US EditionTransAlta Signs Deal to Convert Washington Facility From Coal to Gas
The 16-year agreement will reduce emissions by about 50% and deliver 700 MW of reliable power under a fixed-price contract, requiring $600 million in capital investment.
- On Dec. 9, 2025, TransAlta Corporation signed a long-term tolling agreement with Puget Sound Energy, Inc. to convert Centralia Unit 2 facility in Washington state from coal to natural gas, securing 700 megawatts under a 16-year contract through Dec. 31, 2044.
- A 2011 Washington Legislature winding-down agreement anticipates the plant’s operation until 2044, with a late-2028 commercial operation date, amid reliability concerns from renewables growth.
- The conversion will require about US$600 million, with TransAlta projecting a build multiple of approximately 5.5 and an emission intensity reduction of approximately 50 per cent.
- The conversion remains subject to regulatory approvals from the Washington Utilities and Transportation Commission, and TransAlta says the plant will generate long-term contracted cash flow, earning a full return through Dec. 31, 2044.
- The move reflects a trade-off between removing coal and addressing near-term reliability, as former Washington Gov. Christine Gregoire and state leaders support natural-gas backup amid Pacific Northwest grid reliability concerns.
23 Articles
23 Articles
Washington’s last coal power plant will transition to natural gas
TransAlta Corporation has signed an agreement with Puget Sound Energy to switch the last coal-fired power station in Washington state to natural gas.The deal, which TransAlta announced Tuesday, comes as the Centralia plant is set to fall silent at the end of the month. Its closure is part of a deal the Washington Legislature approved in 2011. The winding down of the last coal-fired unit represents a long-sought goal for Democratic state politici…
washingtonstatestandard.com
Dailyfly - Lewis Clark Valley NewsWashington’s last coal power plant will transition to natural gas • Washington State Standard
An undated aerial view of TransAlta's coal-fired power plant in Centralia, Washington. (Photo courtesy of Washington Department of Ecology)TransAlta Corporation has signed an agreement with Puget Sound Energy to switch the last coal-fired power station in Washington state to natural gas. The deal, which TransAlta announced Tuesday, comes as the Centralia plant is set to fall silent at the end of the month. Its closure is part of a deal the Wash…
Winnipeg Free Press
TransAlta signs deal to convert Washington facility from coal to gas
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