WASHINGTON STATE REGULATOR ISSUES DECISION REGARDING

WASHINGTON STATE REGULATOR ISSUES DECISION REGARDING LONG-TERM
CONTRACT FOR CENTRALIA PLANT 
CALGARY, ALBERTA -- (Marketwire) -- 01/10/13 -- TransAlta Corporation
(TSX:TA)(NYSE:TAC) announced today that the Washington Utilities and
Transportation Commission issued a decision approving, with
conditions, a long-term power purchase agreement between Puget Sound
Energy ("PSE") and TransAlta's subsidiary TransAlta Centralia
Generation LLC (TransAlta) for the Centralia, Washington power plant.
PSE has ten days from the date of the order to petition for
reconsideration or relief of the terms under the order. The proposed
agreement would permit PSE to purchase an average 346 megawatts of
coal transition power from TransAlta's Centralia power plant. 
TransAlta is a power generation and wholesale marketing company
focused on creating long-term shareholder value. TransAlta maintains
a low-to-moderate risk profile by operating a highly contracted
portfolio of assets in Canada, the United States and Australia.
TransAlta's focus is to efficiently operate geothermal, wind, hydro,
natural gas and coal facilities in order to provide customers with a
reliable, low-cost source of power. For over 100 years, TransAlta has
been a responsible operator and a proud contributor to the
communities in which it works and lives. TransAlta has been selected
by Jantzi-Sustainalytics as one of Canada's Top 50 Socially
Responsible Companies since 2009 and is recognized globally for its
leadership on sustainability and corporate responsibility standards
by FTSE4Good. TransAlta is Canada's largest investor-owned renewable
energy provider. 
This news release may contain forward looking statements, including
statements regarding the business and anticipated financial
performance of TransAlta Corporation. These statements are based on
TransAlta Corporation's belief and assumptions based on information
available at the time the assumption was made. These statements are
subject to a number of risks and uncertainties that may cause actual
results to differ materially from those contemplated by the
forward-looking statements. Some of the factors that could cause such
differences include, pricing in the market place, our inability to
enter into long term contracts due to prevailing market conditions,
legislative or regulatory developments, competition, global capital
markets activity, changes in interest rates, currency exchange rates,
inflation levels and general economic conditions in geographic areas
where TransAlta Corporation operates.
Contacts:
Media inquiries:
TransAlta Corporation
Stacey Hatcher
Senior Corporate Relations Advisor
Toll Free Media Number:  1-855-255-9189
TA_Media_Relations@transalta.com 
Investor inquiries:
TransAlta Corporation
Jess Nieukerk
Director, Investor Relations
(403) 267-3607
jess_nieukerk@transalta.com