The U.S. Department of Energy issued an emergency order on December 16, 2025 that requires TransAlta’s Centralia Unit 2 coal‑fired plant in Washington state to remain available for operation for a 90‑day period through March 16, 2026. The order was announced on December 17, 2025 and is part of the federal government’s winter‑reliability strategy to prevent power shortages during extreme weather events.
The order follows a North American Electric Reliability Corporation study that identified a risk of power outages in the Pacific Northwest if reliable generation sources are retired before the winter season. DOE cited “emergency conditions” that could jeopardize grid stability, and the order directly conflicts with Washington state law that requires the closure of all coal plants by the end of 2025. The decision underscores the tension between federal energy security priorities and state climate goals.
DOE has issued similar emergency orders to other coal‑fired plants, including the J.H. Campbell plant in Michigan and the Eddystone Generating Station in Pennsylvania. The broader initiative reflects a federal effort to shore up the grid during winter months, even as the industry faces accelerated retirements and regulatory scrutiny.
TransAlta will incur additional fuel, maintenance, and potential penalty costs by keeping the plant operational beyond its planned retirement. The company’s current liquidity profile—its current ratio of 0.79—suggests that the order may strain short‑term cash flows. The delay also postpones the plant’s planned conversion to natural gas, which was scheduled for 2028, and could affect the company’s long‑term transition to data‑center‑enabled power generation.
CEO John Kousinioris said TransAlta remains committed to reducing emissions and will continue to work with state and federal regulators. The order forces the company to balance a federal mandate with Washington’s climate objectives, temporarily halting the plant’s retirement and adding uncertainty to its transition strategy.
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