Non-Controlling Interests

The Corporation’s subsidiaries and operations that have non-controlling interests are as follows:



Subsidiary/Operation	Non-controlling interest as at Dec. 31, 2018
TransAlta Cogeneration L.P.	49.99% - Canadian Power Holdings Inc.
TransAlta Renewables	39.1% - Public shareholders
Kent Hills Wind LP⁽¹⁾	17% - Natural Forces Technologies Inc.

(1) Owned by TransAlta Renewables.

TransAlta Cogeneration, L.P. (“TA Cogen”) operates a portfolio of cogeneration facilities in Canada and owns 50 per cent of a coal facility. TransAlta Renewables owns and operates a portfolio of gas and renewable power generation facilities in Canada and owns economic interests in various other gas and renewable facilities of the Corporation.

Summarized financial information relating to subsidiaries with significant non-controlling interests is as follows:

A. TransAlta Renewables

The net earnings, distributions and equity attributable to non-controlling interests include the 17 per cent non-controlling interest in the 167 MW Kent Hills wind farm located in New Brunswick.

The South Hedland Power Station achieved commercial operation on July 28, 2017. On Aug. 1, 2017, the Corporation converted its 26.1 million Class B shares held in TransAlta Renewables into 26.4 million common shares of TransAlta Renewables. At that time, the Corporation’s equity participation percentage in TransAlta Renewables increased to 64 per cent from 59.8 per cent. The Class B shares were converted at a ratio greater than 1:1 because the construction and commissioning costs for the project were below the referenced costs agreed to with TransAlta Renewables.

On May 31, 2018, TransAlta Renewables implemented a dividend reinvestment plan ("DRIP") for Canadian holders of common shares of TransAlta Renewables. Commencing with the dividend paid on July 31, 2018, eligible shareholders may elect to automatically reinvest monthly dividends into additional common shares of the Corporation.

As a result of the conversion of Class B shares, the DRIP and the transactions described in Note 4, the Corporation’s share of ownership and equity participation in TransAlta Renewables has fluctuated since its formation as follows:



Period	Ownership and voting rights percentage	Equity participation percentage
April 29, 2014 to May 6, 2015	70.3	70.3
May 7, 2015 to Nov. 25, 2015	76.1	72.8
Nov. 26, 2015 to Jan. 5, 2016	66.6	62.0
Jan. 6, 2016 to July 31, 2017	64.0	59.8
Aug. 1, 2017 to June 21, 2018	64.0	64.0
June 22, 2018 to July 30, 2018	61.1	61.1
July 31, 2018 to Nov. 29, 2018	61.0	61.0
Nov. 30, 2018 to Dec. 31, 2018	60.9	60.9



Year ended Dec. 31	2018	2017		2016
Revenues	462	459		259
Net earnings	241	13		1
Total comprehensive income	281	(24	)	40
Amounts attributable to the non-controlling interests:
Net earnings	94	11		2
Total comprehensive income	110	—		18
Distributions paid to non-controlling interests	79	85		83



As at Dec. 31	2018		2017
Current assets	250		145
Long-term assets	3,497		3,483
Current liabilities	(159	)	(356	)
Long-term liabilities	(1,192	)	(1,075	)
Total equity	(2,396	)	(2,197	)
Equity attributable to non-controlling interests	(961	)	(812	)
Non-controlling interests’ share (per cent)	39.1		36.0

B. TA Cogen



Year ended Dec. 31	2018	2017	2016
Results of operations
Revenues	185	175	274
Net earnings	29	61	211
Total comprehensive income	29	61	258
Amounts attributable to the non-controlling interest:
Net earnings	14	31	105
Total comprehensive income	14	31	128
Distributions paid to Canadian Power Holdings Inc.	86	87	68



As at Dec. 31	2018		2017
Current assets	82		193
Long-term assets	354		404
Current liabilities	(54	)	(73	)
Long-term liabilities	(28	)	(26	)
Total equity	(354	)	(498	)
Equity attributable to Canadian Power Holdings Inc.	(176	)	(247	)
Non-controlling interest share (per cent)	49.99		49.99