Mr. Brent Gellner reports

TRANSALTA RENEWABLES REPORTS SECOND QUARTER RESULTS FOR 2014

TransAlta Renewables Inc. had second-quarter comparable earnings before interest, taxes, depreciation and amortization of $35.2-million. Net earnings for the second quarter were $5.9-million, or five cents per share.

"Our second-quarter results came in below Q1, but are fully in line with our expectations as seasonal wind patterns tend to put downward pressure on our second- and third-quarter results. We remain on track to deliver a solid first year," said Brett Gellner, president. "We also continue to focus on our strategy to grow TransAlta Renewables."

Historically, financial statements have not been prepared by TransAlta for the assets of the company, as they had not been operated as a separate business by TransAlta. Accordingly, the financial statements for periods prior to the initial public offering on Aug. 9, 2013, reflect the financial statements for the assets in a manner consistent with how TransAlta managed the assets and as though the assets had been a separate corporation. Therefore, historical financial information is not directly comparable to current results due to the implementation of certain commercial arrangements between the company and TransAlta Corp. that took effect upon closing of the company's IPO, including the entering into of firm-priced power purchase agreements for generating facilities whose power was previously sold on a merchant basis. Prior to the IPO, these commercial arrangements did not exist and the company's assets were held directly or indirectly by TransAlta. More details in regard to the basis of preparation can be found in note 1 of the company's 2013 audited consolidated financial statements.

Summary results

Second quarter 2014:

• Comparable EBITDA of $35.2-million;
• Funds from operations of $26.9-million;
• Production of 743 gigawatt-hours compared with 732 gigawatt-hours for the same period last year.

Year to date 2014:

• Comparable EBITDA of $90.9-million;
• Funds from operations of $73.3-million;
• Production of 1,724 gigawatt-hours compared with 1,500 gigawatt-hours for the same period last year.

                        SECOND-QUARTER 2014 HIGHLIGHTS
      (in thousands of dollars, except production and per share amounts)

                                      Three months ended    Six months ended
                                       June 30,  June 30,  June 30,  June 30,
                                          2014      2013      2014      2013

Production (GWh)(1)                        743       732     1,724     1,500
Revenue                               $ 50,013  $ 70,940  $117,978  $131,857
                                      --------  --------  --------  --------
Net earnings attributable to common                                         
shareholders                          $  5,890  $ 19,512  $ 27,024  $ 33,516
                                      ========  ========  ========  ========
Comparable EBITDA                       35,194    55,193    90,856   101,577
Net earnings per share attributable                                         
to common shareholders, basic and                                          
diluted                               $   0.05  $   0.17  $   0.24  $   0.29
Comparable earnings per share             0.05      0.17      0.24      0.29
Dividends paid per common share           0.19         -      0.38         -

(1) Includes production from Wyoming Wind                                   

A complete copy of TransAlta Renewables' second-quarter report, including management's discussion and analysis, and unaudited financial statements, is available in the investor centre section of the company's website.

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