TransAlta signs deal to convert Washington facility from coal to gas

A TransAlta wind farm near Pincher Creek, Alta., Wednesday, March 9, 2016. THE CANADIAN PRESS/Jeff McIntosh

TransAlta Corp. has signed a deal with Puget Sound Energy Inc. to convert a coal-fired power plant in Washington state to natural gas power generation.

The power utility says it will need to spend about US$600 million to extend the useful life of the Centralia Unit 2 facility and convert it to natural gas.

The target commercial operation date is late-2028 and TransAlta says the facility will operate until the end of 2044 under the terms of the agreement.

It is expected to have a contracted capacity of 700 megawatts.

The deal is subject to customary regulatory approvals, including from the Washington Utilities and Transportation Commission.

TransAlta has electrical power generation assets in Canada, the United States and Australia.

This report by The Canadian Press was first published Dec. 9, 2025.