en.Wedoany.com Reported - Canadian power producer TransAlta Corp said on Wednesday it will acquire two natural gas peaking facilities near Denver, Colorado from Blackstone for about $1 billion, strengthening its position in the U.S. Western electricity market.

Power producers are increasing flexible natural gas generation capacity to meet growing demand. The industry is preparing for rapid growth in electricity consumption, partly driven by power-hungry data centers.

The acquired assets, Mountain Peak Power and Canyon Peak Power, have a total installed capacity of 318 megawatts and are backed by long-term tolling agreements of over 25 years with investment-grade customers, fully underwritten. The transaction includes the assumption of $750 million in project-level debt and approximately $250 million in equity raised through a C$350 million bought-deal equity offering.

Under the offering, a syndicate led by CIBC Capital Markets and RBC Capital Markets will purchase 18.2 million shares at C$19.20 per share.

The facilities are expected to generate approximately $80 million in adjusted core profit and about $33 million in free cash flow annually, with additional upside from performance incentives.

"These assets will generate long-term contracted cash flows that can be redeployed into other growth opportunities, such as data centers in Centralia and Alberta," said CEO Joel Hunter.

TransAlta said the transaction will be immediately accretive to free cash flow per share by a low- to mid-single-digit percentage.

The deal is expected to close in early Q4 2026, subject to the completion of the Canyon Peak facility, which is scheduled to begin operations in Q3.

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