On December 8, 2025, TransAlta entered into a Tolling Agreement with Puget Sound Energy to support the proposed conversion of Centralia Unit 2 from coal to natural gas. The conversion will significantly reduce emissions relative to the existing coal operations while supporting reliable power during periods of high demand and low renewable generation.

The project is uniquely positioned within the State of Washington as it makes practical and efficient use of existing equipment to avoid new land disturbance and delivers a cost effective and timely reliability solution that cannot be easily replicated through new gas generation. TransAlta has been actively engaged with the community since it acquired the Centralia plant in 2000 and TransAlta remains committed to ongoing transparency, environmental compliance and engagement with employees, community partners and Tribal Nations.

Why it is needed

Once converted, Unit 2 will be a valuable reliability resource given its ability to respond for extended periods of high demand and when other resources may be unavailable. The converted facility will help maintain a dependable and affordable grid to the end of 2044 as the State expands wind, solar and other clean-energy resources in compliance with its commitments under Clean Energy Transformation Act.

Strong Community Partner

Centralia’s conversion marks a significant step forward for the community and the region. The project will:

Build upon more than 25 years of safe, reliable operations at the Centralia site while maintaining a strong local partnership
Create an estimated 700 construction jobs and support more than 40 long-term roles once in operation

Wise Use of Existing Infrastructure and Prudent Environmental Consideration

Makes practical and efficient use of existing equipment to avoid new land disturbance
Delivers a cost effective and timely reliability solution that cannot be easily replicated through new gas generation or currently viable alternative sources of generation
Provides environmental benefits relative to existing coal operations, including significantly reducing greenhouse gas and other emissions, eliminating coal ash and mercury, and reducing water use

man in hard hat and safety vest looking out at a pond and coal plant facility in the distance. The sky is blue and cloudy.

Proven Environmental Track Record

More than 3,200 acres of former mining lands already reclaimed
Over 1.7 million trees planted since 1991, and restoration work continuing through 2045
Community and clean energy investments under the 2011 Transition Agreement resulted in more than $55 million committed to education, energy efficiency and economic diversification across Lewis County, with over 90% allocated and spent to date