Premium Dividend, Dividend Reinvestment and Optional Common Share Purchase Plan

Under the Plan, Shareholders have the option to purchase additional shares through reinvestment of dividends at a current three per cent discount (Dividend Reinvestment Component) or receive the equivalent to 102 per cent of the dividends payable in cash (Premium Dividend Component).

Eligible shareholders enrolled in either the Dividend Reinvestment Component or the Premium DividendTM Component may purchase new shares at a discount to the average market price under the optional cash payment component (the OCP Component) of the Plan by directly investing up to CDN$5,000.00 per quarter. The applicable discount under the OCP Component is also determined from time to time by the Board.

For further information on the plan, please read the Plan brochure and other related information which can be downloaded from the Related Documents area of this page.

Reinvestment Prices

View historical TransAlta reinvestment prices.

To Participate

To participate in the Plan, eligible shareholders must reside in Canada. All eligible shareholders who were properly enrolled in the Dividend Reinvestment Component of the prior plan will automatically be deemed to be a participant in the Dividend Reinvestment Component of the Plan, without further action. An eligible shareholder who was either not properly enrolled in the dividend reinvestment component of the Prior Plan or who wishes to enroll in the Premium Dividend Component of the Plan, must enroll in the Plan either (i) directly if such shareholder is a registered shareholder, or (ii) if such shareholder is a beneficial shareholder whose shares are held through a broker, investment dealer, financial institution or other nominee, indirectly through such broker, investment dealer, financial institution or other nominee.

Registered shareholders of record wishing to join the Plan can obtain authorization forms from the plan administrator, CIBC Mellon Trust Company. If you would like to enroll in the Plan, an authorization form and the Plan brochure can be downloaded from the Related Documents section of this page. The authorization form must be received by the Trustee, CIBC Mellon Trust, five business days before the record date. All inquiries relating to shareholder accounts in the Plan should be addressed to CIBC Mellon Trust Company.

Please note, registered participants of CIBC Mellon Trust who are interested in making optional cash payments, must fill out CIBC Mellon Trust Company's the Plan Participant Declaration Form as required by The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada). It too can be downloaded from the Related Documents section of this page. The form need only be filled out and submitted to CIBC Mellon Trust Company once.

Neither the Plan nor the shares issuable under the Plan have been registered in the United States. At this time, U.S. persons are not eligible to participate in the Plan.

CIBC Mellon Trust Company
P.O. Box 7010 - Adelaide Street Station
Toronto, Ontario M5C 2W9
Phone: 1-800-387-0825 toll free in North America
Phone: (416) 813-4600 in Toronto or outside North America
Fax: (416) 813-4555
Email: inquiries@cibcmellon.com

History

On February 21, 2012 TransAlta announced the addition of a Premium Dividend Component to its existing Dividend Reinvestment and Share Purchase Plan. View news release.

On April 29, 2010 the Board of Directors approved the issuance of common shares from Treasury at a three per cent discount under TransAlta’s Dividend Reinvestment and Share Purchase Plan (DRASP), commencing with the common share dividend payable on July 1, 2010. View news release.

As of August 2, 2001, non-registered shareholders can participate in the Plan via CDS & Co. Beneficial owners of common shares should contact their investment dealers to enroll in the Plan and to make optional cash payments.