<SEC-DOCUMENT>0001137171-16-000348.txt : 20160930
<SEC-HEADER>0001137171-16-000348.hdr.sgml : 20160930
<ACCEPTANCE-DATETIME>20160816123343
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001137171-16-000348
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		4
FILED AS OF DATE:		20160816

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:		CORRESP

	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>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
     <TITLE>JA Filed by Filing Services Canada Inc. 403-717-3898
</TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 24pt 0 12pt; text-align: justify"><B><IMG SRC="image_001.gif" ALT="">&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 24pt 0 12pt; text-align: justify"><B>VIA EDGAR</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 12pt 0; text-align: justify"><B>August 16, 2016</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">Division of Corporate Finance</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">Securities and Exchange Commission</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">100 F Street, N.E.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 12pt; text-align: justify">Washington, DC 20549</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Attention:</TD><TD STYLE="text-align: justify">Mr. Scott Stringer<BR>
Ms. Donna Di Silvio</TD></TR></TABLE>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: -0.5in">Dear Sir/Madam:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>Re:</B></TD><TD STYLE="text-align: justify"><B>Comment Letter dated August 3, 2016 to TransAlta Corporation</B><BR>
<B>Form 40-F for the Fiscal Year Ended December 31, 2015</B><BR>
<B>Filed February 18, 2016, File No. 1-15214</B></TD></TR></TABLE>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 12pt; text-align: justify">TransAlta Corporation (the &ldquo;<U>Corporation</U>&rdquo;)
has the following response to the comments of the staff (the &ldquo;<U>Staff</U>&rdquo;) of the Securities and Exchange Commission
(the &ldquo;<U>Commission</U>&rdquo;) contained in the comment letter dated August 3, 2016 (the &ldquo;<U>Comment Letter</U>&rdquo;)
relating to the above-referenced Form 40-F filed with the Commission (the &ldquo;<U>40-F</U>&rdquo;). For your convenience, we
have set forth below Staff&rsquo;s comments in the Comment Letter in italicized font, which are immediately followed by the Corporation&rsquo;s
response to that comment. All capitalized terms not otherwise defined herein shall have the meaning attributed thereto in the 40-F.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><U>Asset Impairment Charges and Reversals, page
F32</U></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">1)&#9;<I>You state that it is possible for you
to allocate a recoverable amount for each plant within the Alberta Merchant CGU. Please explain to us how you project volumes,
costs and cash flows for each plant when preparing budgets. </I></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>Response:</I></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In our Alberta Merchant CGU we develop cash
inflow estimates as a top-down process, which are then allocated to the plants; whereas cash outflow estimates are developed at
the plant level as a bottom-up process. The cash inflow and outflows are then used to complete the mathematical exercise of determining
plant-level budgets which are used for management and accountability purposes. The determination and allocation of cash inflows
to each plant is based upon management&rsquo;s best estimates of the strategic bidding process which incorporates expected plant
outages, plant capacity, and overall optimization of the assets as a group. When assessing recoverability for impairment purposes,
we determine the net cash flows of the Alberta Merchant CGU plants as a whole; the recoverability calculation at a plant level
ignores the impact of management&rsquo;s allocation of cash inflows to each plant, which varies depending on the strategies employed
of dispatching (or not dispatching) our plants to maximize profit. Ultimately, our goal for the Alberta Merchant CGU plants is
to respond to the energy and ancillary service demand of the Alberta market operator (our sole customer, the Alberta Electric System
Operator) with an optimal use of our assets.</P>

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


<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; border-top: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: right; width: 100%">Page 1</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->


<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><IMG SRC="image_002.gif" ALT="">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">To better understand the significant role that
management plays in determining bid strategies and estimating the resulting cash inflows for the Alberta Merchant CGU budgeting
process, we recap for you a summary of the Alberta electricity market as more fully described in our response to question 2. The
wholesale electricity market in Alberta is relatively unique in that it has a limited number of significant power generating entities
and because it is an &ldquo;energy-only&rdquo; model, meaning that generators are only paid for the energy they produce, not how
much they are capable of producing, as in a capacity market model. The real-time energy-only market is settled hourly on a simple
merit-order basis based on generator bidding with a single price for the entire market. Economic withholding (offering available
supply at a sufficiently high price in excess of the supplier&rsquo;s marginal costs so that it is not called on to run and where,
as a result, the overall pool price is raised) with a view to its impact on a broader generation portfolio, is a significant feature
of the Alberta system.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">A summary description follows that explains
how the Corporation projects volumes, costs and cash flows for each Alberta Merchant CGU plant when preparing budgets.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><U>Production Volumes</U> &ndash; we project
production volumes for a plant using historical averages, based on the mid-point of long-term average production, which are adjusted
for planned maintenance outages required in the forthcoming year and plant availability targets. We also look at plants coming
online or being decommissioned for the impact on overall market supply and the resultant potential impact on each plant&rsquo;s
production. The specific process for each fuel type is as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt 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: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Coal plants; we look to past performance and determine what types of outages (planned or unplanned)
have occurred.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt 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: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Wind plants; we use historical wind resource volumes and assume an average year; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt 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: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Hydro plants; we use historical water flows and assume an average year.</TD></TR></TABLE>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><U>Costs</U> &ndash; we estimate costs based
on the plant&rsquo;s historical costs, sustaining capital expenditures, efficiency improvement initiatives and expected production
levels.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><U>Cash flows</U> &ndash; revenues
are estimated using an external forward pricing curve for the Alberta market which incorporates assumptions relating to
behaviour among market participants, unit availabilities, and other market fundamentals. Because the price curve is
established in contemplation of how all the assets in Alberta will work together, all plants using such price curve are
linked. There are further interdependencies at the plant level based on the hourly bidding process as described in our
response to question 2. The forward pricing curve is used to calculate revenues at the plant level using the estimated
production volumes. The estimated revenues and budgeted costs are then used to calculate the budgeted cash flows.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Actual results at the plant level may not conform
to budget due to how we ultimately dispatch the plants based upon availability and price; however, decisions are made to optimize
the actual results of the whole Alberta Merchant CGU and will be compared to budget for the whole Alberta Merchant CGU. Historical
EBITDA budgets have typically been within 5% of actual results on a combined Alberta Merchant CGU basis, although we will see larger
individual plant variances within the Alberta Merchant CGU.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As a result, a recoverable amount can be
allocated at a plant level but doing so is a mathematical exercise and the overall recoverability is ultimately determined in
conjunction with all of the assets in the Alberta Merchant CGU. Further evidence of how plant values are optimized on an
aggregate basis is provided in the response to question 2 and how the Alberta Wholesale Electricity Market
(&ldquo;<U>AWEM</U>&rdquo;) functions.</P>

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

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; border-top: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: right; width: 100%">Page 2</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><IMG SRC="image_002.gif" ALT=""></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">2)
<I>Please explain in more detail why the
AWEM&rsquo;s indifference to whether the megawatt hour of energy is generated from a wind, hydro or coal plant supports the interdependence
of cash inflows among your plants. In this regard, it appears there is an active market for the output of each of the plants individually.
</I></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>Response:</I></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In the Alberta Wholesale Electric Market, the
last offer dispatched to meet demand sets the system marginal price for electricity for that hour, which means that all plants
dispatched receive the same system marginal price regardless of their bid price. All plants that are bid above the system marginal
price will not be dispatched. Since production from each dispatched plant will receive the same price and overall production can
influence the price that is received, our decisions on which assets to run and how we bid into the market are linked.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Market Surveillance Administrator (&ldquo;<U>MSA</U>&rdquo;)
monitors Alberta&rsquo;s electricity and retail natural gas markets to ensure that they operate in a fair, efficient and openly
competitive manner.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Excerpts from the MSA&rsquo;s &ldquo;State
of the Market Report 2012&rdquo;, dated December 10, 2012 further acknowledges the ability of fleet owners to strategically manage
their portfolios to maximize cash inflows as follows:</P>

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

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.8in 0 0.3in; text-align: justify">&ldquo;<I>Generators can exercise
market power in the real time market (known as the power pool) through the &lsquo;economic withholding&rsquo; of available supply.
Economic withholding is defined as: offering available supply at a sufficiently high price in excess of the supplier&rsquo;s marginal
costs and opportunity costs so that it is not called to run and where, as a result, the pool price is raised. Such a strategy is
only profitable for a firm that benefits from the higher price in the market.</I></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.8in 0 0.3in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.8in 0 0.3in; text-align: justify"><I>Not offering energy that would
otherwise be available to the market, sometimes called physical withholding, is in most cases prohibited. One variant of economic
withholding which involves a physical element is where a unit&rsquo;s entire capacity is priced out-of-merit so that the generating
asset is dispatched offline. For some units minimum-off times and start-up constraints mean that once the unit is offline, the
asset is physically unavailable from the market for a number of hours.&rdquo;</I></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.8in 0 0.3in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.8in 0 0.3in; text-align: justify"><I>&ldquo;Since such strategies
are profitable, one would expect a generator seeking to maximize profits to do so. Note that pool price is impacted so all those
market participants who have energy for sale in the pool are likely to gain not just the party withholding.&rdquo;</I></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Given these facts, an entity that has a
portfolio of assets in Alberta can design a bid strategy using its various merchant plants and generation types with the
objective of maximizing cash inflows within the competitive rules of the market and considering also the behavior of other
market participants. In this market there are multiple ways that the bid strategy may be determined which could result in a
different market clearing price. The AWEM prices are set irrespective of whether the megawatt hour is generated from wind,
hydro or a coal plant. Our ability to bid our plants into the market strategically, which along with the bids of all market
participants determines the prices received at our dispatched plants, demonstrates the interdependence of cash inflows among
our plants. While we will get paid for the production at each plant, our decisions on how the plants get offered into the
market results in the assets being managed together, which supports the conclusion that there is only one larger market
rather than an active market at each plant.</P>

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

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; border-top: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: right; width: 100%">Page 3</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;<IMG SRC="image_002.gif" ALT=""></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">3. <I>As you are able to estimate the recoverable
amount for each plant, please explain how you considered the guidance in IAS 39 paragraph 66 which states &ldquo;if it is not possible
to estimate the recoverable amount of the individual asset, an entity shall determine the recoverable amount of the cash-generating
unit to which the asset belongs (the asset&rsquo;s cash-generating unit).&rdquo; </I></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>Response:</I></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As noted above, it is mathematically possible
to calculate a recoverable amount at the individual plant level although this is arbitrary and not indicative of the overall recoverable
amount of the Alberta Merchant CGU when considering our plants that operate in the AWEM as a whole.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In completing our impairment work, we placed
reliance on IAS 36 paragraph 69, particularly in regard to how we manage our Alberta plants.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0.8in 0 0.3in; text-align: justify"><I>Paragraph 69 states &ldquo;Cash
inflows are inflows of cash and cash equivalents received from parties external to the entity. In identifying whether cash inflows
from an asset (or group of assets) are largely independent of the cash inflows from other assets (or groups of assets), an entity
considers various factors including how management monitors the entity&rsquo;s operations (such as by product lines, businesses,
individual locations, districts or regional areas) or how management makes decisions about continuing or disposing of the entity&rsquo;s
assets and operations.&rdquo; </I></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We continue to assert that our individual plants
within the AWEM do not generate cash inflows that are largely independent of our other uncontracted plants within the AWEM. By
virtue of our ability and historical practice of dispatching (or not dispatching) certain plants, which in turn impacts prices
received in the AWEM, we improve our cash inflows by optimizing our fleet of assets within the AWEM. While we are required to bid
into the AWEM, the AWEM is indifferent as to which plants ultimately provide the power. An external bidding process ensures that
the best price is obtained in the AWEM and this same price is paid to every producer for that time period regardless of how that
power was generated or by which participant in the AWEM.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On an overall basis we are comfortable that
within the Alberta Merchant CGU we have properly budgeted and managed the expected sum of cash inflows. These cash inflows will
only differ from budgeted cash inflows at a plant level, not at an overall Alberta Merchant CGU level, due to dynamic hourly pricing
changes and operational impacts/outages which impact our decisions on whether or not to dispatch certain plants.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"></P>

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


<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; border-top: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: right; width: 100%">Page 4</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->


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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;<IMG SRC="image_001.jpg" ALT=""></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">We trust the foregoing answers are responsive
to your comments. If you have any questions in connection with our responses to your comments, please feel free to contact me by
telephone at 403-267-2060 or via email at donald_tremblay@transalta.com.</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Yours truly,</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>TRANSALTA CORPORATION</B></P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">/s/Donald Tremblay</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Donald
Tremblay</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Chief Financial Officer</P>

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

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">cc:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
John Kousinioris, TransAlta Corporation</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">Ben Park, TransAlta Corporation&#9;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">Scott Jeffers, TransAlta
Corporation</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">Gordon Graham, Ernst &amp;
Young LLP</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><BR>
</P>

<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; border-top: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><BR>
</P>

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



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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>image_001.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 image_001.jpg
M_]C_X  02D9)1@ ! 0   0 !  #_VP!#  @&!@<&!0@'!P<)"0@*#!0-# L+
M#!D2$P\4'1H?'AT:'!P@)"XG("(L(QP<*#<I+# Q-#0T'R<Y/3@R/"XS-#+_
MVP!# 0D)"0P+#!@-#1@R(1PA,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R
M,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C+_P  1" !& MP# 2(  A$! Q$!_\0
M'P   04! 0$! 0$           $" P0%!@<("0H+_\0 M1   @$# P($ P4%
M! 0   %] 0(#  01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T? D,V)R@@D*
M%A<8&1HE)B<H*2HT-38W.#DZ0T1%1D=(24I35%565UA96F-D969G:&EJ<W1U
M=G=X>7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0 'P$  P$! 0$!
M 0$! 0        $" P0%!@<("0H+_\0 M1$  @$"! 0#! <%! 0  0)W  $"
M Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O 58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H # ,!  (1 Q$ /P#MM9\>:MI^
MM7EG"EJ8X92B[D).!Z\U1_X6/K?_ #SL_P#OVW_Q5>E2:-IDTK2RZ?:O(QRS
M-"I)/N<5Y!XKABM_%%_%#&L<:N J(, ?*.U>Y@WAJ[Y/9ZI'R^9+&X5>U]L[
M-[=MV:O_  L?6_\ GG9_]^V_^*KT/PYJ$VJZ!:WMP$$LH);8,#AB/Z5E^%=(
MTVX\+V$LUA:R2-&2SO$I)Y/4XK)UKQG/X=U6;2[/3[400;=@&5Z@'H..IKGJ
MPA7DZ5"G9I_EH=6'J5<)!8C%5>:,DK*SW>IWU%>>ZG\1I85BBL;:%YO+4RNY
M)4,1DJH'7'K6IXH\7W.@/;0Q6D<CS1>87=B #TQ@?XUS?4:]XJVKO^!W?VIA
MN64E+2-KZ=SKJ*\I/Q$UT,',=J%/0&(X/ZUUGA;QE'KTS6EQ"(+L+N 4Y5P.
MN/0^U55P%>E'G:T\B</FV%KS5.+:;[JQU5%<IXM\57/AVYMHX+:*43(S$N2,
M8(]*RF^).S2XW-I&]\Y;**Q"( >"3U)/I40P5:<5.*T9=7,\-2G*G.5FO(]
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MA+_D:]-_ZZ_T-=M)15"HHP<5KOUT9YN(E-XJBYU%-Z;6TU6FAT7Q._X_M/\
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M!%7ZS]"_Y%_3O^O:/_T$5H5\Y4^-^K_-GV='^%'T7Y(****@T"BBB@ HHHH
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=** "BBB@ HHHH **** "BBB@ HHHH **** /_]D!

end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>image_001.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 image_001.gif
M1TE&.#EAW )& /<  /______S/__F?__9O__,___ /_,___,S/_,F?_,9O_,
M,__, /^9__^9S/^9F?^99O^9,_^9 /]F__]FS/]FF?]F9O]F,_]F /\S__\S
MS/\SF?\S9O\S,_\S /\ __\ S/\ F?\ 9O\ ,_\  ,S__\S_S,S_F<S_9LS_
M,\S_ ,S,_\S,S,S,F<S,9LS,,\S, ,R9_\R9S,R9F<R99LR9,\R9 ,QF_\QF
MS,QFF<QF9LQF,\QF ,PS_\PSS,PSF<PS9LPS,\PS ,P _\P S,P F<P 9LP
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M,S.9 #-F_S-FS#-FF3-F9C-F,S-F #,S_S,SS#,SF3,S9C,S,S,S #, _S,
MS#, F3, 9C, ,S,   #__P#_S #_F0#_9@#_,P#_  #,_P#,S #,F0#,9@#,
M,P#,  "9_P"9S "9F0"99@"9,P"9  !F_P!FS !FF0!F9@!F,P!F   S_P S
MS  SF0 S9@ S,P S    _P  S   F0  9@  ,P
M
M
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M@C@<%^40DK.#E4YS&HF1$)E%Q"S&L'-)Z\32YF) )KJQ*%"$B6!0$\<?21$
M5"02#'F'M\U5L'8*R1D:!V.AWG'Q5AX,B@B+:+7+8)!IZ'NC)&$2ESJV9(X\
M?& 4V]? /4+P?Q^<'Q;'I\6*[%"/_[OC)UGUMZS]*H@%N=V82#?)6LJD599D
M"297ILF%D"@^=\SC&-^6N:WYT8P6U"%#*!8G,![$99?Y2\S$Z#]3Q7)0MEQ?
M^3BAMH$TR1*<V.:;*O613H 3G/7I5\ONXQ4GMFH_.JH/IP3CD1I21'=4@N?C
MN$?_GJ0)!4G<VI1I,&D)WW2B7^X$!C^;@YN%"C)M0W%B.)UHER0J-)=M":8G
M"R:M&Y*RC%NL%((TB$-N'2^0K 2>*P/(&36*-&Y* XSY(IE-TQD*&!ZY!% F
M\Z8N^81/% W&)30XA[BMR*< %1RA2("?^MQ33YN:3,M,Y2Y>1H]ZACI,VO*6
M*I)R BC.V<A6F[,3J9KIGI,A2W42A9M>/D:C.^.J7ZI$&8\2,H<A79DYC>2D
M8JE25;!49%SS9U*/A"BE6<I6&VNJ/+U<1$@AB<M ,!-6HPH$/ZZ\B%YD-!'4
M[ 0L8K'$71XTE!"Y]$%WZ:R9_LG4H>QREP_R"E-Y(I@=_\;%M;BB)Q&=EK:I
M<F*J8<L,7(=XQHL=S*[MP:LIO7FQ/M*ME2247,%61BX\HFTV-&6LX8(AGK0&
MI3:2-11?Y,"G?D)%9)8E$VKJ%<L<Q84GL;7?:)^D(]=EJ:"$@6W%*I4CW18D
M:?+Z)T7.6$_@Z:5J*G7-<,DH&O!<\9@?369>LR67-D8GNZ%4Z72%=-Q^8I>D
MZ-7N\N(2(HYXCGH\/ QB/!?.('FN2:05[8 \NUA[8@D_\*W8@9$$(,,^23#]
M^V3&]LM4N^!&1DDC:S (#( 0(?C)MEEP5<,XM"R5:7:QO!]@D^/2N'G2(.!;
M*7$]'"RN&FAQML*HB-7U($Y(2O\OJK6?DO0TYX3-63^;HA)B7.G9+Z*8M$;D
MR8ZCE6/_2$]>?]OE>[G:S+]Q)+0H)HA_%2F605LZP:UQ6YXX.4J\,>TO6&XP
M*+6W,UL%>2&:GJ(GL[4D$)M*+-%1\YK3!:Z)"$@P!B0O=.<E%K/J*<F?G,/-
MTHIH3CU.*/9$-I Y-3]!7D1Z.M+UKJ0]U3<]6SI)K*B0-+N3C?S34%FR&:*:
M?61[[K<UCLO1B4BH[A8%4@Z7N ^4^-MNG+4[,<^\=\=^,I%6??5F6[KW$QY
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MYD^_^M?/_O:[__WPC[_\YT__^MO__OC/O_[WS__^^___ !B  CB !%B !GB
?")B "KB #-B #OB $!B!$CB!%%B!%GB!&+@N 0$ .P$!

end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>image_002.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 image_002.gif
M1TE&.#EAW )& /<  /______S/__F?__9O__,___ /_,___,S/_,F?_,9O_,
M,__, /^9__^9S/^9F?^99O^9,_^9 /]F__]FS/]FF?]F9O]F,_]F /\S__\S
MS/\SF?\S9O\S,_\S /\ __\ S/\ F?\ 9O\ ,_\  ,S__\S_S,S_F<S_9LS_
M,\S_ ,S,_\S,S,S,F<S,9LS,,\S, ,R9_\R9S,R9F<R99LR9,\R9 ,QF_\QF
MS,QFF<QF9LQF,\QF ,PS_\PSS,PSF<PS9LPS,\PS ,P _\P S,P F<P 9LP
M,\P  )G__YG_S)G_F9G_9IG_,YG_ )G,_YG,S)G,F9G,9IG,,YG, )F9_YF9
MS)F9F9F99IF9,YF9 )EF_YEFS)EFF9EF9IEF,YEF )DS_YDSS)DSF9DS9IDS
M,YDS )D _YD S)D F9D 9ID ,YD  &;__V;_S&;_F6;_9F;_,V;_ &;,_V;,
MS&;,F6;,9F;,,V;, &:9_V:9S&:9F6:99F:9,V:9 &9F_V9FS&9FF69F9F9F
M,V9F &8S_V8SS&8SF68S9F8S,V8S &8 _V8 S&8 F68 9F8 ,V8  #/__S/_
MS#/_F3/_9C/_,S/_ #/,_S/,S#/,F3/,9C/,,S/, #.9_S.9S#.9F3.99C.9
M,S.9 #-F_S-FS#-FF3-F9C-F,S-F #,S_S,SS#,SF3,S9C,S,S,S #, _S,
MS#, F3, 9C, ,S,   #__P#_S #_F0#_9@#_,P#_  #,_P#,S #,F0#,9@#,
M,P#,  "9_P"9S "9F0"99@"9,P"9  !F_P!FS !FF0!F9@!F,P!F   S_P S
MS  SF0 S9@ S,P S    _P  S   F0  9@  ,P
M
M
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M@C@<%^40DK.#E4YS&HF1$)E%Q"S&L'-)Z\32YF) )KJQ*%"$B6!0$\<?21$
M5"02#'F'M\U5L'8*R1D:!V.AWG'Q5AX,B@B+:+7+8)!IZ'NC)&$2ESJV9(X\
M?& 4V]? /4+P?Q^<'Q;'I\6*[%"/_[OC)UGUMZS]*H@%N=V82#?)6LJD599D
M"297ILF%D"@^=\SC&-^6N:WYT8P6U"%#*!8G,![$99?Y2\S$Z#]3Q7)0MEQ?
M^3BAMH$TR1*<V.:;*O613H 3G/7I5\ONXQ4GMFH_.JH/IP3CD1I21'=4@N?C
MN$?_GJ0)!4G<VI1I,&D)WW2B7^X$!C^;@YN%"C)M0W%B.)UHER0J-)=M":8G
M"R:M&Y*RC%NL%((TB$-N'2^0K 2>*P/(&36*-&Y* XSY(IE-TQD*&!ZY!% F
M\Z8N^81/% W&)30XA[BMR*< %1RA2("?^MQ33YN:3,M,Y2Y>1H]ZACI,VO*6
M*I)R BC.V<A6F[,3J9KIGI,A2W42A9M>/D:C.^.J7ZI$&8\2,H<A79DYC>2D
M8JE25;!49%SS9U*/A"BE6<I6&VNJ/+U<1$@AB<M ,!-6HPH$/ZZ\B%YD-!'4
M[ 0L8K'$71XTE!"Y]$%WZ:R9_LG4H>QREP_R"E-Y(I@=_\;%M;BB)Q&=EK:I
M<F*J8<L,7(=XQHL=S*[MP:LIO7FQ/M*ME2247,%61BX\HFTV-&6LX8(AGK0&
MI3:2-11?Y,"G?D)%9)8E$VKJ%<L<Q84GL;7?:)^D(]=EJ:"$@6W%*I4CW18D
M:?+Z)T7.6$_@Z:5J*G7-<,DH&O!<\9@?369>LR67-D8GNZ%4Z72%=-Q^8I>D
MZ-7N\N(2(HYXCGH\/ QB/!?.('FN2:05[8 \NUA[8@D_\*W8@9$$(,,^23#]
M^V3&]LM4N^!&1DDC:S (#( 0(?C)MEEP5<,XM"R5:7:QO!]@D^/2N'G2(.!;
M*7$]'"RN&FAQML*HB-7U($Y(2O\OJK6?DO0TYX3-63^;HA)B7.G9+Z*8M$;D
MR8ZCE6/_2$]>?]OE>[G:S+]Q)+0H)HA_%2F605LZP:UQ6YXX.4J\,>TO6&XP
M*+6W,UL%>2&:GJ(GL[4D$)M*+-%1\YK3!:Z)"$@P!B0O=.<E%K/J*<F?G,/-
MTHIH3CU.*/9$-I Y-3]!7D1Z.M+UKJ0]U3<]6SI)K*B0-+N3C?S34%FR&:*:
M?61[[K<UCLO1B4BH[A8%4@Z7N ^4^-MNG+4[,<^\=\=^,I%6??5F6[KW$QY
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MYD^_^M?/_O:[__WPC[_\YT__^MO__OC/O_[WS__^^___ !B  CB !%B !GB
?")B "KB #-B #OB $!B!$CB!%%B!%GB!&+@N 0$ .P$!

end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
