FERC blocks TransAlta's cost recovery request for non-operating Centralia plant

FERC rejected TransAlta's $19.9 million cost recovery claim for a coal plant that produced no electricity through July 2026, freeing funds for other energy services.

FERC denied TransAlta's cost recovery request under Federal Power Act section 202(c) for Centralia's 730-MW coal plant on October 1, 2026. The plant had produced zero electricity through July 2026, per U.S. Energy Information Administration data, and the request sought $19.9 million in expenses tied to a U.S. Department of Energy emergency order issued in mid-December 2025. FERC rejected TransAlta's argument that non-operation barred cost recovery and found the cost recovery plan extended beyond the Northwest assessment area (Montana, Oregon, Washington, parts of northern California and northern Idaho). The rejection follows multiple stakeholders—including Bonneville Power Administration and state regulators—opposing TransAlta's claim that $23 million in repair costs were necessary to maintain the plant.

This decision prevents unnecessary costs for a facility that has been offline since July 2026, directly freeing $19.9 million that could otherwise be allocated to other energy services. The savings align with broader DOE emergency orders affecting seven coal plants since May 2025, which Sierra Club reports cost approximately $583 million to keep generating units operational.

For energy affordability, this prevents a temporary drain on public funds that could otherwise be redirected to critical services. TransAlta's planned $600 million natural gas conversion for the plant by mid-2028 may create new costs, but the immediate rejection ensures no further financial burden on the utility system.

What to watch: TransAlta's conversion timeline and whether the $19.9 million savings will be redirected to community energy services. Source: Utility Dive, October 2, 2026.

Source: Utility Dive