TransAlta Buys Colorado Gas Plants in $1 Billion Deal
TransAlta acquires two Colorado gas-fired peaking plants from Blackstone for $1 billion, adding 318 MW of capacity with long-term tolling agreements.
TransAlta Corp. is expanding its U.S. footprint through a $1 billion acquisition of two natural gas-fired peaking facilities in Colorado, strengthening its position in the Western U.S. power market and adding long-term contracted cash flow to its portfolio.
The Canadian power generator has agreed to acquire Mountain Peak Power LLC and Canyon Peak Power LLC from Blackstone. The two facilities, located near Denver, have a combined capacity of 318 megawatts and are backed by tolling agreements with investment-grade counterparties extending for more than 25 years. Mountain Peak Power, a 162-MW facility, entered commercial operation in September 2025, while the 156-MW Canyon Peak Power plant is expected to begin operations soon.
For energy traders, this deal highlights the growing value of gas-fired peaking capacity in regions with increasing renewable penetration. Peaking plants provide flexible generation to balance intermittent wind and solar output, and their revenue stability from long-term tolling agreements makes them attractive assets. The acquisition also underscores the strategic importance of the Colorado market, where demand for reliable backup power is rising as coal plants retire. Investors can track natural gas price trends and their impact on power generation margins on NowPrice's fuel page.
Looking ahead, the transaction is subject to regulatory approvals and is expected to close in the second half of 2026. The deal adds to a wave of consolidation in the U.S. power sector, as utilities and independent generators seek to secure dispatchable capacity. Market participants will watch for similar acquisitions in other Western states, as well as the performance of TransAlta's expanded portfolio in the upcoming summer peak demand season.