CALGARY, Alberta, July 26, 2001 — TransAlta and MidAmerican Energy Holdings Company announced today they have formed a strategic alliance to develop, build and operate coal, gas and hydro generation assets in target markets throughout North America and Mexico.

The degree of financial ownership and the operating partner on each project will be determined on a case-by-case basis, with the long-term objective that both companies are equal participants in the strategic alliance.

“The strategic value of this alliance between TransAlta and MidAmerican will enable both companies to expand their asset base,” said Steve Snyder, TransAlta president and CEO. “There are obvious benefits to the joint development of power projects through broader relationships with suppliers, efficiencies in project design and construction, economies of scale and greater diversification of project risks.”

“We view this as an opportunity to join with an experienced and successful company which brings a complementary presence to MidAmerican in key markets and accelerates our planned development of power projects in North America,” said Greg Abel, MidAmerican president.

TransAlta and MidAmerican bring decades of experience in the successful development and operation of generation assets in North America. Both companies have aggressive strategies to grow their generation businesses in Canada, United States and Mexico.

MidAmerican Energy Holdings Company, headquartered in Des Moines, Iowa, USA, is a privately owned global energy provider. The company has 9,600 employees and provides electric and natural gas service to approximately three million customers. The company has approximately 10,000 net megawatts of diversified power generation under ownership, contract and in operation, construction and advanced development. Information on MidAmerican and its three principal business platforms, CalEnergy Generation, MidAmerican Energy and Northern Electric and Gas, is available on the Internet at www.midamerican.com.

TransAlta is Canada’s largest non-regulated electric generation and marketing company, with more than $7 billion in assets and 8,000 megawatts of capacity. As one of North America’s lowest cost operators, our growth is focused on developing coal and gas-fired generation in Canada, the U.S., and Mexico.