TransAlta Acquires Colorado Gas Assets from Blackstone in $1 Billion Deal
The acquisition of Mountain Peak and Canyon Peak facilities adds 318 megawatts of contracted capacity to TransAlta’s portfolio, with closing expected in late 2026.
Canadian power producer TransAlta has agreed to acquire two natural gas-fired peaking facilities in Colorado from Blackstone for US$1 billion. The transaction involves the purchase of Mountain Peak Power LLC and Canyon Peak Power LLC, assets located near Denver with a combined capacity of 318 megawatts. The deal marks a strategic expansion into the Western United States power market for the Canadian generator.
The purchase price comprises the assumption of approximately US$750 million in project-level debt and a US$250 million equity component. To fund the equity portion, TransAlta launched a bought-deal offering of 18.2 million common shares at C$19.20 per share, raising approximately C$350 million in gross proceeds. Underwriters were granted a 15 per cent over-allotment option, which could increase the total proceeds by about C$53 million.
Both facilities utilise GE LM2500XPRESS gas turbines and are fully contracted under fixed-capacity tolling agreements with investment-grade counterparties. These agreements extend for more than 25 years and pass through fuel, operating, maintenance, and capital costs to customers. Mountain Peak Power, a 162-megawatt facility, entered commercial operation in September 2025, while the 156-megawatt Canyon Peak Power plant is expected to begin commercial service in the third quarter of 2026.
TransAlta estimates the assets will contribute approximately $110 million (US$80 million) in annual adjusted EBITDA and about $45 million (US$33 million) in annual free cash flow. The company stated the acquisition is expected to be immediately accretive to free cash flow per share and identified opportunities to capture operational, insurance, and tax synergies. Chief Executive Officer Joel Hunter described the move as establishing a foothold in a market with strong growth potential.
The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and the completion of commercial operations for the Canyon Peak facility. TransAlta noted the deal enhances its contracted generation profile, resulting in a weighted average contract duration of 27 years. The stable cash flows are intended to support future growth initiatives, including data centre-related opportunities in Alberta and redevelopment efforts at the Centralia site.
