining to the return of collateral, resulting in a gain.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">Funds
from operations AND FREE CASH FLOW</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">FFO
for the three and nine months ended Sept. 30, 2013 decreased $59 million and $22 million, respectively, compared to the same periods
in 2012 to $<FONT STYLE="color: black">174 million and $550 million, respectively, due to lower comparable net earnings after
adjusting for differences in timing of cash proceeds associated with power hedges and coal inventories.</FONT></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Free cash flow for the three months ended
Sept. 30, 2013 decreased $30 million compared to the same period in 2012 due to lower comparable net earnings partially offset
by lower cash dividends paid as a result of increased participation in the Premium Dividend<SUP>TM</SUP>, Dividend Reinvestment
and Optional Common Share Purchase Plan (the &#8220;Plan&#8221;) and lower sustaining capital expenditures.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
free cash flow increased $79 million compared to the same period in 2012 due to higher net earnings, lower cash dividends paid,
and lower sustaining capital expenditures.</P>


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<P STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">significant
Events</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Three months ended Sept. 30, 2013</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Salt River Project</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Sept. 17, 2013, we announced that CalEnergy,
a joint venture with MidAmerican Energy Holdings Company, executed a 50 MW long-term contract for renewable geothermal power with
Salt River Project, an Arizona utility, which runs from 2016 to 2039.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Ontario Power Authority</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Aug. 30, 2013, we announced the execution
of a new agreement for a 20-year power supply term with the Ontario Power Authority, for our Ottawa gas facility, which is effective
January, 2014.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Under the new deal the plant will become
dispatchable. This will assist in reducing the incidents of surplus baseload generation in the market, while maintaining the ability
of the system to reliably&nbsp;produce energy when it is needed.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">This new contract will benefit our shareholders
by providing long-term stable earnings from this facility and will benefit ratepayers of Ontario by securing attractively priced
capacity from this existing facility, reducing the need for new capacity to be built in the future and allowing hospitals in the
area to continue to be served with the steam they need for heat and other energy processes, in an environmentally friendly manner.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>TransAlta Renewables</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 150%">On May 28,
2013 we formed a new subsidiary, TransAlta Renewables, to provide investors with the opportunity to invest directly in a highly
contracted portfolio of renewable power </FONT>generation facilities. &nbsp;We retain control over TransAlta Renewables, and therefore
we consolidate TransAlta Renewables.&nbsp; As a result, any loans outstanding or transactions between the Corporation and TransAlta
Renewables are eliminated on consolidation in our financial statements.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>Transfer of Generating Assets</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Aug. 9, 2013, we transferred 28 indirectly
owned wind and hydroelectric generating assets to TransAlta Renewables through the sale of all the issued and outstanding shares
of two subsidiaries: Canadian Hydro Developers, Inc. and Western Sustainable Power Inc. As consideration for the transfer, we received:
i) 66.7 million common shares of TransAlta Renewables valued at $10 per share for total share consideration of $667 million; ii)
a Closing Note receivable in the amount of $187 million; iii) a Short Term Note receivable in the amount of $250 million; iv) an
Acquisition Note receivable in the amount of $30 million; and v) an Amortizing Loan receivable in the amount of $200 million.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>Initial Public Offering of Common Shares</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On July 31, 2013, TransAlta Renewables
filed a final prospectus to qualify the distribution of 20.0 million of its common shares, to be issued pursuant to the terms
of an Underwriting Agreement at a price of $10.00 per common share (the &quot;Offering&quot;). TransAlta Renewables granted
to the underwriters an option (the &quot;Over-Allotment Option&quot;), exercisable in whole or in part for a period of 30
days following Closing, to purchase, at the Offering price, up to an additional 3.0 million common shares (representing 15
per cent of the common shares offered under the prospectus).</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Aug. 29, 2013, TransAlta
Renewables completed the Offering and issued 20.0 million common shares for gross proceeds of $200 million. TransAlta
Renewables used the net proceeds of the Offering to repay the $187 million Closing Note issued to the Corporation. On Aug.
29, 2013, the underwriters exercised their Over-Allotment Option in part&nbsp;to purchase an additional 2.1 million common
shares at the offering price of $10.00 per common share for gross proceeds of $21.0 million. TransAlta Renewables used the
net proceeds received from the partial exercise of the Over-Allotment Option to repay a portion of the&nbsp;amount
outstanding under&nbsp;the Acquisition&nbsp;Note issued to TransAlta. The remaining principal amount
of $9.0&nbsp;million&nbsp;outstanding under the&nbsp;Acquisition Note after such payment has been converted into
0.9 million&nbsp;common shares of TransAlta Renewables on the basis of one common share for each $10.00 owing to
the Corporation&nbsp;under the&nbsp;Acquisition Note. After completion of the transactions, we own 92.6 million common
shares of TransAlta Renewables, representing an 80.7 per cent ownership interest. In total, we received $207 million in
cash consideration net of commissions and expenses.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Effective Aug. 9, 2013, the net earnings
and Total Comprehensive Income (loss) attributable to the 19.3 per cent divested interest are reflected in Net Earnings (loss)
Attributable to Non-controlling Interests and Total Comprehensive Income (loss) Attributable to Non-controlling Interests, respectively,
on the Condensed Consolidated Statement of Earnings and on the Condensed Consolidated Statement of Comprehensive Income (Loss),
respectively.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As at Sept. 30, 2013, the net assets attributable
to the 19.3 per cent divested interest are reflected in Equity Attributable to<BR>
Non-controlling Interests in the Condensed Consolidated Statement of Financial Position.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Asset Impairment Charges and Reversals</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>&nbsp;</I></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>Renewables</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three and nine months ended Sept.
30, 2013, we recognized a total pre-tax impairment charge of $4 million related to three contracted hydro assets within the renewables
fleet.&nbsp; The assets were impaired primarily due to an increase in future capital and operating expenses that resulted from
the completion of condition assessments.&nbsp; The annual impairment assessments are based on estimates of fair value less costs
to sell derived from long range forecasts.&nbsp; The impairment losses are included in the Generation Segment.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>&nbsp;</I></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>Alberta Merchant</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As part of the annual impairment review
and assessment process in 2013, it was determined that our Alberta plants that have significant merchant capacity, should be considered
one cash-generating unit (the &#8220;Alberta merchant CGU&#8221;).&nbsp; Previously, each plant was assessed for impairment individually.
The reasons for this change include consideration of the Final Regulations published by the Canadian federal government in September
2012 governing Greenhouse Gas (&#8220;GHG&#8221;) emissions and the 50-year total life for Canadian coal-fired power plants; and
the refinement of our risk management approach and practices regarding our Alberta wholesale market price exposure. The Final Regulations
confirmed additional operating time and increased flexibility for our Alberta coal plants and led, in part, to a broadening of
our view on the management of our Alberta wholesale market price exposure. While no impairment losses were recognized in 2013 for
the Alberta merchant CGU, total pre-tax impairment losses of $23 million that were recognized previously on renewables plants that
now form part of the Alberta merchant CGU were reversed. The Alberta merchant CGU&#8217;s recoverable amount was based on an estimate
of fair value less costs to sell using a discounted cash flow methodology and based on our long range forecasts and prices evidenced
in the market place. The pre-tax reversal is recognized in the Generation Segment.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>Centralia Thermal</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The TransAlta Energy Bill and a Memorandum
of Agreement was signed on Dec. 23, 2011 that provided a framework for the orderly transition from coal-fired energy produced at
Centralia Thermal and the shutdown of the units in 2020 and 2025. On July 25, 2012, we announced that we entered into a long-term
power agreement to provide electricity from the Centralia Thermal plant to PSE from December 2014 until the facility is fully
retired in 2025.&nbsp; As a result of these agreements, we recognized a pre-tax impairment charge of nil and $347 million included
in the Generation Segment during the three and nine months ended Sept. 30, 2012, respectively.&nbsp; The impairment assessment
was based on whether the carrying amount of the Centralia Thermal plant was recoverable based on an estimate of fair value less
costs to sell.&nbsp;</P>


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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In the third quarter of 2013 and the second
quarter of 2012, $40 million and $169 million, respectively, of deferred income tax assets were written off related to the tax
benefits of losses associated with our U.S. operations. We wrote these assets off as it was no longer considered probable that
sufficient taxable income would be available from our U.S. operations to utilize the underlying tax losses. &nbsp;An increase in
future US income will allow The Corporation to write up our deferred income tax assets in future periods.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>Reversals</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The impairment charges can be reversed in
future periods if the forecasted cash flows to be generated by the impacted plants improve.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Nine months ended Sept. 30, 2013</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Update on Hydro Facilities Due to Southern
Alberta Flooding</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">Following
extremely high rainfall and flooding during the second quarter in southern Alberta, we continue to safely and efficiently resolve
operational challenges related to our hydro systems. Three of the hydro facilities we operate in Alberta in the Bow River Basin
continue to be impacted by the flooding events and are currently being repaired. We have assessed any financial impact through
the third quarter&nbsp;and continue to believe that we have sufficient insurance coverage for this damage, subject to a $5 million
deductible.&nbsp; </FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>City of Riverside</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On June 18, 2013, we announced that CalEnergy
had executed an 86 MW long-term contract for renewable geothermal power with the City of Riverside which runs from 2016 to 2039.
CalEnergy will purchase the power from CE Gen&#8217;s portfolio of geothermal generating facilities in California&#8217;s Imperial
Valley.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Sundance Units 1 and 2 Return to Service</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In December 2010, Units 1 and 2 of our Sundance
facility were shut down due to conditions observed in the boilers at both units. On July 20, 2012, an arbitration panel concluded
that Unit 1 and Unit 2 were not economically destroyed under the terms of the PPA and we were required to restore the facility
to service. For the three and nine months ended Sept. 30, 2012, the pre-tax income statement impact of the ruling that has been
recorded under the caption &#8220;Sundance Units 1 and 2 return to service&#8221; in the Condensed Consolidated Statement of Earnings
(loss) was $7 million and $254 million, respectively.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the third quarter of 2013, $15 million
of components were retired as a result of the work completed on the Sundance Unit 1 to return it to service. Unit 1 returned to
service on Sept. 2, 2013. Sundance Unit 2 was returned to service on Oct. 4, 2013. We have issued notices to the buyers regarding
the cessation of the force majeure period for the two units.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Premium Dividend<SUP>TM</SUP> Program</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On May 8, 2013, we announced that as a result
of the current low share price environment, we would suspend the Premium Dividend&#8482; component of the Plan following the payment
of the quarterly dividend on July 1, 2013. Our Dividend Reinvestment and Optional Common Share Purchase Plan, separate components
of the Plan, remain effective in accordance with their current terms.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Keephills Unit 1</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">On March 5, 2013,
an outage occurred at Unit 1 of our Keephills facility due to a stator winding failure found in the generator. Upon completion
of the initial repair work, further condition testing and analysis identified greater winding degradation requiring a full rewind
of the generator stator. In response to the event, we gave notice of a High Impact Low Probability event and claimed force majeure
relief under the PPA. In the event of a force majeure, we are entitled to continue to receive our PPA capacity payment and are
protected under the terms of the PPA from having to pay availability penalties. As a result, we do not expect the outage to have
a material financial impact on the Corporation. The Unit was returned to service on Oct. 6, 2013. Arbitration on the matter began
during the quarter.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>New Richmond</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On March 13, 2013, our 68 MW New Richmond
wind farm began commercial operations. The total cost of the project remains at approximately $212 million. <FONT STYLE="color: black">The
total estimated spend for New Richmond is less than the amount incurred to date due to estimated recoveries to be received in 2013.
</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>SunHills Mining Limited Partnership</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Effective Jan. 17, 2013, we assumed, through
our wholly owned SunHills Mining Limited Partnership (&#8220;SunHills&#8221;), operations and management control of the Highvale
Mine from Prairie Mines and Royalty Ltd. (&#8220;PMRL&#8221;). PMRL employees working at the Highvale Mine were offered employment
by SunHills which agreed to assume responsibility for certain pension plan and pension funding obligations, which we previously
funded through the payments made under the PMRL mining contracts. A pre-tax loss of<BR>
$29 million was recognized during the first quarter, along with the corresponding liabilities.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We also entered into finance leases for
mining equipment that was in use, or committed to, by PMRL in mining operations. As a result, $4 million and $33 million in mining
equipment have been capitalized to PP&amp;E and the related finance lease obligations recognized during three and nine months ended
Sept. 30, 2013. At the end of the lease term, we are eligible to purchase the assets, for a nominal amount.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Change in Estimates - Useful Lives</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the first quarter, management completed
a comprehensive review of the estimated useful lives of our hydro assets, having regard for, among other things, our economic life
cycle maintenance program and the existing condition of the assets. As a result, depreciation was reduced by $2 million and $4
million for the three and nine months ended Sept. 30, 2013, respectively. Pre-tax depreciation expense is expected to be reduced
by $5 million for the year ended Dec. 31, 2013 and by $5 million annually thereafter.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Centralia Coal Inventory Writedown </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three and nine months ended Sept.
30, 2013, we recognized a pre-tax writedown of $5 million and $21 million, respectively, related to the coal inventory at our Centralia
plant to write the inventory down to its net realizable value.<STRIKE> </STRIKE></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">Subsequent
events</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Western Australia Contract Extension</I></B></P>

<P STYLE="color: #1F497D; font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Oct<FONT STYLE="color: #1F497D">.</FONT>
30, 2013, we announced a long-term contract extension to supply power to the BHP Billiton Nickel West operations in Western Australia
from our Southern Cross Energy facilities (&#8220;Southern Cross&#8221;).&nbsp; The extension is effective immediately and replaces
the previous contract which was set to expire at the beginning of 2014.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Operating since 1996, Southern Cross has
a total installed capacity of 245 MW from the Kambalda, Mt. Keith, Leinster, and Kalgoorlie power stations.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Acquisition by TransAlta Renewables</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">On
Oct. 21, 2013, TransAlta Renewables announced the acquisition,</FONT><FONT STYLE="font: 10.5pt Verdana, Helvetica, Sans-Serif; color: #545555">
</FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">through one of our wholly owned subsidiaries, of an economic interest
in a 144 MW wind farm in Wyoming for approximately U.S.$102 million from an affiliate of NextEra Energy Resources, LLC. &nbsp;The
wind farm is fully operational and contracted under a long-term PPA until 2028 with an investment grade counterparty. &nbsp;At
closing, the economic interest in the wind farm will be acquired by TransAlta Renewables from the Corporation in consideration
for a payment equal to the original purchase price of the acquisition.&nbsp; We will extend a U.S.$102 million loan to TransAlta
Renewables to fund the acquisition. TransAlta Renewables expects to repay the loan with free cash flow from operations over the
first 36 months and through a long-term debt refinancing that is expected to be completed in conjunction with other financing needs
of TransAlta Renewables. </FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The acquisition is subject to regulatory
approvals and is expected to close by the end of December 2013.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The acquisition is expected to be accretive
to cash flow per share for both the Corporation and TransAlta Renewables.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">BUSINESS
environment</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We operate in a variety of business environments
to generate electricity, find buyers for the power we generate, and arrange for its transmission. The major markets we operate
in are Western Canada, the Western United States (&#8220;U.S.&#8221;), and Eastern Canada. For a further description of the regions
in which we operate as well as the impact of prices of electricity and natural gas upon our financial results, refer to our 2012
Annual MD&amp;A.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Contracted Cash Flows</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the third quarter of 2013, approximately
90 per cent of our consolidated power portfolio was contracted through the use of PPAs and other long-term contracts. We also entered
into short-term physical and financial contracts for the remaining volumes, which are primarily for periods of up to five years.
The average prices of these contracts for the balance of 2013 are approximately $60 per megawatt hour (&#8220;MWh&#8221;) in Alberta
and approximately U.S.$40 per MWh in the Pacific Northwest.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Electricity Prices</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Please refer to the Business Environment
section of our 2012 Annual MD&amp;A for a full discussion of the spot electricity market and the impact of electricity prices on
our business, as well as our strategy to hedge our risks associated with changes in these prices.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The average spot electricity prices for
the three and nine months ended Sept. 30, 2013 and 2012 in our three major markets are shown in the following graphs.</P>

<P STYLE="font: 11pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><IMG SRC="image_005.gif" ALT="" STYLE="height: 259px; width: 459px"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><IMG SRC="image_006.gif" ALT="" STYLE="height: 290px; width: 464px"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three and nine months ended Sept.
30, 2013, average spot prices in Alberta increased compared to the same periods in 2012 primarily due to tighter supply and demand
growth. In the Pacific Northwest, average spot prices increased due to higher natural gas prices and lower hydro generation.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">Average spot
prices in Ontario for the three months ended Sept. 30, 2013 decreased compared to the same period in 2012 due to an increase in
supply </FONT>as a result of nuclear generating plants returning to service during the fourth quarter of 2012. For the nine months
ended Sept. 30, 2013, average spot prices in Ontario increased compared to 2012 due to higher natural gas prices, which was partially
offset by an increase in supply as a result of nuclear generating plants returning to service.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">Over the balance
of 2013, power </FONT>prices in Alberta are expected to be weaker than 2012 with additional coal-fired generation online. However,
prices can vary based on supply and weather conditions. In the Pacific Northwest, we expect prices to be significantly stronger
than in 2012; however, we expect that overall prices will still remain relatively weak due to low<FONT STYLE="color: black"> natural
gas prices and slow load growth.</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Spark Spreads&#9;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Please refer to the Business Environment
section of our 2012 Annual MD&amp;A for a full discussion of spark spreads and the impact of spark spreads on our business.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The average spark spreads for the three
and nine months ended Sept. 30, 2013 and 2012 in our three major markets are shown in the following graphs.</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><IMG SRC="image_007.gif" ALT="" STYLE="height: 260px; width: 453px"></P>

<P STYLE="font: 12pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 6.5pt"><I>(1)</I></FONT><I><FONT STYLE="font-size: 7pt">
For a 7,000 British Thermal Units per Kilowatt hour heat rate plant.</FONT></I></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><IMG SRC="image_008.gif" ALT="" STYLE="height: 242px; width: 453px"></P>

<P STYLE="font: 12pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 6.5pt"><I>(1)</I></FONT><I><FONT STYLE="font-size: 7pt">
For a 7,000 British Thermal Units per Kilowatt hour heat rate plant.</FONT></I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three and nine months ended Sept.
30, 2013, average spark spreads increased in Alberta compared to the same periods in 2012 due to higher power prices driven by
tighter supply. In the Pacific Northwest, average spark spreads increased due to higher power prices driven by lower hydro generation.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three months ended Sept. 30, 2013,
average spark spreads decreased in Ontario compared to the same period in 2012 due to lower power prices driven by an increase
in supply as a result of nuclear generating plants returning to service during the fourth quarter of 2012. Average spark spreads
in Ontario decreased for the nine months ended Sept. 30, 2013 compared to the same period in 2012 due to natural gas prices rising
faster than power prices.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>GENERATION:
</B></FONT>TransAlta owns and operates hydro, wind, natural gas-fired and coal-fired facilities, and related mining operations
in Canada, the U.S., and Australia. Generation revenues and overall profitability are derived from the availability and production
of electricity and steam as well as ancillary services such as system support. For a full listing of all of our generating assets
and the regions in which they operate, refer to the Plant Summary section of our 2012 Annual MD&amp;A. </P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Generation Operations: During the first quarter
of 2013, we began commercial operations at New Richmond, a 68 MW wind farm in Qu&eacute;bec. During the third quarter, we completed
the restoration of Sundance Unit 1. At Sept. 30, 2013, our generating assets had 8,553 MW of gross generating capacity<SUP>(1</SUP><A
HREF="#note_ftn2"
NAME="notea_ftnref2" STYLE="font-size: 65%; vertical-align: 35%"></A><SUP>)</SUP> in operation (8,211 MW net ownership interest)
and 280 MW under restoration in the Sundance Units 1 and 2 major project. The following information excludes assets that are accounted
for as a finance lease or using the equity method, which are discussed separately within this discussion of the Generation Segment.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>&nbsp;</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The results of Generation Operations are
as follows:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>adjustments<SUP>(2)</SUP></B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>total<SUP>(2)</SUP></B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Per installed </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>MWh</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable</FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">total<SUP>(2)</SUP></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Per installed </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">MWh</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Revenues</FONT></TD>
    <TD NOWRAP STYLE="width: 27%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>601</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>612</B></FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>32.40</B></FONT></TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">598</FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">32.98</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Fuel and purchased power</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>260</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>260</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>13.77</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">211</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">11.64</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Gross margin</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>341</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>352</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>18.63</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">387</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">21.34</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Operations, maintenance, and administration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>103</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(4)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>99</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5.24</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">88</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4.85</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Depreciation and amortization</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>118</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>118</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6.25</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">117</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">6.45</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Asset impairment reversals</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>18</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Inventory writedown</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.26</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Restructuring provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Taxes, other than income taxes</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.37</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">8</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.44</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Intersegment cost allocation</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.21</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.17</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Operating income</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>123</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(4)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>119</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6.30</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">171</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9.43</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Installed capacity (GWh)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>18,886</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>18,886</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">18,134</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Production (GWh)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>10,606</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>10,606</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9,562</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Availability (%)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>85.7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>85.7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">90.5</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Adjusted availability (%)<SUP>(3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>85.7</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>85.7</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">91.4</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="font-style: normal">(<FONT STYLE="font: 6.5pt Arial, Helvetica, Sans-Serif">1</FONT>)
We measure capacity as net maximum capacity (see glossary for definition of this and other key terms), which is consistent with
industry standards. Capacity figures represent capacity owned and in operation unless otherwise stated. </FONT></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="font-style: normal">(2)
Comparable figures are not defined under IFRS. Refer to the Non-IFRS Measures section of this MD&amp;A for further discussion of
these items, including, where applicable, reconciliations to net earnings attributable to common shareholders and cash flow from
operating activities.</FONT></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="font-style: normal">(3) Adjusted for economic dispatching at Centralia Thermal</P>



<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify"><A HREF="#note_ftn3" NAME="notea_ftnref3" STYLE="font-size: 65%; vertical-align: 35%"></A></P>


<!-- Field: Page; Sequence: 16 -->
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    <!-- Field: /Page -->

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>adjustments</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>total</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Per installed </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>MWh</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable</FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">total</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Per installed </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">MWh</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Revenues</FONT></TD>
    <TD NOWRAP STYLE="width: 27%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,652</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>60</B></FONT></TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,712</B></FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>31.24</B></FONT></TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,632</FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">30.27</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Fuel and purchased power</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>648</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>648</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11.82</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">528</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9.79</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Gross margin</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,004</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>60</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,064</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>19.42</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,104</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">20.48</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Operations, maintenance, and administration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>308</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(5)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>303</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5.53</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">292</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5.42</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Depreciation and amortization</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>365</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>365</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6.66</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">375</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">6.95</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Asset impairment reversals</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>18</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Inventory writedown</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>21</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>21</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.38</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.17</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Restructuring provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Taxes, other than income taxes</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>22</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>22</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.40</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">22</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.41</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Intersegment cost allocation</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.20</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">10</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.19</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Operating income</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>297</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>45</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>342</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6.25</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">396</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">7.34</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Installed capacity (GWh)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>54,800</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>54,800</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">53,922</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Production (GWh)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>28,310</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>28,310</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">26,327</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Availability (%)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>82.7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>82.7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">87.7</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Adjusted availability (%)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>86.1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>86.1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">89.9</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The outages at Centralia Thermal did not
negatively impact our gross margins for nine months ended Sept. 30, 2013 as we were able to extend our planned outages to take
advantage of lower market prices to purchase power on the market to fulfill our power contracts. Generation availability, after
adjusting for economic dispatching at Centralia Thermal, was 86.1 per cent for the nine months ended Sept. 30, 2013. For the three
and nine months ended Sept. 30, 2012, Generation availability, after adjusting for economic dispatching, was 91.4 per cent and
89.9 per cent, respectively.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Generation Operations Production and
Comparable Gross Margins</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Production volumes, comparable revenues,
fuel and purchased power expenses, and comparable gross margins based on geographical regions and fuel types are presented below.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 18%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30, 2013</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Production (GWh)</B></FONT></TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Installed (GWh)</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable revenues</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable fuel &amp; purchased power</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable </B></FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>gross margin</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable revenues per </B></FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>installed MWh</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable fuel &amp; purchased power per installed MWh</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable </B></FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>gross margin per </B></FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>installed MWh</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>5,141</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>7,710</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>249</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>117</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>132</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>32.30</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>15.18</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>17.12</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>691</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>786</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>29</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>6</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>23</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>36.90</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>7.63</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>29.27</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Renewables</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>842</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2,953</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>67</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>63</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>22.69</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1.35</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>21.34</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total Western Canada</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>6,674</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>11,449</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>345</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>127</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>218</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>30.13</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>11.09</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>19.04</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>855</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1,656</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>94</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>46</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>48</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>56.76</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>27.78</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>28.98</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Renewables</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>297</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1,610</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>30</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>28</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>18.63</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1.24</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>17.39</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total Eastern Canada</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1,152</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>3,266</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>124</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>48</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>76</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>37.97</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>14.70</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>23.27</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2,421</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2,961</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>110</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>72</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>38</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>37.15</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>24.32</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>12.83</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>359</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1,210</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>33</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>13</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>20</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>27.27</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>10.74</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>16.53</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total International</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2,780</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>4,171</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>143</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>85</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>58</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>34.28</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>20.38</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>13.90</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>10,606</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>18,886</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>612</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>260</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>352</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>32.40</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>13.77</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>18.63</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 19%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">3 months ended Sept. 30, 2012</FONT></TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Production (GWh)</FONT></TD>
    <TD STYLE="width: 7%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Installed (GWh)</FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable revenues</FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">fuel &amp; </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">purchased </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">power</FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable gross margin</FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable revenues per </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">installed MWh</FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable fuel </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">&amp; purchased </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">power per </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">installed MWh</FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">gross margin per </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">installed MWh</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">4,985</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">7,110</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">270</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">107</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">163</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">37.97</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">15.05</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">22.92</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">633</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">786</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">28</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">5</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">23</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">35.62</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">6.36</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">29.26</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Renewables</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,051</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2,953</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">67</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">3</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">64</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">22.69</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1.02</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">21.67</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total Western Canada</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">6,669</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">10,849</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">365</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">115</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">250</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">33.64</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">10.60</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">23.04</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,036</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,656</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">86</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">41</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">45</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">51.93</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">24.76</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">27.17</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Renewables</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">260</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,458</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">25</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">24</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">17.15</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">0.69</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">16.46</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total Eastern Canada</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,296</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">3,114</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">111</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">42</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">69</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">35.65</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">13.49</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">22.16</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,242</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2,961</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">95</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">46</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">49</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">32.08</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">15.54</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">16.54</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">355</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,210</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">27</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">8</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">19</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">22.31</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">6.61</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">15.70</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total International</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,597</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">4,171</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">122</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">54</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">68</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">29.25</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">12.95</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">16.30</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">9,562</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">18,134</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">598</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">211</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">387</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">32.98</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">11.64</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">21.34</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 18 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 18%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30, 2013</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Production (GWh)</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Installed (GWh)</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable revenues</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable fuel &amp; purchased power</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable </B></FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>gross margin</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable revenues per </B></FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>installed MWh</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable fuel &amp; purchased power per installed MWh</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable </B></FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>gross margin per </B></FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>installed MWh</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>14,925</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>21,639</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>664</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>309</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>355</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>30.69</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>14.28</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>16.41</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1,921</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2,333</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>97</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>21</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>76</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>41.58</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>9.00</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>32.58</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Renewables</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2,435</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>8,763</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>211</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>200</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>24.08</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1.26</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>22.82</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total Western Canada</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>19,281</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>32,735</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>972</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>341</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>631</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>29.69</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>10.42</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>19.27</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2,650</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>4,913</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>295</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>143</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>152</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>60.04</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>29.11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>30.93</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Renewables</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1,119</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>4,775</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>113</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>108</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>23.66</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1.05</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>22.61</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total Eastern Canada</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>3,769</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>9,688</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>408</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>148</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>260</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>42.11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>15.28</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>26.83</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>4,231</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>8,786</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>233</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>121</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>112</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>26.52</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>13.77</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>12.75</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1,029</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>3,591</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>99</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>38</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>61</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>27.57</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>10.58</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>16.99</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total International</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>5,260</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>12,377</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>332</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>159</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>173</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>26.82</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>12.85</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>13.97</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>28,310</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>54,800</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1,712</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>648</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1,064</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>31.24</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>11.82</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>19.42</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 7pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 19%; border-bottom: windowtext 1pt solid; font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><BR CLEAR="ALL" STYLE="page-break-before: always">
<BR CLEAR="ALL" STYLE="page-break-before: always">
 <FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">9 months ended Sept. 30, 2012</FONT></TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Production (GWh)</FONT></TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Installed (GWh)</FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable revenues</FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">fuel &amp; </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">purchased </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">power</FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable gross margin</FONT></TD>
    <TD STYLE="width: 10%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable revenues per </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">installed MWh</FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable fuel </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">&amp; purchased </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">power per </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">installed MWh</FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Comparable </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">gross margin per </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">installed MWh</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">14,980</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">21,086</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">695</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">273</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">422</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">32.96</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">12.95</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">20.01</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,883</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2,342</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">80</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">15</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">65</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">34.16</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">6.40</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">27.76</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Renewables</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2,737</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">8,795</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">162</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">9</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">153</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">18.42</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1.02</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">17.40</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total Western Canada</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">19,600</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">32,223</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">937</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">297</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">640</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">29.08</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">9.22</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">19.86</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2,997</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">4,932</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">271</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">121</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">150</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">54.95</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">24.53</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">30.42</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Renewables</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,055</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">4,344</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">102</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">5</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">97</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">23.48</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1.15</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">22.33</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total Eastern Canada</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">4,052</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">9,276</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">373</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">126</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">247</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">40.21</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">13.58</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">26.63</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,646</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">8,819</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">240</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">83</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">157</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">27.21</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">9.41</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">17.80</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,029</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">3,604</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">82</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">22</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">60</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">22.75</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">6.10</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">16.65</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Total International</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2,675</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">12,423</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">322</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">105</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">217</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">25.92</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">8.45</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">17.47</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">26,327</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">53,922</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,632</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">528</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1,104</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">30.27</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">9.79</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">20.48</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 19 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>Western Canada</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our Western Canada assets consist of coal,
natural gas, hydro, and wind facilities. Refer to the Discussion of Segmented Results section<I> </I>of our 2012 Annual MD&amp;A
for further details on our Western Canadian operations.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The primary factors contributing to the
change in production for the three and nine months ended Sept. 30, 2013 are presented below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 7pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD>
    <TD COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(GWh)</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(GWh)</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Production, 2012</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">6,669</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">19,600</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Higher unplanned outages at the Alberta coal PPA facilities, primarily driven </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">by the Keephills Unit 1 force majeure outage</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1,065)</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(2,467)</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower hydro volumes</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(195)</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(248)</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower wind volumes</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(13)</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(54)</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increased volumes due to lower market curtailments</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">497</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">801</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower planned outages at the Alberta coal facilities</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">337</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">799</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Higher PPA customer demand</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">391</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">730</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Higher) lower unplanned outages at Genesee Unit 3 and Keephills Unit 3</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(20)</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">60</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Higher production at natural gas-fired facilities</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">58</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">38</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">15</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">22</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 8pt; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Production, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6,674</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 8pt; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>19,281</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 66%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 15%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 14%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The primary factors contributing to the
change in comparable gross margin<SUP> </SUP>for the three and nine months ended Sept. 30, 2013 are presented below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 65%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 3%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD>
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable gross margin, 2012</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">250</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">640</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Pricing, net of unrealized mark-to-market movements and provisions</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(28)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(35)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Unfavourable coal pricing</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(14)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(29)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Higher unplanned outages at the Alberta coal PPA facilities, primarily driven </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">by the Keephills Unit 1 force majeure outage</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(11)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(16)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increased volumes due to lower market curtailments</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">24</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">38</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower planned outages at the Alberta coal facilities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">16</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">35</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Lower) higher hydro margins</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(12)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Higher) lower unplanned outages at Genesee Unit 3 and Keephills Unit 3</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(2)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(5)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(13)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable gross margin, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>218</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>631</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 20 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>Eastern Canada</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our Eastern Canada assets consist of natural
gas, hydro, and wind facilities. Refer to the Discussion of Segmented Results section of our 2012 Annual MD&amp;A for further details
on our Eastern Canadian operations.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The primary factors contributing to the
change in production for the three and nine months ended Sept. 30, 2013 are presented below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 66%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 17%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD>
    <TD STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(GWh)</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(GWh)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Production, 2012</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,296</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4,052</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Curtailments at natural gas-fired facilities</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(242)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(355)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower wind volumes</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(10)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(18)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Commencement of commercial operations at New Richmond</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">33</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">76</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower planned and unplanned outages at natural gas-fired facilities</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">60</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">8</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Higher hydro volumes</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">13</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">6</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Production, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,152</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3,769</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The primary factors contributing to the
change in gross margin for the three and nine months ended Sept. 30, 2013 are presented below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 66%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD>
    <TD STYLE="width: 16%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gross margin, 2012</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">69</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">247</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Commencement of commercial operations at New Richmond</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower wind volumes</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Favourable contracted gas input costs</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Gross margin, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>76</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>260</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>International</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our International assets consist of coal,
natural gas, and hydro facilities in various locations in the U.S., and natural gas and diesel assets in Australia. Refer to the
Discussion of Segmented Results section of our 2012 Annual MD&amp;A for further details on our International operations.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The primary factors contributing to the
change in production for the three and nine months ended Sept. 30, 2013 are presented below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 64%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 18%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD>
    <TD STYLE="width: 15%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(GWh)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(GWh)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Production, 2012</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,597</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2,675</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower economic dispatching at Centralia Thermal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,038</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3,092</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower (higher) planned and unplanned outages at Centralia Thermal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">145</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(501)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(6)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Production, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2,780</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5,260</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 21 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The primary factors contributing to the
change in comparable gross margin<SUP> </SUP>for the three and nine months ended Sept. 30, 2013 are presented below:</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 65%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD>
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable gross margin, 2012</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">68</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">217</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower contract pricing, including margins on purchased power</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(30)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(90)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Coal pricing<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">13</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">35</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Higher fuel costs at natural gas-fired facilities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(3)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(3)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Costs recovered through revenue at natural gas-fired facilities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Solomon pass through revenue - offset in OM&amp;A</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">6</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable gross margin, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>58</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>173</B></FONT></TD></TR>
</TABLE>



<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three and nine months ended Sept.
30, 2013, we recognized a pre-tax writedown of $5 million and $21 million, respectively, related to the coal inventory at our Centralia
plant to write the inventory down to its net realizable value.<STRIKE> </STRIKE></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Comparable Operations, Maintenance, and
Administration Expense </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Comparable OM&amp;A expense for the three
and nine months ended Sept. 30, 2013 increased $11 million and $11 million, respectively, compared to the same periods in 2012,
primarily due to <FONT STYLE="color: black">higher maintenance costs in the third quarter and lower expense recoveries.</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>Depreciation and Amortization Expense</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The primary factors contributing to the
change in depreciation and amortization expense for the three and nine months ended<BR>
Sept. 30, 2013 are presented below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 63%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 19%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD>
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Depreciation and amortization expense, 2012</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">117</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">375</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impact of lower asset base due to asset impairments</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(15)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Change in economic life<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(9)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in asset retirements</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(8)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Change in useful lives of hydro assets</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(2)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(4)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in asset base</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">19</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">7</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Depreciation and amortization expense, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>118</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>365</B></FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="font-style: normal">(1)
Coal price includes the impact of the inventory writedown which is not included in gross margin. </FONT></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="font-style: normal">(1) As a result of amendments to Canadian federal regulations requiring that coal-fired plants be shut down
after a maximum of 50 years of operation. The previous draft regulations proposed shut down after 45 years. The useful lives of
these assets were changed in the third quarter of 2012.</P>



<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"><A HREF="#note_ftn5" NAME="notea_ftnref5" STYLE="font-size: 65%; vertical-align: 35%"></A>
</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Finance Leases</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Solomon</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Sept. 28, 2012, we completed the acquisition
from Fortescue Metals Group Ltd. (&#8220;Fortescue&#8221;) of its 125 MW natural gas-fired and diesel-fired Solomon power station
in Western Australia for U.S.$318 million. The facility and associated Power Purchase Agreement (&#8220;Agreement&#8221;) are accounted
for as a finance lease and we began receiving payments under the Agreement in the fourth quarter of 2012. The facility is currently
under construction and is expected to be commissioned during the fourth quarter of 2013.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Fort Saskatchewan</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Fort Saskatchewan is a natural gas-fired
facility with a gross generating capacity of 118 MW in operation, of which TransAlta Cogeneration, L.P. has a 60 per cent ownership
interest (35 MW net ownership interest). Key operational information adjusted to reflect our interest in the Fort Saskatchewan
facility, which we continue to operate, is summarized below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 37%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Availability (%)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>81.7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">92.1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>93.7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">88.1</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Production (GWh)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>104</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">113</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>368</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">332</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Availability for the three months ended
Sept. 30, 2013 decreased compared to the same period in 2012 due to higher planned outages, partially offset by lower unplanned
outages.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
availability increased compared to the same period in 2012 due to lower planned and unplanned outages.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Production for the three months ended Sept.
30, 2013 decreased compared to the same period in 2012 due to higher planned outages, partially offset by lower unplanned outages
and increased customer demand.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
production increased compared to the same period in 2012 due to lower planned and unplanned outages and increased customer demand.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Total Finance Lease Income</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Total finance lease income for the three
and nine months ended Sept. 30, 2013 increased $10 million and $29 million, respectively, compared to the same periods in 2012
due to the payments we began receiving in October 2012 under the Agreement with Fortescue.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B><I>Equity Investments</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our investments in joint ventures are accounted
for using the equity method and consist of our investments in CE Gen, Wailuku River Hydroelectric, L.P, TAMA Transmission, and
CalEnergy.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our interests in the CE Gen and Wailuku
River Hydroelectric, L.P. joint ventures are comprised of geothermal, natural gas, and hydro facilities in various locations throughout
the U.S., with 839 MW of gross generating capacity (390 MW net ownership interest). The table below summarizes key operational
information adjusted to reflect our interest in these investments:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 37%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Availability (%)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>91.5</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">96.8</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>90.1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">94.3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Production (GWh)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>93</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">155</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>301</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">290</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Renewables</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>285</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">325</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>863</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">921</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total production</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>378</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">480</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,164</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,211</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Availability for the three and nine months
ended Sept. 30, 2013 decreased compared to the same periods in 2012 due to higher unplanned outages.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
availability decreased compared to the same periods in 2012 due to higher planned and unplanned outages.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Production for the three months ended Sept.
30, 2013 decreased compared to the same period in 2012 due to higher unplanned outages and lower customer demand.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
production decreased compared to the same period in 2012 due to higher planned and unplanned outages, partially offset by higher
customer demand.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Equity income for the three months ended
Sept. 30, 2013 was $2 million compared to nil for the same period in 2012. The increase is primarily due to favourable pricing,
partially offset by higher unplanned outages.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
equity loss was comparable to the same period in 2012.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Since 2001, a significant portion of the
CE Gen plants have been operating under modified fixed energy price contracts.&nbsp; Commencing May 1, 2012, the terms of the contracts
reverted to a pricing clause that permits the power purchaser to pay their short-run avoided costs (&#8220;SRAC&#8221;) as the
price for power.&nbsp; The SRAC is linked to the price of natural gas.&nbsp; There can be no assurances that prices based on the
avoided cost of energy after May 1, 2012 will result in revenues equivalent to those realized under the fixed energy price structure.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Sept. 17, 2013, we announced that CalEnergy,
a joint venture with MidAmerican Energy Holdings Company, executed a 50 MW long-term contract for renewable geothermal power with Salt River Project, an Arizona utility, which runs from 2016 to 2039.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On June 18, 2013, we also announced that
CalEnergy had executed an 86 MW long-term contract for renewable geothermal power with the City of
Riverside which runs from 2016
to 2039. CalEnergy will purchase the power from CE Gen&#8217;s portfolio of geothermal generating facilities in California&#8217;s
Imperial Valley.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>ENERGY
TRADING:</B></FONT> Derives revenue and earnings from the wholesale trading of electricity and other energy-related commodities
and derivatives. Achieving gross margins, while remaining within Value at Risk (&#8220;VaR&#8221;) limits, is a key measure of
Energy Trading&#8217;s activities. Refer to the Value at Risk and Trading Positions discussion in the Risk Management section
of our 2012 Annual MD&amp;A for further discussion on VaR.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Energy Trading utilizes contracts of various
durations for the forward purchase and sale of electricity and for the purchase and sale of natural gas and transmission capacity.
If the activities are performed on behalf of the Generation Segment, the results of these activities are included in the Generation
Segment.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For a more in-depth discussion of our Energy
Trading activities, refer to the Discussion of Segmented Results section of our 2012 Annual MD&amp;A.<I> </I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The results of the Energy Trading Segment,
with all trading results presented on a net basis, are as follows:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 48%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Revenues</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>22</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(16)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>53</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(10)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Fuel and purchased power</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Gross margin</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>22</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(16)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>53</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(10)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Operations, maintenance, and administration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">7</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>23</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">21</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Intersegment cost allocation</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(4)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(3)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(11)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(10)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Operating income (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>17</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(20)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>41</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(21)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three and nine months ended Sept.
30, 2013, Energy Trading gross margins increased compared to the same periods in 2012 due to strong trading performance across
all markets and prudent management of risk.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">OM&amp;A expense for the three and nine
months ended Sept. 30, 2013 was comparable to the same periods in 2012.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>CORPORATE:</B></FONT>
<FONT STYLE="color: black"><I>Our Generation and Energy Trading Segments are supported by a Corporate group that provides finance,
tax, treasury, legal, regulatory, environmental, health and safety, sustainable development, corporate communications, government
and investor relations, information technology, risk management, human resources, internal audit, and other administrative support.</I></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The expenses incurred by the Corporate Segment
are as follows:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 31%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 5%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable adjustments</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable total</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 5%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable adjustments</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Comparable total</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Operations, maintenance, and administration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>16</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>16</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">21</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>45</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>45</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">63</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Depreciation and amortization</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>6</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>6</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">5</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>17</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>17</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">15</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Restructuring provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Operating loss</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>22</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>22</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">26</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>61</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt; font-weight: bold"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>62</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">78</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">OM&amp;A expense for the three and nine
months ended Sept. 30, 2013 decreased compared to the same periods in 2012 primarily due to lower compensation costs as a result
of restructuring in the fourth quarter of 2012 and a continued focus on managing costs.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>


<!-- Field: Page; Sequence: 25 -->
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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>NET
INTEREST EXPENSE </B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The components of net interest expense are
shown below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 30%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Interest on debt</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>61</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">54</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>179</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">168</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Capitalized interest</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(2)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Ineffectiveness on hedges</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Interest expense</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>61</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">53</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>177</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">168</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Accretion of provisions</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>13</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">14</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Net interest expense</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>65</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">58</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>190</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">182</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The change in net interest expense for the
three and nine months ended Sept. 30, 2013,<FONT STYLE="color: black"><B> </B></FONT>compared to the same periods in 2012, is shown
below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 18%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD>
    <TD STYLE="width: 16%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net interest expense, 2012</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">58</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">182</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Higher debt levels</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Unfavourable foreign exchange impacts</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Higher financing costs</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Higher interest rates</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower capitalized interest</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower ineffectiveness on hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(2)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Lower accretion</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Net interest expense, 2013</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>65</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>190</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 26 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>INCOME
TAXES</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A reconciliation of income taxes and effective
tax rates on earnings, excluding non-comparable items, is presented below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 51%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Earnings (loss) before income taxes</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>45</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">85</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>80</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(517)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Income) loss attributable to non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(7)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(16)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(25)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Equity (income) loss</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts associated with certain de-designated and </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">ineffective hedges</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">60</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>60</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">58</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Asset impairment charges (reversal)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(41)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">324</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Inventory writedown (reversal)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(28)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Restructuring provision</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gain on sale of assets</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(10)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(3)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Sundance Units 1 and 2 return to service</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>15</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">7</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>15</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">254</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gain on sale of collateral</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(15)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(15)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Loss on assumption of pension obligations</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>29</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other non-comparable items</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Earnings attributable to TransAlta shareholders,</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>excluding non-comparable items, subject to tax</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>57</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">63</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>147</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">89</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax expense</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>48</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">14</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>41</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">91</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax recovery related to impacts associated with</FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">certain de-designated and ineffective hedges</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">21</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>21</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">20</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax expense related to asset impairment charges </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(reversals)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(5)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(10)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(5)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(5)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax recovery (expense) related to inventory </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">writedown (reversal)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(10)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax expense related to restructuring provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax expense related to gain on sale of assets</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax recovery related to Sundance Units 1 and 2 </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">return to service</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">65</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax expense related to gain on sale of collateral</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(4)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(4)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax expense related to write off of deferred</FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">income tax assets</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(40)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(40)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(169)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax recovery related to deferred tax rate adjustment</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax recovery related to the resolution of certain </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">outstanding tax matters</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax expense related to changes in corporate</FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">income tax rates</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(8)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax recovery related to loss on assumption of </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">pension obligations</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax recovery related to other non-comparable items</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Income tax expense excluding non-comparable items</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">14</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>34</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Effective tax rate on earnings attributable to TransAlta</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>shareholders excluding non-comparable items (%)</B></FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>19</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">22</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>23</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The income tax expense excluding non-comparable
items for the three months ended Sept. 30, 2013 decreased compared to the same period in 2012 due to lower comparable earnings.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The income tax expense excluding non-comparable
items for the nine months ended Sept. 30, 2013 increased compared to the same period in 2012 due to higher comparable earnings
and the positive resolution of certain tax contingency matters in the prior period.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The effective tax rate on earnings attributable
to TransAlta shareholders excluding non-comparable items for the three months ended Sept. 30, 2013 decreased compared to the same
period in 2012 due to changes in the amount of earnings between the jurisdictions in which pre-tax income is earned and the effect
of certain deductions that do not fluctuate with earnings.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2013,
the effective tax rate on earnings attributable to TransAlta shareholders excluding<BR>
non-comparable items increased compared to the same period in 2012 due to changes in the amount of earnings between the jurisdictions
in which pre-tax income is earned, the effect of certain deductions that do not fluctuate with earnings, and due to the positive
resolution of certain tax contingency matters in the prior period.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>NON-CONTROLLING
INTERESTS</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net earnings attributable to non-controlling
interests for the three and nine months ended Sept. 30, 2013 decreased $10 million and $9 million, respectively, compared to the
same periods in 2012, primarily due to lower earnings at TA Cogen.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>


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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>financial
position</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following chart highlights significant
changes in the Condensed Consolidated Statements of Financial Position from<BR>
Dec. 31, 2012 to Sept. 30, 2013:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 41%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Increase/</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 48%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(Decrease)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Primary factors explaining change</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash and cash equivalents</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">28</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Timing of receipts and payments</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Accounts receivable</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(140)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Timing of customer receipts</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Prepaid expenses</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">17</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Prepayment of annual insurance premiums, royalties, and service agreements</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Inventory</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">10</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in overburden removal activity, and higher average coal costs partially offset by writedown of coal inventory</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Investments</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">11</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Additions to equity investments</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Property, plant, and equipment, net</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">94</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Additions partially offset by depreciation</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Risk management assets (current and long-term)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">33</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Price movements and changes in underlying positions and settlements</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Accounts payable and accrued liabilities</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(42)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Timing of payments and lower capital accruals</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Long-term debt (including current portion)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(100)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Use of net proceeds received on sale of the non-controlling interest in TransAlta Renewables to pay down borrowings on our credit facility</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Finance lease obligation (including current portion)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">26</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Finance lease for mining equipment at the Highvale Mine</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Deferred credits and other long-term liabilities</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(21)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in defined benefit accrual</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Deferred income tax liabilities</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(15)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net deferred income tax recovery</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Risk management liabilities (current and long-term)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">96</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Price movements and changes in underlying positions and settlements</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Equity attributable to shareholders</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(68)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Share dividends partially offset by issuance of common shares and net earnings for the period</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">184</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Sale of the non-controlling interest in TransAlta Renewables, partially offset by non-controlling interests' portion of net earnings net of distributions to non-controlling interests</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>financial
instruments</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Refer to <I>Note 16</I> of the notes to
the audited consolidated financial statements within our 2012 Annual Report and <I>Note 15 </I>of our interim condensed consolidated
financial statements as at and for the three and nine months ended Sept. 30, 2013 for details on Financial Instruments. Refer to
the Risk Management section of our 2012 Annual Report and <I>Note 16</I> of our interim condensed consolidated financial statements
for further details on our risks and how we manage them. Our risk management profile and practices have not changed materially
from Dec. 31, 2012.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Energy Trading may enter into commodity
transactions involving non-standard features for which market observable data is not available. These are defined under IFRS as
Level III financial instruments. Level III financial instruments are not traded in an active market and fair value is, therefore,
developed using valuation models based upon internally developed assumptions or inputs. Our
Level III fair values are determined using data such as unit availability, transmission congestion, or demand profiles. Fair values
are validated on a quarterly basis by using reasonably possible alternative assumptions as inputs to valuation techniques, and
any material differences are disclosed in the notes to the financial statements.</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We also have various contracts with terms
that extend beyond five years.&nbsp; As forward market prices are not available for the full period of these contracts, the value
of these contracts must be derived by reference to a forecast that is based on a combination of external and internal fundamental
modeling, including discounting.&nbsp; As a result, these contracts are classified in Level III. These contracts are for specified
prices with counterparties that we believe to be creditworthy.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">At Sept. 30, 2013, total Level III financial
instruments had a net liability carrying value of $41 million (Dec. 31, 2012 - $31 million net asset).</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain of our hedging relationships had
previously been de-designated and deemed ineffective for accounting purposes.&nbsp; The hedges were in respect of power production
and the associated gains remain in AOCI until the underlying production occurs or until such time that the production has been
assessed as highly probable not to occur.&nbsp; No gains related to these previously
de-designated hedges were reclassified to earnings during the three and nine months ended Sept. 30, 2013 (Sept. 30, 2012 - nil
and $75 million pre-tax gain, respectively).</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As at Sept. 30, 2013, cumulative gains of
$4 million, related to these and other cash flow hedges that were de-designated and no longer meet the criteria for hedge accounting,
continued to be deferred in AOCI and will be reclassified to net earnings as the forecasted transactions occur or if the forecasted
transactions are assessed as highly probable not to occur.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>STATEMENTS
OF CASH FLOWS</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following charts highlight significant
changes in the Condensed Consolidated Statements of Cash Flows for the three and nine months ended Sept. 30, 2013 compared to the
same periods in 2012:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 36%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD NOWRAP STYLE="width: 48%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Primary factors explaining change</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash and cash equivalents, beginning </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">of period</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>67</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">61</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Provided by (used in):</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Operating activities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>253</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">14</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Favourable changes in working capital of $296 million partially offset by lower cash earnings of $57 million</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Investing activities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(150)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(483)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in acquisition of finance lease of $312 million, an increase in investing non-cash working capital balances of $20 million, a decrease in additions to PP&amp;E and intangibles of $14 million, an increase on proceeds on disposal of PP&amp;E of $10 million, partially offset by a decrease in the resolution of certain tax matters of $9 million, net negative impact of $8 million related to changes in collateral received from or paid to counterparties, and a decrease in realized gains on financial instruments of $5 million</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Financing activities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(115)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">478</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in borrowings under credit facilities of $600 million partially due to the use of net proceeds received from the sale of the non-controlling interest in TransAlta Renewables to pay down borrowings on our credit facility, a decrease in proceeds on issuance of common shares of $292 million, a decrease in proceeds on issuance of preferred shares of $217 million, and a decrease in realized gains on financial instruments of $10 million, partially offset by a decrease in long-term debt payments of $304 million, an increase in proceeds on sale of non-controlling interest in subsidiary of $207 million, and a decrease in common share cash dividends of $17 million</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Translation of foreign currency cash</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash and cash equivalents, end of period</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>55</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">71</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 35%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD NOWRAP STYLE="width: 49%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Primary factors explaining change</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash and cash equivalents, beginning </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">of period</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>27</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">49</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Provided by (used in):</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Operating activities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>601</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">275</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Favourable changes in working capital of $358 million, net of a $204 million impact associated with the Sundance Units 1 and 2 arbitration in 2012, partially offset by lower cash earnings of $32 million</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Investing activities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(460)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(822)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in acquisition of finance lease of $312 million, a decrease in additions to PP&amp;E and intangibles of $49 million, an increase in realized gains on financial instruments of $17 million, and an increase in proceeds on sale of PP&amp;E of $11 million, partially offset by a net negative impact of $14 million related to changes in collateral received from or paid to counterparties, an increase in equity investments of $10 million, and a decrease in the resolution of certain tax matters of $9 million</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Financing activities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(113)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">568</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in borrowings under credit facilities of $684 million partially due to the use of net proceeds received from the sale of the non-controlling interest in TransAlta Renewables to pay down borrowings on our credit facility, a decrease in proceeds on issuance of common shares of $293 million, a decrease in proceeds on issuance of preferred shares of $217 million, and a decrease in realized gains on financial instruments of $10 million, partially offset by a decrease in long-term debt payments of $304 million and an increase in proceeds on sale of non-controlling interest in subsidiary of $207 million, and a decrease in common share cash dividends of $22 million due to dividends reinvested through the dividend reinvestment plan</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Translation of foreign currency cash</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash and cash equivalents, end of period</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>55</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">71</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>Liquidity
and Capital Resources</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Liquidity risk arises from our ability to
meet general funding needs, engage in trading and hedging activities, and manage the assets, liabilities, and capital structure
of the Corporation. Liquidity risk is managed by maintaining sufficient liquid financial resources to fund obligations as they
come due in the most cost-effective manner.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our liquidity needs are met through a variety
of sources, including cash generated from operations, borrowings under our long-term credit facilities, and long-term debt or equity
issued under our Canadian and U.S. shelf registrations. Our primary uses of funds are operational expenses, capital
expenditures,
dividends, distributions to non-controlling limited partners, and interest and principal payments on debt securities.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Debt</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Long-term debt totalled $4.1 billion as
at Sept. 30, 2013 compared to $4.2 billion as at Dec. 31, 2012. Long-term debt decreased from Dec. 31, 2012 primarily due to the
use of net proceeds received from the sale of the non-controlling interest in TransAlta Renewables to pay down borrowings on our
the credit facility.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Credit Facilities </I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">At Sept. 30, 2013, we had a total of
$2.1<FONT STYLE="color: black"> </FONT>billion (Dec. 31, 2012 - $2.0 billion) of committed credit facilities, of which
$1.0<FONT STYLE="color: black"> </FONT>billion (Dec. 31, 2012 - $0.8 billion) is not drawn and is available, subject to
customary borrowing conditions. At Sept. 30, 2013, the $1.1 billion (Dec. 31, 2012 - $1.3 billion) of credit utilized
under these facilities was comprised of actual drawings of $0.8 billion (Dec. 31, 2012 - $1.0 billion) and letters of
credit of $0.3 billion (Dec. 31, 2012 - $0.3 billion). These facilities are comprised of a $1.5 billion committed
syndicated bank facility that matures in 2017, with the remainder comprised of bilateral credit facilities, of which $0.3
billion matures in 2017 and $0.2 billion matures in the fourth quarter of 2014. We anticipate renewing these
facilities, based on reasonable commercial terms, prior to their maturities.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In addition to the $1.0 billion available
under the credit facilities, we have $52 million of available cash.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Share Capital</I></B></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Oct. 30, 2013, we had 268.2 million common
shares outstanding, 12.0 million Series A, 11.0 million Series C, and 9.0 million
Series E first preferred shares outstanding.&nbsp; At Sept. 30, 2013, we had 266.3 million (Dec. 31, 2012 - 254.7 million) common
shares issued and outstanding. At Sept. 30, 2013, we also had 32.0 million (Dec. 31, 2012 - 32.0 million) preferred shares issued
and outstanding.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We issue common shares for cash proceeds,
on exercise of stock options and other share-based payment plans, or for reinvestment of dividends.&nbsp; During February 2012,
we added a Premium Dividend<SUP>TM</SUP> component to the Plan. Please refer to <I>Note 28 </I>of our audited consolidated financial
statements within our 2012 Annual Report for additional information regarding the amendments. On May 8, 2013, we announced that
as a result of the current low share price environment, we would suspend the Premium Dividend&#8482; component of the Plan following
the payment of the quarterly dividend on July 1, 2013. Our Dividend Reinvestment and Optional Common Share Purchase Plan, separate
components of the Plan, remain effective in accordance with their current terms.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the three months ended Sept. 30,
2013, 4.2 million common shares were issued for $55 million, which was primarily comprised of dividends reinvested under the terms
of the Plan. During the three months ended Sept. 30, 2012, 24.1 million common shares were issued for $343 million, which was primarily
comprised of common shares issued under a public offering and dividends reinvested under the terms of the Plan. During the nine
months ended Sept. 30, 2013, 11.6 million common shares were issued for $161 million, which was primarily comprised of dividends
reinvested under the terms of the Plan. During the nine months ended Sept. 30, 2012, 27.5 million common shares were issued for
$407 million, which was primarily comprised of common shares issued under a public offering and dividends reinvested under the
terms of the Plan.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Guarantee Contracts </I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We have obligations to issue letters
of credit and cash collateral to secure potential liabilities to certain parties, including those related to potential
environmental obligations, energy trading activities, hedging activities, and purchase obligations. At Sept. 30, 2013, we
provided letters of credit totalling $348 million (Dec. 31, 2012 - $336 million) and cash collateral of $19 million (Dec.
31, 2012 - $19 million). These letters of credit and cash collateral secure certain amounts included on our Condensed
Consolidated Statements of Financial Position under risk management liabilities and decommissioning and other provisions.</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Commitments</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During March 2013, the New Richmond wind
farm commenced operations and as such, the 15 year long-term service agreement for repairs and maintenance became effective.&nbsp;
The future payments over the term of the agreement are approximately $42 million.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>climate
change and the environment</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In Alberta, there are requirements for coal-fired
generation units to implement additional air emission controls for oxides of nitrogen (&#8220;NOx&#8221;), sulphur dioxide (&#8220;<FONT STYLE="color: black">SO<SUB>2</SUB>&#8221;)</FONT>,
and particulate matter, once they reach the end of their respective PPAs, in most cases at 2020.&nbsp; These regulatory requirements
were developed by the province in 2004 as a result of multi-stakeholder discussions under Alberta&#8217;s Clean Air Strategic Alliance
(&#8220;CASA&#8221;).&nbsp; However, the release of the federal GHG regulations may create a potential misalignment between the
CASA air pollutant requirements and schedules, and the GHG retirement schedules for older coal plants, which in themselves will
result in significant reductions of NOx, SO<SUB>2</SUB>, and particulates. &nbsp;We are in discussions with the provincial government
to ensure coordination between GHG and air pollutant regulations, such that emission reduction objectives are achieved in the most
effective manner while taking into consideration the reliability and cost of Alberta&#8217;s generation supply.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In the U.S., on June 25, 2013, President
Obama announced his Climate Action Plan, which sets out plans for GHG emission standards to be imposed by the Environmental Protection
Agency (&#8220;EPA&#8221;) for new and existing power plants.&nbsp; Subsequently, on Sept. 20, 2013, the EPA issued draft regulations
for new coal-fired plants which, if adopted, would require new coal plants to achieve GHG emissions of no more than 1,100 pounds
per MWh of carbon dioxide (significantly below current average emissions for coal-fired plants) in order to be approved.&nbsp;
These regulations are expected to be finalized by mid-2014.&nbsp; These proposed regulations do not currently have an impact on
our operations.&nbsp; Standards for existing units are to be finalized by June 2015.&nbsp; State implementation plans are to be
completed a year later.&nbsp; There will be few additional details as to how existing coal (and potentially natural gas) units
might be treated until the EPA releases a draft rule.&nbsp; Furthermore, the U.S. Supreme Court has agreed to review a challenge
to the EPA&#8217;s right to regulate GHG emissions from stationary sources like power plants, so the future of this regulation
is uncertain.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">In December 2011,
the </FONT>EPA<FONT STYLE="color: black"> issued national standards for mercury emissions from power plants. Existing sources will
have up to four years to comply. We have already voluntarily </FONT>installed mercury capture technology at our Centralia coal-fired
plant, and began full capture operations in early 2012. We have also installed additional technology to further reduce NOx, consistent
with the Washington State Bill passed in April 2011.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">We continue to
make operational improvements and investments to our existing generating facilities to reduce the environmental impact of generating
electricity. We installed mercury control equipment at our Alberta Thermal operations in 2010 in order to meet the province&#8217;s
70 per cent reduction objectives, and voluntarily at our Centralia coal-fired plant in 2012. Our Keephills Unit 3 plant began operations
in September 2011 using supercritical combustion technology to maximize thermal efficiency, as well as SO<SUB>2</SUB></FONT> <FONT STYLE="color: black">capture
and low NOx combustion technology, which is consistent with the technology that is currently in use at Genesee Unit 3. Uprate projects
completed at our Keephills and Sundance plants have improved the energy and emissions efficiency of those units.</FONT></P>

<P STYLE="font: 7.5pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>2013
Outlook</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Business Environment</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Power Prices</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">Over the balance
of 2013, power </FONT>prices in Alberta are expected to be weaker than 2012 with additional coal-fired generation online. However,
prices can vary based on supply and weather conditions. In the Pacific Northwest, we expect prices to be significantly stronger
than in 2012; however, we expect that overall prices will still remain relatively weak due to low<FONT STYLE="color: black"> natural
gas prices and slow load growth.</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Environmental Legislation</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The finalization of the federal Canadian
GHG regulations for coal-fired power has initiated further activities. We are in discussions with the provincial government to
ensure coordination between GHG and air pollutant regulations, such that emission reduction objectives are achieved in the most
effective manner while taking into consideration the reliability and cost of Alberta&#8217;s generation supply. This may provide
additional flexibility to coal-fired generators in meeting the regulatory requirements. For further information on the Canadian
GHG regulations, please refer to the Significant Events section of our 2012 Annual MD&amp;A.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In addition, there are ongoing discussions
between the federal and provincial governments regarding a national Air Quality Management System for air pollutants. In Alberta&#8217;s
recently released Clean Air Strategy, the province indicated that its provincial air quality management system will operationalize
any national system. Our current outlook is that, for Alberta, provincial regulations will be considered as equivalent to any future
national framework.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Jan. 21, 2013, the Ontario government
released a discussion paper for public input on reducing GHG emissions in the province, with the stated intent of developing GHG
regulations for all major industrial sectors by 2015. No specific targets or regulatory approaches have yet been proposed.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In the U.S., the President&#8217;s Climate
Action Plan provides an indication of how GHG regulation of existing fossil-fuel based generation may unfold, although we expect
the implementation process to take several years. Our agreement with Washington State, established in April 2011, provides regulatory
clarity at the state level regarding an emissions regime related to the Centralia Coal plant until 2025. We expect this agreement
may mitigate separate federal action from the EPA. Additionally, new federal air pollutant regulations for the power sector are
anticipated, but are not expected to directly affect our coal-fired operations in Washington State.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Beginning in 2013, direct deliveries of
power to the California Independent System Operator are subject to a compliance obligation established by the California Air Resources
Board&#8217;s (&#8220;CARB&#8221;) cap and trade program.&nbsp; As CARB continues to finalize their regulations, we will stay at
the forefront of regulatory changes to enable us to remain in compliance with the cap and trade program.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In Australia, the carbon tax implemented
in July 2012 remains in place. &nbsp;However, the new Australian government elected on<BR>
Sept. 7, 2013 has indicated its intention to repeal the tax on or before July, 2014. There is no clear indication at this point
if the government plans to implement a different climate change regulation. While TransAlta&#8217;s gas-fired operations are subject
to the tax, all related costs are flowed to contracted customers.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We continue to closely monitor the progress
and risks associated with environmental legislation changes on our future operations.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The siting, construction, and operation
of electrical energy&nbsp;facilities requires interaction with many stakeholders. Recently, certain stakeholders have brought actions
against government agencies and owners over alleged adverse impacts of&nbsp;wind projects. We are monitoring these claims in order
to assess the risk associated with these activities.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Economic Environment </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In 2013, we expect slow to moderate growth
in Alberta and Australia, and low growth in other markets. We continue to monitor global events and their potential impact on the
economy and our supplier and commodity counterparty relationships.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We had no material counterparty losses in
the third quarter of 2013. We continue to monitor counterparty credit risk and have established risk management policies to mitigate
counterparty risk. We do not anticipate any material change to our existing credit practices and continue to deal primarily with
investment grade counterparties.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Operations</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Capacity, Production, and Availability
</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Generating capacity is expected to increase
for the remainder of 2013 due to Sundance Unit 2 returning to service. Prior to the effect of any economic dispatching, overall
production is expected to increase for the remainder 2013 due to lower planned outages, Sundance Units 1 and 2 returning to service,
and the completion of the New Richmond wind farm. Adjusted availability, excluding the extended outages at Centralia Thermal due
to economic dispatching, is expected to be in the range of 87 to 89 per cent in 2013 due to the impact of the Keephills Unit 1
force majeure outage.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Dec. 16, 2010 and Dec. 19, 2010, Unit 1
and Unit 2, respectively, of our Sundance facility were shut down due to conditions observed in the boilers at both units.
On Feb. 8, 2011, we issued a notice of termination for destruction based on the determination that the units could not be
economically restored to service under the terms of the PPA. On July 20, 2012, an arbitration panel concluded that Units 1
and 2 were not economically destroyed under the terms of the PPA and required the units to be restored to service. However,
the panel affirmed that the event met the criteria of force majeure beginning Nov. 20, 2011 and continuing until such a time
as each unit is returned to service.&nbsp; The cost to repair Sundance Units 1 and 2 is estimated at approximately $215
million. Sundance Unit 1 returned to service on Sept. 2, 2013 and Sundance Unit 2 returned to service on Oct. 4, 2013. <FONT STYLE="color: black">The
total estimated spend has increased by $25 million due to additional scope of work for balance of plant systems and equipment
as well as higher labour costs due to an increase in rates.&nbsp; This work was performed concurrently with the boiler
repairs to prevent the need for a later outage for this work.&nbsp; </FONT>We have issued notices to the buyers regarding the
cessation of the force majeure period for the two units.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Contracted Cash Flows</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Through the use of Alberta PPAs, long-term
contracts, and other short-term physical and financial contracts, on average, approximately 75 per cent of our capacity is contracted
over the next seven years. On an aggregated portfolio basis, depending on market conditions, we target being up to 90 per cent
contracted for the upcoming calendar year. As at the end of the third quarter of 2013, approximately 89 per cent of our 2013 capacity
was contracted. The average prices of our short-term physical and financial contracts for the balance of 2013 are approximately
$60 per MWh in Alberta and approximately U.S.$40 per MWh in the Pacific Northwest.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Fuel Costs </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Coal costs for 2013, on a standard cost
per tonne basis, are expected to be 11 to 13 per cent higher than 2012. Mining coal in Alberta is subject to cost increases due
to greater overburden removal, inflation, capital investments, and commodity prices. Seasonal variations in coal costs at our Alberta
mine are minimized through the application of standard costing. In January 2013, we assumed, through SunHills, operating and management
control of the Highvale Mine from PMRL.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Although we own the Centralia mine in the
State of Washington, it is not currently operational. Fuel at Centralia Thermal is purchased from external suppliers in the Powder
River Basin and delivered by rail. The delivered cost of fuel per MWh for 2013 is expected to decrease between six to eight per
cent.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The value of coal inventories is assessed
for impairment at the end of each reporting period. If the inventory is impaired, further charges will be recognized in net earnings.
For more information on the inventory impairment charges recorded in 2013, please refer to the Significant Events section of this
MD&amp;A.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We purchase natural gas from outside companies
coincident with production or have it supplied by our customers, thereby minimizing our risk to changes in prices. The continued
success of unconventional gas production in North America could reduce the year-to-year volatility of prices in the near term.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We closely monitor the risks associated
with changes in electricity and input fuel prices on our future operations and, where we consider it appropriate, use various physical
and financial instruments to hedge our assets and operations from such price risks.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Operations, Maintenance, and Administration
Costs </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">OM&amp;A costs</FONT>
for 2013 are expected to be consistent with 2012 due to costs savings from our organizational restructuring offset by additional
costs as Sundance Units 1 and 2 are returned to service, flood recovery costs, and the commencement of operations at New Richmond.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Energy Trading </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">Earnings from</FONT>
our Energy Trading Segment are affected by prices in the market, overall strategies adopted, and changes in legislation. We continuously
monitor both the market and our exposure in order to maximize earnings while still maintaining an acceptable risk profile.&nbsp;
Our target was for Energy Trading to contribute between $40 million and $60 million in gross margin for 2013. Given strong performance
thus far in the year, our current target has been increased to the $45 million to $65 million range.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Exposure to Fluctuations in Foreign Currencies
</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">Our strategy</FONT>
is to minimize the impact of fluctuations in the Canadian dollar against the U.S. dollar, Euro, and Australian dollar by offsetting
foreign denominated assets with foreign denominated liabilities and by entering into foreign exchange contracts. We also have foreign
denominated expenses, including interest charges, which largely offset our net foreign denominated revenues.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Net Interest Expense </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net interest expense for 2013 is expected
to increase compared to 2012 due to lower capitalized interest. However, changes in interest rates and in the value of the Canadian
dollar relative to the U.S. dollar can affect the amount of net interest expense incurred.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Liquidity and Capital Resources </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">If there is increased volatility in power
and natural gas markets, or if market trading activities increase, we may need additional liquidity in the future. We expect to
maintain adequate available liquidity under our committed credit facilities.</P>

<P STYLE="font: 11pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Accounting Estimates</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A number of our accounting estimates, including
those outlined in the Critical Accounting Policies and Estimates section of our 2012 Annual MD&amp;A, are based on the current
economic environment and outlook. As a result of the current economic environment, market fluctuations could impact, among other
things, future commodity prices, foreign exchange rates, and interest rates, which could, in turn, impact future earnings and the
unrealized gains or losses associated with our risk management assets and liabilities and asset valuation for our asset impairment
calculations.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>Income Taxes</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The effective tax rate on earnings excluding
non-comparable items for 2013 is expected to be approximately 17 to 22 per cent, which is lower than the statutory tax rate of
25 per cent, due to changes in the amount of earnings between the jurisdictions in which pre-tax income is earned and the effect
of certain deductions that do not fluctuate with earnings.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Capital Expenditures</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our major projects are focused on sustaining
our current operations and supporting our growth strategy.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>Growth and Major Project Expenditures</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">We have</FONT>
one major project with a targeted completion date of Q4 2013. A summary is outlined below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total Project</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Target</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 14%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Estimated spend</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Spent to date<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Estimated spend</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Spent to date<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="width: 14%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>completion</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>date</B></FONT></TD>
    <TD STYLE="width: 3%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 28%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Details</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Growth</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">New Richmond</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">212</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">218</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">15 - 25</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">30</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Commercial </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">operations </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">began </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q1 2013</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">A 68 MW wind farm in Qu&eacute;bec</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Major projects</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Sundance Units 1 and 2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">215</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">202</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">155 - 170</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">158</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Sundance Unit 1 completed during Q3 2013 and Sundance Unit 2 completed in Q4 2013</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Sundance Units 1 and 2 comprising 560 MW of our Sundance power plant</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total major projects and growth</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>427</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>420</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>170 - 195</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>188</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The total estimated spend for Sundance Units
1 and 2 has increased by $25 million due to additional scope of work for balance of plant systems and equipment as well as higher
labour costs due to an increase in rates.&nbsp; This work is being performed concurrently with the boiler repairs to prevent the
need for a later outage for this work.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The total estimated spend for New Richmond
is less than the amount incurred to date due to estimated recoveries to be received in 2013.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><I>Transmission</I></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">During the </FONT>quarter,
we reversed a provision as a result of a reduction in our expected transmission costs.&nbsp; As a result, for the three and nine
months ended Sept. 30, 2013, we have a net recovery of $4 million and nil, respectively on transmission projects.&nbsp; The estimated
spend for 2013 on transmission projects is $7 million.&nbsp; Transmission projects consist of the major maintenance and reconfiguration
of Alberta&#8217;s transmission networks to increase capacity of power flow in the lines.&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>Sustaining Capital and Productivity Expenditures<FONT STYLE="color: white"><SUP>(1)</SUP></FONT></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For 2013, our estimate for total sustaining
capital and productivity expenditures, net of any contributions received, is allocated among the following:<FONT STYLE="color: red">
</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Category</B></FONT></TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Description</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Expected </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>cost</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 12pt; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Spent to</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>date</B></FONT><B><FONT STYLE="font-size: 9pt"><SUP>(1)</SUP></FONT></B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 30%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Routine capital</FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Expenditures to maintain our existing generating capacity</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">90 - 100</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">78</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 12pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Mining equipment and </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">land purchases</FONT><FONT STYLE="font-size: 9pt"><SUP>(2)</SUP></FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Expenditures related to mining equipment and </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">land purchases</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">40 - 50</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">38</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Finance leases</FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Payments related to mining equipment under finance leases</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0 - 10</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">7</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Planned major maintenance</FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Regularly scheduled major maintenance</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">165 - 185</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">122</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total sustaining expenditures</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>295 - 345</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>245</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Productivity capital</FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Projects to improve power production efficiency</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">30 - 50</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">26</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total sustaining and productivity expenditures</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>325 - 395</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>271</B></FONT></TD></TR>
</TABLE>


<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the nine months, we acquired $33
million of mining equipment under finance leases and we made principal repayments of<BR>
$7 million.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.15in; text-align: justify; text-indent: -0.15in">(1)
Represents amounts spent as of Sept. 30, 2013. During 2013, we also had a reduction of costs of $1 million on facilities that
had previously commenced operations. </P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">(<FONT STYLE="font: 6.5pt Arial, Helvetica, Sans-Serif">1</FONT>)
Represents amounts incurred as of Sept. 30, 2013.</P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">(<FONT STYLE="font: 6.5pt Arial, Helvetica, Sans-Serif">(2)
An additional $12 million for mining equipment in use is not payable until 2014.</FONT></P>



<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our planned major maintenance program relates
to regularly scheduled major maintenance activities and includes costs related to inspection, repair and maintenance, and replacement
of existing components. It excludes amounts for day-to-day routine maintenance, unplanned maintenance activities, and minor inspections
and overhauls, which are expensed as incurred. Details of the 2013 planned major maintenance program are outlined as follows:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 29%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 14%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Coal</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Gas and Renewables</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Expected </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>spend </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>in 2013</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 12pt; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Spent </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>to date</B></FONT><B><FONT STYLE="font-size: 9pt"><SUP>(1)</SUP></FONT></B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Capitalized</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">90 - 105</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">75 - 80</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">165 - 185</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">122</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Expensed</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0 - 5</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0 - 5</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">90 - 105</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">75 - 85</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">165 - 190</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">122</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Coal</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Gas and Renewables</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Expected</B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>total</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Lost </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>to date</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">GWh lost</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,660 - 1,670</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">420 - 430</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2,080 - 2,100</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,485</FONT></TD></TR>
</TABLE>


<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Financing </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Financing for these capital expenditures
is expected to be provided by cash flow from operating activities, existing borrowing capacity, reinvested dividends under the
Plan, and capital markets. The funds required for committed growth, sustaining capital, and productivity projects are not expected
to be significantly impacted by the current economic environment due to the highly contracted nature of our cash flows, our financial
position, and the amount of capital available to us under existing committed credit facilities.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>accounting
changes</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Adoption of New or Amended IFRS</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Jan. 1, 2013, we adopted the following
new accounting standards that were previously issued by the <FONT STYLE="color: black">International Accounting Standards Board
(&#8220;</FONT>IASB&#8221;):</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>IFRS 10 <I>Consolidated Financial Statements
</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRS 10 replaces the parts of International
Accounting Standard (&#8220;IAS&#8221;) 27 <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-weight: normal"><I>Consolidated</I></FONT><I><B>
</B><FONT STYLE="font-weight: normal">and Separate</FONT></I> <I>Financial Statements </I>that</FONT><B> </B><FONT STYLE="font-weight: normal">deal
with consolidated financial statements</FONT><B> </B>and Standing Interpretations Committee <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-weight: normal">(&#8220;SIC&#8221;)</FONT><B>
</B>Interpretation 12 <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-weight: normal"><I>Consolidation - Special Purpose
Entities</I>.</FONT><B>&nbsp; </B><FONT STYLE="font-weight: normal">IFRS 10</FONT><B><I> </I></B>defines the principle of control,
establishes control as the basis for determining when entities are to be consolidated, and provides guidance on how to apply the
principle of control to identify whether an investor controls an investee.&nbsp; Under IFRS 10, an investor controls an investee
when it has all of the following: (i) power over the investee; (ii) exposure, or rights, to variable returns from the investee;
and (iii) the ability to affect those returns.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We applied IFRS 10 retrospectively by reassessing
whether, on Jan. 1, 2013, we had control of all of our previously consolidated entities. As a result of adopting IFRS 10, no changes
arose in the entities we controlled and consolidated.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: italic 6.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">(<FONT STYLE="font: 6.5pt Arial, Helvetica, Sans-Serif">1</FONT>)
Represents amounts incurred as of Sept. 30, 2013.</P>



<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>IFRS 11 <I>Joint Arrangements</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRS 11 replaces IAS 31 <I>Interests in
Joint Ventures</I> and SIC-13 <I>Jointly Controlled Entities &#8211; Non-Monetary Contributions by Venturers</I>.&nbsp; IFRS 11
provides for a<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B> </B><FONT STYLE="font-weight: normal">principles-based
approach to the acwcounting for joint arrangements that requires an entity to recognize its contractual rights and obligations
arising from its involvement in joint arrangements.&nbsp; A joint arrangement is an arrangement in which two or more parties have
joint control.&nbsp; Under IFRS 11, joint arrangements are classified as either a joint operation or a joint venture, whereas under
IAS 31, they were classified as a jointly controlled asset, jointly controlled operation or a jointly controlled entity.&nbsp;
IFRS 11 requires the use of the equity method of accounting for interests in joint ventures, whereas IAS 31 permitted a choice
of the equity method or proportionate consolidation for jointly controlled entities. Under IFRS 11, for joint operations, each
party recognizes its respective share of the assets, liabilities, revenues and expenses of the arrangement, generally resulting
in proportionate consolidation accounting.&nbsp; </FONT></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">We applied
IFRS 11 retrospectively by reassessing the type of, and accounting for, each joint arrangement in existence at<BR>
Jan. 1, 2013. No significant impacts resulted.</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>IFRS 12 <I>Disclosure of Interests in
Other Entities</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRS 12 contains enhanced disclosure requirements
about an entity&#8217;s interests in subsidiaries, joint arrangements, associates, and consolidated and unconsolidated structured
entities (special purpose entities). The objective of IFRS 12 is that an entity should disclose information that helps financial
statement users evaluate the nature of, and risks associated with, its interests in other entities and the effects of those interests
on its financial statements. Disclosures arising from the adoption of IFRS 12 can be found in Notes 11, 14, and 22 of our interim
consolidated financial statements.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>IFRS 13 <I>Fair Value Measurement</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRS 13 establishes a single source of guidance
for all fair value measurements required by other IFRS, clarifies the definition of fair value, and enhances disclosures about
fair value measurements. IFRS 13 applies when other IFRS require or permit fair value measurements or disclosures. IFRS 13 specifies
how an entity should measure fair value and disclose fair value information. It does not specify when an entity should measure
an asset, a liability, or its own equity instrument at fair value. Our adoption of IFRS 13, prospectively on Jan. 1, 2013, did not have a material financial impact upon the consolidated financial position or results
of operations, however, certain new or enhanced disclosures are required and can be found in Note 15 of our interim consolidated
financial statements.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>IAS 1 <I>Presentation of Financial Statements</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amendments to IAS 1 <I>Presentation of Financial
Statements</I> issued in June 2011 were intended to improve the consistency and clarity of the presentation of items of comprehensive
income by <FONT STYLE="color: black">requiring that items presented in OCI be grouped on the basis of whether they subsequently
reclassified from OCI to net earnings or not. </FONT>The Consolidated Statements of Comprehensive Income (Loss) have been reorganized
to comply with the required groupings.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>IAS 19 <I>Employee Benefits</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amendments to IAS 19 <I>Employee Benefits</I>
are intended to improve the recognition, presentation, and disclosure of defined benefit plans<FONT STYLE="color: black">. The
amendments require the recognition of changes in defined benefit obligations and in fair value of plan assets when they occur,
thus eliminating the &#8220;corridor approach&#8221; previously permitted</FONT>. All actuarial gains and losses must be recognized
immediately through other comprehensive income and the net pension liability or asset recognized at the full amount of the plan
deficit or surplus. Additional changes relate to the presentation, into three components, of changes in defined benefit obligations
and plan assets: service cost and net interest
cost is recognized in net earnings and remeasurements are recognized in other comprehensive income. The net interest cost introduced
in these amendments removes the concept of expected return on plan assets that was previously recognized in net earnings.</P>


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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We calculate the net interest cost for our
defined benefit plans by applying the discount rate at the beginning of the reporting period to the net defined benefit liability
at the beginning of the reporting period. An expected return on plan assets is no longer calculated and recognized as part of pension
expense. The elimination of the corridor method had no impact as we have, since the adoption of IFRS, recognized actuarial gains
and losses in OCI in the period in which they occurred.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-weight: normal">On
adoption, we</FONT> applied the amendments retrospectively. The impacts as at Dec. 31, 2012 and Jan 1, 2012, respectively, were
an increase in the cumulative prior periods&#8217; pre-tax pension expense of $17 million and $11 million ($12 million and $8 million
after-tax, respectively), as a result of the application of the net interest cost requirements.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three and nine months ended
Sept. 30, 2012, OM&amp;A expense increased by $1 million and $4 million, respectively, as a result of increased pension
expense. Net after-tax actuarial losses on defined benefit plans as reported in OCI decreased by $1 million and $3 million,
respectively, and basic and diluted net earnings per share attributable to common shareholders decreased by nil and $0.01,
respectively.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Interpretation 20 <I>Stripping Costs
in the Production Phase of a Surface Mine (&#8220;IFRIC 20&#8221;)</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">IFRIC 20 clarifies the requirements for
accounting for stripping costs in the production phase of a surface mine. Stripping costs are costs associated with the process
of removing waste from a surface mine in order to gain access to mineral ore deposits. The Interpretation clarifies when production
stripping should lead to the recognition of an asset and how that asset should be measured, both initially and in subsequent periods.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We recognize a stripping activity asset
for our Highvale mine when all of the following are met: (i) it is probable that the future benefit associated with improved access
to the coal reserves associated with the stripping activity will be realized; (ii) the component of the coal reserve to which access
has been improved can be identified; and (iii) the costs related to the stripping activity associated with that component can be
measured reliably. Costs include those directly incurred to perform the stripping activity as well as an allocation of directly
attributable overheads. The resulting stripping activity asset is amortized on a unit-of-production basis over the expected useful
life of the identified component that it relates to. The amortization is recognized as a component of the standard cost of coal
inventory.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As required by the transitional
provision of IFRIC 20, we applied the Interpretation to production stripping costs incurred on or after Jan 1, 2011, which
will be the earliest comparative period presented within our annual financial statements for the year ended Dec. 31, 2013
which will result in adjustments to the 2012 earnings. The impacts on the Condensed Consolidated Statements of
Financial Position as at Dec. 31, 2012 were to recognize $9 million in costs as a stripping activity asset, increase coal
inventory by $2 million, both classified within Inventory, increase Deferred income tax liabilities by $3 million, and
decrease Retained deficit by $8 million. The impacts on the Condensed Consolidated Statements of Financial Position as at
Jan. 1, 2012 were to recognize $9 million in costs as a stripping activity asset, decrease coal inventory by $2 million,
both classified within Inventory, increase Deferred income tax liabilities by $2 million, and increase Retained earnings by
$5 million.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The impact of this change in accounting
policy on the three and nine months ended Sept. 30, 2012 was a reduction of $1 million in Fuel and purchased power.</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>IFRS 7 <I>Financial Instruments: Disclosures</I></B></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Amendments to IFRS 7 include disclosures
about all recognized financial instruments that are set off in accordance with IAS 32. The amendments also require disclosure of
information about recognized financial instruments subject to enforceable master netting arrangements and similar agreements even
if they are not set off under IAS 32. The resulting disclosures can be found in Note 16 of our interim consolidated financial statements.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Annual Improvements 2009-2011</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In May 2012, the IASB issued a collection
of necessary, non-urgent amendments to several IFRS resulting from its annual improvements process. We have applied the amendments,
as applicable, on Jan. 1, 2013. None of the amendments, which are generally technical and narrow in scope, had a material financial
impact upon the consolidated financial position or results of operations.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>future
accounting changes</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Additional new or amended accounting standards
that have been previously issued by the IASB but are not yet effective, and have not yet been applied, are as follows: IFRS 9 <I>Financial
Instruments</I>, IAS 32 <I>Financial Instruments: Presentation</I>, and <I>Investment Entities</I> (Amendments to IFRS 10 and 11
and IAS 27). Please refer to the Future Accounting Changes section of our 2012 Annual MD&amp;A for more information.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>Additional
IFRS Measures</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">An additional
IFRS measure is a line item, heading, or subtotal that is relevant to an understanding of the financial statements but is not a
minimum line item mandated under IFRS, or the presentation of a financial measure that is relevant to an understanding of the financial
statements but is not presented elsewhere in the financial statements. We have included line items entitled &#8220;gross margin&#8221;
and &#8220;operating income (loss)&#8221; in our Condensed Consolidated Statements of Earnings (Loss) for the three and nine months
ended Sept. 30, 2013 and 2012. Presenting these line items </FONT>provides management and investors with a measurement of ongoing
operating performance that is readily comparable from period to period.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>NON-IFRS
MEASURES </B></FONT></P>

<P STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We evaluate our performance and the performance
of our business segments using a variety of measures. Those discussed below, and elsewhere in this MD&amp;A, are not defined under
IFRS and, therefore, should not be considered in isolation or as an alternative to or to be more meaningful than net earnings attributable
to common shareholders or cash flow from operating activities, as determined in accordance with IFRS, when assessing our financial
performance or liquidity. These Non-IFRS measures are not necessarily comparable to a similarly titled measure of another company.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Presenting earnings on a comparable
basis, comparable gross margin, comparable operating income, and comparable EBITDA from period to period provides management
and investors with supplemental information to evaluate earnings trends in comparison with results from prior periods. In
calculating these items, we exclude the impact related to certain hedges that are either de-designated or deemed ineffective
for accounting purposes, as management believes that these transactions are not representative of our business operations. As
these gains (losses) have already been recognized in earnings in current or prior periods, future reported earnings will be
lower; however, the expected cash flows from these contracts will not change. In calculating comparable earnings measures we
have also excluded the 2012 coal inventory writedown, as the recognition of the writedown is related to the hedges that were
de-designated or deemed ineffective during prior quarters.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Other adjustments to earnings, such as those
included in the earnings on a comparable basis calculation, have also been excluded as management believes these transactions are
not representative of our business operations. Earnings on a comparable basis per share are calculated using the weighted average
common shares outstanding during the period.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Comparable operating income and EBITDA also
include the earnings from the finance lease facilities that we operate.&nbsp; The finance lease income is used as a proxy for the
operating income and EBITDA of these facilities.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B><I>Net Earnings on a Comparable Basis</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net earnings on a comparable basis are reconciled
to net earnings attributable to common shareholders below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net earnings (loss) attributable to common shareholders</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">56</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(5)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(654)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts associated with certain de-designated and </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">ineffective hedges, net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">39</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>39</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">38</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Asset impairment charges (reversals), net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(13)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(31)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(13)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">329</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Inventory writedown (reversal), net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(18)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Restructuring provision, net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Sundance Units 1 and 2 return to service, net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">189</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax expense related to write off of deferred </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">income tax assets</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>40</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>40</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">169</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax recovery related to deferred tax rate </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">adjustment</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(7)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax recovery related to the resolution of certain </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">outstanding tax matters</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(9)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Income tax expense related to changes in corporate</FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">income tax rates</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">8</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gain on sale of assets, net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(2)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Writeoff of Project Pioneer costs, net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gain on sale of collateral, net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(11)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(11)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Loss on assumption of pension obligations, net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>22</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Flood related maintenance costs, net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Net earnings on a comparable basis</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>39</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">41</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>80</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">62</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 26%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Weighted average number of common shares </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">outstanding in the period</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>266</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">234</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>262</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">229</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Net earnings on a comparable basis per share</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.15</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.18</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.31</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.27</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Comparable Gross Margin </I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Comparable gross margin is calculated as
follows:<FONT STYLE="color: black"> </FONT><A HREF="#note_ftn9" NAME="notea_ftnref9" STYLE="font-size: 65%; vertical-align: 35%">9</A></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gross margin</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>363</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">331</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,057</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,056</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts associated with certain de-designated and </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">ineffective hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">60</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>60</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">58</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts to revenue associated with Sundance </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Units 1 and 2<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(20)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Inventory writedown</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(20)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(20)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable gross margin</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>374</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">371</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,117</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,074</FONT></TD></TR>
</TABLE>


<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Comparable Operating Income</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A reconciliation of comparable operating
income is as follows:<B><I> </I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Operating income (loss)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>118</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">132</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>277</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(93)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts associated with certain de-designated and </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">ineffective hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">60</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>60</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">58</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Asset impairment charges (reversal)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(41)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">324</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Inventory writedown (reversal)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(28)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Restructuring provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Finance lease income</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>34</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Flood related maintenance costs</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Writeoff of Project Pioneer costs</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable operating income</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>125</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">126</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>355</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">302</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 7pt">(1) The results
have been adjusted retroactively for the impact of Sundance Units 1 and 2. Comparative figures have also been adjusted in this
table only to provide period over period comparability.&nbsp;</FONT></P>


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    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Comparable EBITDA</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Presenting comparable EBITDA from period
to period provides management and investors with a proxy for the amount of cash generated from operating activities before net
interest expense, non-controlling interests, income taxes, and working capital adjustments.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A reconciliation of comparable EBITDA to
operating income is as follows:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Operating income (loss)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>118</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">132</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>277</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(93)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Asset impairment charges (reversal)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(41)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(18)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">324</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Inventory writedown (reversal)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(28)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Restructuring provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Finance lease income</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>34</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Depreciation and amortization per the Consolidated </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Statements of Cash Flows<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>141</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">129</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>425</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">419</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts associated with certain de-designated and </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">ineffective hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">60</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>60</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">58</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts to revenue associated with Sundance </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Units 1 and 2</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(20)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Flood related maintenance costs</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Writeoff of Project Pioneer costs</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable EBITDA</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>266</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">255</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>780</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">701</FONT></TD></TR>
</TABLE>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Funds from Operations and Funds from
Operations per Share</I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Presenting funds from operations and funds
from operations per share from period to period provides management and investors with a proxy for the amount of cash generated
from operating activities, before changes in working capital, and provides the ability to evaluate cash flow trends more readily
in comparison with results from prior periods. Funds from operations per share is calculated as follows using the weighted average
number of common shares outstanding during the period:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash flow from operating activities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>253</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">14</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>601</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">275</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts to working capital associated with Sundance </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Units 1 and 2 arbitration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">204</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Payment of restructuring costs</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Timing of payments related to assumption of </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">pension obligations</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(7)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Flood related maintenance costs</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Change in non-cash operating working capital balances</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(77)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">219</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(61)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">93</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Funds from operations</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>174</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">233</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>550</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">572</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Weighted average number of common shares </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">outstanding in the period</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>266</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">234</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>262</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">229</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Funds from operations per share</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.65</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1.00</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2.10</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2.50</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 7pt">(1) To calculate
comparable EBITDA, we use depreciation and amortization per the Condensed Consolidated Statements of Cash Flows in order to account
for depreciation related to mine assets, which is included in fuel and purchased power on the Condensed Consolidated Statements
of Earnings.</FONT></P>


<!-- Field: Page; Sequence: 46 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Free Cash Flow </I></B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Free cash flow represents the amount of
cash generated from operations by our business, before changes in working capital that is available to invest in growth initiatives,
make scheduled principal repayments of debt, pay additional common share dividends, or repurchase common shares. Changes in working
capital are excluded so as to not distort free cash flow with changes that we consider temporary in nature, reflecting, among other
things, the impact of seasonal factors and the timing of capital projects.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Sustaining capital and productivity expenditures
for the three months ended Sept. 30, 2013 represent total additions to property, plant, and equipment and intangibles per the Condensed
Consolidated Statements of Cash Flows less $50 million that we have invested in projects and growth. For the same period in 2012,
we invested $62 million in projects and growth. For the nine months ended Sept. 30, 2013 and 2012, we invested $187 million and
$144 million, respectively, in projects and growth.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The reconciliation between cash flow from
operating activities and free cash flow is outlined below:</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 52%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2013</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash flow from operating activities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>253</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">14</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>601</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">275</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Add (deduct):</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts to working capital associated with Sundance</FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Units 1 and 2 arbitration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 8.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold; text-indent: 8.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">204</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Changes in non-cash operating working capital</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(77)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">219</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(61)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">93</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Sustaining capital and productivity expenditures</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(109)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(120)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(271)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(368)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Dividends paid on common shares<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(18)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(64)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(86)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Dividends paid on preferred shares</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(7)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(28)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(21)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Distributions paid to subsidiaries' non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(8)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(9)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(43)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(42)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Free cash flow</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>49</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">79</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>134</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">55</FONT></TD></TR>
</TABLE>


<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We seek to maintain sufficient cash balances
and committed credit facilities to fund periodic net cash outflows related to our business.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 7pt">(1) Net of dividends
reinvested under the Plan</FONT></P>


<!-- Field: Page; Sequence: 47 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%"><P STYLE="margin: 0px" align="right"><FONT STYLE="font: 6pt Arial, Helvetica, Sans-Serif">TRANSALTA CORPORATION / Q2 2013&nbsp;</FONT> <!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></P></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 7.5pt/150% Arial, Helvetica, Sans-Serif; margin: 0 0 6pt; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">SELECTED
QUARTERLY INFORMATION</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 41%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q4 2012</FONT></TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q1 2013</FONT></TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q2 2013</FONT></TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Q3 2013</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Revenue</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">646</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">540</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">542</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black"><B>623</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net earnings (loss) attributable to common shareholders</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">39</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">(11)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">15</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black"><B>(9)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net earnings (loss) per share attributable to common shareholders, </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">basic and diluted</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.15</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">(0.04)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.06</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black"><B>(0.03)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable earnings per share</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.22</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.12</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.03</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black"><B>0.15</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q4 2011</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q1 2012</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q2 2012</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q3 2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Revenue</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">688</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">644</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">398</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">522</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net earnings (loss) attributable to common shareholders</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">24</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">88</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">(798)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">56</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net earnings (loss) per share attributable to common shareholders, </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">basic and diluted</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.11</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.39</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">(3.52)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.24</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable earnings (loss) per share</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.13</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.20</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">(0.10)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">0.18</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">Basic and diluted
earnings per share attributable to common shareholders and comparable earnings per share are calculated each period using the weighted</FONT>
average common shares outstanding during the period. As a result, the sum of the earnings per share for the four quarters making
up the calendar year may sometimes differ from the annual earnings per share.</P>

<P STYLE="color: white; font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="color: white; font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">disclosure
controls and procedures</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Management has evaluated, with the participation
of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures as of the
end of the period covered by this report. Disclosure controls and procedures refer to controls and other procedures designed to
ensure that information required to be disclosed in the reports we file or submit under the <I>Securities Exchange Act of 1934,
as amended</I> (&#8220;Exchange Act&#8221;) are recorded, processed, summarized, and reported within the time periods specified
in the rules and forms of the Securities and Exchange Commission. Disclosure controls and procedures include, without limitation,
controls and procedures designed to ensure that information required to be disclosed by us in our reports that we file or submit
under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial
Officer, as appropriate to allow timely decisions regarding our required disclosure. In designing and evaluating our disclosure
controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment
in evaluating and implementing possible controls and procedures.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">There has been no change in the internal
control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely
to materially affect, our internal control over financial reporting. Based on the foregoing evaluation, our Chief Executive Officer
and Chief Financial Officer have concluded that, as of Sept. 30, 2013, the end of the period covered by this report, our disclosure
controls and procedures were effective at a reasonable assurance level.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">&nbsp;</FONT></P>

<P STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">FORWARD-LOOKING
STATEMENTS</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">This
MD&amp;A, the documents incorporated herein by reference, and other reports and filings made with the securities regulatory authorities
include forward-looking statements or information (collectively referred to herein as &#8220;forward-looking statements&#8221;)
within the meaning of the &#8220;safe harbor&#8221; provisions of applicable securities legislation. All forward-looking statements
are based on our beliefs as well as assumptions based on
information available at the time the assumption was made and on management&#8217;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 &#8220;may&#8221;, &#8220;will&#8221;, &#8220;believe&#8221;, &#8220;expect&#8221;, &#8220;anticipate&#8221;, &#8220;intend&#8221;,
&#8220;plan&#8221;, &#8220;foresee&#8221;, &#8220;potential&#8221;, &#8220;enable&#8221;, &#8220;continue&#8221;, 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 our actual performance to be materially different from that projected.</FONT></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">In
particular, this MD&amp;A contains forward-looking statements pertaining to our business and anticipated financial performance
including, for example: the closing of the acquisition of the Wyoming wind farm; the timing and the completion and commissioning
of projects under development, including major projects, and their attendant costs; our estimated spend on matters relating to
the recent flood in Alberta, spend on growth and sustaining capital and productivity projects; expectations in terms of the cost
of operations, capital spend, and maintenance, and the variability of those costs; the impact of certain hedges on future reported
earnings and cash flows; expectations related to future earnings and cash flow from operating and contracting activities; estimates
of fuel supply and demand conditions and the costs of procuring fuel; expectations for demand for electricity in both the short
term and long term, and the resulting impact on electricity prices; load growth, increased capacity, and natural gas costs on power
prices; expectations in respect of generation availability, capacity, and production; expected financing of our capital expenditures;
expected governmental regulatory regimes and legislation and their expected impact on us, as well as the cost of complying with
resulting regulations and laws; our trading strategy and the risk involved in these strategies; estimates of future tax rates,
future tax expense, and the adequacy of tax provisions; accounting estimates; anticipated growth rates in our markets; expectations
for the outcome of existing or potential legal and contractual claims; expectations for the ability to access capital markets at
reasonable terms; the estimated impact of changes in interest rates and the value of the Canadian dollar relative to the U.S. dollar
and other currencies in locations where we do business; the monitoring of our exposure to liquidity risk; expectations in respect
to the global economic environment; our credit practices; the estimated contribution of Energy Trading activities to gross margin;
and expectations relating to the performance of TransAlta Renewables assets.</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">Factors
that may adversely impact our forward-looking statements include risks relating to: fluctuations in market prices and the availability
of fuel supplies required to generate electricity; our ability to contract our generation for prices that will provide expected
returns; the regulatory and political environments in the jurisdictions in which we operate; environmental requirements and changes
in, or liabilities under, these requirements; changes in general economic conditions including interest rates; operational risks
involving our facilities, including unplanned outages at such facilities; disruptions in the transmission and distribution of electricity;
the effects of weather; disruptions in the source of fuels, water, or wind required to operate our facilities; natural disasters;
the threat of domestic terrorism and cyber-attacks; equipment failure and our ability to carry out the repairs in a cost effective
manner or timely manner; energy trading risks; industry risk and competition; fluctuations in the value of foreign currencies and
foreign political risks;&nbsp;the need for additional financing; structural subordination of securities; counterparty credit risk;
insurance coverage; our provision for income taxes; legal and contractual proceedings involving the Corporation; reliance on key
personnel;&nbsp;labour relations matters; development projects and acquisitions; and the satisfactory receipt of applicable regulatory
approvals for the closing of the Wyoming acquisition. The foregoing risk factors, among others, are described in further detail
in the Risk Management section of our 2012 Annual MD&amp;A and under the heading &#8220;Risk Factors&#8221; in our 2013 Annual
Information Form.</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">&nbsp;</FONT></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">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 or otherwise, except as required by applicable laws. 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. We cannot assure that projected results or events will be achieved.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 7.5pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 7.5pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>Supplemental
information</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 62%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30, 2013</B></FONT></TD>
    <TD STYLE="width: 16%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Dec. 31, 2012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Closing market price (TSX) ($)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>13.38</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">15.12</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Price range for the last 12 months (TSX) ($)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">High</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>16.86</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">21.37</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Low</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>12.91</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">14.11</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Debt to invested capital (%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>54.0</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">55.6</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Debt to invested capital excluding non-recourse debt (%)<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>51.6</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">53.3</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Debt to invested capital including finance lease obligation and non-recourse debt (%)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>54.1</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">55.6</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Return on equity attributable to common shareholders (%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1.5</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(23.7)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable return on equity attributable to common shareholders<SUP>(1), (2)</SUP> (%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5.8</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4.5</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Return on capital employed<SUP>(2) </SUP>(%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4.9</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(3.1)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable return on capital employed<SUP>(1), (2) </SUP>(%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6.2</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5.3</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash dividends per share<SUP>(2)</SUP> ($)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1.16</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1.16</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Price to comparable earnings ratio<SUP>(2)</SUP> (times)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>24.8</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">30.2</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Earnings coverage<SUP>(2)</SUP> (times)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1.4</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1.2)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Dividend payout ratio based on net earnings<SUP>(2)</SUP> (%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>885.3</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(44.1)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Dividend payout ratio based on comparable earnings<SUP>(1), (2) </SUP>(%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>221.3</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">229.7</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Dividend payout ratio based on funds from operations<SUP>(1), (2), (3) </SUP>(%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>39.7</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">34.7</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Dividend yield<SUP>(2)</SUP> (%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>8.7</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">7.7</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Adjusted cash flow to debt<SUP>(2), (3)</SUP> (%)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>18.3</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">19.0</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Adjusted cash flow to interest coverage<SUP>(2), (3)</SUP> (times)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-weight: bold"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4.2</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4.4</FONT></TD></TR>
</TABLE>
<P STYLE="font: 1pt/150% Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">(1)
These ratios incorporate items that are not defined under IFRS. None of these measurements should be used in isolation or as a
substitute for the Corporation&#8217;s reported financial performance or position as presented in accordance with IFRS. These
ratios are useful complementary measurements for assessing the Corporation&#8217;s financial performance, efficiency, and liquidity
and are common in the reports of other companies but may differ by definition and application. For a reconciliation of the Non-IFRS
measures used in this calculation, refer to the Non-IFRS Measures section of this MD&amp;A.</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0in">(2) Last 12
months.</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 9pt; text-align: justify; text-indent: -9pt">(3)
The December 2012 ratios have been adjusted for the impact of the Sundance Units 1 and 2 arbitration.</P>

<P STYLE="font: 4pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 7.5pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>Ratio
Formulas</B></FONT></P>

<P STYLE="font: 4pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Debt to invested capital </B>= long-term
debt including current portion - cash and cash equivalents / long-term debt including current portion + non-controlling interests
+ equity attributable to shareholders - cash and cash equivalents</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Return on equity attributable to common
shareholders</B> = net earnings attributable to common shareholders or earnings on a comparable basis / average equity attributable
to common shareholders excluding AOCI</P>

<P STYLE="font: 4pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Return on capital employed</B> = earnings
before non-controlling interests and income taxes + net interest expense or comparable earnings before non-controlling interests
and income taxes + net interest expense / average invested capital excluding AOCI</P>

<P STYLE="font: 4pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Price to comparable earnings ratio</B>
= current period&#8217;s closing market price / comparable earnings per share</P>

<P STYLE="font: 4pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Earnings coverage </B>= net earnings
attributable to common shareholders + income taxes + net interest expense / interest on debt - interest income</P>

<P STYLE="font: 4pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Dividend payout ratio</B> = common
share dividends / net earnings attributable to common shareholders or earnings on a comparable basis or funds from operations</P>

<P STYLE="font: 4pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Dividend yield </B>= dividend per common
share / current period&#8217;s closing market price</P>

<P STYLE="font: 4pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 50 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Adjusted cash flow to debt</B> = cash
flow from operating activities before changes in working capital / average total debt - average cash and cash equivalents</P>

<P STYLE="font: 4pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Adjusted cash flow to interest coverage
</B>= cash flow from operating activities before changes in working capital + interest on debt - interest income - capitalized
interest / interest on debt - interest income</P>

<P STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">GLOSSARY
OF KEY TERMS</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Availability </B>- A measure of the
time, expressed as a percentage of continuous operation 24 hours a day, 365 days a year that a generating unit is capable of generating
electricity, regardless of whether or not it is actually generating electricity.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>British Thermal Units (Btu)</B> - A
measure of energy. The amount of energy required to raise the temperature of one pound of water one degree Fahrenheit, when the
water is near 39.2 degrees Fahrenheit.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Capacity</B> - The rated continuous
load-carrying ability, expressed in megawatts, of generation equipment.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Derate </B>- To lower the rated electrical
capability of a power generating facility or unit.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Force Majeure </B>- Literally means
&#8220;major force&#8221;. These clauses excuse a party from liability if some unforeseen event beyond the control of that party
prevents it from performing its obligations under the contract.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Geothermal Plant</B> - A plant in which
the prime mover is a steam turbine. The turbine is driven either by steam produced from hot water or by natural steam that derives
its energy from heat found in rocks or fluids at various depths beneath the surface of the earth. The energy is extracted by drilling
and/or pumping.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Gigawatt</B> - A measure of electric
power equal to 1,000 megawatts.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Gigawatt Hour (GWh)</B> - A measure
of electricity consumption equivalent to the use of 1,000 megawatts of power over a period of one hour.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Greenhouse Gas (GHG) </B>- Gases having
potential to retain heat in the atmosphere, including water vapour, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
and perfluorocarbons.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Heat Rate</B> - A measure of conversion,
expressed as Btu/MWh, of the amount of thermal energy required to generate electrical energy.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Megawatt (MW)</B> - A measure of electric
power equal to 1,000,000 watts.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Megawatt Hour (MWh)</B> - A measure
of electricity consumption equivalent to the use of 1,000,000 watts of power over a period of one hour.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Net Maximum Capacity</B> - The maximum
capacity or effective rating, modified for ambient limitations, that a generating unit or power plant can sustain over a specific
period, less the capacity used to supply the demand of station service or auxiliary needs.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Power Purchase Arrangement (PPA) -</B>
A long-term arrangement established by regulation for the sale of electric energy from formerly regulated generating units to PPA
Buyers.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Renewable Power</B> - Power generated
from renewable terrestrial mechanisms including wind, geothermal, and solar with regeneration.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Spark Spread -</B> A measure of gross
margin per MW (sales price less cost of natural gas).</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Supercritical Combustion Technology:
</B>The most advanced coal-combustion technology in Canada employing a supercritical boiler, high-efficiency multi-stage turbine,
flue gas desulphurization unit (scrubber), bag house, and low nitrogen oxide burners.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Turbine </B>- A machine for generating
rotary mechanical power from the energy of a stream of fluid (such as water, steam, or hot gas). Turbines convert kinetic energy
of fluids to mechanical energy through the principles of impulse and reaction or a mixture of the two.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Turnaround: </B>Periodic planned shutdown
of a generating unit for major maintenance and repairs. Duration is normally in weeks. The time is measured from unit shutdown
to putting the unit back on line.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Unplanned Outage</B> - The shut down
of a generating unit due to an unanticipated breakdown.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Uprate</B> - To increase the rated
electrical capability of a power generating facility or unit.</P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Value at Risk (VaR)</B> - A measure
to manage earnings exposure from energy trading activities.</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><IMG SRC="image_001.jpg" ALT="" STYLE="height: 40px; width: 150px"></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>TransAlta Corporation</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">110 - 12th Avenue S.W.</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Box 1900, Station &#8220;M&#8221;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Calgary, Alberta Canada T2P 2M1</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Phone</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">403.267.7110</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Website</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">www.transalta.com</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>CIBC Mellon Trust Company</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">P.O. Box 7010 Adelaide Street Station</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Toronto, Ontario Canada M5C 2W9</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Phone</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Toll-free in North America: 1.800.387.0825</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Toronto or outside North America: 416.643.5500</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Fax </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">416.643.5501</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Website </B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">www.cibcmellon.com</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>FOR MORE INFORMATION</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Media and Investor Inquiries</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Investor Relations</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Phone</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">1.800.387.3598 in Canada and United States</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">or 403.267.2520</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Fax</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">403.267.2590</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>E-mail</B></P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">investor_relations@transalta.com</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>4
<FILENAME>ceo.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
<TEXT>
<HTML>
<HEAD>
     <TITLE>CA Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 0; text-align: right">Exhibit 31.1</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CERTIFICATIONS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">I, Dawn L. Farrell, certify that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">1.</FONT></TD><TD><FONT STYLE="font-size: 10pt">I have reviewed this quarterly report on Form 6-K of TransAlta Corporation;</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">2.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">3.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the periods presented in this report;</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">4.</FONT></TD><TD><FONT STYLE="font-size: 10pt">The registrant&#8217;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and
have:</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(a)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(b)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Evaluated the effectiveness of the registrant&#8217;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(c)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Disclosed in this report any change in the registrant&#8217;s internal control over financial
reporting that occurred during the registrant&#8217;s most recent fiscal quarter (the registrant&#8217;s fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#8217;s
internal control over financial reporting; and</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">5.</FONT></TD><TD><FONT STYLE="font-size: 10pt">The registrant&#8217;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#8217;s auditors and the audit committee of the registrant&#8217;s
board of directors (or persons performing the equivalent functions):</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(a)</FONT></TD><TD><FONT STYLE="font-size: 10pt">all significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the registrant&#8217;s ability to record, process, summarize
and report financial information; and</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(b)</FONT></TD><TD><FONT STYLE="font-size: 10pt">any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant&#8217;s internal control over financial reporting.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&#9;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 23%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 44%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>/s/ Dawn
    L. Farrell</I></FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dated October  31, 2013</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dawn L. Farrell</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">President and Chief Executive Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>5
<FILENAME>cfo.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
<TEXT>
<HTML>
<HEAD>
     <TITLE>CA Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 0; text-align: right">Exhibit 31.2</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CERTIFICATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">I, Brett Gellner, certify that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">1.</FONT></TD><TD><FONT STYLE="font-size: 10pt">I have reviewed this quarterly report on Form 6-K of TransAlta Corporation;</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">2.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">3.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the periods presented in this report;</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">4.</FONT></TD><TD><FONT STYLE="font-size: 10pt">The registrant&#8217;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and
have:</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">a.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">b.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Evaluated the effectiveness of the registrant&#8217;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">c.</FONT></TD><TD><FONT STYLE="font-size: 10pt">Disclosed in this report any change in the registrant&#8217;s internal control over financial
reporting that occurred during the registrant&#8217;s most recent fiscal quarter (the registrant&#8217;s fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#8217;s
internal control over financial reporting; and</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">5.</FONT></TD><TD><FONT STYLE="font-size: 10pt">The registrant&#8217;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#8217;s auditors and the audit committee of the registrant&#8217;s
board of directors (or persons performing the equivalent functions):</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">a.</FONT></TD><TD><FONT STYLE="font-size: 10pt">all significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the registrant&#8217;s ability to record, process, summarize
and report financial information; and</FONT><BR>
<BR>
</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">b.</FONT></TD><TD><FONT STYLE="font-size: 10pt">any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant&#8217;s internal control over financial reporting.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&#9;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 23%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 44%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>/s/ Brett
    Gellner</I></FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dated  October 31, 2013</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Brett Gellner</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief Financial Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>


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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>6
<FILENAME>ceoex32-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER REGARDING PERIODIC REPORT CONTAINING FINANCIAL STATEMENTS.
<TEXT>
<HTML>
<HEAD>
     <TITLE>CA Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 0; text-align: right">Exhibit 32.1</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Certification
of Chief Executive Officer</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"></TD><TD>Pursuant to 18 U.S.C. &sect; 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of
TransAlta Corporation (the &#8220;<U>Company</U>&#8221;) hereby certifies, to such officer&#8217;s knowledge, that:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">&#9;(i)&#9;the accompanying Report of Foreign Private
Issuer on Form 6-K of the Company (the &#8220;<U>Report</U>&#8221;) fully complies with the requirements of Section 13(a) or Section
15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">&#9;(ii)&#9;the information contained in the Report fairly
presents, in all material respects, the financial condition and results of operations of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 211.5pt; text-indent: -3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 211.5pt; text-indent: -3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 211.5pt; text-indent: -3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 211.5pt; text-indent: -3in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 23%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 44%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>/s/ Dawn
    L. Farrell</I></FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dated  October 31, 2013</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dawn L. Farrell</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">President and Chief Executive Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>7
<FILENAME>cfoex32-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER REGARDING PERIODIC REPORT CONTAINING FINANCIAL STATEMENTS.
<TEXT>
<HTML>
<HEAD>
     <TITLE>CA Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 0; text-align: right"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>




<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: right">Exhibit 32.2</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Certification
of Chief Financial Officer</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">Pursuant to 18 U.S.C. &sect; 1350, as created by Section
906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of TransAlta Corporation (the &#8220;<U>Company</U>&#8221;) hereby
certifies, to such officer&#8217;s knowledge, that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">&#9;(i)&#9;the accompanying Report of Foreign Private
Issuer on Form 6-K of the Company (the &#8220;<U>Report</U>&#8221;) fully complies with the requirements of Section 13(a) or Section
15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">&#9;(ii)&#9;the information contained in the Report fairly
presents, in all material respects, the financial condition and results of operations of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 211.5pt; text-indent: -3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 23%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 44%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>/s/ Brett
    Gellner</I></FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dated  October 31, 2013</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Brett Gellner</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief Financial Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>


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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>8
<FILENAME>newsreleaseex99-1.htm
<DESCRIPTION>PRESS RELEASE DATED OCTOBER 31, 2013.
<TEXT>
<HTML>
<HEAD>
     <TITLE>CA Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><IMG SRC="image_004.gif" ALT="" STYLE="height: 93px; width: 624px"></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0"><B>TransAlta Reports Third Quarter 2013 Results </B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>CALGARY, Alberta (October 31, 2013)</B> &#8211; TransAlta Corporation
(&#8220;TransAlta&#8221;) (TSX: TA; NYSE: TAC) today reported third quarter 2013 Comparable EBITDA<SUP>(1)</SUP> of $266 million
compared to $255 million during the same period last year. For the nine month period ending September 30, 2013, Comparable EBITDA
is higher by $79 million. We also declared a quarterly dividend of $0.29 per share.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Operating highlights include increased comparable gross margins
compared to the same period last year, largely driven by the performance of the Gas, Renewables and Trading business lines as well
as contributions from new growth projects. In addition, we made substantial advances on our growth and recontracting strategies.
Since the second quarter, we secured a total of 369 megawatts (&#8220;MW&#8221;) in long-term contracts in Eastern Canada, Australia
and the U.S which brings the total for the year to approximately 835 MW. We also created TransAlta Renewables, establishing a vehicle
for pursuing growth opportunities and generating proceeds to pay down debt, which was the primary driver of debt balances declining
by $343 million in the quarter. Furthermore, we added 213 MW of long-term contracted wind assets to the portfolio, and are capturing
a full year of the Solomon acquisition in 2013.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&#8220;We set out this year to add long term contracts, advance
our growth strategy, improve our marketing business and run a strong operation,&#8221; said Dawn Farrell, President and CEO. &#8220;Results
in the third quarter reflect a solid performance by our team on all of these fronts.&#8221;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 16.5pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>2013 Strategic Accomplishments</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 11pt">Contract extension for 245 MW in Australia</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 11pt">Acquisition of 144 MW Wyoming Wind Farm</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 11pt">Formation of TransAlta Renewables Inc. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 11pt">Start-up of Sundance Unit 1 and Sundance Unit 2</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 11pt">24-year contract with the City of Riverside in California for 86 MW at Cal Energy LLC.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 11pt">24-year contract with Salt River Project in Arizona for 50 MW at Cal Energy LLC.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 11pt">20-year contract for 74 MW at Ottawa</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 11pt">Approval of 11-year contract with Puget Sound Energy for up to 380 MW at Centralia Thermal</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-size: 11pt">Commercial operation of 68 MW New Richmond Wind Farm</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"></FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>(1) EBITDA refers to Earnings before interest, taxes, depreciation
and amortization. FFO refers to Funds from Operations. Comparable earnings (loss), comparable earnings (loss) per share, comparable
EBITDA, and funds from operations are not defined under International Financial Reporting Standards (&#8220;IFRS&#8221;). Presenting
these measures from period to period provides supplemental information to help management and shareholders evaluate earnings&#8217;
trends in comparison with prior periods' results. Refer to the Non-IFRS Measures section of the Management's Discussion and Analysis
(&quot;MD&amp;A&quot;) for further discussion of these items, including, where applicable, reconciliations to net earnings (loss)
attributable to common shareholders, operating income (loss), and cash flow from operating activities. Comparable EBITDA and </I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>funds from operations are key supplemental performance measures
for TransAlta that provide additional information regarding the company&#8217;s ability to cover its capital requirements and dividends
as well as strengthen its balance sheet and finance growth.</I></P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>Q3 2013 compared to Q3 2012&#9;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt">Comparable EBITDA of $266 million up from $255 million for the same
period last year</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt">FFO<SUP>(1)</SUP> of $174 million down from $233 million for the
same period last year</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt">Availability of 85.9% as compared to our annual target of 89-90%.
Lower availability is primarily attributed to the force majeure at Keephills Unit 1</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>YTD 2013 compared to YTD 2012</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 4.5pt"><FONT STYLE="font-size: 11pt">Comparable EBITDA<SUP> </SUP>of $780 million
up from $701 million for the same period last year</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 4.5pt"><FONT STYLE="font-size: 11pt">FFO<SUP> </SUP>of $550 million down from $572
million for the same period last year</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt">Adjusted availability<SUP>(2)</SUP> of 86.4% as compared to our
annual target of 89-90% Lower availability is primarily attributed to the force majeure at Keephills Unit 1</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0.25in">&nbsp;</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><B>Third Quarter Business Line Review </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt"><U>Coal</U>: Comparable gross<SUP> </SUP>margins, adjusted for mining
depreciation and coal inventory write-downs were $182 million, a decrease of $37 million compared to the same period last year.
The decrease is primarily due to lower contract pricing at Centralia Thermal and unfavorable coal pricing at the Alberta coal facilities.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 29.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt"><U>Gas</U>: Comparable gross margins, including finance lease income
were $102 million, an increase of $14 million compared to same period last year. The increase is due to the addition of Solomon
and favorable gas input costs in Eastern Canada. </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt"><U>Renewables</U>: Comparable gross margins were $91 million, an
increase of $3 million compared to the same period last year. The increase is primarily due to favorable pricing, partially offset
by lower hydro and wind volumes in Western Canada and lower hydro volumes in Eastern Canada.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt"><U>Energy Trading</U>: Comparable gross margins were $22 million,
an increase of $38 million compared to the same period last year. The increase is primarily due to strong performance across all
markets and prudent management of risk.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0.25in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>Third Quarter Consolidated Financial Review </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Comparable EBITDA was $266 million up from $255 million for the
same period last year, reflecting the higher gross margins in Gas, Renewables and Trading, which more than offset lower contract
pricing at Centralia Thermal, higher rolling average power prices during certain planned outages in Alberta, and higher coal costs
associated with mining coal in advance of the start-up of Sundance Units 1 and 2. On a year to date basis, Comparable EBITDA was
$780 million, an increase of $79 million from the same period last year.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Despite higher EBITDA, FFO for the quarter was $174 million down
from $233 million for the same period last year. The decrease in FFO is primarily due to differences in timing of cash proceeds
associated with power hedges and coal inventories.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Comparable earnings for the quarter were $39 million ($0.15 per
share) down from $41 million ($0.18 per share) in the same period last year. The per share decrease was largely driven by higher
shares outstanding compared to the same period last year.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>(2) Adjusted for economic dispatching at Centralia.</I></P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">A net loss $9 million ($(0.03) per share) was recorded
for the third quarter down from $56 million ($0.24 per share) in the same period last year. This decrease is largely due to a $40
million deferred tax asset write off at Centralia Thermal.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><B>Third Quarter Operating Review </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt; color: black">F</FONT>leet availability was 85.9% compared to 90.9%
over the same period last year, largely due to the force majeure declared during the first quarter of 2013 at Keephills Unit 1.
We expect our full year availability to be 87-89%, adjusted for economic dispatching at Centralia Thermal.</TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt">Excluding the force majeure at Keephills Unit 1, availability in
the quarter was approximately 91% and full year adjusted availability would be within our target range of 89-90%.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt">We have completed three of four major outages scheduled for 2013.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 11pt Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 4.5pt"><FONT STYLE="font-size: 11pt">Total sustaining expenditures were $93 million for the quarter and
$245 million year-to-date. We are tracking to our target range of $295-$345 million for 2013. </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>Recent Events</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><U>Western Australia Contract Extension</U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">On Oct. 30, 2013, we announced a long-term contract extension to
supply power to the BHP Billiton Nickel West operations in Western Australia from our Southern Cross Energy facilities (&#8220;Southern
Cross&#8221;). The extension is effective immediately and replaces the previous contract which was set to expire at the beginning
of 2014.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Operating since 1996, Southern Cross has a total installed capacity
of 245 MW from the Kambalda, Mt. Keith, Leinster, and Kalgoorlie power stations.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><U>Acquisition by TransAlta Renewables</U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">On Oct. 21, 2013, TransAlta Renewables announced the acquisition,
through one of our wholly owned subsidiaries, of an economic interest in a 144 MW wind farm in Wyoming for approximately U.S. $102
million from a wholly owned subsidiary of NextEra Energy Resources, LLC. The wind farm is fully operational and contracted under
a long-term PPA until 2028 with an investment grade counterparty. At closing, the economic interest in the wind farm will be acquired
by TransAlta Renewables from the Corporation in consideration for a payment equal to the original purchase price of the acquisition.
We will fund the acquisition through a U.S.$102 million loan to TransAlta Renewables. TransAlta Renewables expects to repay the
loan with free cash flow from operations over the first 36 months and through a long-term debt refinancing that is expected to
be completed in conjunction with other financing needs of TransAlta Renewables. The acquisition is subject to regulatory approvals
and is expected to close by the end of December 2013. The acquisition is expected to be accretive to cash flow per share for both
the Corporation and TransAlta Renewables.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><U>TransAlta Renewables Inc. (&#8220;TransAlta Renewables&#8221;)
</U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">On August 9, 2013, we transferred 28 indirectly owned
wind and hydroelectric generating assets to TransAlta Renewables through the sale of all the issued and outstanding shares of two
subsidiaries: Canadian Hydro Developers, Inc. and Western Sustainable Power Inc. The initial public offering resulted in an aggregate
of 22.1 million common shares being issued for gross proceeds to Renewables of $221 million. TransAlta, directly and indirectly,
holds 92.6 million common shares, representing approximately 80.7% of the common shares in Renewables.</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><U>Ontario Power Authority </U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">On August 30, 2013, we announced the execution of an agreement for
a 20-year power supply term with the Ontario Power Authority for our Ottawa gas facility, effective January, 2014. Under the new
deal, the plant will become dispatchable. This will assist in reducing the incidents of surplus baseload generation in the market,
while maintaining the ability of the system to reliably produce energy when it is needed.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">This new contract will benefit our shareholders by providing long-term
stable earnings from this facility and will benefit ratepayers of Ontario by securing attractively priced capacity from this existing
facility, reducing the need for new capacity to be built in the future and allowing hospitals in the area to continue to be served
with the steam they need for heat and other energy processes, in an environmentally friendly manner.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><U>Salt River Project </U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">On September 17, 2013, we announced that CalEnergy, LLC, a joint
venture between TransAlta and MidAmerican Energy Holdings Company, executed a 50 MW long-term contract for renewable geothermal
power with Salt River Project, an Arizona utility, which runs from 2016 to 2039.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><U>Sundance Units 1 and 2 Return to Service</U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">In December 2010, Units 1 and 2 of our Sundance facility
were shut down due to conditions observed in the boilers at both units. On July 20, 2012, an arbitration panel concluded that Unit
1 and Unit 2 were not economically destroyed. Unit 1 was returned to service on September 2, 2013 and Unit 2 was returned to service
on October 4, 2013.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify"><B>The following table depicts key
financial results and statistical operating data:</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Third Quarter 2013 Highlights</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #DBE5F1">
    <TD STYLE="width: 44%; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>In $CAD millions, unless otherwise stated</B></FONT></TD>
    <TD STYLE="width: 14%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>3 months ended September 30, 2013</B></FONT></TD>
    <TD STYLE="width: 14%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>3 months ended September 30, 2012</B></FONT></TD>
    <TD STYLE="width: 14%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>9 months ended September 30, 2013</B></FONT></TD>
    <TD STYLE="width: 14%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>9 months ended September 30, 2012</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Adjusted availability (%)<SUP>(3)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">85.9</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">91.7</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">86.4</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">90.3</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Production (GWh)</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">11,088</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">10,155</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">29,842</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">27,870</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Revenue</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">623</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">522</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">1,705</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">1,564</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Gross margin<SUP>(4)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">363</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">331</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">1,057</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">1,056</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Operating income (loss)<SUP>(4)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">118</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">132</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">277</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(93)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Net earnings (loss) attributable to common shareholders</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(9)</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">56</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(654)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Comparable earnings<SUP>(5)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">39</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">41</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">80</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">62</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Basic and diluted earnings (loss) per common share</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(0.03)</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">0.24</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(0.02)</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">(2.86)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Comparable earnings per share<SUP>(5)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">0.15</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">0.18</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">0.31</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">0.27</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Comparable EBITDA<SUP>(5)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">266</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">255</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">780</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">701</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">FFO<SUP>(5)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">174</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">233</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">550</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">572</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">FFO per share<SUP>(5)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">0.65</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">1.00</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">2.10</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">2.50</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">Cash flow from operations</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">253</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">14</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">601</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">275</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><I>&nbsp;</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><I>(3) Adjusted for economic dispatching at Centralia.but
not for K1 force majeure.</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><I>(4) Gross margin and operating income are Additional
IFRS measures. Refer to the Additional IFRS measures section of the MD&amp;A.</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><I>(5) Comparable earnings, comparable earnings per share,
comparable EBITDA, FFO, and FFO per share are not defined under IFRS. Refer to the Non-IFRS financial measures section of the MD&amp;A
for an explanation and, where applicable, reconciliations to net earnings (loss) attributable to common shareholders, operating
income (loss) and cash flow from operating activities.</I></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%">&nbsp;</TD><TD STYLE="text-align: center; width: 34%">&nbsp;</TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 7.5pt 7.5pt 7.5pt 0">The complete report for the quarter, including
MD&amp;A and unaudited interim financial statements, as well as our quarterly presentation, is available on the Investors section
of our website: www.transalta.com.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><B>Conference call</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0">We will hold a conference call and web cast at 1:30 p.m.
MT (3:30 p.m. ET) today to discuss third quarter 2013 results. The call will begin with a short address by Dawn Farrell, President
and CEO, and Brett Gellner, Chief Financial Officer, followed by a question and answer period for investment analysts, investors
and other interested parties. A question and answer period for the media will immediately follow. Please contact the conference
operator five minutes prior to the call, noting &quot;TransAlta Corporation&quot; as the company and &quot;Brent Ward&quot; as
moderator.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 21pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: black"><B>Dial-in numbers:
</B></FONT><BR>
<B>Toll-free North American participants call: 1-800-319-4610</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Outside of Canada &amp; USA call: 1-604-638-5340</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: black">A link to the live webcast will be available
</FONT>on the Investor Centre section of TransAlta&#8217;s website at http://www.transalta.com/investor-centre/events-presentations/webcasts-conference-calls.
<FONT STYLE="color: black">If you are unable to participate in the call, the </FONT>instant replay is accessible at 1-800-319-6413
(Canada and USA toll free) or 1-604-638-9010 (Outside of Canada) with TransAlta pass code 2231 followed by the # sign. A transcript
of the broadcast will be posted on TransAlta&#8217;s website once it becomes available.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">Note: If using a hands-free phone, lift the handset and press one
to ask a question.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; background-color: white"><I>TransAlta is a power generation and wholesale
marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating
a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta&#8217;s focus is to efficiently operate
geothermal, wind, hydro, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power.
For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and
lives. TransAlta has been selected by Jantzi-Sustainalytics as one of Canada&#8217;s Top 50 Socially Responsible Companies since
2009 and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good. TransAlta
is Canada&#8217;s largest investor-owned renewable energy provider.</I></P>

<P STYLE="color: #545555; font: 9pt Verdana, Helvetica, Sans-Serif; margin: 0 4.5pt 0 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-indent: 0in"><I>This news release may contain forward
looking statements, including statements regarding the business and anticipated financial performance of TransAlta Corporation.
These statements are based on TransAlta Corporation&#8217;s belief and assumptions based on information available at the time the
assumption was made. These statements are subject to a number of risks and uncertainties that may cause actual results to differ
materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include:
operational risks involving our facilities, including unplanned outages at such facilities, legislative or regulatory developments,
competition, global capital markets activity, changes in prevailing interest rates, currency exchange rates, inflation levels,
commodity prices and general economic conditions in geographic areas where TransAlta Corporation operates.</I></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-indent: 0in">Note: All financial figures are in Canadian
dollars unless noted otherwise.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: center; text-indent: 0in"><B>-30-</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">For more information:</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 55%"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B><I>Investor inquiries:</I></B></FONT></TD>
    <TD STYLE="width: 45%"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B><I>Media inquiries:&#9;</I></B></FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Brent Ward</FONT></TD>
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Stacey Hatcher</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Director, Corporate Finance and Investor Relations</FONT></TD>
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Senior Corporate Relations Advisor</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Phone: 1-800-387-3598 in Canada and U.S.</FONT></TD>
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Cell: 587-216-2242</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Email: investor_relations@transalta.com</FONT></TD>
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Toll-free media number: 1-855-255-9184</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Alternate local number: 403-267-2540</FONT></TD></TR>
</TABLE>



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