<SEC-DOCUMENT>0001137171-15-000212.txt : 20151102
<SEC-HEADER>0001137171-15-000212.hdr.sgml : 20151102
<ACCEPTANCE-DATETIME>20151102172807
ACCESSION NUMBER:		0001137171-15-000212
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		10
CONFORMED PERIOD OF REPORT:	20150930
FILED AS OF DATE:		20151102
DATE AS OF CHANGE:		20151102

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:		151191612

	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>translata6k11022015.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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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<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 12pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Report
of Foreign Private Issuer Pursuant to Rule 13</B></FONT><B>a<FONT STYLE="text-transform: uppercase">-16 or 15</FONT>d<FONT STYLE="text-transform: uppercase">-16
</FONT><BR>
<FONT STYLE="text-transform: uppercase">UNDER the Securities Exchange Act of 1934</FONT></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 24pt">For the month of October, 2015<BR>
<BR>
Commission File Number 001-15214</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;Form 40-F <U> X&#9;</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; text-indent: 0.5in">&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">333-200773</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; font-size: 12pt; text-indent: 0in">13.1</TD>
    <TD STYLE="width: 85%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; font-size: 12pt; text-indent: 0in"><a href="fins.htm">Consolidated comparative interim unaudited financial statements of the registrant for the nine month period ended September 30, 2015.</a></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; font-size: 12pt; text-indent: 0in">13.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; font-size: 12pt; text-indent: 0in"><a href="mda.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, 2015.</a></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">&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-align: justify; text-indent: 0in">The document listed
below as Exhibit 99.1 to this Form 6-K 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>

<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; font-size: 12pt; text-indent: 0in">99.1</TD>
    <TD STYLE="width: 85%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; font-size: 12pt; text-indent: 0in"><a href="newsrelease.htm">Press release dated October 30, 2015.</a></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"><B>TransAlta Corporation</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 9pt 0 0">&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: 12%; padding-right: 9pt; padding-left: 5.4pt; font-size: 12pt">By:</TD>
    <TD STYLE="width: 88%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; border-bottom: Black 0.5pt solid"><I>/s/ Donald Tremblay</I></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt; padding-left: 5.4pt; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-right: 9pt; padding-left: 5.4pt; font-size: 12pt">Donald Tremblay</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt; padding-left: 5.4pt; font-size: 12pt">&nbsp;</TD>
    <TD STYLE="padding-right: 9pt; padding-left: 5.4pt; font-size: 12pt">Chief Financial Officer</TD></TR>
</TABLE>
<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 30, 2015</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="fins.htm">Consolidated comparative interim unaudited financial statements of the registrant for the nine month period ended September 30, 2015.</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="mda.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, 2015.</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="ex311.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="ex312.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="ex321.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="ex322.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="newsrelease.htm">Press release dated October 30, 2015.</a></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.25in 12pt 0; text-align: right">&nbsp;</P>



<P STYLE="margin: 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-13.1
<SEQUENCE>2
<FILENAME>fins.htm
<DESCRIPTION>CONSOLIDATED COMPARATIVE INTERIM UNAUDITED FINANCIAL STATEMENTS OF THE REGISTRANT FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2015.
<TEXT>
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<HEAD>
     <TITLE>CA Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
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<P STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
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    <TD NOWRAP COLSPAN="4" 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"><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>
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<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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"><B>CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS</B></FONT></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></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"><I>(in millions of Canadian dollars except per share amounts)</I></FONT></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 COLSPAN="2" STYLE="font: 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="2" 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"><B>9 months ended Sept. 30</B></FONT></TD></TR>
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    <TD NOWRAP COLSPAN="4" 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"><I>Unaudited</I></FONT></TD>
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    <TD 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"><B>2015</B></FONT></TD>
    <TD 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">2014</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 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"><B>2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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">2014</FONT></TD></TR>
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    <TD NOWRAP STYLE="width: 5%; 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: 3%; 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: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 11%; 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 NOWRAP STYLE="width: 9%; 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></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <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">Revenues</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: 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>641</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">639</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"><B>1,672</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">1,905</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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">Fuel and purchased power</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>299</B></FONT></TD>
    <TD NOWRAP 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">277</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>736</B></FONT></TD>
    <TD NOWRAP 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">824</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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"><B>Gross margin</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>342</B></FONT></TD>
    <TD NOWRAP 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">362</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>936</B></FONT></TD>
    <TD NOWRAP 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">1,081</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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">Operations, maintenance, and administration</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"><B>130</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">138</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"><B>383</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">404</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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">Depreciation and amortization</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"><B>139</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">135</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"><B>409</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">402</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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">Asset impairment 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">&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"><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>
    <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"><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">(1)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Restructuring </FONT><FONT STYLE="font-size: 7pt"><I>(Note 3)</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: 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">-</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"><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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" 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: 7.5pt/18pt 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; 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: 7.5pt/18pt 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>21</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">21</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net other operating losses </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: 7.5pt/18pt 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>54</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">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>54</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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; background-color: white">
    <TD NOWRAP COLSPAN="4" STYLE="border-top: Black 1pt solid; 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"><B>Operating income</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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">83</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>52</B></FONT></TD>
    <TD NOWRAP 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">252</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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">Finance lease income</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"><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">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"><B>41</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">36</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; 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">(Note 5)</FONT></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="font: 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>(63)</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">(64)</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"><B>(182)</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">(192)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" 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 gains (losses)</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: 7.5pt/18pt 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="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: 7.5pt/18pt 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="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 COLSPAN="4" STYLE="border-bottom: Black 1pt solid; font: 8pt/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">Gain on sale of assets<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 3)</FONT></I></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>263</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>263</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">1</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"><B>Earnings before income taxes</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="font: 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>219</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">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"><B>175</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></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; 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 6)</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>31</B></FONT></TD>
    <TD NOWRAP 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">18</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>62</B></FONT></TD>
    <TD NOWRAP 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">33</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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"><B>Net earnings</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>188</B></FONT></TD>
    <TD NOWRAP 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">13</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>113</B></FONT></TD>
    <TD NOWRAP 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">57</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>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="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"><B>Net earnings attributable to:</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" ROWSPAN="2" STYLE="border-bottom: Black 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"><B>&nbsp;</B></P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">TransAlta shareholders</P>
        <P STYLE="font: 7.5pt/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"><FONT STYLE="font-size: 7.5pt">Non-controlling
        interests<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 7)</FONT></I></P></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 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"><B>166</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="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"><B>65</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">21</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>22</B></FONT></TD>
    <TD NOWRAP 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">10</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>48</B></FONT></TD>
    <TD NOWRAP 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">36</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>188</B></FONT></TD>
    <TD NOWRAP 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">13</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>113</B></FONT></TD>
    <TD NOWRAP 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">57</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>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="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 earnings attributable to TransAlta 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">&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"><B>166</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="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"><B>65</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">21</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; 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 13)</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>12</B></FONT></TD>
    <TD NOWRAP 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">9</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>35</B></FONT></TD>
    <TD NOWRAP 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">28</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="6" 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"><B>Net income (loss) attributable to common shareholders</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>154</B></FONT></TD>
    <TD NOWRAP 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">(6)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>30</B></FONT></TD>
    <TD NOWRAP 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">(7)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="6" 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"><B>Weighted average number of common shares </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>&nbsp;&nbsp;outstanding in the period </B><I>(millions)</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>281</B></FONT></TD>
    <TD NOWRAP 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">273</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>279</B></FONT></TD>
    <TD NOWRAP 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">272</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="6" 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"><B>Net earnings (loss) per share attributable to common </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>&nbsp;&nbsp;shareholders, basic and diluted</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>0.55</B></FONT></TD>
    <TD NOWRAP 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">(0.03)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>0.11</B></FONT></TD>
    <TD NOWRAP 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">(0.03)</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="background-color: white; padding-right: 5.4pt; padding-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="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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>
</TABLE>
<P STYLE="color: red; font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">F<!-- 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="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 STYLE="width: 38%; 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"><B>TRANSALTA CORPORATION</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 17%; 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: 2%; 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: 9%; 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: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="9" 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"><B>CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME</B></FONT></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="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"><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="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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 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: 7.5pt/18pt 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: 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="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"><I>Unaudited</I></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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"><B>2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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">2014</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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"><B>2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 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">2014</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="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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP 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"><B>Net earnings</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>188</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">13</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>113</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">57</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: justify"><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="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"><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">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"><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">(8)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 7.5pt">Gains on derivatives designated as cash flow hedges, net of tax<SUP>(2)</SUP></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"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">-</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"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>Total items that will not be reclassified
        </B></P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in"><B>subsequently to
        net earnings</B></P></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>9</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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>
<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: justify"><FONT STYLE="font-size: 7.5pt">Gains on translating net assets of foreign operations</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"><B>94</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>
    <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"><B>168</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">45</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Reclassification of translation gains on
        net assets of divested</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">foreign operations</P></TD>
    <TD NOWRAP STYLE="font: 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="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: 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></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Losses on financial instruments designated
        as hedges of</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">Foreign operations,
        net of tax<SUP>(3)</SUP></P></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"><B>(52)</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">(19)</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"><B>(93)</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">(37)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Reclassification of losses on financial
        instruments designated as</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">Hedges of divested
        foreign operations, net of tax<SUP>(4)</SUP></P></TD>
    <TD NOWRAP STYLE="font: 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="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: 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 COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 7.5pt">Gains on derivatives designated as cash flow hedges, net of tax<SUP>(5)</SUP></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"><B>225</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">111</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"><B>316</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">100</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: Black 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">Reclassification of gains on derivatives
        designated as cash flow hedges</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">tonet earnings, net
        of tax<SUP>(6)</SUP></P></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>(91)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">(49)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>(145)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">(27)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 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"><B>Total items that will be reclassified
        </B></P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in"><B>subsequently to
        net earnings</B></P></TD>
    <TD NOWRAP STYLE="padding-right: 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: Black 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"><B>176</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">68</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>246</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">82</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD 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"><B>Other comprehensive income</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>181</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>255</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">74</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP 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"><B>Total comprehensive income</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>369</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">84</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>368</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">131</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: 8pt/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 attributable to:</B></FONT></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="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></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">TransAlta 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: 7.5pt/18pt 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>347</B></FONT></TD>
    <TD 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">73</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"><B>312</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">88</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt/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><FONT STYLE="font-size: 7pt"><I>(Note 7)</I></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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"><B>22</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">11</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"><B>56</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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>369</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">84</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>368</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">131</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 COLSPAN="10" 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"><I>(1) Net of income tax expense of 1 and nil for the three and nine months ended Sept. 30, 2015 (2014 - 1 expense and 3 recovery), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="6" 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"><I>(2) Net of income tax expense of 2 and 2 for the nine months ended Sept. 30, 2015 (2014 - nil).</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 COLSPAN="10" 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"><I>(3) Net of income tax recovery of 8 and 15 for the three and nine months ended Sept. 30, 2015 (2014 - 2&nbsp;&nbsp;and 5 recovery), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="4" 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"><I>(4) Net of income tax recovery of 1 for the nine months ended Sept. 30, 2014.</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></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="10" 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"><I>(5) Net of income tax expense of 80 and 118 for the three and nine months ended Sept. 30, 2015 (2014 - 44 and 37 expense), respectively.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="10" 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"><I>(6) Net of income tax expense of 22 and 35 for the three and nine months ended Sept. 30, 2015 (2014 - 7 and 1 expense),&nbsp;&nbsp;respectively.</I></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>
    <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; text-indent: 0.5in">&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; text-indent: 0.5in">&nbsp;</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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">F<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- 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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<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: 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>
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    <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/18pt Arial, Helvetica, Sans-Serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="8" 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"><B>CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION</B></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="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"><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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 51%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; 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: 5%; 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: 15%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 18%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP 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"><I>Unaudited</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 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"><B>Sept. 30, 2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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">Dec. 31, 2014</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">Cash and cash equivalents</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: 7.5pt/18pt 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>37</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">43</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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Trade and other receivables </FONT><FONT STYLE="font-size: 7pt"><I>(Note 9)</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: 7.5pt/18pt 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>494</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">450</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: 7.5pt/18pt 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>41</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">17</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/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">Risk management assets </FONT><FONT STYLE="font-size: 7pt"><I>(Notes 8 and 9)</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: 7.5pt/18pt 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>264</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">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/18pt 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 15)</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: 7.5pt/18pt 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>122</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">71</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: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>958</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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">854</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 receivables</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"><B>770</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">403</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/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">Property, plant, and equipment </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="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 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">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: 7.5pt/18pt 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>12,734</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">12,532</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: Black 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">Accumulated depreciation</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>(5,526)</B></FONT></TD>
    <TD NOWRAP 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">(5,294)</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: 7.5pt/18pt 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>7,208</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">7,238</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 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: 7.5pt/18pt 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>464</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">462</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: 7.5pt/18pt 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>367</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">331</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: 7.5pt/18pt 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>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">45</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/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">Risk management assets </FONT><FONT STYLE="font-size: 7pt"><I>(Notes 8 and 9)</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: 7.5pt/18pt 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>792</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">402</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: Black 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">Other assets</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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"><B>117</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">98</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: Black 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"><B>Total assets</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>10,756</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">9,833</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 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: 7.5pt/18pt 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>386</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">481</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 decommissioning and other provisions</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"><B>74</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>
    <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/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">Risk management liabilities<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Notes 8 and 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: 7.5pt/18pt 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>164</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">128</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">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="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"><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">2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/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">Dividends payable </FONT><FONT STYLE="font-size: 7pt"><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="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 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"><B>59</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">55</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/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 long-term debt and finance lease obligations </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="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"><B>47</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">751</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: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>732</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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">1,451</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/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">Credit facilities, long-term debt, and finance lease obligations </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="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"><B>4,403</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">3,305</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">Decommissioning and other 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">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 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"><B>328</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">322</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: 7.5pt/18pt 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>588</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">434</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/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">Risk management liabilities<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Notes 8 and 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: 7.5pt/18pt 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>101</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">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; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Defined benefit obligation and other long-term liabilities</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"><B>346</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">349</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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Common shares<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 12)</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: 7.5pt/18pt 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>3,056</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">2,999</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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Preferred shares </FONT><FONT STYLE="font-size: 7pt"><I>(Note 13)</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: 7.5pt/18pt 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>942</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">942</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">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: 7.5pt/18pt 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 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">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="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"><B>(905)</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">(770)</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: 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">Accumulated other comprehensive income</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>351</B></FONT></TD>
    <TD NOWRAP 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">104</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: 7.5pt/18pt 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>3,453</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">3,284</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: Black 1pt solid; font: 8pt/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<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 7)</FONT></I></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>805</B></FONT></TD>
    <TD NOWRAP 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">594</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: Black 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"><B>Total equity</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>4,258</B></FONT></TD>
    <TD NOWRAP 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">3,878</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: Black 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"><B>Total liabilities and equity</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>10,756</B></FONT></TD>
    <TD NOWRAP 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">9,833</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="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">Commitments and contingencies<I> (Note 14)</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 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">Subsequent events<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="background-color: white; padding-right: 5.4pt; 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="background-color: white; padding-right: 5.4pt; padding-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; 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="background-color: white; padding-right: 5.4pt; padding-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>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 3 -->
    <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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">F<!-- 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>
    <!-- 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>
    <TD NOWRAP STYLE="vertical-align: top; width: 31%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>
        <P STYLE="font: 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>TRANSALTA CORPORATION</B></P></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 6%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="5" STYLE="vertical-align: top; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt"><B>CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY</B></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">&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: top; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt"><I>(in millions of Canadian dollars)</I></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">&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>
    <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: 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: 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>
    <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: 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: 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: top">
    <TD NOWRAP COLSPAN="9" STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt"><B>9 months ended Sept. 30, 2015</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt"><I>Unaudited</I></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Common shares</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Preferred shares</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Contributed </B></FONT><BR>
<FONT STYLE="font-size: 6.5pt"><B>surplus</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Deficit</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Accumulated other </B></FONT><BR>
<FONT STYLE="font-size: 6.5pt"><B>comprehensive </B></FONT><BR>
<FONT STYLE="font-size: 6.5pt"><B>income</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Attributable to </B></FONT><BR>
<FONT STYLE="font-size: 6.5pt"><B>shareholders</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Attributable to </B></FONT><BR>
<FONT STYLE="font-size: 6.5pt"><B>non-controlling </B></FONT><BR>
<FONT STYLE="font-size: 6.5pt"><B>interests</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><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: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Balance, Dec. 31, 2014</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">2,999</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">942</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">9</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(770)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">104</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">3,284</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">594</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">3,878</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Net earnings</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">65</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">65</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">48</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">113</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">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: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Net gains on translating net assets of </FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;&nbsp;foreign operations, net of hedges and tax</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">75</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">75</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">75</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Net gains on derivatives designated </FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;&nbsp;as cash flow hedges, net of tax</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">170</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">170</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">6</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">176</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Net actuarial gains on defined benefits plans, </FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;&nbsp;net of tax</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">4</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">4</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">4</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Intercompany available-for-sale investments</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(2)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(2)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">2</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Total comprehensive income</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">65</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">247</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">312</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">56</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">368</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Common share dividends</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(151)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(151)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(151)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Preferred share dividends</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(35)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(35)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(35)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Sale of investment in subsidiaries to </FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;TransAlta Renewables <I>(Note 3)</I></FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(14)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(14)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">229</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">215</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Distributions paid, and payable, </FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;to non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(74)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(74)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Common shares issued</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">57</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">57</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">57</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt"><B>Balance, Sept. 30, 2015</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>3,056</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>942</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>9</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(905)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>351</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>3,453</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>805</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>4,258</B></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="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: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">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 NOWRAP STYLE="background-color: white; 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/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">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">9 months ended Sept. 30, 2014</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="width: 188px; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt"><I>Unaudited</I></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">Common shares</FONT></TD>
    <TD STYLE="width: 51px; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">Preferred shares</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">Contributed </FONT><BR>
<FONT STYLE="font-size: 6.5pt">surplus</FONT></TD>
    <TD STYLE="width: 49px; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">Deficit</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">Accumulated other </FONT><BR>
<FONT STYLE="font-size: 6.5pt">comprehensive </FONT><BR>
<FONT STYLE="font-size: 6.5pt">loss</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">Attributable to </FONT><BR>
<FONT STYLE="font-size: 6.5pt">shareholders</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">Attributable to </FONT><BR>
<FONT STYLE="font-size: 6.5pt">non-controlling </FONT><BR>
<FONT STYLE="font-size: 6.5pt">interests</FONT></TD>
    <TD STYLE="width: 60px; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">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: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Balance, Dec. 31, 2013</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">2,913</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">781</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">9</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(735)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(62)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">2,906</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">517</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">3,423</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Net earnings</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">21</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">21</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">36</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">57</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">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: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Net gains on translating net assets of </FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;&nbsp;&nbsp;foreign operations, net of hedges and tax</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">9</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">9</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Net gains on derivatives designated </FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;&nbsp;&nbsp;as cash flow hedges, net of tax</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">66</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">66</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">7</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">73</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Net actuarial losses on defined benefits plans, &nbsp;net of tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">(8)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">(8)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(8)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Total comprehensive income</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">21</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">67</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">88</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">43</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">131</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Common share dividends</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(147)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">(147)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(147)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Preferred share dividends</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(28)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">(28)</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(28)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Secondary offering of TransAlta</FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;Renewables Inc. shares</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">20</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">20</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">109</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">129</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Distributions paid, and payable, </FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;to non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">(62)</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(62)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Common shares issued</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">66</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">66</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">66</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Preferred shares issued</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">162</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">162</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">-</FONT></TD>
    <TD NOWRAP STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">162</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Balance, Sept. 30, 2014</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">2,979</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">943</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">9</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">(869)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">5</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">3,067</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">607</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt">3,674</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; background-color: white">
    <TD NOWRAP COLSPAN="9" STYLE="font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">See accompanying notes.</FONT></TD></TR>
</TABLE>

<!-- 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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">F<!-- 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/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 STYLE="width: 58%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><BR CLEAR="ALL">
 <FONT STYLE="font-size: 7.5pt"><B>TRANSALTA CORPORATION</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; 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: 3%; 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: 8%; 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: 8%; 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"><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</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="padding-right: 5.4pt; padding-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: 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="padding-right: 5.4pt; padding-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="background-color: white; padding-right: 5.4pt; 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: 7.5pt/18pt 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 NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: 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="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"><I>Unaudited</I></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">2014</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">2014</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: 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>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="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; 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">Net earnings</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"><B>188</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">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"><B>113</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">57</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">Depreciation and amortization</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"><B>153</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">148</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"><B>452</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">443</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt 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 assets<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 3)</FONT></I></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"><B>(263)</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: 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>(263)</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></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">California claim</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"><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: 7.5pt/18pt 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">(28)</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">Accretion of provisions</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"><B>5</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>
    <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"><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">14</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">Decommissioning and restoration costs 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"><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">(4)</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"><B>(20)</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">(11)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/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><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: 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>30</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">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"><B>50</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; 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">Unrealized (gains) losses from risk management activities</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"><B>(55)</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">(29)</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"><B>54</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; 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">Unrealized foreign exchange (gains) losses</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"><B>1</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: 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">4</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: 7.5pt/18pt 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>67</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: 7.5pt/18pt 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="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></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">Asset impairment reversals</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"><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: 7.5pt/18pt 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></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: 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"><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>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">1</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: 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">Cash flow from operations before changes in working capital</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"><B>119</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: 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">140</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"><B>480</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">496</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="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">Change in non-cash operating working capital balances</FONT></TD>
    <TD NOWRAP 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"><B>81</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">76</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>(166)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">50</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP 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">Cash flow from operating activities</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>200</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">216</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>314</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">546</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: 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/18pt 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 10)</I></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"><B>(128)</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">(144)</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"><B>(375)</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">(324)</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: 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="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="font: 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="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 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 assets held for sale</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"><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: 7.5pt/18pt 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">(13)</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">Proceeds on sale of property, plant, and equipment</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"><B>1</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>
    <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"><B>3</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="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">Proceeds on sale of investments and development projects</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"><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: 7.5pt/18pt 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">218</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/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">Acquisition of renewable energy facilities, net of cash acquired </FONT><FONT STYLE="font-size: 7pt"><I>(Note 3)</I></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"><B>(52)</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: 7.5pt/18pt 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>(52)</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></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">Realized gains (losses) on financial instruments</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"><B>5</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">3</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"><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">(10)</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">Net decrease in collateral received from counterparties</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"><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: 7.5pt/18pt 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></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">Net increase in collateral paid to counterparties</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"><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">-</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"><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">4</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="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"><B>6</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: 7.5pt/18pt 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">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">Other</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"><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">-</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"><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">-</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">Change in non-cash investing working capital balances</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>7</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">(13)</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"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">4</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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">Cash flow used in investing activities</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>(166)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">(158)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>(425)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">(137)</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: 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/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 borrowings under credit facilities<I> </I></FONT><I><FONT STYLE="font-size: 7pt">(Note 11)</FONT></I></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"><B>130</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: 7.5pt/18pt 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>735</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">(532)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Repayment of long-term debt </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: 7.5pt/18pt 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>(120)</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>
    <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"><B>(754)</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">(207)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/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">Issuance of long-term debt </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: 7.5pt/18pt 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: 7.5pt/18pt 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>45</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">434</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt/18pt 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 12)</FONT></I></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"><B>(32)</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">(29)</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"><B>(93)</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">(110)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt/18pt 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 13)</I></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"><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">(9)</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"><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">(28)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">Net proceeds on issuance of preferred shares </FONT><FONT STYLE="font-size: 7pt"><I>(Note 13)</I></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"><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">161</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"><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">161</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7.5pt">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: 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">-</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"><B>211</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">129</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">Realized gains (losses) on financial instruments</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"><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">(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"><B>77</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">17</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt/18pt 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 7)</I></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"><B>(29)</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">(19)</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"><B>(70)</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">(63)</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: 7.5pt/18pt 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">(2)</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"><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">(7)</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 financing working capital balances</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"><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">-</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"><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></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: 7.5pt/18pt 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: 7.5pt/18pt 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="border-bottom: Black 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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1pt solid; 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">Cash flow from (used in) financing activities</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>(68)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">94</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>104</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">(206)</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"><B>Cash flow from (used in) operating, investing, and financing activities</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"><B>(34)</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">152</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"><B>(7)</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">203</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="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"><B>Effect of translation on foreign currency cash</B></FONT></TD>
    <TD NOWRAP 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"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">(1)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">-</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"><B>Increase (decrease) in cash and cash equivalents</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"><B>(34)</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">151</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"><B>(6)</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">203</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"><B>Cash and cash equivalents, beginning of period</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"><B>71</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">94</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>43</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">42</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1pt solid; 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"><B>Cash and cash equivalents, end of period</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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"><B>37</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">245</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>37</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">245</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 58%; 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 (received)</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; 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"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="width: 3%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; 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">(6)</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; 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"><B>22</B></FONT></TD>
    <TD NOWRAP STYLE="width: 3%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; 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">21</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP 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">Cash interest paid</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>27</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">36</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>153</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">157</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"><I>See accompany notes.</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">&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></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">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&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">&nbsp;</P>

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

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

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

<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">&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"><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 the &#8220;Corporation&#8221;) most recent annual consolidated financial statements,
except as outlined in </FONT><BR>
<FONT STYLE="line-height: 150%"><I>Note 2(A).</I> 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, they should be
read in conjunction with the Corporation&#8217;s most recent annual consolidated financial statements which are available on SEDAR
at www.sedar.com and on EDGAR at www.sec.gov.</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">The unaudited interim condensed consolidated
financial statements include the accounts of the Corporation and the subsidiaries that it controls.</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. 29, 2015.</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 and Significant Judgments</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 unaudited interim
condensed consolidated financial statements in accordance with IAS 34 requires management to use judgment and make estimates and
assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, and disclosures of contingent assets
and liabilities. 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 <I>Note 2(Z)</I> of the Corporation&#8217;s most recent annual consolidated financial statements
for information regarding judgments and estimates. An additional judgment applied in the first quarter of 2015 with respect to
operating and reportable segments is described in <I>Note 2(A).</I></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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<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. 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>I. Operating and Reportable Segments</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 January 2015, the Corporation completed
changes to its internal reporting to systematize allocations of certain costs to each fuel type within its Generation Segment.
This permitted internal reports regularly provided to the chief operating decision maker to be presented at the disaggregated fuel
type level. Accordingly, commencing with first quarter 2015 reporting, the Corporation considers the following distinct fuel types
as reportable segments: Canadian Coal, U.S. Coal, Gas, Wind, and Hydro. Previously, these were collectively reported as the Generation
Segment. Comparative results for 2014 have been restated to align with the<BR>
re-segmentation: general expenditures of the Generation Segment were allocated to each fuel type segment based on estimated relative
benefit derived from those expenditures. For the three and nine months ended Sept. 30, 2014, $3 million and<BR>
$12 million, respectively, in expenditures associated with certain functions were determined to benefit the broader organization
and were reassigned to the Corporate Segment. No changes arose in respect of the Corporation&#8217;s Energy Marketing 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">Management has exercised judgment in aggregating
the Corporation&#8217;s Canadian gas and Australian gas operating segments together into a single reportable segment, Gas. The
operating segments were determined to share the following similar economic characteristics: nature of revenue sources, level of
contractedness, and customer assumption of fuel and regulatory compliance costs. In addition, the Canadian gas and Australian gas
operating segments share substantial similarity in products (energy), processes (gas turbines), customers (industrial and regional
utilities) and distribution methods (connection to grid or<BR>
behind-the-fence generation). Commencing Sept. 1, 2015, the solar facilities acquired (see <I>Note 3</I>) are included in the Wind
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"><B>II. Change in Estimates &#8211; 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, the Corporation&#8217;s
subsidiary TransAlta Cogeneration L.P. (&#8220;TA Cogen&#8221;) executed a new 15-year power supply contract with Ontario&#8217;s
Independent Electricity System Operator for the Windsor facility, which is effective Dec. 1, 2016. Accordingly, the useful life
of the Windsor facility was extended prospectively to Nov. 30, 2031. As a result, depreciation expense for the three and nine months
ended Sept. 30, 2015 decreased by $2 million and $5 million, respectively. The full year 2015 depreciation expense is expected
to be lower by $8 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">B. 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">Accounting standards that have been previously
issued by the International Accounting Standards Board (&#8220;IASB&#8221;) but are not yet effective, and have not been applied
by the Corporation include IFRS 9 <I>Financial Instruments</I> and IFRS 15 <I>Revenue from Contracts with Customers</I>. Refer
to <I>Note 3</I> of the Corporation&#8217;s most recent annual consolidated financial statements for information regarding the
requirements of IFRS 9 and IFRS 15.</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%">In September
2015, the IASB issued an amendment to IFRS 15 to defer the Jan. 1, 2017 effective date by one year. Accordingly, </FONT>IFRS 9
and IFRS 15 are effective for annual periods beginning on or after Jan. 1, 2018. Early application is permitted for both. The Corporation
continues to assess the impact of adopting these standards on its consolidated financial statements.</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">C. Comparative Figures</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 comparative figures have been reclassified
to conform to the current period&#8217;s presentation. These reclassifications did not impact previously reported net earnings.</P>


<!-- Field: Page; Sequence: 7 -->
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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: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in">3.
SIGNIFICANT EVENTS</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>I. Restructured Poplar Creek Contract
and Acquisition of Wind Farms</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. 1, 2015, the Corporation and Suncor
Energy (&#8220;Suncor&#8221;) closed the restructuring of their arrangement for power generation services at Suncor&#8217;s oil
sands base site near Fort McMurray.</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 Poplar Creek co-generation
facility, which has a maximum capacity of 376 MW, had been built and contracted to provide steam and electricity to Suncor until
2023 and is recorded in the Gas Segment. Under the terms of the new arrangement, Suncor acquired two steam turbines with an installed
capacity of 132 MW and certain transmission interconnection assets. The Corporation retained two gas turbines and heat recovery
steam generators (&#8220;gas generators&#8221;), which are leased to Suncor. Suncor assumed full operational control of the co-generation
facility, including responsibility for all capital costs, and has the right to use the full 244 MW capacity of the Corporation&#8217;s
gas generators until Dec. 31, 2030. The Corporation will provide Suncor with centralized monitoring, diagnostics and technical
support to maximize performance and reliability of plant equipment. Ownership of the entire Poplar Creek co-generation facility
will transfer to Suncor in 2030. As the new contract was determined to constitute a finance lease, the full carrying amounts of
the facility were derecognized.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As part of the transaction, the Corporation
acquired Suncor&#8217;s interest in two wind farms: the 20 MW Kent Breeze facility located in Ontario and Suncor&#8217;s 51 per
cent interest in the 88 MW Wintering Hills facility located in Alberta.</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 outlines the preliminary
impacts of the transaction, including assets and liabilities disposed of and the fair value of assets acquired and liabilities
assumed:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><B>Assets<SUP>(1)</SUP></B></TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 16%; 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: 24%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Finance lease receivable<SUP>(2)</SUP></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">372</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Property, Plant, and Equipment</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">104</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Intangibles</TD>
    <TD NOWRAP STYLE="padding-right: 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net working capital<SUP>(3)</SUP></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total assets acquired</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>515</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; 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></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Liabilities<SUP>(1)</SUP></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; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Decomissioning and restoration provision</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Net assets acquired</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>512</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; 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></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Consideration transferred</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 NOWRAP COLSPAN="3" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Property, Plant, and Equipment</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">245</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net working capital<SUP>(3)</SUP></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cash<SUP>(3)</SUP></TD>
    <TD NOWRAP STYLE="padding-right: 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">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">&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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Decommissioning and restoration provision</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(11)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Carrying amount of transferred net assets</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>249</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; 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></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Gain recognized</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>263</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; background-color: white">
    <TD NOWRAP COLSPAN="7" 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"><I>(1) The Corporation&#8217;s 51 per cent interest in the Wintering Hills facility is accounted for as a joint operation.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="7" 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"><I>(2) Future payments under the finance lease are comprised of $16 million during the fourth quarter of 2015, $57 million annually </I></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from 2016 to 2018, and $20 million annually from 2019 to 2030. Future payments have been discounted at a rate of 2.68%, </I></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;based on comparative yield on borrowings of the counterparty with equivalent maturities.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="7" 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"><I>(3) The Corporation expects to finalize net working capital reconciliations with the transferor during the fourth quarter of 2015.</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 acquired wind farms&#8217; contribution
to the Corporation&#8217;s revenue and operating income since the date of acquisition has been nominal. Had the acquisition taken
place at the beginning of the year, the wind farms would have contributed $6 million to revenues and reduced $2 million to earnings
before tax of the Corporation.</P>


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>II. U.S. Solar Acquisition</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. 1, 2015, the Corporation closed
the acquisition of 100 per cent of the membership interests of RC Solar LLC for cash consideration of $55 million. The assets acquired
include 21 MW of fully contracted solar projects located in Massachusetts, which are contracted under long-term power purchase
agreements ranging from 20 to 30 years, and are qualified under phase one of the Massachusetts Solar Renewable Energy Credit program
(&#8220;SREC-I&#8221;).</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal">At the acquisition
date, the preliminary fair values of the identifiable assets and liabilities of RC Solar LLC were as follows:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: center"><B>Assets</B></TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 16%; 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: 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: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 21%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;Property, Plant, and Equipment</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">107</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Inventory (SREC-I)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Total assets acquired</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">121</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Liabilities</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; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;Non-recourse debt</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">55</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities<SUP>(1)</SUP></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;Other net working capital<SUP>(2)</SUP></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">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">&nbsp;</TD>
    <TD NOWRAP 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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total liabilities assumed</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">66</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total consideration transferred<SUP>(2)</SUP></B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>55</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 COLSPAN="8" 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"><I>(1) The Corporation has recognized a corresponding deferred tax recovery in the Condensed Consolidated Statement of </I></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings at the date of acquisition, representing deductible temporary differences now expected to be recovered.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="8" 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"><I>(2) The Corporation expects to finalize net working capital reconciliations with the seller during the fourth quarter of 2015.</I></FONT></TD></TR>
</TABLE>
<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 acquired assets&#8217; contribution
to the Corporation&#8217;s revenue and operating income since the date of acquisition has been nominal. Had the acquisition taken
place at the beginning of the year, the assets would have contributed $4 million to revenues and $1 million to earnings before
tax of the Corporation.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal">The acquisition
of the 50 MW wind facility previously announced as part of the transaction closed on Oct. 1, 2015 (see <I>Note 16</I>).</FONT></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. Sale of Economic Interest to 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 7, 2015, the Corporation closed the
previously announced acquisition by TransAlta Renewables Inc. (&#8220;TransAlta Renewables&#8221;) of an economic interest based
on the cash flows of the Corporation&#8217;s Australian assets (the &#8220;Transaction&#8221;). The Corporation&#8217;s Australian
assets consist of 575 megawatt (&#8220;MW&#8221;) of power generation from six operating assets and the South Hedland project currently
under construction, as well as the recently commissioned 270 kilometre gas pipeline (collectively, the &#8220;Portfolio&#8221;).
TransAlta Renewables&#8217; investment consists of the acquisition of securities that, in aggregate, provide an economic interest
based on cash flows of the Australian assets broadly equal to the underlying net distributable profits. The combined value of the
Transaction was $1.78 billion. The Corporation continues to own, manage and operate the Australian assets.&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">With the closing of the Transaction, TransAlta
Renewables paid the Corporation $211 million as well as approximately<BR>
$1,067 million through a combination of common shares and Class B shares of TransAlta Renewables, increasing its ownership from
70 per cent to 76 per cent. The Class B shares provide voting rights equivalent to the common shares, are non-dividend paying,
and will convert into common shares once the South Hedland project is completed and commissioned.</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 number of common shares that the Corporation
will receive on the conversion of the Class B shares will be adjusted to reflect the actual amount funded by TransAlta Renewables
for the construction and commissioning of the South Hedland project relative to target costs of $491 million.</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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">TransAlta
Renewables funded the cash proceeds through the public issuance of 17,858,423 Common Shares at a price of </FONT><BR>
<FONT STYLE="font-weight: normal">$12.65 per share. The offering closed in two parts on April 15 and 23, 2015. TransAlta Renewables
shareholder approval was received on May 7, 2015. TransAlta Renewables received approximately $226 million in gross proceeds, and
in total, incurred $10 million in share issue costs, net of $4 million of income tax recovery. Proceeds to equity were further
reduced by dividend equivalent payments of $1 million.</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"><B>IV. Restructuring</B></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">On Jan. 14, 2015, the Corporation initiated
a significant cost-reduction initiative at its Canadian Coal power generation operations, resulting in the elimination of positions.
On Sept. 29, 2015, the Corporation further reduced its overhead costs by eliminating positions primarily at its corporate head
office in Calgary.</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.
NET OTHER OPERATING 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"><B>A. Settlement with the Market Surveillance
Administrator</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">On March 21, 2014, the Alberta Market Surveillance
Administrator (the &#8220;MSA&#8221;) filed an application with the Alberta Utilities Commission (the &#8220;AUC&#8221;) alleging,
among other things, that TransAlta manipulated the price of electricity in the Province of Alberta when it took outages at certain
of its coal-fired generating units in late 2010 and early 2011.&nbsp;The Corporation denied the MSA&#8217;s allegations. An oral
hearing took place before the AUC in December 2014. A written argument was filed in February 2015.&nbsp;In May 2015, further submissions
were filed on a recent Supreme Court of Canada decision relevant to expert evidence.&nbsp;On July 27, 2015, the AUC issued a decision
finding, among other things, that (i) the Corporation&#8217;s actions in relation to four outage events at its<BR>
coal-fired generating units, spanning 11 days in 2010 and 2011, restricted or prevented a competitive response from the associated
Power Purchase Arrangement buyers and manipulated market prices away from a competitive market outcome and (ii) the Corporation
breached applicable legislation by allowing one of its employees to trade while in possession of non-public outage records.&nbsp;The
AUC also found that the MSA did not prove, on the balance of probabilities, that the Corporation breached applicable legislation
on the basis that its compliance policies, practices and oversight thereof, were inadequate and deficient.&nbsp;This AUC decision
marked the end of the first phase of the proceedings. TransAlta filed for leave to appeal the AUC decision with the Alberta Court
of Appeal in August 2015.&nbsp;The second phase of the AUC proceedings is to consider what penalty the AUC might impose against
the Corporation. On Sept. 30, 2015, TransAlta and the MSA reached an agreement to settle all outstanding proceedings before the
AUC. The settlement, which is in the form of a consent order, was approved by the AUC on Oct. 29, 2015. Under the terms of the
consent order, the Corporation will pay a total amount of $56 million including approximately $27 million as a repayment of economic
benefit, $4 million to cover the MSA&#8217;s legal and related costs, and a $25 million administrative penalty. Of this amount,
$31 million will be paid 30 days after the approval date, and the $25 million administrative penalty will be paid one year after
this first payment.&nbsp;As a result of the approval, the Corporation will be discontinuing the appeal of the AUC&#8217;s decision.</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">The Corporation has accrued the full $56
million as at Sept. 30, 2015.</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. Insurance Recoveries</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 third quarter, the Corporation
received $2 million in insurance proceeds relating to claims for repair costs on one of the Corporation&#8217;s Canadian Coal facilities.</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">5.
NET INTEREST EXPENSE</P>

<P STYLE="font: 6pt/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: 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="3" 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"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 60%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; 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">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 10%; 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"><B>2015</B></FONT></TD>
    <TD STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; 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">2014</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">Interest on debt</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"><B>57</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">60</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"><B>170</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">179</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">Capitalized interest</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"><B>(1)</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="font: 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="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></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">Interest on finance lease obligations</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"><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">-</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"><B>3</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; background-color: white">
    <TD NOWRAP 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">Accretion of provisions</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"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">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"><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">14</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP 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"><B>Net interest expense</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>63</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">64</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>182</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">192</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">6.
INCOME TAXES</P>

<P STYLE="font: 6pt/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: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">The components of income tax expense (recovery) are as follows: </TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: 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: 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; background-color: white">
    <TD NOWRAP STYLE="width: 60%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 10%; 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">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 10%; 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 10%; 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">2014</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">Current income tax expense</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"><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">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"><B>17</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">24</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 prior periods</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"><B>(4)</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"><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">-</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"><FONT STYLE="font-size: 7.5pt">Adjustments in respect of deferred income tax of prior periods<SUP>(1)</SUP></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"><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">-</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"><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></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"><FONT STYLE="font-size: 7.5pt">Deferred income tax expense (recovery) related to the origination and </FONT><BR>
<FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;reversal of temporary differences</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"><B>69</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"><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">(19)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Deferred income tax expense related to
        temporary difference on</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">investment in subsidiary<SUP>(2)</SUP></P></TD>
    <TD NOWRAP STYLE="font: 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: 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="font: 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; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Deferred income tax expense resulting from
        changes in tax rates</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">or laws<SUP>(3)</SUP></P></TD>
    <TD NOWRAP STYLE="font: 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: 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="font: 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; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Deferred tax benefit arising from previously
        unrecognized tax loss, tax</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">credit, or temporary
        difference of a prior period, used to reduce</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">deferred income tax
        expense</P></TD>
    <TD NOWRAP STYLE="font: 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: 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">(37)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Deferred income tax expense (recovery)
        arising from the writedown of</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">deferred income tax
        assets<SUP>(1)</SUP></P></TD>
    <TD NOWRAP STYLE="font: 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="font: 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="font: 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>(56)</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">63</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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"><B>Income tax expense</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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"><B>31</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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">18</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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"><B>62</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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">33</FONT></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">Presented in the Condensed Consolidated Statements
of Earnings as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="font: 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 7.5pt"><B>&nbsp;&nbsp;&nbsp;9 months ended Sept. 30</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 61%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 5%; border-bottom: Black 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 9%; border-bottom: Black 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">2014</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 9%; border-bottom: Black 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 11%; border-bottom: Black 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">2014</FONT></TD>
    <TD STYLE="width: 5%; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; 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 income tax expense</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; 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"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; 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="vertical-align: bottom; 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"><B>12</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; 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">24</FONT></TD>
    <TD STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; 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 expense</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; 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"><B>30</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; 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">11</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; 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"><B>50</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; 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 STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 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"><B>Income tax expense</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 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"><B>31</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 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">18</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 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"><B>62</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 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">33</FONT></TD>
    <TD STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: justify">&nbsp;</TD></TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7pt/150% 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">(1)</TD><TD STYLE="text-align: justify">During the three and nine months ended Sept. 30, 2015, the Corporation reversed a previous writedown
of deferred income tax assets of<BR>
$51 million (Sept. 30, 2014 - $13 million writedown) and $63 million (Sept. 30, 2014 - $27 million writedown), respectively. Of
which, $6 million and $6 million, during the three and nine months ended respectively, has been applied to offset an adjustment
in respect of deferred income tax of prior periods. The deferred income tax assets relate mainly to the tax benefits of losses
associated with the Corporation&#8217;s directly owned U.S. operations. The Corporation had written these assets off as it was
no longer considered probable that sufficient future taxable income would be available from the Corporation&#8217;s directly owned
U.S. operations to utilize the underlying tax losses, due to reduced price growth expectations. Recognized other comprehensive
income during the three and nine month months ended Sept. 30, 2015 has given rise to a taxable temporary difference which forms
the primary basis for utilization of some of the tax losses and the reversal of the writedown.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7pt/150% 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">(2)</TD><TD STYLE="text-align: justify">In order to give effect to the Transaction with TransAlta Renewables, a reorganization of certain
TransAlta companies was completed. The reorganization resulted in the recognition in the first and second quarter of 2015 of $8
million and $40 million deferred tax liability, respectively, on TransAlta&#8217;s investment in a subsidiary. The deferred tax
liability had not been recognized previously, as prior to the reorganization, the taxable temporary difference was not expected
to reverse in the foreseeable future.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7pt/150% 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">(3)</TD><TD STYLE="text-align: justify">During the second quarter of 2015, the Government of Alberta substantively enacted legislation
to increase its provincial corporate income tax rate to 12 per cent from 10 per cent, effective July 1, 2015, resulting in a net
increase in the Corporation&#8217;s deferred income tax liability of<BR>
$18 million. Of which, $20 million is recorded in the Condensed Consolidated Statement of Earnings with an offsetting $2 million
deferred tax recovery recorded in the Condensed Statement of Other Comprehensive Income.</TD></TR></TABLE>


<!-- Field: Page; Sequence: 11 -->
    <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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">F<!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- 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">7.
NON-CONTROLLING INTERESTS</P>

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

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

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><BR>
I. TA Cogen</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: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 46%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: Black 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 15%; border-bottom: Black 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">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: Black 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: Black 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">2014</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">Revenues</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"><B>70</B></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">71</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>214</B></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; 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">Net earnings</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"><B>12</B></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">16</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>44</B></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">54</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">Total comprehensive income</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"><B>16</B></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">17</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>56</B></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">68</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></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">Amounts attributable to the non-controlling 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">&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: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Net earnings</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"><B>6</B></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">9</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>22</B></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; 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">Total comprehensive income</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"><B>8</B></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">10</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>28</B></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">35</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></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 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">Distributions paid to the non-controlling interest</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>17</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">12</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>41</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">43</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; background-color: white">
    <TD NOWRAP STYLE="width: 67%; border-bottom: Black 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"><B>As at</B></FONT></TD>
    <TD STYLE="width: 17%; border-bottom: Black 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"><B>Sept. 30, 2015</B></FONT></TD>
    <TD STYLE="width: 16%; border-bottom: Black 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">Dec. 31, 2014</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">Current assets</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"><B>65</B></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">58</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">Long-term assets</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"><B>565</B></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">588</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">Current liabilities</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"><B>(70)</B></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">(64)</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">Long-term liabilities</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"><B>(63)</B></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">(59)</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">Total equity</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"><B>(497)</B></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">(523)</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">Equity attributable to the non-controlling interest</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"><B>(246)</B></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">(260)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 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">Non-controlling interest share (per cent)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>49.99</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">49.99</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"><B>II. TransAlta Renewables</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">Amounts attributable to the non-controlling
interests include the 17 per cent non-controlling interest in its Kent Hills 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">As a result of the Transaction (Note 3),
the Corporation&#8217;s share of ownership and voting rights increased from 70.3 per cent to<BR>
76.1 per cent on May 7, 2015. As the Class B Shares issued to the Corporation in the Transaction were determined to constitute
financial liabilities of TransAlta Renewables and do not participate in earnings until commissioning of South Hedland, they are
excluded from the allocation of equity and earnings. Accordingly, the Corporation&#8217;s equity participation in TransAlta Renewables
increased by a smaller proportion from 70.3 per cent to 72.8 per cent following the transaction.</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: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 46%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: Black 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 15%; border-bottom: Black 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">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: Black 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"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: Black 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">2014</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">Revenues</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"><B>41</B></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">43</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>161</B></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">161</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">Net earnings</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"><B>61</B></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">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>90</B></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">29</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">Total comprehensive income</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"><B>53</B></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">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>97</B></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">29</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></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">Amounts attributable to the 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">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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: 7pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 7pt">Net earnings</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"><B>16</B></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">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>26</B></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">8</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">Total comprehensive income</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"><B>14</B></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">1</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>28</B></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">8</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></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 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">Distributions paid to non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>12</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">7</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>29</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">20</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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 62%; border-bottom: Black 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"><B>As at</B></FONT></TD>
    <TD STYLE="width: 17%; border-bottom: Black 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"><B>Sept. 30, 2015</B></FONT></TD>
    <TD STYLE="width: 21%; border-bottom: Black 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">Dec. 31, 2014</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">Current assets</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"><B>60</B></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">61</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">Long-term assets</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"><B>3,187</B></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">1,903</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">Current liabilities</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"><B>(339)</B></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">(241)</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">Long-term liabilities</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"><B>(948)</B></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">(682)</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">Total equity</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"><B>(1,960)</B></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">(1,041)</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">Equity attributable 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"><B>(559)</B></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">(334)</FONT></TD></TR>

<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 62%; border-bottom: Black 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">Non-controlling interests share (per cent)</FONT></TD>
    <TD NOWRAP STYLE="width: 17%; border-bottom: Black 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"><B>27.2</B></FONT></TD>
    <TD NOWRAP STYLE="width: 21%; border-bottom: Black 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">29.7</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-transform: uppercase; letter-spacing: 1.75pt; text-align: justify; text-indent: 0in"></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">&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">8.
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 -
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/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>I. Level I, II, and III 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">The Level I, II, and III classifications
in the fair value hierarchy utilized by the Corporation are defined below. The fair value measurement of a financial instrument
is included in only one of the three levels, the determination of which is based on the lowest level input that is significant
to the derivation of the fair value.</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>a. Level I </B></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">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 at the measurement date. 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/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>b. Level II </B></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">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.</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 commodity risk management
Level II financial instruments include 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In determining Level II fair values of other
risk management assets and liabilities and long-term debt measured and carried at fair value, the Corporation uses observable inputs
other than unadjusted quoted prices that are observable for the asset or liability, such as interest rate yield curves 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: 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>c. Level III </B></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">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"><BR>
The Corporation 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>

<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: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Corporation also has various commodity
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. 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 (the &#8220;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. 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.</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 commodity
risk management 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. Development of<BR>
non-observable inputs requires the use of judgment. To ensure reasonability, system-generated Level III fair value measurements
are reviewed and validated by the risk management and finance departments. 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">Information on risk management contracts
or groups of risk management contracts that are included in Level III measurements and the related unobservable inputs and sensitivities,
is as follows, and excludes the effects on fair value of observable inputs such as liquidity and credit discount (described as
&#8220;base fair values&#8221;), as well as inception gains or 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">Sensitivity ranges for the base fair values
are determined using reasonably possible alternative assumptions for the key unobservable inputs, which may include forward commodity
prices, commodity volatilities and correlations, delivery volumes, and shapes.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<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">&nbsp;</TD>
    <TD NOWRAP COLSPAN="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: center"><FONT STYLE="font: 7.5pt Calibri, Helvetica, Sans-Serif"><B>Sept. 30, 2015</B></FONT></TD>
    <TD NOWRAP COLSPAN="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: center"><FONT STYLE="font-size: 7.5pt">Dec. 31, 2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 37%; 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"><B>Description</B></FONT></TD>
    <TD NOWRAP STYLE="width: 18%; 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: 7.5pt Calibri, Helvetica, Sans-Serif"><B>Base fair value</B></FONT></TD>
    <TD NOWRAP STYLE="width: 13%; 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: 7.5pt Calibri, Helvetica, Sans-Serif"><B>Sensitivity</B></FONT></TD>
    <TD NOWRAP STYLE="width: 19%; 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">Base fair value</FONT></TD>
    <TD NOWRAP STYLE="width: 13%; 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">Sensitivity</FONT></TD></TR>
<TR STYLE="background-color: white">
    <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: left"><FONT STYLE="font-size: 7.5pt">Long-term power sale - U.S.</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"><B>824</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 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>+109</B></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">511</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt">+76</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP 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"><B>-137</B></FONT></TD>
    <TD NOWRAP 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">-92</FONT></TD></TR>
<TR STYLE="background-color: white">
    <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: left"><FONT STYLE="font-size: 7.5pt">Long-term power sales - Alberta</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"><B>(14)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 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>+14</B></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">(13)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 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; background-color: white">
    <TD NOWRAP 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"><B>-7</B></FONT></TD>
    <TD NOWRAP 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></TR>
<TR STYLE="background-color: white">
    <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: left"><FONT STYLE="font-size: 7.5pt">Unit contingent 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"><B>(49)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 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 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">(53)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 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 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"><B>-8</B></FONT></TD>
    <TD NOWRAP 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></TR>
<TR STYLE="background-color: white">
    <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: left"><FONT STYLE="font-size: 7.5pt">Eastern market structured deals</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"><B>21 </B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 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 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">2 </FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 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; background-color: white">
    <TD NOWRAP 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"><B>-7</B></FONT></TD>
    <TD NOWRAP 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">-1</FONT></TD></TR>
<TR STYLE="background-color: white">
    <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: left"><FONT STYLE="font-size: 7.5pt">Others</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"><B>(6)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 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 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">(4)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font: 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="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"><B>-4</B></FONT></TD>
    <TD NOWRAP 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">-4</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>i. Long-term power sale - U.S. </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 Corporation has a long-term fixed price
power sale contract in the U.S. for delivery of power at the following capacity levels:<BR>
180 MW through Nov. 30, 2015, 280 MW through Nov. 30, 2016, 380 MW through Dec. 31, 2024, and 300 MW through Dec. 31, 2025. The
contract is designated as an all-in-one cash flow hedge.</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 periods beyond 2020, market forward
power prices are not readily observable. For these periods, fundamental-based forecasts and market indications have been used to
determine proxies for base, high and low power price scenarios. The base price forecast has been developed by averaging external
fundamental based forecasts (providers are independent and widely accepted as industry experts for scenario and planning views)
and market indications. Forward power price ranges per MWh used in determining the Level III base fair value at Sept. 30, 2015
are US$36 - US$45 (Dec. 31, 2014 - US$41 - US$50).</P>


<!-- Field: Page; Sequence: 14 -->
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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">The contract is denominated in US dollars.
With the continued strengthening of the US dollar relative to the Canadian dollar from Dec. 31, 2014 to Sept. 30, 2015, the base
fair value and the sensitivity value have increased by approximately $107 million and $18 million, respectively, as a result of
the currency movement. As the contract is reported at present value, downward movements in the US yield curve have also increased
the base fair value and sensitivity values.</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. Long-term power sales - Alberta</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 Corporation has a long-term 12.5 MW
fixed price power sale contract (monthly shaped) in the Alberta market through December 2024. The contract is accounted for as
held for trading.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For periods beyond 2020, market forward
power prices are not readily observable. For these periods, fundamental-based price forecasts and market indications have been
used as proxies to determine base, high and low power price scenarios. The base scenario uses the most recent price view from an
independent external forecasting service that is accepted within industry as experts in the Alberta market. Forward power price
ranges per MWh used in determining the Level III base fair value at<BR>
Sept. 30, 2015 are $87 - $98 (Dec. 31, 2014 - $91 - $99).</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. Unit contingent power purchase
agreements</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">Under the unit contingent power purchase
agreements the Corporation has agreed to purchase power contingent upon the actual generation of specific units owned and operated
by third parties. Under these types of agreements, the purchaser pays the supplier an agreed upon fixed price per MWh of output
multiplied by the pro-rata share of actual unit production (nil if a plant outage occurs). The contracts are accounted for as held
for 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 key unobservable inputs used in the
valuations are delivered volume expectations and hourly shapes of production. Hourly shaping of the production will result in realized
prices that may be at a discount (or premium) relative to the average settled power price. Reasonably possible alternative inputs
were used to determine sensitivity on the fair value measurements. In particular, a one standard deviation movement upward and
downward in the volumetric and price discount rates was assessed. This analysis is based on historical production data of the generation
units for available history. Price and volumetric discount ranges per MWh used in the Level III base fair value measurement at
Sept. 30, 2015 are (0.4) per cent to 2.8 per cent (Dec. 31, 2014 - 0.3 per cent to<BR>
1.5 per cent) and 0 per cent to 9 per cent (Dec. 31, 2014 - 0 per cent to 10 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"><B>iv. Eastern market structured deals</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 Corporation has fixed priced power and
heat rate contracts in the eastern United States. Under the fixed priced power contracts the Corporation has agreed to buy or sell
power at non-liquid locations, or during non-standard hours. The Corporation has also bought and sold heat rate contracts at both
liquid and non-liquid locations. Under a heat rate contract, the buyer has the right to purchase power at times when the market
heat rate is higher than the contractual heat rate.</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 key unobservable inputs in the valuation
of the fixed priced power contracts are market forward spreads and non-standard shape factors. A historical regression analysis
has been performed to model the spreads between non-liquid and liquid hubs. The non-standard shape factors have been determined
using the historical data. Basis relationship and non-standard shape factors used in the Level III base fair value measurement
at Sept. 30, 2015 are 75 per cent to 150 per cent and 65 per cent to 109 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">The key unobservable inputs in the valuation
of the heat rate contracts are implied volatilities and correlations. Implied volatilities and correlations used in the Level III
base fair value measurement at Sept. 30, 2015 are 18 per cent to 64 per cent and 36 per cent to 80 per cent, respectively.</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/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>II. Commodity Risk Management Assets
and Liabilities&#9;</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">Commodity risk management assets and liabilities
include risk management assets and liabilities that are used in the energy marketing and generation businesses 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 these businesses.</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 key factors
impacting the fair value of the commodity risk management assets and liabilities by classification level during the nine months
ended Sept. 30, 2015 and 2014, respectively:</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: Black 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"><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: Black 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"><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: Black 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"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 35%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; 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"><B>Level I</B></FONT></TD>
    <TD NOWRAP STYLE="width: 6%; 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"><B>Level II</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; 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"><B>Level III</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; 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"><B>Level I</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; 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"><B>Level II</B></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; 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"><B>Level III</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 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"><B>Level I</B></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 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"><B>Level II</B></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 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"><B>Level III</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Net risk management assets (liabilities)</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">at Dec. 31, 2014</P></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">(59)</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">314</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="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">180</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">(97)</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: center"><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: center"><FONT STYLE="font-size: 7.5pt">121</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: center"><FONT STYLE="font-size: 7.5pt">217</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="background-color: white; padding-right: 5.4pt; padding-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></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">&nbsp;&nbsp;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"><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"><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"><B>316</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"><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"><B>58</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"><B>(35)</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: center"><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: center"><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: center"><FONT STYLE="font-size: 7.5pt"><B>281</B></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"><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"><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"><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"><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"><B>25</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"><B>(25)</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: center"><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: center"><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: center"><FONT STYLE="font-size: 7.5pt"><B>(25)</B></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="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"><B>-</B></FONT></TD>
    <TD NOWRAP 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"><B>21</B></FONT></TD>
    <TD NOWRAP 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"><B>(19)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>-</B></FONT></TD>
    <TD NOWRAP 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"><B>(136)</B></FONT></TD>
    <TD NOWRAP 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"><B>63</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>(115)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>44</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-top: Black 1pt solid; 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"><B>Net risk management assets </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>&nbsp;&nbsp;(liabilities) at Sept. 30, 2015</B></FONT></TD>
    <TD NOWRAP 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"><B>-</B></FONT></TD>
    <TD NOWRAP 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"><B>(65)</B></FONT></TD>
    <TD NOWRAP 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"><B>611</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>-</B></FONT></TD>
    <TD NOWRAP 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"><B>127</B></FONT></TD>
    <TD NOWRAP 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"><B>(94)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>62</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>517</B></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"><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>
    <TD NOWRAP 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"><FONT STYLE="font-size: 7.5pt">Gains recognized in OCI</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: 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>316</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="font: 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="padding-right: 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: center"><FONT STYLE="font-size: 7.5pt"><B>316</B></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"><FONT STYLE="font-size: 7.5pt">Total gains (losses) included in earnings </FONT><BR>
<FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;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">&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"><B>19</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="font: 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>(60)</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="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"><B>(41)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD 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">Unrealized gains included in earnings </FONT><BR>
<FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;before income taxes relating to net liabilities held at Sept. 30, 2015</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>3</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 2pt/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="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: Black 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: Black 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: Black 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: 36%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 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">Level I</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 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">Level II</FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 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">Level III</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 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">Level I</FONT></TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 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">Level II</FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 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">Level III</FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 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">Level I</FONT></TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 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">Level II</FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 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">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">&nbsp;&nbsp;Dec. 31, 2013</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: center"><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: center"><FONT STYLE="font-size: 7.5pt">(66)</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: center"><FONT STYLE="font-size: 7.5pt">55</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: center"><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: center"><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: center"><FONT STYLE="font-size: 7.5pt">11</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: center"><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: center"><FONT STYLE="font-size: 7.5pt">(52)</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: center"><FONT STYLE="font-size: 7.5pt">66</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">&nbsp;&nbsp;contracts</FONT></TD>
    <TD NOWRAP STYLE="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">-</FONT></TD>
    <TD NOWRAP STYLE="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">(14)</FONT></TD>
    <TD NOWRAP STYLE="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">113</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: center"><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: center"><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: center"><FONT STYLE="font-size: 7.5pt">16</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: center"><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: center"><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: center"><FONT STYLE="font-size: 7.5pt">129</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: center"><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: center"><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: center"><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: center"><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: center"><FONT STYLE="font-size: 7.5pt">(12)</FONT></TD>
    <TD NOWRAP STYLE="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">17</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: center"><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: center"><FONT STYLE="font-size: 7.5pt">(13)</FONT></TD>
    <TD NOWRAP STYLE="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">17</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: center"><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: center"><FONT STYLE="font-size: 7.5pt">14</FONT></TD>
    <TD NOWRAP STYLE="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">(1)</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: center"><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: center"><FONT STYLE="font-size: 7.5pt">18</FONT></TD>
    <TD NOWRAP STYLE="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">(41)</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: center"><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: center"><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: center"><FONT STYLE="font-size: 7.5pt">(42)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-top: Black 1pt solid; 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">Net risk management assets </FONT><BR>
<FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;(liabilities) at Sept. 30, 2014</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">-</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">(67)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">167</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">-</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">15</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">3</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">-</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">(52)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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">170</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <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; background-color: white">
    <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: center"><FONT STYLE="font-size: 7.5pt">113</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: center"><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: center"><FONT STYLE="font-size: 7.5pt">113</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"><FONT STYLE="font-size: 7.5pt">Total gains included in earnings </FONT><BR>
<FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;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: center"><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="padding-right: 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: center"><FONT STYLE="font-size: 7.5pt">33</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: center"><FONT STYLE="font-size: 7.5pt">34</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-bottom: Black 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">Unrealized losses included in earnings<BR>
        before income taxes relating to net</P>
        <P STYLE="font: 7.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">assets held at Sept.
        30, 2014</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">(8)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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">(8)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Significant changes in commodity net risk
management assets (liabilities) during the nine months ended Sept. 30, 2015 are primarily attributable to the following factors:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/150% 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"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">maturities and increases in value related to market movements for power contracts in the Pacific
Northwest<BR>
(level II non-hedge);</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/150% 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"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes in value of the long-term power sale contract (level III hedge) as discussed in the preceding
section (B)(I)(c)(i) of this note.</TD></TR></TABLE>


<!-- 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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">F<!-- 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: justify"><B>III. Other 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">Other risk management assets and liabilities
primarily include risk management assets and liabilities that are used in hedging<BR>
non-energy marketing transactions, such as interest rates, the net investment in foreign operations, and other foreign currency
risks. Changes in other risk management assets and liabilities related to hedge positions are reflected within net earnings when
such transactions have settled during the period or when ineffectiveness exists in the hedging relationship.</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
with a total net asset fair value of $212 million as at Sept. 30, 2015<BR>
(Dec. 31, 2014 - $115 million net asset) are classified as Level II fair value measurements. The significant changes in other risk
management assets (liabilities) during the nine months ended Sept. 30, 2015 are primarily attributable to the strengthening of
the US dollar relative to the Canadian dollar on the Corporation&#8217;s foreign currency hedges.</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">IV. 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; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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: 8pt/18pt 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; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Level I</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Level II</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Level III</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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; background-color: white">
    <TD NOWRAP STYLE="width: 61%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left; text-indent: 8.05pt"><B>Long-term debt<SUP>(1)</SUP> - Sept. 30, 2015</B></TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: center"><B>-</B></TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: center"><B>4,313</B></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: center"><B>-</B></TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: center"><B>4,313</B></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>4,299</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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, 2014</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">4,091</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">4,091</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3,918</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 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; background-color: white">
    <TD COLSPAN="6" 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"><I>(1) Includes current portion and excludes $73 million (Dec. 31, 2014 - $64 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"><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 fair
values of the Corporation&#8217;s debentures and senior notes are determined using prices observed in secondary markets. </FONT><BR>
<FONT STYLE="font-weight: normal">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.</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">The carrying
amount of other short-term financial assets and liabilities (cash and cash equivalents, trade 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: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>


<!-- Field: Page; Sequence: 17 -->
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<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
<I>Note 8(B)</I> 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 Condensed 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, and a reconciliation of changes 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="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-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: 8pt/18pt 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 COLSPAN="2" STYLE="font: 8pt/18pt 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: 22%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2015</B></TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2014</TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2015</B></TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2014</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Unamortized net gain at 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">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>189</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">165</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">160</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt/18pt 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: 8pt/18pt 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="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>24</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Change in foreign exchange rates</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>24</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Amortization recorded in net earnings during the period</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(3)</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(30)</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(6)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Unamortized net gain at end of period</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>206</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">178</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>206</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">178</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">9.
RISK MANAGEMENT ACTIVITIES</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>A. Net 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 net 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 COLSPAN="2" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>As at Sept. 30, 2015</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 31%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 12%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Fair value hedges</B></TD>
    <TD STYLE="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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 COLSPAN="2" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Commodity risk management</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 STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">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/18pt 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/18pt 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="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>58</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>71</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>533</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(25)</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>508</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Net commodity risk </B><BR>
<B>&nbsp;&nbsp;management assets</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>546</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>33</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>579</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="background-color: white; padding-right: 5.4pt; padding-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 NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">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/18pt 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: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>28</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt 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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>29</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>178</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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: 8pt/18pt 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: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>183</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Net other risk management </B><BR>
<B>&nbsp;&nbsp;assets (liabilities)</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>206</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>212</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="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total net risk management </B><BR>
<B>&nbsp;&nbsp;assets (liabilities)</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>752</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>34</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>791</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>


<!-- Field: Page; Sequence: 18 -->
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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 -->

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">As at Dec. 31, 2014</TD>
    <TD NOWRAP STYLE="padding-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="5" 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="width: 25%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 11%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Net investment hedges</TD>
    <TD STYLE="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Cash flow hedges</TD>
    <TD STYLE="width: 10%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Fair value hedges</TD>
    <TD STYLE="width: 13%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Not <BR>
designated <BR>
as a hedge</TD>
    <TD STYLE="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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 STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Commodity risk management</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">93</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">91</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">257</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(10)</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">247</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net commodity risk management assets</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">255</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">83</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">338</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></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Other</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">56</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">54</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">55</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">61</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net other risk management assets (liabilities)</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">111</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2)</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">115</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="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="3" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total net risk management assets</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">366</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">81</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">453</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/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>B. Nature and Extent of Risks Arising
from Financial Instruments </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 discussion is limited to the
nature and extent of certain risks arising from financial instruments, which are also more fully discussed in <I>Note 14(B)</I>
of the Corporation&#8217;s 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 Marketing
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, 2015 associated with the
Corporation&#8217;s proprietary trading activities was $3 million (Dec. 31, 2014 - $5 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 &#8211; Generating
Business</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">Various commodity contracts and other financial
instruments are used to manage the commodity price risk associated with the Corporation&#8217;s electricity generation, fuel purchases,
emissions, and byproducts, as considered appropriate. VaR at<BR>
Sept. 30, 2015 associated with the Corporation&#8217;s commodity derivative instruments used in these hedging activities was<BR>
$21 million (Dec. 31, 2014 - $27 million). VaR at Sept. 30, 2015 associated with positions and economic hedges that do not meet
hedge accounting requirements was $3 million (Dec. 31, 2014 - $7 million).</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-align: left">II. Currency Rate 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">As part of the Transaction described in
<I>Note 3</I>, the Corporation has entered into foreign exchange hedging contracts with TransAlta Renewables to mitigate the risks
to TransAlta Renewables shareholders of adverse changes in AUD in respect of AUD$392 million remaining investments to fund the
South Hedland project. In addition, the Corporation has agreed to mitigate the risks to TransAlta Renewables shareholders of adverse
changes in USD and AUD in respect of cash flows from the Australian assets in relation to the Canadian dollar for the first five
years from the time of the Transaction. The financial effects of these contracts and agreements eliminate on consolidation.</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 order to mitigate some of the risk that
is attributable to non-controlling interests, the Corporation has entered into foreign currency hedges with third parties to the
extent of the non-controlling interest percentage of the expected cash flow over five years. Hedge accounting is not applied to
these foreign currency hedges and accordingly the gain on the contracts, amounting to $1 million and nil, has been recognized as
a foreign exchange gain in the Condensed Consolidated Statement of Earnings during the three and nine months ended Sept. 30, 2015,
respectively.</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">III. 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. In certain cases, the Corporation will require security instruments such as parental guarantees, letters of
credit, cash collateral or third party credit insurance to reduce overall credit risk. The following table outlines the Corporation&#8217;s
maximum exposure to credit risk without taking into account collateral held or right of set-off, including the distribution of
credit ratings, as at Sept. 30, 2015:</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: 36%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 19%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Investment grade</B><BR>
<FONT STYLE="font-size: 7.5pt"><I>(Per cent)</I></FONT></TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 21%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Non-investment grade</B><BR>
<FONT STYLE="font-size: 7.5pt"><I>(Per cent)</I></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Total</B><BR>
<FONT STYLE="font-size: 7.5pt"><I>(Per cent)</I></FONT></TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Total</B><BR>
<B>Amount</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Trade and other receivables<SUP>(1)</SUP></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">91</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>100</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>494</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long term finance lease receivables<SUP>(2)</SUP></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">59</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>100</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>770</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Risk management assets<SUP>(1)</SUP></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">100</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>100</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1,056</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2,320</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" 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"><I>(1) Letters of credit and cash are the primary types of collateral held as security related to these amounts.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="9" 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"><I>(2) Includes a balance of $431 million attributable to one non-investment grade customer.&nbsp;&nbsp;Risk of significant loss arising from this counterparty has been assessed as low, considering the counterparty&#8217;s financial position and how the Corporation provides its services in an area of the counterparty&#8217;s lower-cost operations, and the Corporation's other credit risk management practices.</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 maximum credit exposure to any one counterparty
for commodity trading operations and hedging, including the fair value of open trading positions, net of any collateral held, at
Sept. 30, 2015 was $30 million (Dec. 31, 2014 - $29 million).</P>

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


<!-- Field: Page; Sequence: 20 -->
    <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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">F<!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- 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">IV. 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2017</B></TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2018</B></TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2019</B></TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2020 and thereafter</B></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 1pt solid; font: 8pt/18pt 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; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">386</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">386</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Long-term debt<SUP>(1)</SUP></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">35</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">546</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">883</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,241</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,668</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4,378</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Commodity risk management (assets) liabilities</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(21)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(44)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(42)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(47)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(61)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(364)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(579)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(15)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(15)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(108)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(74)</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(212)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">53</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">207</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">200</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">160</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">124</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">807</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,551</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Dividends payable</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">59</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">59</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>467</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>183</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>596</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>922</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1,304</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2,111</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>5,583</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="8" STYLE="font: 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 between 2016 and 2018.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP COLSPAN="8" STYLE="font: 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: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>C. Collateral and Contingent Features
in Derivative Instruments</B></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. 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, 2015, the Corporation had
posted collateral of $96 million (Dec. 31, 2014 - $73 million) in the form of letters of credit on derivative instruments in a
net liability position.&nbsp;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 $143 million (Dec. 31,
2014 - $86 million) of collateral to its counterparties.&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">10.
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">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Land</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Coal</B></FONT><BR>
<FONT STYLE="font-size: 6.5pt"><B>generation</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Gas generation</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Renewable generation</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Mining property and equipment</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Assets under construction</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Capital spares and other<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">As at Dec. 31, 2014</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">82</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">2,862</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">876</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">2,169</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">615</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">341</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">293</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt">7,238</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">Additions</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>6</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>365</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>375</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">Acquisitions <I>(Note 3)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>211</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>211</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">Additions - finance lease</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>7</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">Disposals <I>(Note 3)</I></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(244)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(245)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">Asset impairment reversals</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>1</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">Depreciation</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(207)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(68)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(74)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(44)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(402)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">Revisions and additions to </FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;decommissioning</FONT><BR>
<FONT STYLE="font-size: 6.5pt">&nbsp;&nbsp;and restoration costs</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(17)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(8)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(30)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">Retirement of assets</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(6)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(4)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(22)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt">Change in foreign exchange rates</FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>53</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(3)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>14</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>8</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(4)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>6</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>75</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt">Transfers</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>10</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>166</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>122</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>28</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>33</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(346)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>(13)</B></FONT></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>-</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 6.5pt"><B>As at Sept. 30, 2015</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>94</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>2,848</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>681</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>2,336</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>615</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>356</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>278</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 6.5pt"><B>7,208</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 6.5pt/18pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 6.5pt"><I>(1) Includes major spare parts and stand-by equipment available, but not in service, and spare parts used for routine, preventative or planned </I></FONT><BR>
<FONT STYLE="font-size: 6.5pt"><I>&nbsp;&nbsp;maintenance.</I></FONT></TD></TR>
</TABLE>

<!-- 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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">F<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- 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: 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">11.
CREDIT FACILITIES, LONG-TERM DEBT, AND FINANCE LEASE OBLIGATIONS</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">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">As at</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Sept. 30, 2015</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Dec. 31, 2014</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 46%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Carrying value</B></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Face value</B></TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Interest<SUP>(1)</SUP></B></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Carrying value</TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Face value</TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Interest<SUP>(1)</SUP></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Credit facilities<SUP>(2)</SUP></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>832</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>832</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2.7%</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">96</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">96</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2.8%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Debentures</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1,044</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1,051</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>6.0%</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,043</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,051</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6.1%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Senior notes<SUP>(3)</SUP></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2,149</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>2,147</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>4.9%</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,444</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,436</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4.9%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Non-recourse<SUP>(4)</SUP></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>330</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>331</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>5.3%</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">380</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">383</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5.9%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Other</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>5.9%</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5.9%</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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>4,372</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>4,378</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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3,982</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3,985</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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Finance lease obligations</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>78</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">74</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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 STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>4,450</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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4,056</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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Less: current portion of long-term debt</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(32)</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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(738)</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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Less: current portion of finance lease obligations</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(15)</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(13)</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">Total current long-term debt and finance
        lease</P>
        <P STYLE="font: 8pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: left; text-indent: 0.5in">obligations</P></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(47)</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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(751)</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; background-color: white">
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Total credit facilities, long-term debt, </B><BR>
<B>&nbsp;&nbsp;and finance lease obligations</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>4,403</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3,305</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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="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"><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="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"><I>(2) Composed of bankers' acceptances and other commercial borrowings under long-term committed credit facilities.</I></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <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"><I>(3) US face value at Sept. 30, 2015 - US$1.6 billion (Dec. 31, 2014 - US$2.1 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>
    <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="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"><I>(4) Includes US$62 million at Sept. 30, 2015 (Dec. 31, 2014 - US$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">On Jan. 15, 2015, the Corporation&#8217;s
US$500 million 4.75 per cent senior notes matured and were paid out using existing liquidity.</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 Feb. 11, 2015, the Corporation and its
partner issued non-recourse bonds secured by their jointly owned Pingston facility. The Corporation&#8217;s share of gross proceeds
was $45 million. The non-recourse bonds bear interest at the annual fixed interest rate of 2.95 per cent, payable semi-annually
with no principal repayments until maturity in May 2023. Proceeds were used to repay the<BR>
$35 million non-recourse debenture bearing interest at 5.28 per cent related to the Pingston facility.</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. 1, 2015, the Corporation&#8217;s
$120 million 5.33 per cent non-recourse debentures matured and were paid out using existing liquidity. The Corporation also closed
the acquisition of solar assets (see <I>Note 3</I>) and assumed approximately US$42 million of<BR>
non-recourse variable rate debt, of which approximately US$32 million is hedged to a fixed rate of 4.698 per cent.</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, 2015, TransAlta had a total
of $2.1 billion (Dec. 31, 2014 - $2.1 billion) of committed credit facilities and bilateral credit facilities, of which $0.9 billion
(Dec. 31, 2014 - $1.6 billion) was available, subject to customary borrowing conditions.</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. 1, 2015, the Corporation issued
non-recourse debentures, as described in <I>Note 16</I>.</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 total outstanding letters of credit
as at Sept. 30, 2015 was $449 million (Dec. 31, 2014 - $396 million) with no<BR>
(Dec. 31, 2014 - nil) amounts exercised by third parties under these arrangements. All letters of credit expire within one year
and are expected to be renewed, as needed, in the normal course of business.</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">The Corporation&#8217;s debt has terms and
conditions, including financial covenants, that are considered normal and customary. As at<BR>
Sept. 30, 2015, the Corporation was in compliance with all debt covenants.</P>


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<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">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Non-recourse debentures of $229 million
(Dec. 31, 2014 - $344 million) issued by the Corporation&#8217;s Canadian Hydro Developers, Inc. (&#8220;CHD&#8221;) subsidiary
include restrictive covenants requiring the proceeds received from the sale of assets to be reinvested into similar renewable assets
or in the repayment of the non-recourse debentures.</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 non-recourse debt of $101 million
(Dec. 31, 2014 - $35 million) is secured by certain renewable generation facilities and subject to customary financing restrictions
which restrict the Corporation&#8217;s ability to access funds generated by the facilities&#8217; operations.</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.
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>

<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 NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="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"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD COLSPAN="4" STYLE="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"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="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: center"><FONT STYLE="font-size: 7.5pt"><B>2015</B></FONT></TD>
    <TD NOWRAP COLSPAN="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: center"><FONT STYLE="font-size: 7.5pt">2014</FONT></TD>
    <TD NOWRAP COLSPAN="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: center"><FONT STYLE="font-size: 7.5pt"><B>2015</B></FONT></TD>
    <TD NOWRAP COLSPAN="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: center"><FONT STYLE="font-size: 7.5pt">2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 37%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 8%; 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"><B>Common shares </B><I>(millions)</I></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; 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"><B>Amount</B></FONT></TD>
    <TD STYLE="width: 9%; border-bottom: Black 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">Common </FONT><BR>
<FONT STYLE="font-size: 7.5pt">shares </FONT><BR>
<FONT STYLE="font-size: 7.5pt"><I>(millions)</I></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 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">Amount</FONT></TD>
    <TD STYLE="width: 8%; 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"><B>Common shares </B><I>(millions)</I></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; 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"><B>Amount</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: Black 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">Common </FONT><BR>
<FONT STYLE="font-size: 7.5pt">shares </FONT><BR>
<FONT STYLE="font-size: 7.5pt"><I>(millions)</I></FONT></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 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">Amount</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">Issued and outstanding, beginning of period</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"><B>278.7</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"><B>3,039</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">271.8</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">2,962</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"><B>275.0</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"><B>3,001</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">268.2</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">2,916</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD 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">Issued under the dividend reinvestment </FONT><BR>
<FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;and optional common share purchase </FONT><BR>
<FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;plan</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>1.9</B></FONT></TD>
    <TD NOWRAP 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"><B>19</B></FONT></TD>
    <TD NOWRAP 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">1.6</FONT></TD>
    <TD NOWRAP 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">19</FONT></TD>
    <TD NOWRAP 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"><B>5.6</B></FONT></TD>
    <TD NOWRAP 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"><B>57</B></FONT></TD>
    <TD NOWRAP 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">5.2</FONT></TD>
    <TD NOWRAP 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">65</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="font: 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>280.6</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"><B>3,058</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">273.4</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">2,981</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"><B>280.6</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"><B>3,058</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">273.4</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">2,981</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD 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">Amounts receivable under </FONT><BR>
<FONT STYLE="font-size: 7.5pt">&nbsp;&nbsp;Employee Share Purchase Plan</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>-</B></FONT></TD>
    <TD NOWRAP 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"><B>(2)</B></FONT></TD>
    <TD NOWRAP 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">-</FONT></TD>
    <TD NOWRAP 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">(2)</FONT></TD>
    <TD NOWRAP 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"><B>-</B></FONT></TD>
    <TD NOWRAP 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"><B>(2)</B></FONT></TD>
    <TD NOWRAP 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">-</FONT></TD>
    <TD NOWRAP 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">(2)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP 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"><B>Issued and outstanding, end of period</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>280.6</B></FONT></TD>
    <TD NOWRAP 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"><B>3,056</B></FONT></TD>
    <TD NOWRAP 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">273.4</FONT></TD>
    <TD NOWRAP 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">2,979</FONT></TD>
    <TD NOWRAP 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"><B>280.6</B></FONT></TD>
    <TD NOWRAP 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"><B>3,056</B></FONT></TD>
    <TD NOWRAP 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">273.4</FONT></TD>
    <TD NOWRAP 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">2,979</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>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">On July 21, 2015, the Corporation declared
a quarterly dividend of $0.18 per common share, payable on Oct. 1, 2015. On payment, 3.4 million common shares were issued for
dividends reinvested.</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. 29, 2015, the Corporation declared
a quarterly dividend of $0.18 per common share, payable on Jan. 1, 2016.</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">There have been no other transactions involving
common shares between the reporting date and the date of completion of these unaudited interim 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>


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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">13.
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">All preferred shares issued and outstanding
are non-voting cumulative redeemable fixed rate first preferred shares. The holders are entitled to receive cumulative fixed quarterly
cash dividends at specified rates, as approved by the Board. Refer to <I>Note 25</I> of the Corporation&#8217;s most recent annual
consolidated financial statements for more information regarding the terms of the preferred shares.</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, 2015 and Dec. 31, 2014, the
Corporation had 12.0 million Series A, 11.0 million Series C, 9.0 million Series E, and<BR>
6.6 million Series G Cumulative Redeemable Rate Reset First Preferred shares issued and outstanding.</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. 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 within the three and 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">
<TR STYLE="vertical-align: bottom">
    <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>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 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="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 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: 15%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="width: 14%; 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">Quarterly amounts </FONT><BR>
<FONT STYLE="font-size: 7.5pt">per share</FONT></TD>
    <TD NOWRAP STYLE="width: 13%; 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"><B>2015</B></FONT></TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 22%; 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">2014</FONT></TD>
    <TD STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; 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"><B>2015</B></FONT></TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 18%; 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">2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>Series</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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"><B>Total</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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">Total</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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"><B>Total</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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">Total</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"><I>A</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">0.2875</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"><B>3</B></FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">3</FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>10</B></FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">10</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"><I>C</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">0.2875</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"><B>4</B></FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">4</FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>10</B></FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">10</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"><I>E</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">0.3125</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"><B>2</B></FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">2</FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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"><B>8</B></FONT></TD>
    <TD STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">8</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD 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"><I>G</I></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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">0.33125</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"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 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"><B>7</B></FONT></TD>
    <TD 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; 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="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"><B>Total for </B></FONT><BR>
<FONT STYLE="font-size: 7.5pt"><B>&nbsp;the period</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>12</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 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</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 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"><B>35</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; 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">28</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">On Oct. 29, 2015, the Corporation declared
a quarterly dividend of $0.2875 per share on the Series A and Series C preferred shares, $0.3125 per share on the Series E preferred
shares, and $0.33125 per share on the Series G preferred shares all payable<BR>
Dec. 31, 2015.</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.
COMMITMENTS AND CONTINGENCIES</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. TransAlta Energy Bill Commitment</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 30, 2015, the Corporation announced
that it would formalize its commitment to invest US$55 million over the remaining 10 year life of the Centralia coal plant to support
energy effiency, economic and community development, and education and retraining initiatives in Washington State by waiving its
right to terminate the commitment on the basis of the level of contract sales of the Centralia plant. As of Sept. 30, 2015, the
Corporation has funded US$14 million of the commitment which is recognized as an Other asset in the Condensed Consolidated Statements
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"><B>B. Contingencies</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="color: black; line-height: 150%">TransAlta
is occasionally named as a party in various claims and legal and regulatory 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>


<!-- Field: Page; Sequence: 24 -->
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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">15.
SEGMENT DISCLOSURES</P>

<P STYLE="font: 8pt/normal 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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>3 months ended Sept. 30, 2015</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Canadian </B><BR>
<B>Coal</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>U.S. </B><BR>
<B>Coal</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Gas</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Wind<SUP>(1)</SUP></B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Hydro</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Energy </B><BR>
<B>Marketing</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Corporate</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Total</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">Revenues</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>253</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>172</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>140</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>38</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>28</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>10</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>641</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Fuel and purchased power</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>116</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>121</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>57</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>3</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>299</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Gross margin</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>137</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>51</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>83</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>35</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>26</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>342</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">Operations, maintenance, and administration</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>51</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>15</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>24</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>11</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>9</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>4</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>16</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>130</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">Depreciation and amortization</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>62</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>15</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>22</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>26</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>7</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>7</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>139</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">Restructuring provision</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>2</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>1</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>1</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>3</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>4</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>11</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">Taxes, other than income taxes</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>3</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>1</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>2</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>6</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net other operating (income) loss</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>(2)</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>56</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>54</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Operating income (loss)</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>20</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>36</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(3)</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>8</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(53)</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(27)</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; 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="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">Finance lease income</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>15</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>15</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">Gain on sale of assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>263</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>263</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">Net interest expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>(63)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: left">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">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 8pt/18pt Arial, Helvetica, Sans-Serif; text-align: right"><B>2</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Earnings before income taxes</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>219</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="9" STYLE="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"><I>(1) Includes the results of the acquired Solar facilities commencing Sept. 1, 2015.</I></FONT></TD></TR>
</TABLE>
<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">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 40%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">3 months ended Sept. 30, 2014<BR>
<FONT STYLE="font-size: 7.5pt"><I>(Restated - see Note 2)</I></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Canadian <BR>
Coal</TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">U.S. <BR>
Coal</TD>
    <TD NOWRAP STYLE="width: 5%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Gas</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Wind</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Hydro</TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Energy <BR>
Marketing</TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Corporate</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Revenues</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">260</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">144</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">149</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">43</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">40</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">639</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Fuel and purchased power</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">126</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">84</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">60</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">277</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Gross margin</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">134</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">60</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">89</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">40</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">36</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">362</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Operations, maintenance, and administration</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">52</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">25</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">138</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Depreciation and amortization</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">59</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">28</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">22</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">135</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Asset impairment reversal</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(1)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Taxes, other than income taxes</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Operating income (loss)</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">35</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">37</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(4)</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(27)</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">83</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Finance lease income</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net interest expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(64)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Earnings before income taxes</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">31</TD></TR>
</TABLE>
<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&nbsp;</P>


<!-- Field: Page; Sequence: 25 -->
    <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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">F<!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- 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">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 38%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><B>9 months ended Sept. 30, 2015</B></TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Canadian </B><BR>
<B>Coal</B></TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>U.S. </B><BR>
<B>Coal</B></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Gas</B></TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Wind<SUP>(1)</SUP></B></TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Hydro</B></TD>
    <TD STYLE="width: 9%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Energy </B><BR>
<B>Marketing</B></TD>
    <TD STYLE="width: 9%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>Corporate</B></TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Revenues</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>704</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>246</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>447</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>160</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>91</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>24</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1,672</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Fuel and purchased power</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>328</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>210</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>183</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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="border-bottom: Black 1pt solid; font: 8pt/18pt 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="border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>736</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Gross margin</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>36</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>264</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>151</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>85</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>24</B></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>936</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Operations, maintenance, and administration</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>148</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>37</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>71</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>35</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>29</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>50</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>383</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Depreciation and amortization</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>178</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>47</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>75</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>70</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>19</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>20</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>409</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Asset impairment recovery</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(1)</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(1)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Restructuring provision</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>9</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>3</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>4</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Taxes, other than income taxes</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt 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="font: 8pt/18pt 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="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>5</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>3</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>21</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net other operating (income) loss</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(2)</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>56</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>54</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Operating income (loss)</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>34</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(51)</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>41</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>34</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(48)</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(74)</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>52</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Finance lease income</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>41</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>-</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>41</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Gain on sale of assets</TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>263</B></TD>
    <TD NOWRAP STYLE="font: 8pt/18pt 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/18pt 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/18pt 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/18pt 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/18pt Arial, Helvetica, Sans-Serif; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>263</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Net interest expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>(182)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">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">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 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/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><B>1</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Earnings before income taxes</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt/18pt 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">
    <TD NOWRAP COLSPAN="4" STYLE="font: 7.5pt/18pt Arial, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7.5pt"><I>(1) Includes the results of the acquired Solar facilities commencing Sept. 1, 2015.</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: left"><B>&nbsp;</B></P>

<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 STYLE="width: 41%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">9 months ended Sept. 30, 2014<BR>
<FONT STYLE="font-size: 7.5pt"><I>(Restated - see Note 2)</I></FONT></TD>
    <TD STYLE="width: 9%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">Canadian <BR>
Coal</TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">U.S. <BR>
Coal</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">Gas</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">Wind</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">Hydro</TD>
    <TD STYLE="width: 9%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">Energy <BR>
Marketing</TD>
    <TD STYLE="width: 9%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">Corporate</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; 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; line-height: 18pt; font-size: 8pt">Revenues</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">750</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">266</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">537</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">172</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">104</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">76</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">1,905</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Fuel and purchased power</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">364</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">176</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">266</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">10</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">8</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">824</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Gross margin</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">386</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">90</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">271</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">162</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">96</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">76</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">1,081</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-size: 8pt">Operations, maintenance, and administration</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">148</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">35</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">75</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">34</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">34</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">27</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">51</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">404</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-size: 8pt">Depreciation and amortization</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">175</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">40</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">83</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">66</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">18</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">20</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">402</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Asset impairment reversal</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">(1)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">(1)</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-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; line-height: 18pt; font-size: 8pt">9</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">2</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">2</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">5</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">2</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">1</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">21</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Net other operating (gains) losses</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">(2)</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">5</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">3</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Operating income (loss)</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">54</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">13</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">112</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">57</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">44</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">44</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">(72)</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">252</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-size: 8pt">Finance lease income</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">-</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">36</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-size: 8pt">Gain on sale of 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="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <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-size: 8pt">1</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Net interest expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <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-size: 8pt">(192)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; 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">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <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-size: 8pt">(7)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Earnings before income taxes</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; 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">During the three and nine months ended Sept.
30, 2015, the Corporation recorded a $17 million writedown<BR>
(Sept. 30, 2014 - $6 million writedown) and $19 million writedown (Sept. 30, 2014 - $6 million writedown) of coal inventory to
its net realizable value. The writedown is included in fuel and purchased power of the U.S. Coal 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">Included in revenues of the Wind Segment
for the three and nine months ended Sept. 30, 2015 are $4 million<BR>
(Sept. 30, 2014 - $4 million) and $14 million (Sept. 30, 2014 - $15 million) of incentives received under a Government of Canada
program in respect of power generation from qualifying wind projects.</P>

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left">&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-align: left">B. 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; line-height: 18pt; font-size: 8pt"><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="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><B>9 months ended Sept. 30</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 53%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><B>2015</B></TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">2014</TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><B>2015</B></TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">2014</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Depreciation and amortization expense on the Condensed&nbsp;&nbsp;<BR>
&nbsp;&nbsp;&nbsp;Consolidated Statement of Earnings</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><B>139</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">135</TD>
    <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-size: 8pt"><B>409</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">402</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Depreciation included in fuel and purchased power</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><B>14</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">13</TD>
    <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-size: 8pt"><B>43</B></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">41</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt">Depreciation and amortization expense on the Condensed <BR>
&nbsp;&nbsp;Consolidated Statements of Cash Flows</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><B>153</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">148</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><B>452</B></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt">443</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">16.
SUBSEQUENT EVENTS</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; text-indent: 0.5in"><B>A. U.S. Wind Acquisition</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. 1, 2015, the Corporation closed
the previously announced acquisition of 100 per cent of the membership interests of Odin Wind Power LLC, owner of the 50 MW Lakeswind
wind facility located in Minnesota for cash consideration of $49 million and the assumption of certain tax equity obligations.
The facility is contracted under long-term power purchase agreements until 2034 with high quality counterparties. The Corporation
is currently in the process of assessing the fair values of identifiable assets and liabilities of the entity.</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. Ontario Wind Asset Financing</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. 1, 2015, Melancthon Wolfe Wind LP
(the &#8220;Issuer&#8221;), a wholly owned subsidiary of TransAlta Renewables closed a<BR>
$442 million bond offering, which were secured by a first ranking charge over all assets of the Issuer, the Melancthon and Wolfe
Island wind farms. The bonds are amortizing, and bear interest at a rate of 3.834 per cent, payable semi-annually and mature on
Dec. 31, 2028.</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">Net proceeds of the financing will be used
to reduce the draw down on the Corporation&#8217;s credit facilities.</P>



<P STYLE="margin: 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-13.2
<SEQUENCE>3
<FILENAME>mda.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, 2015.
<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="background-color: white; width: 100%; font: 10pt times new roman">
<tr>
<TD STYLE="vertical-align: top; width: 50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><IMG SRC="image_005.jpg"></font></td>
<TD STYLE="vertical-align: bottom; text-align: right; width: 50%"><font style="font-size: 10pt; font-family: times new roman; display: inline"><b>TRANSALTA CORPORATION</b></font>

<div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt" align="right"><b>THIRD<FONT STYLE="font-style: normal; font-variant: normal; font-size: 10pt; font-family: times new roman">
QUARTER REPORT FOR 2015</FONT></b></div>
</td>
</tr>
</TABLE>

<P STYLE="font: 8pt/18pt 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: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% 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/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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">This Management&#8217;s Discussion 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
Forward-Looking Statements section of this MD&amp;A for additional information.</P>

<P STYLE="font: 8pt/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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">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, 2015 and 2014, and should also be read in conjunction with the audited annual consolidated financial statements
and MD&amp;A contained within our 2014 Annual Report. In this MD&amp;A, unless the context otherwise requires, &#8220;we&#8221;,
&#8220;our&#8221;, &#8220;us&#8221;, the &#8220;Corporation&#8221;, and &#8220;TransAlta&#8221; refers to TransAlta Corporation
and its subsidiaries. The condensed consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (&#8220;IFRS&#8221;) <I>IAS 34 Interim</I> <I>Financial Reporting</I>. All tabular amounts in the following
discussion are in millions of Canadian dollars unless otherwise noted. <FONT STYLE="color: black">This MD&amp;A is dated Oct. 29,
2015. Additional information respecting TransAlta, including its Annual Information Form, is available on SEDAR at www.sedar.com,
on EDGAR at www.sec.gov, and on our website at www.transalta.com. Information on or connected to our website is not incorporated
by reference herein.</FONT></P>

<P STYLE="font: 8pt/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/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/150% 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/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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The results of operations are presented
on a consolidated basis and by business segments. We have seven business segments. See the Discussion of Segmented Comparable Results
section of this MD&amp;A for information regarding the first quarter 2015 change in our segments. 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 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 (&#8220;AOCI&#8221;) in the equity section of the Condensed Consolidated Statements 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: 8pt/150% 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% 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. Certain of these measures discussed 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 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 Funds from Operations and Free
Cash Flow and Earnings and Other Measures on a Comparable Basis sections of this MD&amp;A for additional information, including,
where applicable, reconciliations to measures calculated in accordance with IFRS.</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>
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<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">FORWARD-LOOKING
STATEMENTS</P>

<P STYLE="font: 8pt/150% 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/150% 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 securities regulatory authorities
include forward-looking statements or information (collectively referred to herein as &#8220;forward-looking statements&#8221;)
within the meaning 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 assumptions were 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;project&#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>

<P STYLE="font: 8pt/150% 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In particular, this MD&amp;A contains forward-looking
statements pertaining to our business and anticipated future financial performance; our success in executing on our growth projects;
the timing of the construction and commissioning of projects under development, including major projects such as the South Hedland
power project or the Sundance 7 project, and their attendant costs; spending on growth and sustaining capital and productivity
projects; expectations in terms of the cost of operations, capital spending, and maintenance, and the variability of those costs;
the impact of certain hedges on future reported earnings and cash flows, including future reversals of unrealized gains or losses;
expectations related to future earnings and cash flow from operating and contracting activities (including estimates of full-year
2015 comparable earnings before interest, taxes, depreciation, and amortization (&#8220;EBITDA&#8221;), comparable funds from operations
(&#8220;FFO&#8221;), comparable free cash flow (&#8220;FCF&#8221;), and expected sustaining capital expenditures for 2015); expectations
in respect of financial ratios and targets (including comparable FFO before interest to adjusted interest coverage, adjusted comparable
FFO to adjusted net debt, and adjusted net debt to comparable EBITDA); the impact of a possible downgrade by Moody&#8217;s Investor
Services Inc. (&#8220;Moody&#8217;s&#8221;); 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; the impact of
load growth, increased capacity, and natural gas costs on power prices; expectations in respect of generation availability, capacity,
and production; expectations regarding the role different energy sources will play in meeting future energy needs; expected financing
of our capital expenditures; expected governmental regulatory regimes and legislation and their expected impact on us and the timing
of the implementation of such regimes and regulations, as well as the cost of complying with resulting regulations and laws, including
the anticipated financial impact of increased Specified Gas Emitters Regulation (&#8220;SGER&#8221;) obligations in Alberta, and
the value of offsets generated by our wind facilities in the province; our trading strategies 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; our expectations regarding the outcome of existing or potential legal and contractual claims, regulatory
investigations, and disputes; expectations regarding the renewal of collective bargaining agreements; 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 US dollar, the Australian dollar, and other currencies in which we do business; the monitoring of our exposure
to liquidity risk; expectations regarding the impact of the slowdown in the oil and gas sector; expectations in respect of the
global economic environment and growing scrutiny by investors relating to sustainability performance; our credit practices; expected
cost savings following the implementation of our efficiency and productivity initiatives; the estimated contribution of Energy
Marketing activities to gross margin; expectations relating to the performance of TransAlta Renewables Inc.&#8217;s (&#8220;TransAlta
Renewables&#8221;) assets; expectations regarding our continued ownership of common shares of TransAlta Renewables; expectations
in respect of the Keephills 1 Force Majeure event, including the impact of the claim, penalties, and insurance coverage; and expectations
of reversal of coal inventory writedown.</P>

<P STYLE="font: 8pt/150% 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/150% 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>


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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-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; increasingly stringent 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 or man-made disasters; the threat of domestic terrorism and cyberattacks; equipment failure and our ability
to carry out or have completed the repairs in a cost-effective or timely manner; commodity risk management; industry risk and competition;
fluctuations in the value of foreign currencies and foreign political risks;&nbsp;the need for additional financing and the ability
to access financing at a reasonable cost; our ability to fund our growth projects; our ability to maintain our investment grade
credit rating; structural subordination of securities; counterparty credit risk; our ability to recover our losses through our
insurance coverage; our provision for income taxes; legal, regulatory, and contractual proceedings involving the Corporation; outcomes
of investigations and disputes; reliance on key personnel;&nbsp;labour relations matters; development projects and acquisitions,
including delays or changes in costs in the construction of the South Hedland Power Project; and the satisfactory receipt of applicable
regulatory approvals for existing and proposed operations and growth initiatives.</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-transform: uppercase; letter-spacing: 1.5pt; text-align: justify"><FONT STYLE="font-weight: normal; text-transform: none; letter-spacing: 0pt">The
foregoing risk factors, among others, are described in further detail in the Risk Management section of our 2014 Annual MD&amp;A
and under the heading &#8220;Risk Factors&#8221; in our 2015 Annual Information Form.</FONT></P>

<P STYLE="font: 8pt/150% 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/150% 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/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>
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<P STYLE="font: 8pt/150% 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/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><I>Consolidated Highlights</I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" 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; line-height: 18pt"><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; line-height: 18pt"><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 COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>641</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">639</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,672</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,905</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 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>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>219</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">212</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>677</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">735</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 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 </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;shareholders</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>154</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(6)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>30</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(7)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; 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 (loss) attributable to</FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;common shareholders<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(33)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(13)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(51)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">22</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 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 funds from operations<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>126</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">145</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>497</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">537</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 254px; border-bottom: Black 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: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 85px; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>200</B></FONT></TD>
    <TD NOWRAP STYLE="width: 85px; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">216</FONT></TD>
    <TD NOWRAP STYLE="width: 85px; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>314</B></FONT></TD>
    <TD NOWRAP STYLE="width: 85px; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">546</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable free cash flow<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>8</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">34</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>141</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">192</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 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 </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;common shareholders, basic and diluted</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.55</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.03)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.11</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.03)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 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 (loss) per share<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(0.12)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.05)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(0.18)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.08</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 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 funds from operations per share<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.45</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.53</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1.78</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1.97</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable free cash flow per share<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.03</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.12</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.51</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.71</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.18</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.18</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16.05pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.54</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; text-indent: 16pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.65</FONT></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: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 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"><B>As at</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30, 2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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, 2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 46%; 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="width: 14%; 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: 13%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>10,756</B></FONT></TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">9,833</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">Total credit facilities, long-term debt, and finance </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;lease obligations<SUP>(2)</SUP>, net of cash</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"><B>4,413</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">4,013</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5,766</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4,504</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="color: white"><B><I><SUP>[1]</SUP></I></B></FONT><B><I><FONT STYLE="color: black">
</FONT></I></B></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/150% Arial, Helvetica, Sans-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-family: Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify">Comparable EBITDA for the three months ended Sept. 30, 2015 increased by $7 million to $219 million
compared to the same period in 2014. Prices in Alberta have decreased from $64 per megawatt hour (&#8220;MWh&#8221;) in the third
quarter of 2014 to $26 per MWh in the third quarter of 2015 but our high level of contracts and hedges mostly mitigated the impact
of low price. Continued improvement in our mining operations to reduce fuel costs as well as a return to normal level in margin
by Energy Marketing contributed to our good performance in the quarter. Our wind and hydro businesses in Alberta were impacted
by lower price. Year-to-date, comparable EBITDA decreased $58 million to $677 million compared to the same period in 2014. A significant
part of the decrease is attributable to unfavourable Energy Marketing results during the second quarter of 2015, lower availability
in Canadian Coal during the first half of the year, and lower prices in Alberta and the Pacific Northwest. Last year, Energy Marketing&#8217;s
performance was positively impacted by higher volatility due to extraordinary conditions in the first quarter.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(1)
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&#8217; results. Refer to the Funds from Operations
and Free Cash Flow and Earnings and Other Measures on a Comparable Basis sections 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: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(2)
Includes current portion.</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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">M<!-- 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 -->

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/150% Arial, Helvetica, Sans-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-family: Wingdings">&sect;</FONT></TD><TD STYLE="text-align: justify">Comparable FFO decreased by $19 million to $126 million for the three months ended Sept. 30, 2015
despite higher EBITDA, as non-realized mark-to-market losses included in EBITDA in the second quarter have reversed in the third
quarter. On a year-to-date basis, comparable FFO decreased by $40 million to $497 million. The change in FFO was mainly due to
the decrease in EBITDA. Lower interest expense, lower cash taxes, and an increase in realized foreign exchange gains offset some
of the shortfall in EBITDA.</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/150% Wingdings; color: black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; color: black">During the quarter, comparable
net loss attributable to common shareholders was $33 million ($0.12 net loss per share), down from a comparable net loss of $13
million ($0.05 net loss per share) in the same period in 2014. The decrease was primarily due to an increase in depreciation and
amortization resulting from the strengthening US dollar, an increase in asset retirements, and an increase in income tax expense
due to</FONT> <FONT STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; color: black">an increase in taxable temporary differences.
Year-to-date, comparable net loss attributable to common shareholders was $51 million ($0.18 net loss per share), down from comparable
net earnings of $22 million ($0.08 net earnings per share) in the same period in 2014. The decrease was primarily a result of lower
comparable EBITDA.</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; color: black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">Reported net earnings attributable
to common shareholders was $154 million for the quarter ($0.55 net earnings per share) compared to a net loss of $6 million ($0.03
net loss per share) for the same period in 2014. On a year-to-date basis, reported net earnings attributable to common shareholders
was $30 million ($0.11 net earnings per share) compared to a net loss of $7 million ($0.03 net loss per share) for the same period
in 2014. For each period, the differences between comparable and reported net earnings are mainly due to the gain on the Poplar
Creek contract restructuring ($193 million<SUP>([2])</SUP>), the provision relating to the proposed settlement with the </FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Market
Surveillance Administrator (the &#8220;MSA&#8221;) ($55 million<SUP>(1)</SUP>)<FONT STYLE="color: black">, and restructuring costs
($8 million<SUP>(1)</SUP> for the quarter and $13 million<SUP>(1)</SUP> for the year-to-date). Changes in the fair value of de-designated
and economic hedges at U.S. Coal also impacted our net earnings negatively since the beginning of the year ($31 million<SUP>(1,2)</SUP>).
Deferred income tax expense during the first half of 2015 was also impacted by the increase in the Alberta corporate tax rate in
June 2015 and by an internal reorganization associated with the sale of an economic interest in our Australian business to TransAlta
Renewables.</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">During the nine month period in 2015, credit
facilities, long-term debt, and finance lease obligations have increased by $400 million primarily as a result of the stronger
US dollar ($312 million) and the acquisition during the quarter of operating solar facilities ($106 million).</FONT></TD></TR></TABLE>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Strategic Initiative Highlights</I></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">During the quarter we continued to strengthen
our financial condition, improve our operating performance, and make significant progress to grow our portfolio of highly contracted
assets through initiatives such as:</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-align: left">&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">We restructured our contractual arrangements at the Poplar Creek facility,
to extend the contracted cash flows attributable to Poplar Creek to 2030, from the prior 2023 expiry, and we also acquired two
wind facilities, representing </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">65 megawatts (&#8220;MW&#8221;) of capacity. As part of the restructuring,
our customer assumed operational control of the facility and acquired our steam generators and the rights to the output of the
gas generators. The transaction closed on </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Sept. 1, 2015 and we have recognized a gain of $263 million on the transaction:</FONT></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0 0 0 1in; 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">recognition of a finance lease of $372 million less derecognition of
Poplar Creek net assets, including exchanged working capital, at a carrying amount of $247 million; and</FONT></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0 0 0 1in; 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">the acquisition of two wind farms for $138 million.</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0 0 0 38.25pt; text-align: justify">Over the last three years, we
have nearly doubled the weighted average remaining contractual life of our gas fleet from<BR>
6 years to 12 years.</P>

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

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(<FONT STYLE="font: 6.5pt Arial, Helvetica, Sans-Serif"><B>1]</B></FONT>)
Net of related income tax expense.</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(2)
Hedge accounting could not be applied to certain contracts, and accordingly, the mark-to-market on these contracts impacted reporting
earnings. The impacts of these mark-to-market fluctuations have been removed from revenues to arrive at comparable results, which
reflect the economic nature of these contracts.</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: 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">We acquired 71 MW of fully contracted renewable
generation assets for cash consideration of US$76 million together with the assumption of certain tax equity and US$42 million
of non-recourse project debt. The assets include our first solar facilities, representing 21 MW of capacity in Massachusetts, and
one 50 MW wind farm in Minnesota. The acquisition of the solar facilities was completed on Sept. 1, 2015, while the acquisitions
of the wind farm closed on Oct. 1, 2015.</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; color: black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">We reached an agreement with
the MSA to settle all outstanding proceedings before the </FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Alberta Utilities
Commission </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(the &#8220;AUC&#8221;)<FONT STYLE="color: black"> for a total amount of $56
million, which was approved by the AUC on Oct. 29, 2015. Of this amount, </FONT></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">$31 million will be paid 30 days after the approval date and
$25 million will be paid one year after this first payment.</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">Reduced our overhead by $25
million annually by eliminating 239 positions. Together with overhead reductions in Canadian Coal announced earlier this year,
our efficiency and productivity initiatives will contribute $47 million in cost savings annually.</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; background-color: white"><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">Raised $442 million in long-term project financing.
The financing closed on Oct. 1, 2015. Proceeds will be used to reduce the draw down on our credit facilities.</FONT></TD></TR></TABLE>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Earlier this year, we also completed the
following transactions:</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: 12pt/150% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><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">TransAlta Renewables acquired
an economic interest based on the cash flows of our Australian assets </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif; color: black">(the &#8220;Transaction&#8221;). We received net cash proceeds
of $211 million as well as approximately $1,067 million as consideration for the interest</FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">
through a combination of Common Shares and Class B Shares in TransAlta Renewables, increasing our ownership from 70 per cent to
76 per cent. Cash proceeds of the Transaction were used to reduce borrowings on our credit 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; background-color: white"><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">TAMA Power, our joint venture
with Berkshire Hathaway Energy Company, received approval from the </FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">AUC<FONT STYLE="color: black">
to construct Sundance 7, an 856 MW high efficiency natural gas-fired power plant in Alberta. </FONT>Construction of Sundance 7
will not commence until we have contracted a significant portion of the plant capacity. </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">Successfully completed construction of the
natural gas pipeline to our Solomon power station. Since the beginning of the year, the pipeline has contributed $6 million to
our EBITDA and FFO.</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">Commenced construction of the
South Hedland Power Project. </FONT><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">The civil construction phase is progressing
and manufacturing and factory acceptance testing of primary electrical equipment was completed. Major equipment is scheduled to
be delivered to the site starting in the fourth 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">Entered into a new 15-year 72 MW power supply
contract for our Windsor facility with Ontario&#8217;s Independent Electricity System Operator (&#8220;IESO&#8221;). The new contract
will take effect in December 2016.</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">Reduced our workforce at our Canadian Coal
operations and optimized mine operations to provide sustained savings of $22 million annually.</FONT></TD></TR></TABLE>

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


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Operational Results</I></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">Comparable EBITDA and operational performance
for the business 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="font: 8pt Times New Roman, Times, 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; line-height: 18pt"><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; line-height: 18pt"><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: 44%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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 (%)<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>91.2</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">92.0</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>87.3</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">88.6</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">Adjusted availability (%)<SUP>(2)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>91.2</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">92.0</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>87.8</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">89.6</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 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>(1,3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>10,839</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">11,445</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>29,559</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">32,795</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"><B>Comparable EBITDA:</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="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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Canadian Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>101</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</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>267</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">270</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">U.S. Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">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"><B>44</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">46</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">Gas</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">77</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>240</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">232</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">Wind<SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">27</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>111</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">123</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">Hydro</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">27</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>54</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">67</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">Energy Marketing</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6</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; line-height: 18pt"><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">49</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">Corporate</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">(20)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(50)</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">(52)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total comparable EBITDA</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>219</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">212</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>677</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">735</FONT></TD></TR>
</TABLE>
<P STYLE="color: white; font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><U>[3]</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/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"><U>Canadian Coal</U>: Comparable EBITDA in
the third quarter was $101 million and $267 million on a year-to-date basis, compared to $92 million and $270 million, respectively,
for the same periods in 2014. Our high level of contracts and hedges in Canadian Coal mostly offset the impact of lower price in
Alberta compared to last year. Canadian Coal also experienced higher derates during the quarter due to the impact of hot weather
on cooling ponds. In addition, during the quarter we completed planned outages at Sundance 5 and at Keephills 3. The reductions
in operating expenses at our power plants and at our Highvale mine and mark-to-market gains on certain forward financial contracts
that do not qualify for hedge accounting fully offset the negative impact of lower availability and lower price on our comparable
EBITDA. </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"><U>U.S. Coal</U>: Comparable EBITDA was $10
million in the quarter compared to $13 million for the same period in 2014 and $44 million on a year-to-date basis compared to $46 million in 2014. Quarterly
results were negatively impacted by coal inventory writedowns and reduced generation resulting from low power
prices, which were partially offset by mark-to-market gains on financial contracts put in place to hedge our future
generation and the stronger US dollar. On a year-to-date basis, limited merchant sales and mark-to-market losses were partially
offset by the appreciation of the US dollar. We anticipate the effects of coal inventory writedowns to reverse during the fourth
quarter as coal is used for production. </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"><U>Gas</U>: Comparable EBITDA in the third
quarter was $80 million and $240 million on a year-to-date basis, compared to $77 million and $232 million, respectively, for the same periods in 2014.
The increase in comparable EBITDA was a result of additional revenues from the Australian natural gas pipeline and the positive
impact of the strengthening of the US dollar on a certain contract in Australia. </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"><U>Wind</U>: Comparable EBITDA for the three
and nine month periods decreased by $4 million and $12 million, respectively, to
 $23 million and $111 million compared to the same periods in 2014, primarily
as a result of lower wind volumes in Eastern Canada and lower power prices in Alberta. </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(1)
Availability and production includes all generating assets (generation operations and finance leases that we operate). 2014 availability
also includes equity investments, which were sold in May 2014.</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(2)
Adjusted for economic dispatching at U.S. Coal.</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(3)
2014 production includes 314 GWh from CE Generation LLC and Wailuku Holding Company, LLC, both of which were sold in May 2014.
Refer to the Significant 2014 Events and Subsequent Events section of our 2014 Annual MD&amp;A for further discussion.</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(4)
Wind Segment includes results of solar facilities acquired during the quarter. Refer to the Significant and Subsequent Events section
of this MD&amp;A for further details.</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: 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"><U>Hydro</U>: Comparable EBITDA was $15 million
in the quarter compared to $27 million for the same period in 2014 and $54 million on a year-to-date basis compared to $67 million in 2014. The decrease
was a result of lower prices and a decrease in price volatility in Alberta during the third quarter, which limited our ability
to take advantage of our flexibility to produce electricity in higher priced hours. </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"><U>Energy Marketing</U>: Energy Marketing
generated comparable EBITDA of $6 million in the quarter compared to an EBITDA loss of $4 million for the same period in 2014.
This represented a return to normal gross margin for Energy Marketing. On a year-to-date basis, comparable EBITDA was down $38
million to $11 million. The decrease is attributable to extraordinary market conditions in the first quarter of last year that
resulted in substantial customer margins and volatile market conditions in the Alberta and Pacific Northwest regions in the second
quarter of this year that negatively affected our Energy Marketing results.</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"><U>Corporate</U>: Our Corporate Segment incurred
lower costs for the three and nine months ended Sept. 30, 2015 compared to the same periods in 2014 as a result of legal costs
incurred relating to the MSA proceeding in front of the AUC in 2014.</FONT></TD></TR></TABLE>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; 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: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% 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/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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Availability for the three months ended
Sept. 30, 2015 was slightly below the same period in 2014, primarily due to higher derates at Canadian Coal due to hot weather
impacting cooling ponds.</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">Availability for the nine months ended Sept.
30, 2015 is also slightly below last year&#8217;s level, primarily due to a two-month Force Majeure outage at our Keephills 1 facility
caused by a damaged superheater. The unit returned to service on<BR>
May 17, 2015. Availability during the period was also impacted by higher derates at Canadian Coal, the extension of the planned
outage at Sundance 3 to allow for more work to be completed, and the completion of a planned outage at Keephills 3 in August. In
2014, we had one planned major maintenance outage at Genesee 3 in the fourth quarter. As at Sept. 30, 2015, our planned major maintenance
activities in coal are complete for the year.</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">Production for the three and nine months
ended Sept. 30, 2015 decreased by 606 gigawatt hours (&#8220;GWh&#8221;) and 3,236 GWh, respectively, compared to the same periods
in 2014 due to lower availability from Canadian Coal in the first half of the year and increased economic dispatching at U.S. Coal
resulting from lower prices in the Pacific Northwest this year. These lower prices provided us the opportunity to shut down or
dial down our generation and supply our contractual obligation by buying cheaper power in the market.</P>

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

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

<P STYLE="font: 8pt/150% 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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">M<!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- 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: 1.5pt; text-align: justify">comparable
Funds from operations AND comparable free cash flow</P>

<P STYLE="font: 8pt/150% 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; background-color: yellow">&nbsp;</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Comparable funds from operations and comparable
free cash flow provide a proxy for the amount of cash generated from operating activities before changes in working capital, and
provide the ability to evaluate cash flow trends more readily in comparison with results from prior periods. Comparable FFO per
share and comparable FCF per share are calculated using the weighted average number of common shares outstanding during the period.</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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<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: 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: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" 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"><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="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; width: -1mm; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 11pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 11pt">&nbsp;</TD>
    <TD STYLE="width: 20%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD></TR>
<TR>
    <TD NOWRAP 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">Cash flow from operating activities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>200</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">216</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"><B>314</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">546</FONT></TD></TR>
<TR>
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: Black 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-81</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>166</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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>
    <TD NOWRAP 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"><B>Cash flow from operations before changes</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"><B>119</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">140</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"><B>480</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">496</FONT></TD></TR>
<TR>
    <TD NOWRAP 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"><B>in working capital</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>
    <TD NOWRAP 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">Adjustments:</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">&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>
    <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 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; text-align: right; line-height: 18pt"><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">&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"><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">-</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; 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: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Impacts associated with California claim</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">&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"><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">33</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; 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: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in finance lease receivable</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6</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">&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"><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">2</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; 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: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Maintenance costs related to Alberta flood of 2013,</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">&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"><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">6</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 11pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 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 of insurance recoveries</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP 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"><B>Comparable FFO</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"><B>126</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">145</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"><B>497</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">537</FONT></TD></TR>
<TR>
    <TD NOWRAP 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">Deduct:</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">&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>
    <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 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">Sustaining capital</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-79</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">-84</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"><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">-255</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; 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: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Insurance recoveries of sustaining capital expenditures</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">1</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"><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">1</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; 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: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">related to Alberta flood of 2013</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>
    <TD NOWRAP STYLE="vertical-align: bottom; 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: left; line-height: 18pt"><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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-12</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">&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"><B>-35</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></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 11pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Distributions paid to subsidiaries' non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-29</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-70</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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></TR>
<TR>
    <TD NOWRAP 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"><B>Comparable FCF</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"><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">34</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"><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">192</FONT></TD></TR>
<TR>
    <TD NOWRAP 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">Weighted average number of common shares outstanding</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>281</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">273</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"><B>279</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">272</FONT></TD></TR>
<TR>
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">in the period</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable FFO per share</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.45</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.53</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1.78</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1.97</FONT></TD></TR>
<TR>
    <TD NOWRAP COLSPAN="5" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable FCF per share</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.03</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.12</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.51</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.71</FONT></TD></TR>
</TABLE>


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
</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">A reconciliation of comparable EBITDA to
comparable FFO 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="font: 8pt Times New Roman, Times, 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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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">Comparable EBITDA</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"><B>219</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">212</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>677</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">735</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">Unrealized (gains) losses from risk management activities</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; line-height: 18pt"><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">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"><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">16</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">Interest 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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(58)</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">(59)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(167)</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">(178)</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">Provisions</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; line-height: 18pt"><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">(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"><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="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Current 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; line-height: 18pt"><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">(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"><B>(12)</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">(24)</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">Realized foreign exchange gain (loss)</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; line-height: 18pt"><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">(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"><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">(3)</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">Decommissioning and restoration costs settled</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; line-height: 18pt"><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">(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"><B>(20)</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="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other non-cash items</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; line-height: 18pt"><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">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"><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">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable FFO</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>126</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; 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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>497</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">537</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">Comparable FFO decreased by $19 million
to $126 million for the three months ended Sept. 30, 2015 compared to the same period in 2014, due to mark-to-market gains on financial
contracts put in place to hedge our future generation, as mark-to-market losses included in comparable EBITDA in the second quarter
have reversed in the third quarter. A decrease in cash taxes and an increase in realized foreign exchange gain offset a portion
of these gains.</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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">M<!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- 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">For the nine months ended Sept. 30, 2015,
comparable FFO decreased by $40 million to $497 million compared to the same period in 2014 mainly due to the reduction in comparable
EBITDA. A decrease in interest expense and cash taxes, and an increase in realized foreign exchange gain offset some of the shortfall
in comparable EBITDA.</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">Comparable FCF for the three months ended
Sept. 30, 2015 was $8 million, compared to $34 million for the same period in 2014. In addition to the decrease in comparable FFO,
comparable FCF decreased as a result of an increase in dividends paid on preferred shares and an increase in distributions paid
to subsidiaries&#8217; non-controlling interests, which was partially offset by a decrease in sustaining capital expenditures.</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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On a year-to-date basis, the decrease in
comparable FCF was mainly due to the reduction in comparable FFO and an increase in dividends paid on preferred shares and an increase
in distributions paid to subsidiaries&#8217; non-controlling interests.</P>

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

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

<P STYLE="font: bold 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-transform: uppercase; letter-spacing: 1.5pt; text-align: justify">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">We seek to maintain financial flexibility
by using multiple sources of capital to finance our business plans, while maintaining a sufficient level of available liquidity
to support contracting and trading activities. We are focused on strengthening our financial position and cash flow coverage ratios
to support stable investment grade credit ratings.</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">We have developed our own definitions of
ratios and targets to manage our capital. These metrics and ratios are not defined under IFRS, and may not be comparable to those
used by other entities or by rating agencies.</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>Comparable Funds From Operations before
Interest to Adjusted Interest Coverage </I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>As at</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30, 2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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, 2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 47%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable FFO<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; 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: 13%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 17%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>722</B></FONT></TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">762</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Add:&nbsp;&nbsp;Interest on debt net of interest income and capitalized interest<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>224</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">236</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable FFO before interest<SUP>(1)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>946</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">998</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">Interest on debt net of interest income<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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>233</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">239</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Add:&nbsp;&nbsp;50 per cent of dividends paid on preferred shares<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>24</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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>
<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"><B>Adjusted interest<SUP>(1)</SUP></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; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>257</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">260</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable FFO before interest to adjusted interest </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>&nbsp;&nbsp;coverage (times)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3.7</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3.8</FONT></TD></TR>
</TABLE>
<P STYLE="color: white; font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I><SUP>[4]</SUP></I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our target for Comparable FFO before Interest
to Adjusted Interest Coverage is four to five times. The ratio is comparable to last year. We are aiming to meet our target range
by 2016.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>(1) Last 12 months.</I></P>


<!-- Field: Page; Sequence: 10 -->
    <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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">M<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- 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><I>Adjusted Comparable Funds From Operations
to Adjusted Net Debt </I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>As at</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30, 2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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, 2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 45%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable FFO<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; 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: 13%; 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: 17%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>722</B></FONT></TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">762</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Less:&nbsp;&nbsp;50 per cent of dividends paid on preferred shares<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(24)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Adjusted comparable FFO<SUP>(1)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>698</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">741</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">Period-end long-term debt, including finance lease 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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4,450</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">4,056</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">Add:&nbsp;&nbsp;50 per cent of issued preferred shares</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"><B>471</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">471</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">Less:&nbsp;&nbsp;Cash and cash equivalents (excluding restricted cash)</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"><B>(37)</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">(43)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Fair value (asset) of hedging instruments on debt<SUP>(2)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(171)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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)</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"><B>Adjusted net debt</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; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4,713</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">4,388</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Adjusted comparable FFO to adjusted net debt (%)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>14.8</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">16.9</FONT></TD></TR>
</TABLE>
<P STYLE="color: white; font: 8pt/18pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><SUP>[5]</SUP></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our target for Adjusted Comparable FFO to
Adjusted Net Debt is 20 to 25 per cent. We are aiming to meet our target range in 2016. The reduction in the ratio during the year-to-date
is due to lower comparable FFO and the strengthening of the US dollar impacts on our US-denominated debt. Our US-denominated debt
is fully hedged by US-denominated assets, some of which revalue outside of net debt adjustments. As at Sept. 30, 2015, net debt
is also impacted by the addition of debt resulting from the acquisition of the solar facilities in Massachusetts ($106 million)
and by variations in working capital ($164 million), which offsets the debt reduction of $211 million achieved through the funds
raised by the Transaction with TransAlta Renewables.</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>Adjusted Net Debt to Comparable EBITDA
</I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>As at</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Sept. 30, 2015</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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, 2014</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">Period-end long-term debt, including finance lease 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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4,450</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">4,056</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">Less:&nbsp;&nbsp;cash and cash equivalents</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(37)</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">(43)</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">Add:&nbsp;&nbsp;50 per cent of issued preferred shares</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>471</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">471</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Fair value (asset) of hedging instruments on debt<SUP>(2)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(171)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 46%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Adjusted net debt</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 17%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4,713</B></FONT></TD>
    <TD NOWRAP STYLE="width: 15%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4,388</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"><B>Comparable EBITDA<SUP>(1)</SUP></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; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>978</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">1,036</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Adjusted net debt to comparable EBITDA (times)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4.8</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4.2</FONT></TD></TR>
</TABLE>
<P STYLE="color: white; font: 8pt/18pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><SUP>[6]</SUP></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Our target for Adjusted Net Debt to Comparable
EBITDA is three to four times. During the year-to-date, our ratio deteriorated compared to Dec. 31, 2014, mainly as a result of
lower comparable EBITDA during the period and strengthening of the US dollar as described in the Adjusted Comparable FFO to Adjusted
Net Debt section above. We are aiming to meet our target range in 2016.</P>

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

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

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

<P STYLE="font: 7.5pt/150% 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Sale of Economic Interest to TransAlta
Renewables Inc.</I></B></P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On May 7, 2015, we completed the sale of
an economic interest based on the cash flows of our Australian assets to TransAlta Renewables. The Australian assets consist of
575 MW of power generation from six operating assets and the South Hedland project currently under construction, as well as the
recently commissioned 270 kilometre gas pipeline. TransAlta Renewables&#8217; investment consists of the acquisition of securities
that, in aggregate, provide an economic interest based on cash flows of the Australian assets for a total consideration of $1.78
billion.</P>

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

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(1)
Last 12 months.</P>

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

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(2)
Included in risk management assets and/or liabilities on the condensed consolidated financial statements as at Sept. 30, 2015 and
Dec. 31, 2014.</P>



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    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">With the closing of the Transaction, TransAlta
Renewables paid the Corporation $217 million as well as approximately $1,067 million through a combination of Common Shares and Class B Shares in TransAlta Renewables, increasing our ownership from
70 per cent to 76 per cent. TransAlta Renewables has also committed to funding the remaining costs to construct the South Hedland
project, estimated at $491 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"><FONT STYLE="font-weight: normal">TransAlta
Renewables funded the cash proceeds through the public issuance of 17,858,423 Common Shares at a price of $12.65 per share.&nbsp;The
offering closed in two parts on April 15 and 23, 2015. TransAlta Renewables shareholder approval was received on May 7, 2015.</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><I>Poplar Creek </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; background-color: white">On Sept. 1, 2015,
we closed the previously announced restructuring of the current arrangement for power generation services with Suncor Energy (&#8220;Suncor&#8221;)
at Suncor&#8217;s oil sands base site near Fort McMurray and the acquisition of Suncor&#8217;s interest in two wind farms located
in Alberta and Ontario.</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">Our Poplar Creek co-generation facility,
which has a maximum capability of 376 MW, had been built and contracted to provide steam and electricity to Suncor until 2023.
Under the terms of the new arrangement, Suncor acquired two steam turbines with an installed capacity of 132 MW and certain transmission
interconnection assets. In addition, Suncor assumed full operational control of the co-generation facility, including responsibility
for all capital costs, and the right to use the full 244 MW capacity of TransAlta&#8217;s gas generators until Dec. 31, 2030. We
will provide Suncor with centralized monitoring, diagnostics and technical support to maximize performance and reliability of plant
equipment. Ownership of the entire Poplar Creek co-generation facility will transfer to Suncor in 2030.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">As part of
the arrangement, we acquired Suncor&#8217;s interest in the 20 MW Kent Breeze wind facility located in Ontario and
Suncor&#8217;s 51 per cent interest in the 88 MW Wintering Hills wind facility located in Alberta. The Kent Breeze
facility has a 20-year contract with the Ontario IESO.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">The restructuring
creates value by increasing the duration of the contract until 2030 and reduces our exposure to Alberta&#8217;s merchant power
market. It also adds two high quality wind farms to our portfolio and creates potential for future drop-down into TransAlta Renewables
of the fully contracted gas generating assets and the two wind farms. W<FONT STYLE="color: black">e have recognized a gain of $263
million on the transaction:</FONT></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0 0 0 1in; 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">recognition of a finance lease of $372 million less derecognition of
Poplar Creek net assets, including exchanged working capital, at a carrying amount of $247 million;</FONT></P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0 0 0 1in; 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">supplemented by the acquisition of two wind farms for $138 million.</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Over the last three years, we have nearly
doubled the weighted average remaining contractual life of our gas fleet from 6 years to 12 years.</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>U.S. Wind and Solar Acquisition </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">On July 26, 2015, we agreed to acquire 71
MW of fully contracted renewable generation assets for cash consideration of US$76 million together with the assumption of certain tax equity and US$42 million of non-recourse debt. The assets acquired include
21 MW of solar projects located in Massachusetts and a 50 MW Lakeswind wind project located in Minnesota. The assets are contracted
under long-term power purchase agreements ranging from 20 to 30 years. The purchase of the solar projects in Massachusetts closed
on Sept. 1, 2015 and the purchase of the Lakeswind wind project in Minnesota was completed on Oct. 1, 2015. Please refer to <I>Note 3</I> of our unaudited interim condensed consolidated financial statements as at and for
the three and nine months ended Sept. 30, 2015 and 2014 for additional information.</P>


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The acquisition marks our first solar facilities
and aligns with our strategy of growing our renewables platform, diversifying our portfolio, and increasing the pipeline of assets
for potential future drop-down into TransAlta Renewables. The acquisition adds geographic, technological and counterparty diversification,
and establishes a broader platform in the U.S. for future growth in renewables.</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 solar projects, consisting of four ground
mounted facilities and four roof-top facilities, are all contracted on a long-term basis and are qualified under phase one of the
Massachusetts Solar Renewable Energy Credit (SREC-I) program, established to encourage investment in distributed solar generation.
The wind facility has been operational since March 2014 and is contracted under three long-term power purchase agreements until
2034 with high quality counterparties.</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>Sundance 7 </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">On June 9, 2015, TAMA Power received approval
from the AUC to construct and operate an 856 MW combined-cycle natural<BR>
gas-fired power plant in Alberta.</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 Sundance 7 project has received all
regulatory approvals after receiving the Environmental Protection Enhancement Act approval from Alberta Environment and Parks on
Oct. 1, 2015. Construction of Sundance 7 will not commence until we have contracted a significant portion of the plant capacity.</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>South Hedland Power Project </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">Construction of the South Hedland Project
commenced in January 2015. The civil construction phase is progressing with all major foundation footings complete, with the exception
of the steam turbine. Manufacturing and factory acceptance testing of primary electrical equipment was completed. We expect to
start receiving equipment on site during the fourth quarter.</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>Washington State Memorandum of Agreement</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">On July 30, 2015 we announced that we are
moving ahead with plans to invest US$55 million over 10 years to support energy efficiency, economic and community development,
and education and retraining initiatives in Washington state.&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 US$55 million community investment is
part of the TransAlta Energy Transition Bill, passed in 2011. This bill was a historic agreement between policymakers, environmentalists,
labour leaders and TransAlta to transition away from coal in Washington state, closing the Centralia facility&#8217;s two units,
one in 2020 and the other in 2025.&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">Although we did not secure additional long-term
contracts totaling 500 MW as planned in the original agreement as a condition of the investment, we are following through on our
funding pledge and securing mutual benefits agreed with the state for orderly transition.</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; background-color: white"><B><I>Keephills
1 Force Majeure </I></B></P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">On March 17, 2015,
an unplanned outage began at our 395 MW Keephills 1 facility due to a damaged superheater. The unit returned to service on May
17, 2015.</P>

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


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">Following the establishment
of the plan to return the unit to service and the review of the causes of the outage, we gave notice under the Power Purchase Arrangement
(&#8220;PPA&#8221;) to the PPA buyer and the Balancing Pool of a &#8220;High Impact Low Probability&#8221; Force Majeure event.
In the event of a Force Majeure event, 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. We also anticipate the costs incurred as a result of the event
will be covered by insurance. Consequently, the outage is not anticipated to have a material financial impact.</P>

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

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

<P STYLE="font: 8pt/150% 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">On March 19, 2015,
we announced the completion of the Fortescue River Gas Pipeline in Western Australia. The project, our first pipeline, was completed
within a nine month timeframe and for an estimated total cost of AUD$183 million. We hold a 43 per cent interest in the pipeline.
The pipeline delivers gas to our Solomon power station which services Fortescue Metals Group&#8217;s mining operations at the Solomon
Hub.</P>

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

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

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the first quarter of 2015, we executed
a new 15-year power supply contract with Ontario&#8217;s IESO for our Windsor facility, which will be effective Dec. 1, 2016. The
contract is similar to the contract signed in 2013 for our Ottawa facility.&nbsp;Under the new contract, the plant will become
dispatchable for up to 72 MW of capacity.&nbsp;The new contract provides long-term stable earnings for this facility.</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>Senior Leadership Team Appointment</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">On Sept. 22, 2015, Jennifer Pierce was named
Senior Vice-President, Marketing and Trading following the departure of Rob Schaefer. Jennifer Pierce was most recently our Vice-President,
Commercial Management.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Financing Activities</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">On Jan.15, 2015, our US$500 million 4.75
per cent senior notes matured and were paid out using existing liquidity. On Feb. 11, 2015, we refinanced maturing debt at our Pingston hydroelectric generating facility in British Columbia. Our share of
gross proceeds was $45 million. The bonds bear interest at the annual fixed interest rate of 2.95 per cent, payable semi-annually
with no principal repayments until maturity in May 2023. Proceeds were used to repay the $35 million secured debenture bearing
interest at 5.28 per cent. Excess proceeds, net of transaction costs, were used for general corporate purposes and to repay corporate
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">On Oct. 1, 2015, Melancthon Wolfe Wind LP
(the &#8220;Issuer&#8221;), a subsidiary of TransAlta Renewables, closed a $442 million bond offering, which is secured by a first
ranking charge over all assets of the Issuer. The bonds are amortizing and bear interest at a rate of 3.834 per cent, payable semi-annually
and mature on Dec. 31, 2028. Net proceeds of the financing were used to reduce our balance on the credit facility.</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>Efficiency and Productivity Initiatives</I></B></P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Sept. 29, 2015, we announced the elimination
of 239 positions to reduce our overhead. The initiative is expected to result in annual cost savings of approximately $25 million.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Earlier this year, we improved productivity
at our Canadian Coal power generation and mining operations. These initiatives are expected to generate annual savings of approximately
$22 million.</P>

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


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Settlement with the MSA</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">On Sept. 30, 2015, TransAlta and the MSA
reached an agreement to settle all outstanding proceedings before the AUC. The settlement, which is in the form of a consent order,
was approved by the AUC on Oct. 29, 2015. Under the terms of the agreement, we will pay a total amount of $56 million including
approximately $27 million as a repayment of economic benefit, approximately $4 million to cover the MSA&#8217;s legal and related costs, and a $25 million administrative penalty. Of this amount, $31 million
will be paid 30 days after the approval date, and the $25 million administrative penalty will be paid one year after this first
payment. As a result of the approval, we will be discontinuing our appeal of the AUC&#8217;s decision.</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>Investment Grade Rating</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">On Oct. 1, 2015, Moody&#8217;s placed the
rating of our senior unsecured debt under review for possible downgrade. The announcement by Moody&#8217;s is not anticipated to
have a material financial impact on our business as we maintain investment grade ratings with stable outlooks from three credit
rating agencies including BBB- (stable outlook) by Standard &amp; Poors, BBB (stable outlook) by DBRS, and BBB- (stable outlook)
by Fitch Ratings. We continue to maintain $2.1 billion in committed credit facilities with approximately $0.9 billion in available
liquidity as of Sept. 30, 2015 and no material debt maturity until 2017.</P>

<P STYLE="font: 8pt/13.85pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 8pt/13.85pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">We will continue
to execute our plan to strengthen our financial position and remain committed to our financial and operating goals for 2015, including
our plan to further reduce debt levels.</P>

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

<P STYLE="font: 8pt/18pt 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: 1.5pt; text-align: justify">Electricity
Prices</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 average spot electricity prices for
the three and nine months ended Sept. 30, 2015 and 2014 in the three major markets in which we have merchant capacity are shown
in the following graphs:</P>

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


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three months ended Sept. 30, 2015,
average spot prices in Alberta decreased compared to the same period in 2014 primarily due to increased supply in the province
from a new facility that became operational in the first quarter of 2015 and low natural gas prices. In the Pacific Northwest,
average spot prices decreased compared to 2014 due to lower natural gas prices, partially offset by higher market heat rates. <FONT STYLE="color: black">Average
spot prices in Ontario for the three months ended Sept. 30, 2015 increased compared to the same period in 2014 due to increased
nuclear outages resulting in lower supply and hot weather in September, which increased demand for the period.</FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&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: 11pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the nine months ended Sept. 30, 2015,
average spot prices decreased in all three markets. Lower natural gas prices have impacted all markets. Increased supply in Alberta
led to weak pricing, with the exception of May and June. Low natural gas prices in the Pacific Northwest have lowered power prices,
though market heat rates have been stronger than normal due to hydro conditions and reduced coal generation. Ontario prices are
lower this year due to weaker prices in the first quarter compared to the same period in 2014 and lower natural gas prices across
the year.</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"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>discussion
of segmented comparable results</B></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">During the first quarter of 2015 we began
reporting Canadian Coal, U.S. Coal, Gas, Wind, and Hydro as separate business segments. Previously, these were collectively reported
as the Generation Segment and were further differentiated by fuel type within our MD&amp;A to provide additional information to
our readers. As a result, the change in segmentation under IFRS has minimal impact on our MD&amp;A. No changes arose in respect
of our Energy Marketing and Corporate Segments. See the Current Accounting Changes section of this MD&amp;A for additional 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">Solar facilities acquired during the quarter
have been included in our Wind Segment. Please refer to the Significant and Subsequent Events section of this MD&amp;A for further
details.</P>

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


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Comparable figures are not defined under
IFRS. Refer to the Earnings and Other Measures on a Comparable Basis section of this MD&amp;A for further discussion of these items,
including, where applicable, reconciliations to net earnings attributable to common shareholders.</P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, 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; line-height: 18pt"><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; line-height: 18pt"><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: 44%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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">Availability (%)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">88.6</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"><B>81.6</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">87.6</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">Contract production (GWh)</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"><B>5,521</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">5,401</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"><B>14,702</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">15,664</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Merchant production (GWh)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>807</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">999</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2,786</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2,860</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">Total production (GWh)</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"><B>6,328</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">6,400</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"><B>17,488</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">18,524</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gross installed capacity (MW)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3,786</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3,771</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3,786</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3,771</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></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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>253</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">260</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"><B>704</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">750</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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>100</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">113</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>282</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">323</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable gross margin<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>153</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">147</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>422</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">427</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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>51</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">52</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"><B>148</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">148</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">Taxes, other than income taxes</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"><B>3</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">3</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"><B>9</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">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">Other net operating (income)</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"><B>(2)</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">-</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"><B>(2)</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">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable EBITDA<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>101</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">92</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>267</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">270</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>78</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">72</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>224</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">216</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable operating income<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>23</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>43</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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></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></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"><B>Sustaining capital:</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 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 NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>14</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">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"><B>37</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 NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Mining equipment and 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"><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">19</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>17</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">27</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">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"><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">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"><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></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 NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">17</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">81</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>44</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">52</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>162</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">153</FONT></TD></TR>
</TABLE>
<P STYLE="color: white; font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><SUP>[7]</SUP></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Production for the three and nine months
ended Sept. 30, 2015 decreased 72 GWh and 1,036 GWh, respectively, compared to the same periods in 2014, primarily due to unplanned
outages in the first half of the year (unit 4 at Sundance and unit 1 at Keephills) and derates due to high temperatures impacting
cooling ponds. The planned outage at Sundance 3 was extended this year as a result of the level of turbine work found and was completed
in the early part of the third quarter. We also completed planned outages and Sundance 5 and Keephills 3 during the quarter.</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">Comparable EBITDA in the third quarter was
$101 million and $267 million on a year-to-date basis, compared to $92 million and $270 million, respectively, for the same periods
in 2014. Our high level of contracts and hedges in Canadian Coal mostly offset the impact of lower price in Alberta compared to
last year. The reductions in operating expenses at our power plants and at our Highvale mine and mark-to-market gains on certain
forward financial contracts that do not qualify for hedge accounting fully offset the negative impact of lower availability and
lower price on our comparable EBITDA. Lower availability had a larger impact in the first half of 2015.</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">Depreciation and amortization for the three
and nine months ended Sept. 30, 2015 increased by $6 million and $8 million, respectively, compared to the same periods in 2014
due to higher asset retirements during 2015 in connection with planned maintenance activities.</P>

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

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt"></P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(1)
Comparable figures are not defined under IFRS. Refer to the Earnings and Other Measures on a Comparable Basis section of this MD&amp;A
for further discussion of these items, including, where applicable, reconciliations to net earnings attributable to common shareholders.</P>



<!-- Field: Page; Sequence: 17 -->
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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"></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three months ended Sept. 30, 2015,
sustaining capital expenditures decreased by $8 million compared to the same period last year. In 2014, we incurred additional
costs through the acquisition and refurbishment of vehicles for our mining operations. Year-to-date sustaining capital increased
$9 million compared to last year due to the cost to repair Keephills 1 which we expect will be recovered under our insurance program
and the timing of a planned outage, partially offset by a decrease in mining expenditures. All planned outages for 2015 have been
completed.</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: left"><B><I>U.S. Coal</I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, 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; line-height: 18pt"><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; line-height: 18pt"><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: 44%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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">Availability (%)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>99.7</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">96.9</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"><B>87.1</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">80.3</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">Adjusted availability (%)<SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>99.7</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">96.9</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"><B>89.8</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">86.9</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">Contract sales volume (GWh)</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"><B>704</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">-</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"><B>2,089</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">496</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">Merchant sales volume (GWh)</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"><B>2,021</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">2,873</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"><B>3,357</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">5,098</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Purchased power (GWh)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(849)</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(619)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(2,298)</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(854)</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">Total production (GWh)</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"><B>1,876</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">2,254</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"><B>3,148</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">4,740</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gross installed capacity (MW)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,340</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,340</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,340</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,340</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></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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>146</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">109</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"><B>293</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">259</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>121</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">84</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"><B>210</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">176</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable gross margin</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>25</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>83</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">83</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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>15</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">11</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"><B>37</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">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">Taxes, other than income taxes</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"><B>-</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">1</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"><B>2</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">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable EBITDA</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>10</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; 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 STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>44</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">46</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</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"><B>15</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">13</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"><B>47</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">40</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable operating income (loss)</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(5)</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 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-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(3)</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; 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="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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"><B>Sustaining capital:</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 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 NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">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"><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">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">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"><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; line-height: 18pt"><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 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 NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>14</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; 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></TR>
</TABLE>
<P STYLE="color: white; font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><SUP>[8]</SUP></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Production decreased 378 GWh and 1,592 GWh,
respectively, for the three and nine months ended Sept. 30, 2015 compared to the same periods in 2014 due mainly to the lower power
prices in the first and third quarters of 2015. These lower prices provided us the opportunity to shut down or dial down our generation
and supply our contractual obligation by buying cheaper power in the 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">In December 2014, we commenced supplying
power to Puget Sound Energy under a 10-year contract. Contracted capacity currently is 180 MW, escalating to 280 MW in December,
and the contract price is currently higher than prevailing market prices in the Pacific Northwest. We can also re-supply the contract
by buying power from the market when economical to do so and further improve our margin.</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">(1) Adjusted for economic dispatching.</P>


<!-- Field: Page; Sequence: 18 -->
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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Despite the benefits of this contract, comparable
EBITDA for the three and nine months ended Sept. 30, 2015 decreased by $3 million and $2 million, respectively, compared to the same periods in 2014. During the quarter, EBITDA was negatively affected
by coal inventory writedowns of $17 million (three month period ended Sept. 30, 2014 - $7 million) and reduced generation resulting
from low power prices, which were partially offset by mark-to-market gains on financial contracts put in place to hedge our future
generation and the strengthening of the US dollar. For the year-to-date, limited merchant sales and mark-to-market losses were
partially offset by the appreciation of the US dollar. We anticipate the effects of coal inventory writedowns to reverse during
the fourth quarter as coal is used for production.</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">Depreciation and amortization for the three
and nine months ended Sept. 30, 2015 increased by $2 million and $7 million, respectively, compared to the same periods in 2014
due to the strengthening of the US dollar.</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>Gas</I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, 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; line-height: 18pt"><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; line-height: 18pt"><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: 44%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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">Availability (%)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>93.3</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">93.7</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"><B>94.6</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">92.9</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">Contract production (GWh)</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"><B>1,309</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">1,428</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"><B>4,014</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">4,157</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Merchant production (GWh)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>365</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,420</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,410</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">Total production (GWh)</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"><B>1,674</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">1,720</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"><B>5,434</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">5,567</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gross installed capacity (MW)<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,405</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,779</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,405</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,779</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></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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>161</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">162</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"><B>496</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">575</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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>57</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>183</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">266</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable gross margin</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>104</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">102</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>313</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">309</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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>24</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">25</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"><B>71</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">75</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable EBITDA</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"><B>80</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">77</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"><B>240</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">232</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>28</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>83</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable operating income</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>52</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">48</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>157</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">147</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></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"><B>Sustaining capital:</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 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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3</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">5</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"><B>7</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">13</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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</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">15</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"><B>23</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">39</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>14</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 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 STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>30</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">52</FONT></TD></TR>
</TABLE>
<P STYLE="color: white; 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">As a substantial portion of revenue in the
Gas Segment is attributable to the transfer of gas costs to our customers, revenue and costs of fuel have decreased by similar
amounts during the first half of 2015 compared to last year, following the decrease in gas input costs. The increase in comparable
EBITDA is primarily attributable to revenue from the Australian natural gas pipeline, which was commissioned in March 2015. Revenue
from our Solomon facility was also positively impacted by the appreciation of the US dollar.</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">Sustaining capital decreased by $6 million
and $22 million, respectively, for the three and nine months ended Sept. 30, 2015 compared to the same periods in 2014 as a result
of fewer planned maintenance activities. In 2014, planned maintenance outages occurred at our Ottawa and Sarnia facilities.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>(1) Includes production capacity for
Fort Saskatchewan and Solomon power stations, which have been accounted for as finance leases. During the quarter, operational
control of our Poplar Creek facility was transferred to Suncor. We continue to own a portion of the facility and have included
our portion as a part of gross capacity measures. Poplar Creek has been removed from our availability and production metrics.
Please refer to the Significant and Subsequent Events section of this MD&amp;A for further information. Assets of the Centralia
gas plant were sold in the fourth quarter of 2014 and the production capacity was removed from our gross capacity measures at
that time.</I></P>


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Wind <SUP>(1)</SUP></I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, 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; line-height: 18pt"><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; line-height: 18pt"><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: 44%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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">Availability (%)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>95.7</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">94.6</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"><B>95.3</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">94.1</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">Contract production (GWh)</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"><B>339</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">380</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"><B>1,427</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">1,576</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Merchant production (GWh)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>200</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">152</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>697</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">617</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">Total production (GWh)</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"><B>539</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">532</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"><B>2,124</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">2,193</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gross installed capacity (MW)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,375</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,289</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1,375</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,289</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></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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>38</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">43</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"><B>160</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">172</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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9</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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable gross margin</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>35</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>151</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">162</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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</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">11</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"><B>35</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">34</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">Taxes, other than income taxes</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable EBITDA</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"><B>23</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">27</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"><B>111</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">123</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</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"><B>26</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">22</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"><B>70</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">66</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable operating income (loss)</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(3)</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; 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 STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>41</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">57</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></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"><B>Sustaining capital:</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 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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1</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">1</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"><B>1</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">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">Planned major maintenance</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"><B>4</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">1</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"><B>10</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">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>5</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 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 STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 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</FONT></TD></TR>
</TABLE>
<P STYLE="color: white; font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white"><B><I><SUP>[10]</SUP></I></B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Contract production for the three and nine
months ended Sept. 30, 2015 decreased 41 GWh and 149 GWh, respectively compared to the same periods in 2014, primarily due to lower
wind volumes in Eastern Canada throughout the period and at our Wyoming wind facility in the first half of 2015. Higher wind volumes
and availability at Western Canada merchant facilities have partially offset the lower volumes from contracted facilities. Year-over-year
lower prices in Alberta have impacted the financial performance of our Wind Segment during the first and third quarters of 2015
as we generally do not hedge our merchant wind 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">During the quarter, we completed the acquisition
of two wind farms in Alberta and Ontario and our first solar facility in Massachusetts. The three projects generated 14 GWh during
the period and a nominal contribution to EBITDA.</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">Depreciation and amortization for the three
and nine months ended Sept. 30, 2015 increased by $4 million in each period compared to the same periods in 2014 due to higher
asset retirements in connection with planned maintenance activities and an increase in asset base during 2015.</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">Sustaining capital expenditures increased
by $3 million and $4 million, respectively, for the three and nine months ended Sept. 30, 2015 compared to the same periods in 2014 due to an increase in planned outages.</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">(1)
Wind Segment includes results of solar facilities.</P>


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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, 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; line-height: 18pt"><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; line-height: 18pt"><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: 44%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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">Contract production (GWh)</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"><B>381</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">503</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"><B>1,286</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">1,393</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Merchant production (GWh)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>41</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">36</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>79</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">64</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">Total production (GWh)</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"><B>422</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">539</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"><B>1,365</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">1,457</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gross installed capacity (MW)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>913</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">913</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>913</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">913</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></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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>28</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">40</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"><B>91</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">104</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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; 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="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable gross margin</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>26</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">36</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>85</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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</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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9</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">9</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"><B>28</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">28</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">Taxes, other than income taxes</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"><B>2</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">-</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"><B>3</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">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">Other net operating (income)</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"><B>-</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">-</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"><B>-</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">(1)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable EBITDA</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>15</B></FONT></TD>
    <TD STYLE="border-top: Black 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</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>54</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">67</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</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"><B>7</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">6</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"><B>19</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">18</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable operating income</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>8</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 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>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>35</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">49</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></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"><B>Sustaining capital:</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 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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3</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">2</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"><B>14</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">6</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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 NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Total before flood-recovery capital</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"><B>6</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">3</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"><B>20</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">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">Flood-recovery capital</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"><B>1</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">-</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"><B>1</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">7</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>7</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 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 STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>21</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 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></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">Production for the three months ended Sept.
30, 2015 decreased by 117 GWh compared to the same period in 2014 as a result of low market prices and economic dispatching in
Alberta.</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">Comparable EBITDA decreased by $12 million
and $13 million, respectively, for the three and nine months ended Sept. 30, 2015 compared to the same periods in 2014, primarily
as a result of lower prices and a decrease in price volatility in Alberta during the first and third quarters, which limited our
ability to take advantage of our flexibility to produce electricity in higher priced hours.</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">Sustaining capital expenditures increased
by $4 million and $7 million, respectively, for the three and nine months ended<BR>
Sept. 30, 2015 compared to the same periods in 2014 mainly due to hydro life extension costs, which were classified as growth capital
expenditures last year.</P>

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


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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, 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; line-height: 18pt"><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; line-height: 18pt"><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: 44%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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 and comparable gross margin</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"><B>10</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">3</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"><B>24</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">76</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>4</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>13</B></FONT></TD>
    <TD STYLE="border-bottom: Black 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</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable EBITDA and operating income (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">49</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">For the three months ended Sept. 30, 2015,
comparable EBITDA and operating income (loss) increased by $10 million compared to the same period in 2014 due to a return to normal
level of gross margin from short-term strategies and solid performance in the western U.S. This represents a return to expected
performance from our Energy Marketing activities. Our expectation for our Energy Marketing Segment is to generate $10 to $15 million
of gross margin every quarter. The increase in comparable EBITDA was also attributed to a decrease in operating costs, which includes
reduced performance-based compensation costs in 2015 due to lower gross margins.</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 nine months ended Sept. 30, 2015,
comparable EBITDA and operating income decreased by $38 million compared to the same period in 2014 largely due to extraordinary
market conditions in the first quarter of last year that resulted in substantial customer margins and volatile market conditions
in the Alberta and Pacific Northwest regions in the second quarter of this year that negatively affected our Energy Marketing results.
Negative second quarter results were offset by the performance in the current quarter. The decrease in the gross margin was partially
offset by a decrease in operating costs.</P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, 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 COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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: 44%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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">Operations, maintenance, and administration </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;and taxes other than income taxes</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">20</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>50</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">52</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>20</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable operating loss</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>23</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>70</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">72</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></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"><B>Sustaining capital:</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 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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6</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">5</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"><B>15</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">17</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; 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 STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>15</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">17</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">For the three and nine months ended Sept.
30, 2015, corporate costs decreased compared to the same periods in 2014 as a result of legal costs incurred relating to the MSA
proceeding in front of the AUC in 2014.</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">Routine capital expenditures for the nine
months ended Sept. 30, 2015 decreased compared to the same period in 2014, mainly resulting from a reduction in corporate information
technology costs.</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: 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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">M<!-- 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: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>other
consolidated results</B></FONT></P>

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

<P STYLE="font: 8pt/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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The components of net interest expense 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="font: 8pt Times New Roman, Times, 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; line-height: 18pt"><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; line-height: 18pt"><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: 35%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 17%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD STYLE="width: 16%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 16%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>57</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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>170</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">179</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; line-height: 18pt"><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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(6)</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">Interest on finance lease obligations</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"><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; line-height: 18pt"><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 STYLE="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; line-height: 18pt"><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>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">14</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 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"><B>Net interest expense</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>63</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">64</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>182</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">192</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">Net interest expense was lower for the three
and nine months ended Sept. 30, 2015 compared to the same periods in 2014 due to lower interest rates, and higher capitalized interest.
These impacts were partially offset by higher interest on our US-denominated debt due to the strengthening of the US dollar.</P>

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


<!-- Field: Page; Sequence: 23 -->
    <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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">M<!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- 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><I>Income Taxes</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">A reconciliation of income taxes and effective
tax rates on earnings, excluding non-comparable items, 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="font: 8pt Times New Roman, Times, 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 COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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: 55%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD STYLE="width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</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; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>219</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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>175</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</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 adjustments:</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; 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">&nbsp;&nbsp;ineffective hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(26)</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">(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"><B>47</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></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 (reversals)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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">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"><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; line-height: 18pt"><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></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">Economic hedges of non-controlling interest in intercompany </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;foreign exchange contracts</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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></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">Flood-related maintenance costs, net of insurance recovery</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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">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</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">-</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">Foreign exchange loss on California claim</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">Gain on Poplar Creek contract restructuring</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(263)</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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(263)</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="border-bottom: Black 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 net operating (income) losses</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>56</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>56</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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">Comparable earnings (loss) before tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">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"><B>33</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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable (earnings) attributable to non-controlling </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;interests before tax</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(11)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(42)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(37)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable earnings (loss) attributable to TransAlta </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>&nbsp;&nbsp;shareholders subject to tax</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(15)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(9)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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></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"><B>Comparable income tax expense adjustments:</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 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 impacts associated </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">with certain de-designated and ineffective hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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">(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"><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">(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 recovery related to 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"><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; line-height: 18pt"><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></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 sale of investment</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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">36</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">Deferred income tax rate adjustment</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(20)</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 (expense) related to reversal (accrual) of </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">a writedown of deferred income tax 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"><B>50</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">(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"><B>62</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">(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">Income tax expense related to the Transaction</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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">-</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 flood-related maintenance </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">costs, net of insurance recovery</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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></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 restructuring</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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 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 foreign exchange loss on </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">California claim</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><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; line-height: 18pt"><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></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 Poplar Creek contract </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">restructuring</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(70)</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; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(70)</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="border-bottom: Black 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 net operating (income) </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">losses</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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 NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total comparable income tax expense adjustments</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"><B>(25)</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">(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"><B>(54)</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 STYLE="border-bottom: Black 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 expense (recovery)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>31</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>62</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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></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"><B>Comparable income tax expense (recovery)</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"><B>6</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; line-height: 18pt"><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">8</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable income tax (expense) attributable to </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(1)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable income tax expense (recovery) </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>&nbsp;&nbsp;attributable to TransAlta shareholders</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>6</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>7</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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 STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Comparable effective tax rate on earnings attributable </B></FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>&nbsp;&nbsp;to TransAlta shareholders (%)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(40)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(78)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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</FONT></TD></TR>
</TABLE>
<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: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The comparable income tax expense attributable
to TransAlta shareholders increased for the three and nine months ended Sept. 30, 2015 compared to the same periods in 2014 due to certain amounts that do not fluctuate with earnings, offset by changes
in the amount of earnings between the jurisdictions in which pre-tax income is earned.</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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three and nine months ended Sept.
30, 2015, the comparable effective tax rate on earnings attributable to TransAlta shareholders changed, compared to the same periods
in 2014, as a result of the effect of certain deductions that do not fluctuate with earnings, offset by changes in the amount of
earnings between the jurisdictions in which pre-tax income is earned.</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, 2015, we reversed a previous writedown of deferred income tax assets of $50 million (Sept. 30, 2014 - $13 million writedown recognized) and $62 million (Sept. 30, 2014 - $27 million writedown recognized),
respectively. The deferred income tax assets relate mainly to the tax benefits of losses associated with our directly owned U.S.
operations. We had written these assets off as it was no longer considered probable that sufficient future taxable income would
be available from our directly owned U.S. operations to utilize the underlying tax losses, due to reduced price growth expectations.
Recognized other comprehensive income in the during the three and nine months ended Sept. 30, 2015 has given rise to a taxable
temporary difference which forms the primary basis for utilization of some of the tax losses and the reversal of the writedown.</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 order to give effect to the Transaction
with TransAlta Renewables, a reorganization of certain TransAlta companies was completed. The reorganization resulted in the recognition
in the first and second quarter of 2015 of $8 million and $40 million deferred tax liability, respectively, on our investment in
a subsidiary. The deferred tax liability had not been recognized previously, as prior to the reorganization, the taxable temporary
difference was not expected to reverse in the foreseeable future.</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 second quarter of 2015, the Government
of Alberta enacted legislation to increase its provincial corporate income tax rate to 12 per cent from 10 per cent, effective
July 1, 2015, resulting in a net increase in our deferred income tax liability of $18 million. Of which, $20 million is recorded
in the Condensed Consolidated Statement of Earnings with an offsetting $2 million deferred tax recovery recorded in the Condensed
Statement of Other Comprehensive Income.</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><I>Non-Controlling Interests</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">Net earnings attributable to non-controlling
interests for the three and nine months ended Sept. 30, 2015 increased by $12 million compared to the same periods in 2014 primarily due to unrealized gains on intercompany financial instruments by TransAlta
Renewables. On a comparable basis, earnings attributable to non-controlling interests have increased compared to prior periods
due to higher TransAlta Renewables earnings, partially offset by a lower proportion thereof being attributable to non-controlling interests and by an additional outage in 2015 that decreased earnings at TransAlta Cogeneration L.P. (&#8220;TA
Cogen&#8221;). As a result of the closing of the Transaction, the non-controlling interests&#8217; equity participation in TransAlta
Renewables decreased to 27.2 per cent from 29.7 per cent while growing in value. Refer to <I>Note 3</I> of our condensed consolidated
financial statements for additional 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">&nbsp;</P>

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

<P STYLE="font: 8pt/150% 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 gross margin and operating
income in our Condensed Consolidated Statements of Earnings for the three and nine months ended Sept. 30, 2015 and 2014. 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/150% 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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    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>Earnings
and other measures on a Comparable Basis</B></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">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 measures are not necessarily comparable to a similarly titled measure of another company.</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">Each business segment assumes responsibility
for its operating results measured to gross margin and operating income. Operating income and gross margin provides management
and investors with a measurement of operating performance that is readily comparable from period to period.</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 calculating these items, we exclude certain
items 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/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>
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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The adjustments made to calculate comparable
EBITDA and comparable earnings for the three and nine months ended<BR>
Sept. 30, 2015 and 2014 are as follows. References are to the reconciliation presented on the following page.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, 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 COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 9%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Reference </B></FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>number</B></FONT></TD>
    <TD STYLE="width: 37%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Adjustment</B></FONT></TD>
    <TD STYLE="width: 12%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Segment</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; border-bottom: Black 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 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 NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Reclassifications:</B></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>
    <TD NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Finance lease income used as a proxy for </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">operating revenue</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; 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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">36</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Decrease in finance lease receivable used </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">as a proxy for operating revenue and </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">depreciation</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; 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; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">3</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Reclassification of mine depreciation from fuel </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">and purchased power</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Canadian Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">41</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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: 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: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>Adjustments to earnings to arrive at comparable results:</B></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: 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></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">4</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Impacts to revenue associated with certain </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">de-designated and economic hedges</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">U.S. Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>(26)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>47</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">(7)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">5</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Restructuring expense</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Canadian Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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">&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; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">U.S. Coal</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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">&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; text-align: left; line-height: 18pt; 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; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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">&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; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Energy Marketing</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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">&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; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Corporate</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">6</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">MSA provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Energy Marketing</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>56</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>56</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">7</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Economic hedges of non-controlling interest in </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">intercompany foreign exchange contracts</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Unassigned</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">8</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Gain on Poplar Creek contract restructuring</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; 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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>(263)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>(263)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">9</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Net tax effect of comparable adjustments </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">subject to tax</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Unassigned</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>75</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">(2)</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>
    <TD NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">10</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">(Reversal) accrual of writedown of deferred </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">income tax assets</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Unassigned</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>(50)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>(62)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">63</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>
    <TD NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">11</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Income tax expense related to the Transaction</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Unassigned</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</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>
    <TD NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">12</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Deferred income tax rate adjustment</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Unassigned</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>20</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">13</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Non-comparable items attributable to </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">non-controlling interest</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Unassigned</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">1</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">14</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Maintenance costs related to the Alberta flood </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">of 2013, net of insurance recoveries</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Hydro</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">6</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">15</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Asset impairment charges (reversals)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; 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; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">16</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Foreign exchange on California claim</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Unassigned</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt 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-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">2</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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: 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: 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></TR>

<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">17</FONT></TD>
    <TD STYLE="width: 37%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Non-comparable portion of insurance </FONT><BR>
<FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">recovery received</FONT></TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Hydro</FONT></TD>
    <TD NOWRAP STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">18</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">California claim</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Energy Marketing</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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 NOWRAP 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-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">19</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Non-comparable gain on sale of assets</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Equity Investments</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><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; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD 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>
    <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: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">20</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Income tax recovery related to sale of investment</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">Unassigned</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7pt"><FONT STYLE="font: 7pt Arial, Helvetica, Sans-Serif">(36)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 28 -->
    <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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">M<!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- 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">A reconciliation of comparable results to
reported results for the three and nine months ended Sept. 30, 2015 and 2014 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="font: 8pt Times New Roman, Times, 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 COLSPAN="6" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30, 2015</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">3 months ended Sept. 30, 2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 8%; 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">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; 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">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Reported</B></FONT></TD>
    <TD STYLE="width: 17%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Comparable reclassifications</B></FONT></TD>
    <TD STYLE="width: 3%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Comparable </B></FONT><BR>
<FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>adjustments</B></FONT></TD>
    <TD STYLE="width: 4%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Comparable </B></FONT><BR>
<FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>total</B></FONT></TD>
    <TD STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Reported</FONT></TD>
    <TD STYLE="width: 9%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Comparable </FONT><BR>
<FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">reclassifications</FONT></TD>
    <TD STYLE="width: 3%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Comparable </FONT><BR>
<FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">adjustments</FONT></TD>
    <TD STYLE="width: 4%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Comparable </FONT><BR>
<FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">total</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Revenues</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>641</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(1,2)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(26)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(4)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>636</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">639</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(1,2)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">617</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Fuel and purchased power</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>299</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(3)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>283</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">277</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">264</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Gross margin</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>342</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>37</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(26)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>353</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">362</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">26</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(35)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">353</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Operations, maintenance, and administration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>130</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>130</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">138</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(14)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">134</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Asset impairment charges (reversals)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(15)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Restructuring provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(5)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>6</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>6</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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">7</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Net other operating (income) losses</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>54</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(56)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(6)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>EBITDA</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>41</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>219</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">218</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">26</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(32)</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">212</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Depreciation and amortization</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>139</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(2,3)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>161</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">135</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(2,3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">149</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Operating income (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>2</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>15</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>41</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>58</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">83</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">12</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(32)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">63</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Finance lease income</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(1)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Foreign exchange gain (loss)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(7)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>1</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(16)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">2</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Gain on sale of assets</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>263</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(263)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(8)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Earnings (loss) before interest and taxes</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>282</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(223)</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>59</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">95</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(30)</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">65</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Net interest expense</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>63</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>63</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">64</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">64</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Income tax expense (recovery)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>31</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(25)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(9,10)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>6</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">18</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(22)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(9,10)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(4)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Net earnings (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>188</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(198)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(10)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(8)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>22</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(11)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(13)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>11</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">10</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(13)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Net earnings (loss) attributable to TransAlta shareholders</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>166</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(187)</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(7)</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(4)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Preferred share dividends</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>12</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>12</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">9</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Net earnings (loss) attributable to common shareholders</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>154</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(187)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(33)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(6)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(7)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(13)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Weighted average number of common shares outstanding in the period</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>281</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; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>281</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">273</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; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">273</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Net earnings (loss) per share attributable to common shareholders</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>0.55</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(0.12)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(0.03)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(0.05)</FONT></TD></TR>
</TABLE>
<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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">M<!-- 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: 10pt/150% Courier New, Courier, Monospace; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30, 2015</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">9 months ended Sept. 30, 2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 8%; 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">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; 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">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Reported</B></FONT></TD>
    <TD STYLE="width: 18%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Comparable reclassifications</B></FONT></TD>
    <TD STYLE="width: 3%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Comparable adjustments</B></FONT></TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Comparable total</B></FONT></TD>
    <TD NOWRAP STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Reported</FONT></TD>
    <TD STYLE="width: 9%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Comparable reclassifications</FONT></TD>
    <TD STYLE="width: 3%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Comparable adjustments</FONT></TD>
    <TD STYLE="width: 4%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Comparable total</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Revenues</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>1,672</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>49</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(1,2)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>47</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(4)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>1,768</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">1,905</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(1,2)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(4)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">1,936</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Fuel and purchased power</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>736</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(46)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(3)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>690</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">824</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(41)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">783</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Gross margin</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>936</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>95</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>47</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>1,078</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">1,081</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">79</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(7)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">1,153</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Operations, maintenance, and administration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>383</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(14)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>382</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">404</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(14)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">398</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Asset impairment charges (reversals)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(15)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(15)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Restructuring provision</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(5)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">21</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">21</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Other net operating (income) losses</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>54</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(56)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(6)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(2)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">3</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(4)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(17,18)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(1)</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>EBITDA</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>461</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>95</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>121</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>677</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">654</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">79</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">735</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Depreciation and amortization</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>409</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>54</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(2,3)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>463</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">402</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">43</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(2,3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">445</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Operating income</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>52</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>41</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>121</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>214</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">252</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">36</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">290</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Finance lease income</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(1)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">36</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(36)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(1)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Foreign exchange gain (loss)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>1</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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(16)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(5)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Gain on sale of assets</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>263</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(263)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(8)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">1</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(19)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Earnings before interest and taxes</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>357</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(142)</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>215</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">282</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">285</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Net interest expense</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>182</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>182</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">192</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">192</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Income tax expense (recovery)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>62</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(54)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(9,10,11,12)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>8</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">33</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(25)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(9,10,20)</SUP></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">8</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Net earnings (loss)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>113</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(88)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>25</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">57</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">28</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">85</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>48</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(7)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B><SUP>(13)</SUP></B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>41</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">36</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><SUP>(13)</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">35</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Net earnings (loss) attributable to TransAlta shareholders</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>65</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(81)</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(16)</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">21</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">29</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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">50</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Preferred share dividends</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>35</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>35</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">28</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">28</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Net earnings (loss) attributable to common shareholders</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>30</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(81)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(51)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(7)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">29</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">22</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">Weighted average number of common shares outstanding in the period</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>279</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; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>279</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 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; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">272</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; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">272</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>Net earnings (loss) per share attributable to common shareholders</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>0.11</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif"><B>(0.18)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">(0.03)</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 5pt"><FONT STYLE="font: 5pt Arial, Helvetica, Sans-Serif">0.08</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: 8pt/150% 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/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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Refer to <I>Note 13</I> of the notes to
the audited annual consolidated financial statements within our 2014 Annual Report and <I>Note 8 </I>of our unaudited interim condensed
consolidated financial statements as at and for the three and nine months ended Sept. 30, 2015 for details on Financial Instruments.
Refer to the Risk Management section of our 2014 Annual Report and <I>Note 9</I> of our unaudited 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, 2014.</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">We 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>

<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">We may also have various contracts with
terms that extend beyond a liquid trading period.&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/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, 2015, total Level III financial
instruments had a net asset carrying value of $517 million (Dec. 31, 2014 - $217 million net asset). The increase during the period
is attributable primarily to decreased estimated long-term power prices on a long-term power sale contract designated as an all-in-one
cash flow hedge, for which changes in fair value are recognized in other</P>


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

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

<P STYLE="font: 8pt/150% 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. Liquidity risk related to commodity risk management activities is managed by maintaining
sufficient reserves and monitoring our counterparties and the markets in which we transact.</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">Our liquidity needs are met through a variety
of sources, including cash generated from operations, availability 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 interests, and interest and principal payments on debt securities.</P>

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

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

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Long-term debt totalled $4.5 billion as
at Sept. 30, 2015 compared to $4.1 billion as at Dec. 31, 2014. Long-term debt increased from Dec. 31, 2014 primarily due to strengthening
of the US dollar ($312 million) and an increase in non-recourse debt associated with the acquisition of the solar facilities in
Massachusetts ($55 million). As at Sept. 30, 2015, $1.7 billion of our debt is denominated in US dollars (Dec. 31, 2014 - $2.1
billion).</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. 1, 2015, our $120 million 5.33
per cent unsecured debentures matured and were paid out using existing liquidity. We also closed the acquisition of solar assets
and assumed approximately US$42 million of non-recourse variable rate debt, of which approximately US$32 million is hedged to a
fixed rate of 4.698 per cent.</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. 1, 2015, TransAlta Renewables closed
a $442 million bond offering. The bonds are amortizing and bear interest at a rate of 3.834 per cent, payable semi-annually and
mature on Dec. 31, 2028. Net proceeds of the financing will be used to reduce the draw down on our credit facilities.</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 second quarter, we applied the
net proceeds of $211 million received from the sale of an economic interest in our Australian portfolio to reduce the draw down
on our credit facilities.</P>

<P STYLE="color: red; 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">Almost all of our US-denominated debt is
hedged either through financial contracts or as a natural hedge of our net investment in our U.S. operations. For the three and
nine months ended Sept. 30, 2015, the changes in our US-denominated debt were offset 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: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 28%; 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">&nbsp;</TD>
    <TD STYLE="width: 19%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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, 2015</B></FONT></TD>
    <TD STYLE="width: 19%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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, 2015</B></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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Effects of foreign exchange on carrying amounts of </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;U.S. operations (net investment hedge)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">52</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">105</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Foreign currency cash flow hedges on debt</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">82</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">149</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Effects of foreign exchange on value of US-denominated </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;&nbsp;Solomon finance lease</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">54</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other economic hedges</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 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; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">4</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>166</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>312</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As at Sept. 30, 2015, we had a
total of $2.1<FONT STYLE="color: black"> </FONT>billion (Dec. 31, 2014 - $2.1 billion) of committed credit facilities, of
which $0.9<FONT STYLE="color: black"> </FONT>billion (Dec. 31, 2014 - $1.6 billion) is available, subject to customary
borrowing conditions. As at Sept. 30, 2015, the $1.2 billion (Dec. 31, 2014 - $0.5 billion) of credit utilized under
these facilities was comprised of actual drawings of $0.8 billion (Dec. 31, 2014 - $0.1 billion) and letters of credit
of $0.4 billion (Dec. 31, 2014 - $0.4 billion). These facilities are comprised of a $1.5 billion committed syndicated
bank facility that matures in 2019, 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 2016. We anticipate renewing these facilities, based on
reasonable commercial terms, prior to their maturities.</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 addition to the $0.9 billion available
under the credit facilities, we have $37 million of available cash (Dec. 31, 2014 - $43 million).</P>

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

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

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On Oct. 29, 2015, we had 284.1 million
common shares issued and outstanding, 12.0 million Series A, 11.0 million Series C, 9.0 million Series E, and 6.6 million
Series G preferred shares outstanding.&nbsp;As at Sept. 30, 2015, we had 280.6 million (Sept. 30, 2014 - 273.4 million)
common shares issued and outstanding. As at Sept. 30, 2015, we had 38.6 million (Sept. 30, 2014 - 38.6 million) first
preferred shares 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">During the three and nine months ended Sept.
30, 2015, 1.9 million and 5.6 million, respectively (Sept. 30, 2014 - 1.6 million and 5.2 million, respectively), common shares were issued to shareholders that elected dividend reinvestment, for a total of $19 million
and $57 million, respectively (Sept. 30, 2014 - $19 million and $65 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">On Oct. 29, 2015, we declared a quarterly
dividend of $0.18 per common share, payable on Jan. 1, 2016. Declaration of dividends is at the discretion of the Board of Directors.</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. 29, 2015, we declared a
quarterly dividend of $0.2875 per share on the Series A and Series C preferred shares, $0.3125 per share on the Series E
preferred shares, and $0.33125 per share on the Series G preferred shares all payable Dec. 31, 2015.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Letters of Credit and Cash Collateral</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/150% 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, commodity risk management and hedging activities, unfunded pension obligations, construction projects, and purchase
obligations. As at Sept. 30, 2015, we provided letters of credit and cash collateral totalling $489 million (Dec. 31, 2014 - $421 million). These letters of credit and cash collateral secure certain amounts included on our
Condensed Consolidated Statements of Financial Position for risk management liabilities, decommissioning and other provisions,
and defined benefit obligations.</P>

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


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

<P STYLE="font: 8pt/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/150% 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, 2014 to Sept. 30, 2015:</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: Times New Roman, Times, Serif">
<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: right; line-height: 18pt; font-size: 8pt"><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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(decrease)</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Primary factors explaining change</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Trade and other receivables</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">44</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Timing of customer receipts, including seasonality of </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">revenue and changes in collateral</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">24</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Prepayment of annual insurance premiums, royalties, </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">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-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">51</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in coal inventory at U.S. Coal and Canadian Coal following lower production</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Finance lease receivables (long-term)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">367</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Poplar Creek contract restructuring</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(30)</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Net effect of Poplar Creek contract restructuring ($141 million), depreciation for the period ($402 million), and revisions and additions to decommissioning and restoration costs ($30 million), partially offset by the acquisition of solar assets ($107 million), additions ($375 million) and favourable changes in foreign exchange rates ($75 million)</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Intangible assets</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">36</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Acquisition of Kent Breeze wind farm through the Poplar Creek contract restructuring</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Deferred income tax assets</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">35</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Effect of the internal reorganization associated with the Transaction and an increase in deductible temporary differences</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Risk management assets and liabilities (current and long-term), net</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">338</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gains on commodity and foreign currency cash flow hedges</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other assets</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">19</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Reclassification of Washington state community investment contribution funded but not yet disbursed</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Other</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">39</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Total increase in assets</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">923</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(95)</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Timing of payments and accruals</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Credit facilities, long-term debt, and finance lease obligations (including current portion)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">394</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Unfavourable effects of changes in foreign exchange rates and increase in non-recourse debt&nbsp;&nbsp;associated with acquisition of solar facilities ($55 million) and financing of equity to acquire project ($51 million)</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decommissioning and other provisions (current </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">and long-term)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">46</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">MSA provision ($56 million)</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">154</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Increase in Alberta corporate tax rate and the effect of the internal reorganization associated with the Transaction and an increase in taxable temporary differences</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">169</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Gains on cash flow hedges and gains on translating net assets of foreign operations recognized in other comprehensive income, net earnings for the period, and issuance of common shares, partially offset by dividends declared in the period and sale of investment in subsidiaries to TransAlta Renewables</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Non-controlling interests</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">211</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Sale of investment in subsidiaries to TransAlta Renewables and net earnings for the period, partially offset by distributions paid and payable to non-controlling interests</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-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">44</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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Total increase in liabilities and equity</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">923</FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Cash Flows</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">The following chart highlights significant
changes in the Condensed Consolidated Statements of Cash Flows for the three and nine months ended Sept. 30, 2015 compared to the
same periods in 2014:</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: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 37%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>3 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 47%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash and cash equivalents, beginning </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;of period</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>71</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">94</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-size: 8pt"><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-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>200</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">216</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease cash earnings of $21 million, partially offset by an increase in working capital 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 STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(166)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Acquisition of solar assets in Massachusetts for $51 million, partially offset by an increase in investing non-cash working capital balances of $20 million and a decrease in additions to PP&amp;E and intangibles of $15 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-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(68)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">94</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Decrease in net proceeds on issuance of preferred shares of $161 million</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Translation of foreign currency cash</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(1)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>37</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">245</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: Black 1pt solid; 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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 36%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>9 months ended Sept. 30</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="width: 8%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2014</FONT></TD>
    <TD NOWRAP STYLE="width: 48%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash and cash equivalents, beginning </FONT><BR>
<FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">&nbsp;&nbsp;&nbsp;of period</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">42</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-size: 8pt"><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-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>314</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">546</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Further decrease in working capital of $216 million and a decrease in cash earnings of $16 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-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(137)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">A decrease in proceeds on sale of investment of $218 million, an increase in additions to PP&amp;E and intangibles of $52 million, and an acquisition of solar assets for $51 million, partially offset by an increase in realized gains on financial instruments of $17 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-size: 8pt"><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: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>104</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(206)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Reduction in the net decrease in borrowings of $331 million, an increase in proceeds on the sale of non-controlling interest in subsidiary of $82 million, and an increase in realized gains on financial instruments of $60 million, partially offset by a decrease in net proceeds on issuance of preferred shares of $161 million</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Translation of foreign currency cash</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>1</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">-</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Cash and cash equivalents, end of period</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>37</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">245</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; 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"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% 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/150% 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/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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Environmental issues and related legislation
have, and will continue to have, an impact upon our business. We are committed to complying with legislative and regulatory requirements
and to minimizing the environmental impact of our operations. We work with governments and the public to develop appropriate frameworks
to protect the environment and to promote sustainable development. Refer to the Climate Change and the Environment section of our
2014 Annual MD&amp;A for further details.</P>

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

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

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

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

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

<P STYLE="font: 12pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 8pt">On June 29,
2015, the Alberta Government announced an increase to its provincial SGER.</FONT><FONT STYLE="font-size: 11pt"> </FONT></P>

<P STYLE="font: 11pt/150% 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">On Jan 1, 2016, an increase in the greenhouse gas (&#8220;GHG&#8221;)
reduction obligation for large emitters from 12 per cent to 15 per cent of emissions, with the compliance price of the technology
fund rising from $15 per tonne to $20 per tonne.</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">On Jan. 1, 2017, a further increase to a 20 per cent reduction requirement
and a $30 per tonne compliance price.</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">At the same time, the Alberta Government
announced an intention to develop a broader climate change program which could result in greater emissions reductions over time.&nbsp;That
program is to be developed by the fall of 2015 through consultations with Albertans and advice from an independent expert panel.&nbsp;It
is not clear at this time if this broader climate change program will supplant the SGER framework or be incremental to it.</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 GHG offsets created by our Alberta wind
facilities are expected to increase in value through 2017, as GHG emitters can use them as compliance instruments in place of contributing
to the technology fund.</P>

<P STYLE="font: 8pt/140% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 8pt/140% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">On Oct. 1, 2015,
we submitted a proposal to the Alberta Climate Change Advisory Panel that would see a &#8220;Dial Down&#8221; of coal-based electricity generation while the province &#8220;Dials Up&#8221; renewables-based generation. The proposal would impose
a hard cap on GHG emissions from coal-fired generation. Coal plants would operate at reduced capacity starting in 2016 while maintaining
base load generation levels during the transition. At the same time, the proposal would facilitate accelerated investment in renewables
generation, including hydro, wind, and solar generation. TransAlta is already Canada&#8217;s largest wind power generator and has
Alberta&#8217;s largest hydro operations.</P>

<P STYLE="font: 8pt/140% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 8pt/140% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; background-color: white">TransAlta is committed
to working with all stakeholders, including environmental groups, communities and our unions, to develop a solution that would
enable the province to achieve its GHG reduction targets, protect consumers from high power prices, accelerate renewables generation,
protect jobs, and support economic 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"><B>Ontario</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">On April 13, 2015, the Ontario Government
announced that Ontario will be implementing a GHG cap-and-trade system in an effort to reduce emissions and fight climate change.
The cap and trade system will impose a hard ceiling on the GHG emissions allowed in each sector of the economy. The details of
the cap and trade system (such as specifics on a potential cap, covered sectors, or anticipated launch date) have not been determined
but are to be developed through stakeholder consultations. Our contracts at Gas facilities in the province generally include provisions
protecting us from adverse changes in laws.</P>

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


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>United States</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. 3, 2015, President Obama announced
the Clean Power Plan. The plan sets GHG emission standards for new fossil-fuel based power plants and emission limits for individual
states. States will have the option of interpreting their limits in mass-based (tons) or rate-based (pounds per megawatt hour) terms. The plan is intended to achieve an overall reduction in GHG emissions
of 32 per cent from 2005 levels by 2030. It will be implemented in two stages: 2022 to 2029, and 2030 and beyond.</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 plan is not expected to have any impact
on U.S. Coal, as we are exempted from such regulations based on the 2011 agreement between Washington state and TransAlta.</P>

<P STYLE="font: 8pt/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/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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>2015
Outlook</B></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">Based on year-to-date results and our forecast
for the fourth quarter of 2015, combined with the deferral of a planned major maintenance outage at U.S. Coal, we have revised
our outlook on full year 2015 Comparable EBITDA, Comparable FFO, and sustaining capital expenditures around the low end of previously
communicated ranges. The outlook on comparable FCF has been revised to slightly exceed the previously communicated range.</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">We now expect comparable EBITDA for 2015
to be in the range of $980 million to $1,010 million based on the current outlook for power prices in Alberta and the Pacific Northwest.
Comparable FFO is anticipated to be in the range of $725 million to $755 million. Comparable FCF, excluding the effects of flood-recovery
capital, is expected to be in the range of $275 million to $285 million, or $0.98 to $1.02 per share, based on sustaining capital, excluding the effects of flood-recovery capital, of approximately
$305 million to $320 million. We anticipate that lower cash interest will be offset by higher distributions to non-controlling interest and preferred share dividends. Our expected dividend is 71 per cent to 73 per cent of comparable FCF.</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>Market</I></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"><B>Power Prices</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">For the balance of 2015, power prices in
Alberta are expected to be comparable with 2014 as increases in supply will be offset by lower natural gas prices. However, prices
can vary based on supply and weather conditions. In the Pacific Northwest, we expect prices to settle lower than in 2014 due to
lower natural gas prices. In Ontario, we expect prices to be comparable to 2014 as baseload generation outages will offset lower
natural gas prices.</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>Economic Environment </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">The slowdown in the oil and gas sector has
put Alberta into a recession in 2015, and current conditions are expected to continue for the remainder of the year. However, prices
can vary based on supply and weather conditions. In the Pacific Northwest we expect prices to settle lower than in 2014 due to
lower natural gas prices. Ontario growth has been moderate in 2015 at around two per cent, and the remainder of the year is expected
to be slightly stronger as the export sector gains ground due to the weak Canadian dollar.</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">We had no material counterparty losses in
the third quarter of 2015. 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Operations</I></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"><B>Capacity, Production, and Availability
</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">Generating capacity is expected to increase
slightly in 2015 primarily due to acquisition of renewable projects which are offset by a decrease in capacity resulting from the
transfer of capacity from two steam turbines to Suncor under the Poplar Creek contract restructuring. Overall production is expected
to decrease eight to nine per cent in 2015 due to a longer period of economic dispatching in our Centralia coal facility, higher
unplanned outages at Canadian Coal, and the restructuring of the Poplar Creek arrangement. Overall availability is expected to
be in the range of 89 to 91 per cent in 2015.</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>Contracted Cash Flows</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">As a result 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 period to the end of 2020. 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 2014, approximately 88 per cent of our 2015 capacity was contracted. The average prices of our short-term physical and financial contracts for 2015
are approximately $50 per MWh in Alberta and approximately U.S.$40 per MWh in the Pacific Northwest.</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>Fuel Costs </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">Mining coal in Alberta is subject to cost
decreases due to effective cost control, and lower commodity prices. Seasonal variations in coal costs at our Alberta mine are
minimized through the application of standard costing. Coal costs for 2015, on a standard cost per tonne basis, are expected to
be three to four per cent lower than 2014 unit costs.</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 the Pacific Northwest, our U.S. Coal
mine, adjacent to our power plant, is in the reclamation stage. Fuel at U.S. Coal is purchased primarily from external suppliers
in the Powder River Basin and delivered by rail. The delivered cost of fuel per MWh for 2015 is expected to increase by approximately
one to two per cent as a result of inflation and our coal recovery program.</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 value of coal inventories is assessed
for impairment at the end of each reporting period. If the inventory is impaired, further charges are recognized in net earnings.</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">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/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">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/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>Energy Marketing </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">Earnings from our Energy Marketing Segment
are affected by prices in the market, overall strategies adopted, competitive behaviors from other market participants, and changes
in regulation and legislation. We continuously monitor both the market and our exposure, to maximize earnings while still maintaining
an acceptable risk profile. Our 2015 objective is for Energy Marketing to contribute between $40 million and $60 million in gross
margin for the year.</P>

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


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Exposure to Fluctuations in Foreign Currencies
</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"><FONT STYLE="color: black">Our strategy</FONT>
is to minimize the impact of fluctuations in the Canadian dollar against the US 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 foreign-denominated revenues.</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>Net Interest Expense </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">Net interest expense for 2015 is expected
to be lower than in 2014 due to lower debt levels and higher capitalized interest. However, changes in interest rates and in the
value of the Canadian dollar relative to the US dollar can affect the amount of net interest expense incurred.</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>Liquidity and Capital Resources </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">We expect to maintain adequate available
liquidity under our committed credit facilities.</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: left"><B>Income Taxes</B></P>

<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: justify">The comparable effective tax rate on earnings
for 2015 is expected to be approximately 35 to 40 per cent, which is higher than the statutory tax rate of 25.87 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Capital Expenditures</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">Our projects are focused on sustaining our
current operations and supporting our growth strategy.</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>Growth and Major Project Expenditures</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">A summary of the significant growth and
major projects that are in progress is outlined below:<FONT STYLE="color: white"><SUP> </SUP></FONT></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: Times New Roman, Times, Serif">
<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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt; font-size: 8pt"><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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>2015</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Target (actual)</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: 13%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Estimated spend</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Spent to date<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="width: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Estimated spend</B></FONT></TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Spent to date<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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: 2%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 29%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Project</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 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>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">South Hedland Power Station<SUP>(2)</SUP></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">560</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">192</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; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">178</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">123</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q2 2017</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">150 MW combined cycle power plant</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Australia natural gas pipeline<SUP>(3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">98</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">96</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; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">21</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">19</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(Q1 2015)</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">270 kilometre pipeline to supply natural gas to our Solomon power station in Western Australia</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Solomon load bank facility<SUP>(3)</SUP></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</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; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">2</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q2 2016</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Installation of 20 MW load bank facility required to complete the Solomon power station</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Transmission</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">17</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</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; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">10</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">3</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q1 2016</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Regulated transmission that receives a return on investment</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>680</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>295</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>212</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>147</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="color: white; font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><SUP>[11]</SUP></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The estimated project spend for 2015 for
the Solomon load bank facility decreased by $2 million and the target completion date has been revised during the quarter as a
result of delays in the project.</P>

<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">The estimated project spend for 2015 for transmission
decreased by $5 million during the quarter as a result of a deferral of part of the project into 2016.</P>

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

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(1)
Represents amounts spent as of Sept. 30, 2015.</P>

<P STYLE="font: 6.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(2)
Estimated project spend is AUD$570 million. Total estimated project spend is stated in CAD$ and includes estimated capitalized
interest costs. The total estimated project spend may change due to fluctuations in foreign exchange rates.</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(3)
Includes certain natural gas conversion costs at the Solomon power station that will be recognized as a finance lease receivable.
The total estimated project spend may change due to fluctuations in foreign exchange rates.</P>



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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><B>Sustaining and Productivity Expenditures<FONT STYLE="color: white"><SUP>(1)</SUP></FONT></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">Our revised estimate for total sustaining
and productivity capital is allocated among the following:</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: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Category</B></FONT></TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Description</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Expected cost</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Spent to date<SUP>(1)</SUP></B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 36%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 17%; 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: 2%; 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 STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 9%; 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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Routine capital<SUP>(2)</SUP></FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Capital required 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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">100 - 105</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">76</FONT></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-size: 8pt"><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-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">165 - 175</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">148</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Mining capital</FONT></TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Capital related to mining equipment and land purchases</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">25 - 25</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">17</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Finance leases</FONT></TD>
    <TD COLSPAN="5" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Payments on finance leases</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">15 - 15</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">11</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total sustaining capital excluding flood-recovery capital</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; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>305 - 320</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>252</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Flood-recovery capital</FONT></TD>
    <TD COLSPAN="5" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Capital arising from the 2013 Alberta flood</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0 - 5</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total sustaining capital</B></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>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>305 - 325</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>253</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Productivity capital</FONT></TD>
    <TD COLSPAN="5" STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Projects to improve power production efficiency and corporate improvement initiatives</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5 - 10</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total sustaining and productivity capital</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>310 - 335</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>258</B></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 quarter, flood-recovery expenditures
were deferred to 2016. We continue to anticipate that most flood-recovery capital expenditures related to the Alberta flood in
2013 will be recovered from third parties.</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 a result of lower generation from our
U.S. Coal assets we decided to defer a planned major maintenance outage at one of our units, reducing our estimated sustaining
capital for the current year by over $15 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 expected cost of planned major maintenance
for the year includes $12 million associated with major maintenance at Poplar Creek, which was incurred prior to the close of the
contractual restructuring described in the Significant and Subsequent Events section of this MD&amp;A. Our customer assumes capital
obligations of the facility arising after closing, and on an ongoing basis thereafter.</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">Lost production as a result of planned major
maintenance, excluding planned major maintenance for U.S. Coal, which was scheduled during a period of economic dispatching, was
estimated as follows for 2015:</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: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 5%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Coal</B></FONT></TD>
    <TD STYLE="width: 23%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Gas and Renewables</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Total</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Lost to date<SUP>(3)</SUP></B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">GWh lost</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,180 - 1,190</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">220 - 230</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,400 - 1,420</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">1,400</FONT></TD></TR>
</TABLE>
<P STYLE="color: white; font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><SUP>[12]</SUP></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During the quarter, we increased the estimated
GWh lost for the year as a result of extended planned outages at our Canadian Coal facilities.</P>

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

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(1)
Represents amounts spent as of Sept. 30, 2015.</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(2)
Includes expected hydro life extension costs of $18 million and actual amounts spent to date of $14 million, respectively. During
the quarter, we increased the expected hydro life extension costs due to additional costs incurred as a result of delays occurring
from equipment installation issues.</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(3)
As of Sept. 30, 2015.</P>



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<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Financing </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">Financing for these capital expenditures
is expected to be provided by cash flow from operating activities, existing borrowing capacity, dividends reinvested, sale of economic
interests in assets or transfers to TransAlta Renewables, 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/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"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>current
accounting changes</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>&nbsp;</B></FONT></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>Operating and Reportable Segments</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">In January 2015, we completed changes to
our internal reporting to systematize allocations of certain costs to each fuel type within our Generation Segment. This permitted
internal reports regularly provided to the chief operating decision maker to be presented at the disaggregated fuel type level.
Accordingly, commencing with first quarter 2015 reporting, we consider the following distinct fuel types as reportable segments:
Canadian Coal, U.S. Coal, Gas, Wind, and Hydro. Previously, these were collectively reported as the Generation Segment. Comparative
results for the second quarter 2014 have been restated to align with the re-segmentation: general expenditures of the Generation
Segment were allocated to each fuel type segment based on estimated relative benefit derived from those expenditures and for the
three and nine months ended Sept. 30, 2015, $5 million and $9 million, respectively, in expenditures associated with certain functions
that were determined to benefit the broader organization were reassigned to the Corporate Segment from the Canadian Coal, Gas,
Wind, and Hydro Segments.&nbsp;No changes arose in respect of our Energy Marketing 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">Management has exercised judgment in aggregating
our Canadian gas and Australian gas operating segments together into a single reportable segment, Gas. The operating segments were
determined to share the following similar economic characteristics: nature of revenue sources, level of contractedness, and customer
assumption of fuel and regulatory compliance costs. In addition, the Canadian gas and Australian gas operating segments share substantial
similarity in products (energy), processes (gas turbines), customers (industrial and regional utilities) and distribution methods
(connection to grid or behind-the-fence 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"><B><I>Change in Estimates - Useful Lives</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">During the first quarter of 2015, our subsidiary
TA Cogen executed a new 15-year power supply contract with Ontario&#8217;s IESO for the Windsor facility, which is effective Dec.
1, 2016.&nbsp;Accordingly, the useful life of the Windsor facility was extended prospectively to Nov. 30, 2031.&nbsp;As a result,
depreciation expense for the three and nine months ended Sept. 30, 2015 decreased by $2 million and $5 million, respectively, and
the full year 2015 depreciation expense is expected to be lower by $8 million.&nbsp;</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: 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/150% 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: 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Accounting standards that have been previously
issued by the International Accounting Standards Board (&#8220;IASB&#8221;) but are not yet effective, and which we have not yet
applied include IFRS 9 <I>Financial Instruments</I> and IFRS 15 <I>Revenue from Contracts with Customers</I>. Refer to the Future
Accounting Changes section of our 2014 Annual MD&amp;A for information regarding the requirements of IFRS 9 and IFRS 15.</P>

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


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    <!-- Field: /Page -->

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In September 2015, the IASB issued an amendment
to IFRS 15 to defer the Jan. 1, 2017 effective date by one year. Accordingly, both IFRS 9 and IFRS 15 are effective for annual
periods beginning on or after Jan. 1, 2018. Early application is permitted for both.</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">We continue to assess the impact of adopting
these standards on the 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: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>SELECTED
QUARTERLY INFORMATION</B></FONT></P>

<P STYLE="font: 8pt/150% 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="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 37%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; 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; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q4 2014</FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q1 2015</FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q2 2015</FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Q3 2015</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 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-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">718</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">593</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">438</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>641</B></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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable EBITDA</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">301</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">275</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">183</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>219</B></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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable FFO</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">225</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">211</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">160</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>126</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-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">148</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(131)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>154</B></FONT></TD></TR>
<TR>
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable net earnings (loss) attributable to common shareholders</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">46</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">26</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(44)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(33)</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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">&nbsp;&nbsp;&nbsp;basic and diluted</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.54</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.03</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.47)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>0.55</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable net earnings (loss) per share, basic and diluted</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.17</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.09</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.16)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>(0.12)</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q4 2013</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q1 2014</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q2 2014</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Q3 2014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: Black 1pt solid; 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="border-top: Black 1pt solid; background-color: white; 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-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">587</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">775</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">491</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">639</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable EBITDA</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-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">310</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">213</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">212</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable FFO</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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">179</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">238</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">154</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">145</FONT></TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(66)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">49</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(50)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(6)</FONT></TD></TR>
<TR>
    <TD NOWRAP COLSPAN="4" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable net earnings (loss) attributable to common shareholders</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">47</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><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-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(13)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><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">&nbsp;&nbsp;&nbsp;basic and diluted</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.25)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.18</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.18)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.03)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="4" STYLE="border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">Comparable net earnings (loss) per share, basic and diluted</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.00</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">0.17</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.04)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 8pt"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif">(0.05)</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"><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="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">Comparable net earnings is generally higher
in the first and fourth quarters due to higher demand associated with winter cold in the markets in which we operate. In 2014,
Canadian Coal improved its operational performance, with the third and fourth quarters also including reductions in coal costs.
Some of these gains were offset by a downward trend in Alberta prices, continuing during the fourth quarter of 2013 and into the
first quarter of 2015. Market volatility can also impact quarterly contributions from our Energy Marketing Segment, as the first
quarter of 2014 benefitted from exceptional weather conditions in northeastern North America, with the subsequent two quarters
seeing muted volatility and reduced contribution from the Segment. Following public offerings of TransAlta Renewables Common Shares
in the second quarter of 2014 and 2015, an increasing portion of earnings is attributable to non-controlling interests.</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">Revenue is impacted by market and operational
factors listed above, and by changes in future power prices in the Pacific Northwest, which cause de-designated and economic hedges
in the region to fluctuate in value. These hedges significantly depreciated in the fourth quarter of 2013, in the second quarter
of 2014, and in the first half of 2015, and significantly increased in value over the second half of 2014 and in the third quarter
of 2015.</P>

<P STYLE="font: 8pt/150% 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%">TRANSALTA CORPORATION /Q3 2015</TD><TD STYLE="text-align: right; width: 33%">M<!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- 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">Net earnings attributable to common shareholders
have also been impacted by the following events:</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/150% Arial, Helvetica, Sans-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-family: Wingdings">&sect;</FONT></TD><TD STYLE="text-align: left">gain on disposal of assets, following the Poplar Creek contract restructuring in the third quarter
of 2015;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/150% Arial, Helvetica, Sans-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-family: Wingdings">&sect;</FONT></TD><TD STYLE="text-align: left">MSA provision in the third quarter of 2015;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/150% Arial, Helvetica, Sans-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-family: Wingdings">&sect;</FONT></TD><TD STYLE="text-align: left">writedown of deferred tax assets in the first quarter of 2015 and a recovery in the third quarter
of 2015;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/150% Arial, Helvetica, Sans-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-family: Wingdings">&sect;</FONT></TD><TD STYLE="text-align: left">change in income tax rates in Alberta and deferred income tax impacts of the Transaction in the second
quarter of 2015;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt/150% Arial, Helvetica, Sans-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-family: Wingdings">&sect;</FONT></TD><TD STYLE="text-align: left">loss associated with the California claim, in the fourth quarter of 2013.</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">Amounts per share reflect these fluctuations,
with between approximately one to two million shares issued in each quarter over the last eight quarters.</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: left"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>disclosure
controls and procedures</B></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">Management has evaluated, with the participation
of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our<FONT STYLE="color: black"> 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 Securities Exchange
Act of 1934,<I> </I>as amended (&#8220;Exchange Act&#8221;) are recorded, processed, summarized, and reported within the time periods
specified in the rules and forms of the U.S. 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. </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">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, 2015, 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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>&nbsp;</B></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/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase; letter-spacing: 1.5pt"><B>Supplemental
informatioN </B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 60%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: Black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>Sept. 30, 2015</B></FONT></TD>
    <TD STYLE="width: 20%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Dec. 31, 2014</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Closing market price (TSX) ($)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>6.20</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">10.52</FONT></TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Price range for the last 12 months (TSX) ($)</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">High</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-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>12.34</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">14.94</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></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; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Low</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-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>5.63</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">9.81</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Adjusted net debt to invested capital (%)</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-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>55.4</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">56.3</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Adjusted net debt to invested capital excluding non-recourse debt<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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>53.6</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">54.1</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Adjusted net debt to comparable EBITDA<SUP>(2)</SUP> (times)</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-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>4.8</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">4.2</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Return on equity attributable to common shareholders<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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>8.2</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">6.3</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Comparable return on equity attributable to common shareholders<SUP>(1), (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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>(0.2)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">3.0</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Return on capital employed<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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>6.2</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">5.8</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Comparable return on capital employed<SUP>(1), (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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>3.9</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">5.1</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Cash dividends per share<SUP>(2)</SUP><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">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>0.72</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">0.83</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>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Earnings coverage<SUP>(2)</SUP> (times)</FONT></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; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>2.0</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">1.7</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Dividend payout ratio based on comparable funds from operations<SUP>(1), (2) </SUP>(%)</FONT></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; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>28.7</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">26.4</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>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Dividend yield<SUP>(2)</SUP> (%)</FONT></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; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>11.6</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">7.9</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>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP 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-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Adjusted comparable FFO to adjusted net debt<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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>14.8</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">16.9</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">Comparable FFO before interest to adjusted interest coverage<SUP>(2)</SUP> (times)</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif"><B>3.7</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 18pt; font-size: 7.5pt"><FONT STYLE="font: 7.5pt Arial, Helvetica, Sans-Serif">3.8</FONT></TD></TR>
</TABLE>
<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(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: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">(2)
Last 12 months.</P>

<P STYLE="font: italic 6.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: 8pt/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: 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: 7pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Adjusted net debt to invested capital
</B>= long-term debt and finance lease obligations including current portion and fair value (asset) liability of hedging instruments
on debt + 50 per cent issued preferred shares - cash and cash equivalents/ long-term debt including current portion + non-controlling
interests + equity attributable to shareholders - 50 per cent issued preferred shares - cash and cash equivalents</P>

<P STYLE="font: 7pt/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 net debt to comparable EBITDA
</B><FONT STYLE="color: windowtext">= long-term debt and finance lease obligations including current portion and fair value (asset)
liability of hedging instruments on debt - cash and cash equivalents + 50 per cent issued preferred shares / comparable EBITDA</FONT>&#9;</P>

<P STYLE="font: 7pt/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 equity attributable to common
shareholders</B> = net earnings attributable to common shareholders or earnings on a comparable basis / equity attributable to
common shareholders excluding AOCI</P>

<P STYLE="font: 7pt/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<BR>
non-controlling interests and income taxes + net interest expense / invested capital excluding AOCI</P>

<P STYLE="font: 7pt/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 shareholders + income taxes + net interest expense / interest on debt + 50 per cent dividends paid on preferred
shares - interest income</P>

<P STYLE="font: 7pt/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 / funds from operations - 50 per cent dividends paid on preferred shares</P>

<P STYLE="font: 7pt/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: 7pt/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 comparable funds from operations
to adjusted net debt </B>= comparable funds from operations - 50 per cent dividends paid on preferred shares/ period end long-term
debt and finance lease obligations including fair value (asset) liability of hedging instruments on debt + 50 per cent issued preferred
shares - cash and cash equivalents</P>

<P STYLE="font: 7pt/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: left"><B>Comparable funds from operations before
interest to adjusted interest coverage</B> = comparable funds from operations + interest on debt - interest income - capitalized
interest / interest on debt + 50 per cent dividends paid on preferred shares - interest income</P>


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<P STYLE="font: bold 8pt/150% 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>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>Force Majeure </B>-<B> </B>Literally
means &#8220;greater 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>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>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>Power Purchase Arrangement (PPA) -</B>
A long-term arrangement established by regulation for the sale of electric energy from formerly regulated generating units to buyers.</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>Specified Gas Emitters Regulation (SGER)</B>
- Rules under the&nbsp;Alberta Climate Change and Emissions Management Act which lays out emission intensity reduction targets
for specified entities and guidelines for achieving compliance.</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>Unplanned Outage</B> - The shut down
of a generating unit due to an unanticipated breakdown.</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_005.jpg" ALT="" STYLE="height: 40px; width: 150px"></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>TransAlta Corporation</B></P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">110 - 12th Avenue S.W.</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Box 1900, Station &#8220;M&#8221;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Calgary, Alberta Canada T2P 2M1</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">403.267.7110</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>Website</B></P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">P.O. Box 700 Station &#8220;B&#8221;</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Montreal, Qu&eacute;bec Canada H3B 3K3</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Toll-free in North America: 1.800.387.0825</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Toronto or outside North America: 416.682.3860</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">514.985.8843</P>

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

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

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

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

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>FOR MORE INFORMATION</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"><B>Media and Investor Inquiries</B></P>

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

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">1.800.387.3598 in Canada and United States</P>

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">or 403.267.2520</P>

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

<P STYLE="font: 8pt/150% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">403.267.7405</P>

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

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

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

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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>4
<FILENAME>ex311.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
<TEXT>
<HTML>
<HEAD>
     <TITLE></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 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&rsquo;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&rsquo;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&rsquo;s internal control over financial
reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;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&rsquo;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;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&rsquo;s ability to record, process, summarize
and report financial information; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&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: 0.5in"></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&rsquo;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"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%">&nbsp;</TD>
    <TD STYLE="width: 34%">&nbsp;</TD>
    <TD STYLE="width: 33%; border-bottom: Black 1pt solid">&#9;<I>/s/ Dawn L. Farrell</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Dated
October 30, 2015</TD>
    <TD>&nbsp;</TD>
    <TD>Dawn L. Farrell</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>President and Chief Executive Officer</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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



<P STYLE="margin: 0">&nbsp;</P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>5
<FILENAME>ex312.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
<TEXT>
<HTML>
<HEAD>
     <TITLE></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 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, Donald Tremblay, 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&rsquo;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&rsquo;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&rsquo;s internal control over financial
reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;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&rsquo;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;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&rsquo;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&rsquo;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">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%">&nbsp;</TD>
    <TD STYLE="width: 34%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 33%">&#9;<I>&#9;<I>/s/ Donald Tremblay</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Dated
October 30, 2015</TD>
    <TD>&nbsp;</TD>
    <TD>Donald Tremblay</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Chief Financial Officer</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>



<P STYLE="margin: 0">&nbsp;</P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>6
<FILENAME>ex321.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER REGARDING PERIODIC REPORT CONTAINING FINANCIAL STATEMENTS.
<TEXT>
<HTML>
<HEAD>
     <TITLE></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 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 &ldquo;<U>Company</U>&rdquo;) hereby certifies, to such officer&rsquo;s knowledge, that:</TD></TR></TABLE>

<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: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the accompanying Report of Foreign Private Issuer on Form 6-K of
the Company (the &ldquo;<U>Report</U>&rdquo;) 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</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">&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: 0.25in"></TD><TD STYLE="width: 0.25in">(ii)</TD><TD STYLE="text-align: justify">the information contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Company.</TD></TR></TABLE>

<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; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%">&nbsp;</TD>
    <TD STYLE="width: 34%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 33%">&#9;<I>/s/ Dawn L. Farrell</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Dated
October 30, 2015</TD>
    <TD>&nbsp;</TD>
    <TD>Dawn L. Farrell</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>President and Chief Executive Officer</TD></TR>
</TABLE>

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



<P STYLE="margin: 0">&nbsp;</P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>7
<FILENAME>ex322.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER REGARDING PERIODIC REPORT CONTAINING FINANCIAL STATEMENTS.
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></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 &ldquo;<U>Company</U>&rdquo;) hereby
certifies, to such officer&rsquo;s knowledge, that:</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: 0.25in"></TD><TD STYLE="width: 0.25in">(i)</TD><TD STYLE="text-align: justify">the accompanying Report of Foreign Private Issuer on Form 6-K of the Company (the &ldquo;<U>Report</U>&rdquo;)
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</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">&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: 0.25in"></TD><TD STYLE="width: 0.25in">(ii)</TD><TD STYLE="text-align: justify">the information contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 211.5pt; text-align: justify; 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%">&nbsp;</TD>
    <TD STYLE="width: 34%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 33%">&#9;<I>&#9;<I>/s/ Donald Tremblay</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Dated
October 30, 2015</TD>
    <TD>&nbsp;</TD>
    <TD>Donald Tremblay</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Chief Financial Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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



<P STYLE="margin: 0">&nbsp;</P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>8
<FILENAME>newsrelease.htm
<DESCRIPTION>PRESS RELEASE DATED OCTOBER 30, 2015.
<TEXT>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 14pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%">&nbsp;<IMG SRC="image1.jpg" ALT="" STYLE="width: 236px; height: 60px" width="589" height="183"></TD>
    <TD STYLE="width: 50%"></P><P STYLE="font: 30pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: right">News Release</P>


</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-bottom: rgb(0,204,255) 2pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: rgb(0,204,255) 2pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 14pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 14pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 14pt/115% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TransAlta Reports Third Quarter 2015
Results</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>CALGARY, Alberta (October 30,
2015)</B> &#8211; TransAlta Corporation (&#8220;TransAlta&#8221; or the &#8220;Company&#8221;) (TSX: TA; NYSE: TAC) today reported
third quarter 2015 financial results. Comparable EBITDA<SUP>([1])</SUP> for the third quarter was $219 million, an increase of
$7 million compared to the same period last year, as the Company&#8217;s high level of contracts and hedges largely mitigated the
impact of low power prices in Alberta during the quarter. Continued improvements in mining operations to reduce fuel costs and
a return to a normal level of gross margin in Energy Marketing also contributed to the solid performance in the quarter. Comparable
FFO<SUP>(1)</SUP> for the quarter was $126 million, $19 million lower than last year, as non-realized mark-to-market losses included
in EBITDA in the second quarter impacted FFO during the third quarter. Year-to-date, comparable EBITDA was $677 million and comparable
FFO was $497 million compared to EBITDA and FFO of $735 million and $537 million, respectively, for the same period in 2014.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#8220;Our third quarter
results reflect the positive impact of steadily improving operations. Our focus on costs, efficiencies and hedging have us well
positioned as we leave 2015 and enter into 2016&#8221;, said Dawn Farrell, President and Chief Executive Officer. &#8220;We closed
transactions this quarter that added to our renewables portfolio, extended our contracted cash flows and increased our competitiveness.&#8221;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Highlights for the quarter are set
out below:</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-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: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Restructured contractual agreements at our
Poplar Creek facility, to extend the contracted cash flows attributed to Poplar Creek from 2023 to 2030, and acquired two wind
facilities, representing 65 megawatts of capacity. As part of the restructuring, our customer acquired our steam generators, rights
to the output of our gas generators until 2030, and operational control of the facility. The transaction closed on Sept. 1, 2015
and we have recognized a gain of $263 million on the transaction. Over the last three years, we have nearly doubled the weighted
average remaining contractual life of our gas fleet from 6 years to 12 years.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-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: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Acquired 71 megawatts of fully contracted
renewable generation assets for cash consideration of US$76 million together with the assumption of certain tax equity and US$42
million of non-recourse project debt. The assets include our first solar facilities, representing 21 megawatts (&#8220;MW&#8221;)
of capacity in Massachusetts,
and a 50 MW wind farm in Minnesota. The acquisition of the solar facilities was completed on Sept. 1 and the acquisition of the
wind farm closed on Oct. 1, 2015.</FONT> </TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><I>(<FONT STYLE="vertical-align: baseline; line-height: 115%"><B>[1]</B></FONT>)</I></FONT>
<FONT STYLE="font: 8pt Times New Roman, Times, Serif"><I>Comparable EBITDA refers to Earnings before interest, taxes, depreciation
and amortization including finance lease income and adjusted for certain other items. FFO refers to Funds from Operations. Free
Cash Flow refers to Funds from Operations less sustaining capital, preferred dividends and non-controlling interest payments. Comparable
EBITDA, comparable net earnings attributable to common shareholders, comparable funds from operations, comparable free cash flow,
comparable earnings per share, comparable funds from operations per share, and comparable free cash flow per share are not defined
under International Financial Reporting Standards (&#8220;IFRS&#8221;). 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&#8217; results. Refer
to the Comparable Funds from Operations and Comparable Free Cash Flow and Earnings and Other Measures on a Comparable Basis sections
of the MD&amp;A for the quarter for further discussion of these items, including, where applicable, reconciliations to measures
calculated in accordance with IFRS.</I></P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 0.5in; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-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: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Reduced overhead by $25 million annually
by eliminating 239 positions during the quarter. Together with overhead reductions in Canadian Coal announced earlier this year,
our efficiency and productivity initiatives will contribute to approximately $47 million in cost savings annually.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-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: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Raised $442 million in long-term project
financing. The financing closed on Oct. 1, 2015. </FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-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: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Reached an agreement with the Alberta Market
Surveillance Administrator (the &#8220;MSA&#8221;) to settle all outstanding proceedings before the Alberta Utilities Commission
(the &#8220;AUC&#8221;). The settlement, which took the form of a consent order, was approved by the AUC on Oct. 29, 2015. Under
the terms of the order, we will pay a total amount of $56 million, including approximately $27 million as a repayment of economic
benefit, $4 million to cover the MSA&#8217;s legal and related costs, and a $25 million administrative penalty. The $25 million
administrative penalty will be paid in Nov. 2016. </FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-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: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">At September 30, 2015 our liquidity was
approximately $0.9 billion compared to $1.6 billion as at Dec. 31, 2014. We used our liquidity to repay a USD$500 million Senior
Note that matured in January and have no material debt maturity until 2017. In early October, we used proceeds from the financing
described above to increase our liquidity to $1.3 million.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>2015 and 2016 Outlook</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">Alberta power prices averaged $26 per
MWh during the quarter, compared to $64 per MWh in the same period last year. Although TransAlta&#8217;s strategy of being highly
contracted generally limits the impact of low prices, our wind and hydro businesses in Alberta were adversely impacted by lower
prices during the quarter. Accordingly, we are adjusting our guidance for the year to the lower end of the previously disclosed
comparable EBITDA ranges. Revised comparable EBITDA for 2015 is now expected to be between $980 and $1,010 million. Comparable
FFO continues to be expected to be between $725 and $755 million.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">TransAlta expects its comparable EBITDA
for 2016 to be in the range of $990 million and $1.1 billion based on the current outlook for power prices in Alberta and the Pacific
Northwest. Comparable FFO is anticipated to be in the range of $755 to $835 million. Comparable free cash flow is expected to be
in the range of $250 million and $300 million, based on sustaining capital of approximately $330 million to $350 million.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of Alberta PPAs, long-term
contracts, and other short-term physical and financial contracts, on average, approximately 75% of TransAlta&#8217;s capacity is
expected to remain contracted over the period from 2016 to the end of 2020. Approximately 85 per cent of TransAlta&#8217;s 2016
capacity is contracted at average prices of approximately $50 per MWh in Alberta and approximately U.S.$45 per MWh in the Pacific
Northwest.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&#8220;We are maintaining the dividend
at its current level, however, the Board may revisit the dividend in the future if factors such as changes in Alberta&#8217;s climate
policy or persistent low power prices have a negative impact on our business prospects&#8221;, said Donald Tremblay, Chief Financial
Officer. &#8220;We believe that our plan to reduce debt by dropping assets
into TransAlta Renewables will be successful. We also intend to refinance corporate debt with debt at the project level.&#8221;</P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.3pt 6pt 0"><B>Third Quarter Review by Segment </B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: #DCE6F1">
    <TD ROWSPAN="2" STYLE="border: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>Comparable EBITDA </B></FONT><BR>
<FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>(in CAD$ millions)</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>3 Months Ended</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>9 Months Ended</B></FONT></TD></TR>
<TR STYLE="background-color: #DCE6F1">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>Sept 30, 2015</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>Sept 30, 2014</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>Sept 30, 2015</B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>Sept 30, 2014</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 209px; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Canadian Coal</FONT></TD>
    <TD NOWRAP STYLE="width: 111px; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">101</FONT></TD>
    <TD NOWRAP STYLE="width: 111px; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">92</FONT></TD>
    <TD STYLE="width: 111px; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">267</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">270</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">U.S. Coal</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">10</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center">13</P>
        <P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center">103</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">44</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">46</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Gas</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">80</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">77</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">240</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">232</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Wind<SUP>([2])</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">23</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">27</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">111</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">123</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Hydro</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">15</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">27</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">54</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">67</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Energy Marketing</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">6</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">(4)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">11</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">49</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Corporate </FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">(16)</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">(20)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">(50)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">(52)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Total Comparable EBITDA</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">219</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">212</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">677</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">735</FONT></TD></TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 12pt; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>Canadian Coal:</U> Comparable EBITDA
in the third quarter was $101 million and $267 million on a year-to-date basis, compared to $92 million and $270 million, respectively,
for the same periods in 2014. Our high level of contracts and hedges in Canadian Coal mostly offset the impact of lower prices
in Alberta compared to last year. Canadian Coal also experienced higher derates during the quarter due to the impact of hot weather
on cooling ponds. In addition, during the quarter we completed planned outages at Sundance 5 and at Keephills 3. The reductions
in operating expenses at our power plants and at our Highvale mine and mark-to-market gains on certain forward financial contracts
that do not qualify for hedge accounting fully offset the negative impact of lower availability and lower prices on our comparable
EBITDA. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>U.S. Coal:</U> Comparable EBITDA was
$10 million in the quarter compared to $13 million for the same period in 2014 and $44 million on a year-to-date basis compared
to $46 million in 2014. Third quarter results were negatively impacted by coal inventory write-downs and reduced generation as
a result of low power prices, which were partially offset by mark-to-market gains on financial contracts put in place to hedge
our future generation and the stronger U.S. dollar.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>Gas:</U> Comparable EBITDA in the third
quarter was $80 million and $240 million year-to-date compared to $77 million and $232 million, respectively, for the same periods
in 2014. The increase was a result of additional revenues from the Australian natural gas pipeline, which was commissioned in the
first quarter, and the positive impact of the strengthening U.S. dollar on a U.S. dollar denominated contract in Australia. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>Wind:</U> Comparable EBITDA for the three
and nine months decreased by $4 million and $12 million, respectively, to $23 million and $111 million compared to the same periods
in 2014, primarily as a result of lower wind volumes in Eastern Canada and lower power prices in Alberta.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"><I>(1) Wind segment includes results of our solar facilities acquired during the quarter.
Refer to the Significant and Subsequent Events section of the MD&amp;A for the quarter for further details.</I></P>


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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>Hydro:</U> Comparable EBITDA was $15
million in the quarter compared to $27 million for the same period in 2014 and $54 million on a year-to-date basis compared to
$67 million in 2014. The decrease was a result of lower prices and a decrease in price volatility in Alberta during the third quarter,
which limited our ability to take advantage of our flexibility to produce electricity in higher priced hours.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>Energy Marketing:</U> Energy Marketing
generated comparable EBITDA of $6 million in the quarter compared to an EBITDA loss of $4 million for the same period in 2014.
This represented a return to normal gross margin for Energy Marketing. On a year-to-date basis, comparable EBITDA was down $38
million to $11 million. The decrease is attributable to extraordinary market conditions in the first quarter of last year that
resulted in substantial customer margins and volatile market conditions in the Alberta and Pacific Northwest regions in the second
quarter of this year that negatively affected our Energy Marketing results.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><U>Corporate:</U> Corporate Segment costs
were $16 million in the third quarter and $50 million year-to-date, lower than the same periods in 2014 when legal costs were incurred
in relation to the MSA proceeding in front of the AUC.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>Consolidated Financial Review
</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">Comparable EBITDA for the quarter increased
by $7 million to $219 million compared to the same period last year. Our high level of contracts and hedges mostly mitigated the
impact of low prices in the quarter. Continued improvement in our mining operations to reduce fuel costs as well as a return to
a normal level of gross margin by Energy Marketing contributed to our solid performance in the quarter. Our wind and hydro businesses
in Alberta were impacted by the lower prices.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">Comparable FFO decreased by $19 million
to $126 million for the three months ended Sept. 30, 2015, despite higher EBITDA, as mark-to-market losses included in EBITDA in
the second quarter reversed in the third quarter. On a year-to-date basis, comparable FFO decreased by $40 million to $497 million.
The change in FFO was mainly due to the decrease in EBITDA. Lower interest expense, lower cash taxes, and an increase in realized
foreign exchange gains offset some of the shortfall in EBITDA.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter, comparable net loss
attributable to common shareholders was $33 million ($0.12 net loss per share), down from a comparable net loss of $13 million
($0.05 net loss per share) during the same period last year. The decrease was primarily due to an increase in depreciation and
amortization resulting from the strengthening U.S. dollar, an increase in asset retirements, and an increase in income tax expense
due to an increase in taxable temporary differences.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify">Reported net earnings attributable
to common shareholders was $154 million for the quarter ($0.55 net earnings per share) compared to a net loss of $6 million ($0.03
net loss per share) for the same period in 2014. The differences between comparable and reported net earnings are mainly due to
the gain on the Poplar Creek contract restructuring
($193 million)<SUP>([3])</SUP>, the provision relating to the settlement with the MSA ($55 million)<SUP>(1)</SUP>, changes in the
fair value of de-designated and economic hedges at U.S. Coal<SUP>([4])</SUP> and restructuring costs.</P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify"></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 12pt 0; text-align: justify"><B>Operating Review </B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify">Availability for the quarter
was 91.2 per cent compared to 92 per cent in the same quarter last year, primarily due to higher derates at Canadian Coal due to
hot weather impacting cooling ponds. Year-to-date, adjusted availability was 87.8 per cent which is slightly below our target of
89 to 91 per cent for 2015, primarily due to a two-month Force Majeure outage at our Keephills 1 facility caused by a damaged superheater.
The unit returned to service on May 17, 2015. Availability during the period was also impacted by higher derates at Canadian Coal,
the extension of the planned outage at Sundance 3 to allow for more work to be completed, and the completion of a planned outage
at Keephills 3 in August.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify">As at Sept. 30, 2015, our planned
major maintenance activities in coal are substantially complete for the year. In 2014, we had one planned major maintenance outage
in Canadian Coal in the fourth quarter.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify">Total sustaining capital expenditures
(excluding flood recovery capital) were $79 million for the third quarter and are $253 million year-to-date.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>Recent Events</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><U>Poplar Creek Restructuring and
Acquisition of Two Wind Farms</U></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">On Sept. 1, 2015, we closed the
previously announced restructuring of the current arrangement for power generation services with Suncor Energy (&#8220;Suncor&#8221;)
at Suncor&#8217;s oil sands base site near Fort McMurray and the acquisition of Suncor&#8217;s interest in two wind farms located
in Alberta and Ontario, representing 65 MW of net capacity. The contract restructuring increased the duration of the contract by
seven years to 2030, reduced our merchant exposure in Alberta, added high quality renewables assets and sourced additional assets
for potential future drop-downs into TransAlta Renewables.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Over the last three years, we have
nearly doubled the weighted average remaining contractual life of our gas fleet from six years to 12 years.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">As a result of the agreement, we
have recognized a gain of $263 million on the transaction:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-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-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">recognition of a finance lease of $372
million less derecognition of Poplar Creek net assets, including exchanged working capital, at a carrying amount of $247 million;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-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-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">supplemented by the acquisition of
two wind farms for $138 million.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I>(<FONT STYLE="vertical-align: baseline; line-height: 115%"><B>1</B></FONT>)
Net of tax</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>(<FONT STYLE="vertical-align: baseline; line-height: 115%"><B>2</B></FONT>)
Hedge accounting could not be applied to certain contracts, and accordingly, the mark-to-market on these contracts impacted reporting
earnings. The impacts of these mark-to-market fluctuations have been removed from revenues to arrive at comparable results, which
reflect the economic nature of these contracts.</I></P>



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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><U>U.S. Wind and Solar Acquisition</U></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">We successfully completed the previously
announced acquisition of 71 MW of fully contracted renewable generation assets for cash consideration of US$76 million together
with the assumption of certain tax equity and US$42 million of non-recourse debt. The assets include TransAlta&#8217;s first solar
facilities, representing 21 MW of solar facilities in Massachusetts, and a 50 MW Lakeswind wind facility in Minnesota, and increase
the pipeline of assets which may be dropped-down into TransAlta Renewables. The purchase of the solar projects in Massachusetts
closed on Sept. 1, 2015 and the purchase of the Lakeswind wind project in Minnesota was completed on Oct. 1, 2015.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><U>Efficiency and Productivity
Initiative</U></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">On Sept. 29, 2015, we announced the elimination
of 239 positions to reduce our overhead. The initiative is expected to result in annual cost savings of approximately $25 million.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">Earlier this year, we improved productivity
at our Canadian Coal power generation and mining operations. These initiatives are expected to generate annual savings of approximately
$22 million.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><U>South Hedland Power Station</U></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">We continued construction of the AUD$570
million, 150 MW combined cycle gas power station in South Hedland, Australia, which we will own and operate. The civil construction
phase is progressing with all major foundations footings complete, with the exception of the steam turbine. Manufacturing and factory
acceptance testing of primary electrical equipment was also completed. We expect to start receiving equipment on site during the
fourth quarter. The fully contracted power station is expected to be commissioned and delivering power to customers in the first
half of 2017.</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><U>TransAlta Renewables Project
Financing</U></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">On Oct. 1, 2015, TransAlta Renewables
closed a $442 million bond offering for its indirect wholly-owned subsidiary, Melancthon Wolfe Wind LP. The bonds are amortizing
and bear interest at a rate of 3.834 per cent, payable semi-annually, and mature on Dec. 31, 2028. Net proceeds of the financing
were used to reduce our balance on the credit facility.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><U>Investment Grade Rating </U></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">On Oct. 1, 2015, Moody&#8217;s
Investor Services, Inc. (&#8220;Moody&#8217;s&#8221;) placed the rating of our senior unsecured debt under review for possible
downgrade. The announcement by Moody&#8217;s is not anticipated to have a material financial impact on our business as we maintain
investment grade ratings with stable outlooks from three credit rating agencies including BBB- (stable outlook) by Standard &amp;
Poors, BBB (stable outlook) by DBRS, and BBB- (stable outlook) by Fitch Ratings. We will continue to execute our plan to strengthen
our financial position and remain committed to our financial and operating goals for 2015, including our plan to further reduce
debt levels.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center"><B>Third Quarter 2015 Highlights</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: #DCE6F1">
    <TD ROWSPAN="2" STYLE="border: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>In $CAD millions, unless otherwise stated</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>3 Months Ended</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>9 Months Ended</B></FONT></TD></TR>
<TR STYLE="background-color: #DCE6F1">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>Sept 30, 2015</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>Sept 30, 2014</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>Sept 30, 2015</B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif"><B>Sept 30, 2014</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; width: 40%; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Adjusted availability (%)<SUP> ([5]),([6])</SUP></FONT></TD>
    <TD NOWRAP STYLE="width: 15%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">91.2%</FONT></TD>
    <TD NOWRAP STYLE="width: 15%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">92.0%</FONT></TD>
    <TD STYLE="width: 15%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">87.8%</FONT></TD>
    <TD STYLE="width: 15%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">89.6%</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Production (GWh) <SUP>(1),([7])</SUP></FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">10,839</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">11,445</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">29,559</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">32,795</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Revenue</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$641</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$639</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$1,672</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$1,905</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Comparable EBITDA</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$219</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$212</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$677</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$735</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Reported Net Earnings (loss) attributable to common shareholders</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$154</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($6)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$30</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($7)</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Comparable Net Earnings (loss) attributable&nbsp;&nbsp;to common shareholders</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($33)</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($13)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($51)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$22</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Comparable Funds from Operations</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$126</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$145</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$497</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$537</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Cash Flow from Operating Activities</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$200</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$216</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$314</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$546</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Comparable Free Cash Flow</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$8</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$34</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$141</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$192</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Net Earnings (loss) per common share</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.55</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($0.03)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.11</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($0.03)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Comparable Net Earnings (loss) per share</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($0.12)</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($0.05)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">($0.18)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.08</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Comparable Funds from Operations&nbsp;&nbsp;&nbsp;&nbsp;per share</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.45</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.53</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$1.78</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$1.97</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Comparable Free Cash Flow per share</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.03</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.12</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.51</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.71</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">Dividends paid per common share</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.18</FONT></TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.18</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.54</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; text-align: center; line-height: 115%"><FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">$0.65</FONT></TD></TR>
</TABLE>
<P STYLE="font: 8pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 7.5pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 7.5pt 0 0; text-align: justify">The complete report for the
quarter, including MD&amp;A and unaudited interim financial statements, as well as our quarterly presentation, will be available
on the Investors section of our website: www.transalta.com.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 7.5pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Conference call</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify">We will hold a conference call
and webcast at 1:00 p.m. MT (3:00 p.m. ET) today to discuss our third quarter 2015 results. The call will begin with a short address
by Dawn Farrell, President and CEO, and Donald Tremblay, Chief Financial Officer,<B><I> </I></B>followed by a question and answer
period for investment analysts and investors. Please contact the conference operator five minutes prior to the call, noting &quot;TransAlta
Corporation&quot; as the company and &quot;Jaeson Jaman&quot; as moderator.</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>Dial-in numbers:<BR>
Toll-free North American participants call: 1-800-319-4610<FONT STYLE="font: 12pt/115% Times New Roman, Times, Serif">&nbsp;</FONT></B></P>

<P STYLE="font: 12pt/115% 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/115% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"><I></I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 8pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>(1) Availability and production includes
all generating assets (generation operations and finance leases that we operate). 2014 availability also includes equity investments,
which were sold in May 2014.</I></P>

<P STYLE="font: 8pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>(<FONT STYLE="vertical-align: baseline"><B>2</B></FONT>)
Adjusted for economic dispatching at U.S. Coal.</I></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>(<FONT STYLE="vertical-align: baseline; line-height: 115%"><B>3</B></FONT>)
2014 production includes 314 GWh from CE Generation LLC and Wailuku Holding Company, LLC, both of which were sold in 2014. Refer
to the Significant 2014 Events and Subsequent Events section of our 2014 Annual MD&amp;A for further discussion.</I></P>


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<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">A link to the live webcast will
be available on the Investor Centre section of TransAlta&#8217;s website at http://www.transalta.com/powering-investors/events-and-presentations.
If you are unable to participate in the call, the instant replay is accessible at 1-855-669-9658 (Canada and USA toll free) or
1-604-674-8052 (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/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0"><B><I>About TransAlta</I></B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><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 wind, hydro, solar, 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 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.
</I></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><I>For more information about TransAlta,
visit our web site at www.transalta.com or follow us on Twitter @TransAlta.</I></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Cautionary Statement Regarding Forward
Looking Information</I></B></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>This
news release contains forward looking statements including, without limitation, statements pertaining to TransAlta&#8217;s business
and anticipated future financial performance, expected comparable EBITDA, comparable FFO and comparable free cash flow ranges for
2015 and 2016, the development of the South Hedland power station, expected sustaining capital expenditures for 2015 and 2016,
target fleet availability for 2015 and 2016, expected cost reductions from the maintenance contract with Alstom and other initiatives,</I></FONT>
<FONT STYLE="font-family: Times New Roman, Times, Serif"><I>expected governmental regulatory regimes and legislation and their
expected impact on us and the timing of the implementation of such regimes and regulations, as well as the cost of complying with
resulting regulations and laws and the potential drop-down of assets to TransAlta Renewables. &nbsp;These statements are based
on TransAlta&#8217;s belief and assumptions based on information available at the time the assumptions were 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, changes in market prices where we operate, unplanned outages at generating facilities and the capital investments required,
equipment failure and our ability to carry out repairs in a cost effective and timely manner, the effects of weather, disruptions
in the source of fuels, water or wind required to operate our facilities, energy trading risks, failure to obtain necessary regulatory
approvals in a timely fashion, legislative or regulatory developments, competition, global capital markets activity, changes in
prevailing interest rates, currency exchange rates, inflation levels and commodity prices, general economic conditions in the geographic
areas where TransAlta operates, impediments to the construction of the South Hedland power project and failure to proceed with
plans for the sale of contracted assets or economic interests to TransAlta Renewables as a result of failure to agree to commercial
terms with the independent directors of TransAlta Renewables, adverse market conditions or failure to obtain any regulatory, shareholder
or third party approvals. &nbsp;Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect
TransAlta&#8217;s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update
or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required
by law.</I></FONT></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt; text-align: center"><FONT STYLE="font-weight: normal; letter-spacing: -0.2pt">&nbsp;</FONT></P>

<P STYLE="font: bold 12pt/115% Times New Roman, Times, Serif; margin: 0 4.5pt; text-align: center"><FONT STYLE="letter-spacing: -0.2pt">&#8211;
30 &#8211;</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>
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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>For more information:</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>Investor Inquiries:</I></B></FONT></TD>
    <TD STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 49%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B><I>Media Inquiries:</I></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Jaeson Jaman</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Stacey Hatcher</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Manager, Investor Relations</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Manager, Communications</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Phone: 1-800-387-3598 in Canada and U.S.</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Phone: Toll-free media number: 1-855-255-9184</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Email: <FONT STYLE="color: blue">investor_relations@transalta.com</FONT></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Email: ta_media_relations@transalta.com</FONT></TD></TR>
</TABLE>


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