Q2 2025 TransAlta Corp Earnings Call
Good morning. My name is Liliana. I'll be your conference operator. Today at this time I would like to welcome everyone to turns out the corporation's. Second quarter 2025 results conference call.
All lines have been placed on you to prevent any background noise.
After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star 1 1 on your telephone keypad, if you would like to withdraw your question, please press star 1 1 again, thank you, Miss Paris. You may begin your conference
Thank you, Olivia. Good morning, everyone. My name is Stephanie Paris, and I am the Vice President of Investor Relations and Corporate Strategy of TransAlta. Welcome to TransAlta's second quarter 2025 conference call.
With me today are John cuss president and chief executive officer, Joel Hunter EVP, finance and Chief Financial Officer.
Lane van mil EVP, commercial and customer relations, and Nancy Brennan EVP legal and external affairs.
Today's call is being webcast and I invite those listening on the phone lines to view the supporting slides that are posted on our website, a replay of the call will be available later today, and the transcript will be posted to our website shortly thereafter.
All the information provided during this conference call is subject to the forward-looking statement qualification set out here on slide 2 detailed further in our mdna and Incorporated in full for purposes of today's call.
All amounts referenced are in Canadian dollars. Unless otherwise noted the the non IFRS terminology used, including adjusted ibida and free cash flow are reconciled in the mdna for your reference.
On today's call John and Joel will provide an overview of trans Altus quarterly results after these remarks, we will open the call for questions with that. I will turn the call over to John.
Thank you Stephanie. Good morning everyone and thank you for joining our second quarter conference call for 2025.
As part of our commitment towards reconciliation, I want to begin by acknowledging that our company operates on the traditional territories of indigenous peoples across Canada, Australia, and the United States.
We recognize the rich and diverse histories, cultures, and contributions of the First Nations, Inuit, Métis, Aboriginal, and Native American communities. And it is with gratitude and respect that we thank the people who have lived on these lands for generations for reminding us of the ongoing histories that precede us.
TransAlta delivered exceptional results during the second quarter.
Our Alberta portfolio's hedging strategy and active asset optimization generated realized prices, well above spot prices. While our hydro and wind assets provided significant environmental, offsets to our gas leads carbon compliance, obligation highlighting, the value of our diverse and integrated generating Fleet.
We were also pleased with the performance of our contracted Fleet, which exceeded our expectations.
60 cents per share and an average fleet availability of 91.6%.
We also successfully recontract at our mean, 1 mean 2 and Wolfe Island. Wind facilities in Ontario. The new contracts will replace the current energy contracts for the 3- win facilities. When they expire, extending their respective contract dates to 2031 for a length and 1 and to 2034 for mean 2 and we'll file it.
Wholesale electricity prices in Ontario are rising, signaling a growing tightness in the supply and demand balance in the province, which sets our fleet up well for recontracting in the next decade.
We continue to engage directly with the government of Alberta and the ISO on the Alberta data center strategy, their approach to large load integration, as well as the Restructured Energy Market design or REM.
In June the iso release details on Phase 1 of its approach to Data Centers, which involve the allocation of 1,200 megawatts of system capacity to Data Center proponents within the province, including Transit.
The ISO has now commenced work on Phase 2 of its data center strategy, which will establish the framework for incremental data center development in the province.
the government of Alberta continues to express their commitment, to the development of a data center industry in a manner that enables investment while maintaining an affordable and reliable electricity system, and we remain confident that the province will develop a framework that will support our data center Ambitions, which in turn will see significant investment dollars, come to Alberta
turning more specifically to the work that we're doing in realizing the value of our Legacy generation sites. We're pleased with the progress that we're making on our Alberta data center strategy and the associated commercial negotiations, which now reflect the iso's approach to large load integration.
The ISO currently expects demand, transmission service contracts to be executed in mid-September, which will secure each proponent's access to system capacity.
we continue to work closely with our counterparties and our progressing, towards the execution of a data center, memorandum of understanding in relation to our system capacity, allocation
we're excited about the data center opportunity in Alberta, both for the meaningful investment. It brings to the province, as well as the anticipated increase in load, which we expect will rebalance the current oversupply of generation in the province, an added benefit for our diverse Alberta portfolio.
At our centria site. We're actively engaged in commercial negotiations. And continue to Target. Executing a definitive agreement before year end.
we expect to be able to share detailed development plans for centria in the coming months, as we firm our plan forward for the site, I'll now pass the call over to Joel
Thanks, John, and good morning, everyone. We are pleased with our second quarter operational and financial performance and remain confident in our ability to meet our 2025 guidance range.
During the quarter, we generated 349 million of adjusted ibida, which was 33 million higher than the second quarter of 2024. Due to favorable and silvery Service pricing the use of environmental and tax attributes in Alberta and optimization of our assets to capture price volatility in Alberta and at our Center site in Washington State.
Turning to our segmented results relative to the same period in 2024.
Hydro segment adjusted, I beta increased to 126 million relative to 83 million last year. Due to higher income company, sales of emissions, credits to the gas segment, to fulfill our 2024 ghd obligation as well as higher production and then soy prices.
The wind and Source segment produced adjusted e but of 89 million in line with the second quarter 2024, primarily due to higher environmental, and tax attributes Revenue in Alberta. That was offset by lower tax attributes. Revenue from our Oklahoma assets and lower Alberta. Power pricing for a merchant win Fleet.
In the gas segment. Adjusted ebit to decrease to 128 million from 142 million in 2024 mostly due to lower realized power prices in Alberta and higher carbon and natural gas pricing which was partially offset by the addition of the Heartland. And previously mentioned higher quantity of internally generated emissions credits utilized to settle a portion of our 2024 THD obligation.
The energy transition segment delivered just an EBITDA of $19 million.
The $17 million increase year-over-year is due to higher market optimization benefits and higher availability at our centrally located facility, which had an extended turnaround in the second quarter of last year.
Market volatility across North American natural gas and power markets and lower realized subtle trades in the quarter compared to last year.
Corporate adjusted Eva was in line with last year at 39 million largely, due to increased spending to support our strategic and growth initiatives. And the addition of corporate costs related to the acquisition of Heartland.
As a reminder, our adjusted EBA excludes. The impact of Erp costs is the integration is not reflective of ongoing operations or the performance of our operating assets.
Overall, this strong performance generated free cash flow of 177 million in the second quarter in line with the same period last year.
Our higher adjusted. EA was offset by higher sustaining Capital expenditures in our gas Fleet during the quarter as well as higher net, current tax in interest expenses.
Turning to the Alberta portfolio, the second quarter spot price averaged $40 per megawatt hour, which was lower than the average price of $45 per megawatt hour in 2024.
The decline year-over-year was primarily due to incremental generation from the addition of new gas, wind, and solar supply in the province, as well as benign weather.
Throughout the quarter, we deployed hedging strategies to enhance our portfolio margins and mitigate the impact of lower Merchant power prices, and realized the benefit from approximately 1,900 gigawatt-hours of hedges, at an average price of $70 per megawatt-hour, representing a 75% premium to the average spot price.
In addition, our Hydro Fleet delivered an average realized merchant price of $82 per megawatt hour, a 105% premium to the average spot price, while the Gas Fleet realized a 55% premium to the average spot price.
Our Merchants wind Fleet, which cannot be used as firm power for hedging activities, realize, an average price of $23 per megawatt hour.
We're able to deliver additional and silvery volumes across the Alberta Fleet in the quarter. Our average realized price for insulae Service pricing settled at $42 per megawatt hour, a 5% premium to the average spot price
Despite relatively benign weather in the quarter, which resulted in lower spot power prices, we captured additional margins by fulfilling a portion of our higher price. Hedges with purchase power. When prices were below our variable cost of production leading to an overall realized price per megawatt hour produced of 1111.
Looking at the balance of the year, we have approximately 4,300 gigawatt hours of our Alberta generation hedged at an average price of $9 per megawatt hour. Well, above the current forward curve of 48 per megawatt hour,
Going forward. We expect to continue to optimize our Fleet and reduce production in low price. High Supply hours by fulfilling our financial Hedges and customer requirements with open market purchases.
Looking at next year, our team is increased. Our hedge position to approximately 7,000 gigawatt hours at an average price of $67 per megawatt hour, which remains well, above current forward pricing levels. I'll now turn the call back over to John
Thank you, Joel.
We remain focused on the following priorities for 2025.
First, delivering adjusted City, but done free cash flow within our 2025 guidance range.
Second, we are improving our leading and lagging safety performance indicators while achieving strong fleet availability.
Third, we are maximizing the value of our legacy thermal energy campuses by capturing the opportunity presented in securing a data center customer at Alberta Thermal, as well as a cold-to-gas conversion at Sentria.
Fourth successfully pursuing any strategic m&a opportunities, that may arise.
Fifth, maintaining our financial strength and flexibility, which Joel and his team advanced through the extension of our credit facilities in July and finally implementing the upgrade to our ERP program.
I believe TransAlta offers a compelling investment opportunity.
We're a safe and reliable operator with strong cash. Flows underpinned by our diverse.
Diversified hydro, wind, solar, and gas portfolio located across three countries, complemented by our leading asset optimization and energy marketing capabilities.
And our company also has a sound financial Foundation. Our balance sheet is flexible, and we have ample liquidity to pursue and deliver multiple growth opportunities along with the ability to also, return Capital to our shareholders through dividends and share repurchases.
Finally, and most importantly, we have our people.
Our people are our greatest asset and I want to thank all our employees and contractors for their commitment. In setting the company up for success in the second half of 2025.
Thank you. I'm not trying to call over to Stefan.
Thank you, John. Operator Livia, would you please open the call for questions from the analysts?
Certainly, ladies and gentlemen. To ask a question at this time, you will need to press *1, 1 1 on your telephone and wait for a name to be announced.
so we try a question simply press star, 1 1 1, again please, stand by while we compile the Kenny roster,
not first question, coming from the line of Robert hopewoods, go to your bank yall and is now open
Hello everyone. Uh, first question on the, uh, data center discussions with your customers there. Uh, what are the gating factors, uh, you know, to successfully execute an MOU there? As well as if additional capacity does come up for grabs, just given the fact that two developers have dropped out, you know, do you have, uh, we'll call it enough demand in pocket to, uh, go after those as well?
Um, good morning, Robert, um, in terms of sort of the additional stage gating items. Um, it it it isn't that they're sort of as any significant impediment to us moving forward, it just takes time for us to finalize all of the terms associated with the mou. You know, we're working with our customers, they have work that they're doing as well. Um, we had a shift in the approach that the iso was taking around data centers, and all of that just takes time. But what I can tell you is that we're very, very pleased with uh, progress that we're making and um, our confident in the project is we're envisioning it going forward. Um, in terms of additional capacity, look, we're focused on the capacity that's been allocated to us and we're focused on what subsequent subsequent stages of development could occur at the time that the site and that takes a bit of time to think through, with our, uh, counterparties. So those would be the main, um, the main things, right now I'm not seeing, you know, any significant amount
Impediments, we're just working things through.
Great, appreciate that. Uh, and then maybe turning attention to South
Order midlife natural gas m&a. Uh, can you update us on how you're thinking about that market? And uh, you know, is this a uh, an increasing Focus for the organization?
um,
The, the short answer is. Yes, it is an increasing Focus for the organization. We're actually seeing excuse me, quite a few opportunities.
Um, South of the Border. But actually, uh, in places also North of the Border, I would say, uh, uh, around, uh, natural gas. Our focus is obviously on facilities that would be in the core markets that we're focused on, which is the West in particular, the PAC Northwest. And also, I would say, the Desert Southwest. Um, there's also opportunities potentially in Ontario that we're looking at. So it is very active, um, for our team. We like the multiples that we see those assets being traded at right now. They work for us, and given our energy marketing expertise, um, you know, they really are a priority. But I would say we are also seeing selectively opportunities around renewables as well, as there's been a bit of compression in the multiples, both on the renewables and at the same time, a bit of an increase in the multiples on gas. So, to a certain point, they actually overlap. Um, a little bit, Joel. I don't know if you want to add anything to that. I think, John, you're, you know, it's um, it's a busy time for our team.
Excellent, thank you.
Thanks, Robert.
Thank you.
Our next question, coming from the line of Maurice. Joy with RBC Capital markets. Yen is now open.
Yeah. Um, on the first point, look, when we talked about sort of mid-year, roughly speaking, to get an MOU done, that was on the basis of the best knowledge we had at the time. Uh, you know, in that first quarter. Um, we are actively involved. Um, right now we are making progress. Um, there has been an evolution in kind of the way that we envision the project developing, um, not just in terms of our immediate allocation but over time. And that just takes time, uh, to work through. Um.
You know, we're we're diligently progressing that and uh and we do expect to uh to advance that uh in a very orderly way in in in in the coming period.
And, and today on your second question. Yep. Go ahead. Yep. On the second part on delivering, um, you know, additional megawatts here. Look, all of the discussions that we are, having all of the discussions that we're having with the iso. I think the vision that the province has on seeing incremental um, load come into the province and and develop a, a healthy and vibrant data center, uh, industry in the province, I think remains unabated, I would say, you know, we're focused on bringing, you know, subsequent phases of, of load on our site. We have all these great attributes at our facilities, there to see it through. We're not alone in the province in that regard. And and I think, um, you know, we're confident. I know our company is
I am confident that we will see a pretty vibrant data center industry develop in the province over time. The other thing I would say is, and I know this shouldn't be lost on people, it will serve to also rebalance load in the province, which is a particular benefit. I would say to a company like ours that has that diversity, a fleet that can benefit through the portfolio, and the great optimization team that we have.
That sounds great. Thank you very much.
Sure.
Thank you.
Our next question.
Jen coming from the line.
The Line is now open.
Hi, thanks. Good morning. I want to stand the the same topic and
At maybe just for you. John. Can you elaborate you mentioned the
Versus q1 or, or maybe a different timeline to the, the project, uh, materializing a bit differently than than how you envision can. You, can you expand on that a bit? Is that that size counterparty like I
Guess just any any, any additional details would be helpful.
No, I I it it isn't about counterparties or even particularly about um size. It's more around, you know, getting Clarity in June from the ISO in terms of how the phase was going to actually play out, um you know, up until that time, we were not really guessing but sort of anticipating the pathways that it could take
And how our facilities could fit into that. We got Clarity, you know, a month and a bit ago. Um, and we're working with our customers to kind of realize it now that we've got Clarity and also spending time with them to figure out, you know, what subsequent stages look like and what the timing would be. So it's not.
You know, it's not that there's a, a deviation or a significant change in in the process that we're doing. Um, it takes it just takes time to get it done in the way that makes sense for everybody, but but we remain very confident. In fact, I'd say more confident now and and very pleased. Uh, in the process that we're making.
Okay, that's, that's good to hear. Um and then um I know you mentioned the the mid September DTS execution.
But that doesn't suggest, from your eyes, that an MOU is around.
That timeline, it sounds like it just your timelines have shifted a bit from your initial expectations.
That that's right. I mean we're working on. So, you know, the DTs execution timeline is something, we're obviously aware of because we're we're focused on securing our positions. So so we will be entering into that uh, contract on that date. But but honestly, our M, our mou is working kind of in a pathway that is separate from a timing perspective to that. So that DTS contract component is a given from our perspective. If I can, if I can put it that way,
Okay, got it. Um,
and may may just the last ones that same topic here is, um,
Yeah, let’s just assume what you have here to allocation Phase 1 year, you short up, uh, MOU. And then contract.
is there additional opportunity from
keep those other assets to,
uh,
engage in, uh, additional ppas with data centers that are built that need power.
Maybe it's wonderful to be taking.
Yeah, um, I what I would say to that is the way that we are working. Um, with our customer right now would would sort of see us, um, at least in the immediate phase, you know, being a comprehensive, um, uh, solution for the customer that we're working with. So we're not, you know, currently envisioning that we're, you know, breaking that up or parceling it up at this point in time then,
Okay, got it. That's useful. Thank you.
Yep.
Thank you.
Our next question coming from the lineup. John mold with TD Cowen, new line is now open.
Hi, uh, morning. Uh, everybody maybe just starting with potential uh Fleet investments in Alberta, and that's in the context of the the data center opportunity, you know, in the scenario of a material Market. Tightening your, your older cool to gas units. I mean, presumably we wouldn't see them running at 90% capacity factors.
Outside of K3, what kind of normalized capacity Factor could we see from the Sun, to answer, or share net assets? If the market does tighten by 1.2 gigawatts, let's say and
Are there any additional Investments that you need to make on your end to to maintain that level of of utilization?
Yeah, good morning. Um, John. So look if the, uh, it depends on the pace at which the data centers, come into the province. But, but in the scenario that you described where the full 1.2 gigs ends up coming into the province, um,
Reliability in the province. Would absolutely require our Fleet to be running at relatively High uh uh capacity factors. It doesn't, it doesn't take too much for the reserve margin in the province, to actually tighten up with the result that our units have both significantly higher capacity, factors and also an Associated um, increase in in the realized spot price in the province. Beyond I would say what the forward curve is currently, um, indicating in terms of, you know, capital investment that we would need to, um, make sure that, you know, we do this so that we've got the, the units in the appropriate kit in the context of also our own data center, uh, obligations it is relatively modest, I would say it. Um, you know, we're not talking uh, uh, numbers that are Beyond kind of the tens of millions of dollars normal core sustaining Capital, uh, for the units to make sure that they're able to, uh, to run. And then what is required on the part of our
Our company, which is work that we're doing now, is envisioning, you know, what are the 2030s look like as we get into the next uh decade to meet in an efficient manner um load growth over that period of time. So um it I think we're in a good place because we've got a lot of optionality around our Fleet uh and it is in um physically the operationally in in a very good place.
Okay, thanks for that detail. Um and then maybe on your your comments around the phase 2 expansion and engaging with with counterparties there,
I was wondering what those discussions are, like so far in terms of, you know, the timing that customers are hoping to see and what kind of initial dialogue you've had with government or ASO.
Regarding Phase 2, how they’re approaching it, the pace that could be achieved on that, the consultation, and giving the market clarity there.
Yeah, I'll I'll maybe start with the the back part of your question and then flip to the to the front part of the question, John. Look, the discussions with the ASO and and even the government are at, I would say at a relatively early phase. Um, we understand that they want to encourage the development of the industry. While making sure that we have reasonable prices in the province and an appropriate level of reliability, that makes a lot of sense to us, uh, in terms of the way that they're progressing that. So you know, the work in the discussions are at an early phase.
But I think in principle um that makes a lot of sense and is very logical. In terms of timing. I can tell you that, you know, we're encouraging them to do it.
There isn't a lot that that I can candidly say uh on the call other than it is a focus area for them, they do have a view on what a ramp up could potentially be and we're working with them to be able to plan that up and make sure that we serve their needs in an appropriate in an appropriate manner as we go forward.
Yeah, that's great. Thanks, maybe 1 last 1 on on carbon credit sales, those were up year-over-year and I appreciate some of that to function of of the tier program structure. Um,
Alberta has said, it'll freeze the tier price, you know, obviously that's in conflict with the the minimum National carbon price from the federal government. How are you thinking about your carbon credit, uh, portfolio, more broadly, and then bit of an aside, but does that remain a tool in the data center discussion? Uh, or or is the carbon aspect of that data center conversation less relevant right now.
Yeah. I look, um,
I would be remiss if I started sort of predicting where kind of the province will end up from a tier perspective. At, you know, the 95 level where we are today versus kind of the escalation that is required from a policy perspective at the federal government. Um, you know, for much of the planning that we do, we tend to think of a continuation of carbon pricing. I think that's sort of a conservative view that we take, um, in terms of the fleet, but I think that's to be determined, to be candid, John. Um, in terms of our environmental attribute portfolio in the province, it is.
Is a real advantage that we have both on the hydro side and on the Wind side. Um it it it is able to provide a meaningful reduction in the impact of, you know, the emissions that we have on our Fleet which tends to be a little bit less efficient than some of the new facilities that are, that that have been built. But it basically nullifies kind of that, that differential, um, between ours and those kind of facilities. And, and the values are, you know, pretty significant. So we see a lot of value in those. Uh, attributes. We'll continue to um, I think Joel, probably the right word is monetized. Uh, those assets as we go forward and um you know, use them to ensure the competitiveness of our Fleet but also in a cost-effective way meet the needs of our data center customer uh going forward. So it it's uh it's a real asset. I would say that we have
Okay, I'll leave it there. Thanks for taking my questions.
Thank you.
Thank you. Our next question, coming from the line of March Jave with CIPC, your line is now open.
Yeah, good morning everyone. Um, are you able to state how much allocation you received in Phase 1?
Um, Mark, we we we haven't stayed at how much allocation we have. And we're we're, we're not in a position to actually um, uh, give that right now, what I would say is we're comfortable with it and, um, we're working around it and our customers are also comfortable with it and um, particularly in, in, in, in the context of how they Envision, uh, the development of our site working forward and, um, you know, our focus with them is as much on subsequent stages as it is on the, on the base amount.
And then have you um made changes in terms of which assets you think you would use to serve the customer on the allocation through Phase 1. Like it's even before like Ki pills you know 2 was there is it more thinking your 3 or combining with Hydro because you just kind of made a comment about the hydro offsets being something that might be a a tool you can use for your customer.
Question I think one of them would be in terms of the physical location for the data center that would very much be in.
In and around our T cell site that is the work that we're doing in all of the.
Everything from.
Permitting right through to kind of geotechnical work, it's all with a view to developing the.
The physical site there for the center and as you know it requires the largest footprint to be able to do that in terms of how we serve.
The load we can serve it more broadly from I would say our entire fleet. It isn't just wedded to to keep bills too as we think of subsequent phases it might be a little bit potentially a little bit more unit contingent if I can put it that way, but right now we absolutely have our entire based on this.
Structure of phase one we absolutely have our entire portfolio to be able to use to basically serve the needs of our customer going forward, which is really really helpful. It's great having that portfolio.
No that's great to hear and then.
Did you need clarity on phase two take occurred to standards, even with your customer or can you do it in stages, where using the first allocation you can move to commercial.
Final contract and then have sort of a one.
Ability to contract beyond that for subsequent megawatts.
Yes, I think I think it's more of the if I remember your yet that your statement more of the latter part in other words.
We're looking at.
The finalization of our M or you will not require the finalization of phase two of the consultation process. I think we have a number of tools to be able to deal with.
In a subsequent staging going forward. So hopefully that gives you a sense.
That's helpful and lastly for me on this topic here.
The decision not to try to buy allocations from other people.
Obviously, you would have an upfront payment for that but versus having to invest to bring in new capacity. This year, new mode, which I believe is the criteria that will come through in <unk>. So I'm just trying to square those two opportunities there to get as much as you can now through phase one versus.
A bit more of a capital intensive opportunity set through phase II.
Yes look I'm not going to mark kind of.
Sort of speculate or get into discussions on kind of the reallocation of the megawatts. It ended up taking place going forward I look what I would say is I agree that.
The second phase is going to like our working assumption is it's going to require incremental generation to be provided but what I would say in response to that and you know this is a point that that were working to speak to the government and the ISO about Deb underutilized facilities are akin to incremental generation being brought on.
In the in the Province, you know if something has a capacity factor of 20%. It has a lot of room to provide additional.
Generation to serve the needs of a data center customer whether it's in front of the fence are behind that that's candidly it.
To be able to see it through so that's just.
Something that we need to be very mindful of and is certainly a sticking point for us.
And then just one last one.
The units that you had earmarked for the Pinnacle project are those things that you can repurpose for data center customer.
Potentially yes.
Okay, great. Thanks.
Thank you.
Thank you. Our next question coming from the line of Julien Dumoulin Smith with Jefferies. Your line is now open.
Hi, This is <unk> on for Julian Good morning, everyone maybe.
Maybe just a follow up on John's question regarding the developing phase two discussion.
Are the potential Counterparties you are speaking with the same kind of subset and type of customers at the same types of goals that is.
Phase one.
And do you see discussions progressing.
Similarly to the ones you've had over the past year.
Yes, good morning Tanner.
I would say is that our discussions are.
With a.
Singular I would say customer.
Customer and they would.
Encompass not only sort of phase one but phase II.
Okay, great. Thanks, and then just wanted to follow up on your Centralia commentary and the extended timing do you still view the opportunity through the lens of the specific and singular customer with a well defined development plan on site or are there at this point competing visions or counterparties.
Under deliberation.
Yes.
The work that we're doing at Centralia is with respect to meeting the needs of a of a singular customer in that jurisdiction and it is around literally devoting the entire facility to that customer on a call converted to natural gas fire generation basis for an.
And the period of time, it would be sort of a long term power purchase arrangement or tolling agreement for that facility.
There would need to be capital spend to do the conversion from the call to the natural gas, but it literally is in terms of the existing facilities. We have on site all around Centralia unit, two and how we would bring that forward having said all of that we do have a very large geographic footprint footprint in the region.
And our team is also exploring potential opportunities to add other generation there likely because of the gas constraints at least initially more in the vein of renewables, whether that would be solar or wind or possibly even storage on site that could be for that singular customer it could be for other customers in that.
Something that is.
<unk> is developing the site is great I mean, it's about <unk>.
80 kilometers 60 miles or so away from the city of Seattle.
It's a great footprint, we have a skilled workforce their transmission example.
To use the Canadianism, it's really at center ice of kind of the grid, there and we view the unit as being critical to the reliability of the grid and that in that part of the world.
Fantastic. Thank you.
Thank you.
Thank you and there are no further questions in queue I would now like to turn it back to Stephanie Burns for any closing remarks.
Thank you everyone that concludes our call for today.
If you have any further questions. Please don't hesitate to reach out to the Transalta Investor Relations team.
Yeah.
This conclude today's conference call. Thank you for your participation and you may now disconnect.
Okay.
Yeah.
Sure.
[music].
Okay.
Okay.
Okay.