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DOE Orders WA Coal Plant to Continue Operating Despite State Ban

The DOE cited rising electricity demand and risk of blackouts, ordering TransAlta to run Centralia Unit 2 until Mar 16, 2026, despite state coal phase-out laws.

  • On Tuesday, the U.S. Department of Energy ordered Canada-based power generation company TransAlta to keep the 730-MW Centralia Generating Station Unit 2 available until March 16, 2026, extending its planned retirement this month.
  • The DOE said a utilities-commissioned report and a North American Electric Reliability Corporation analysis highlight blackout risks from coal retirements, weak renewables, electrification, and rising demand in the Northwest.
  • The order directs TransAlta to make Unit 2 available at BPA or CAISO's direction and to take all measures necessary, while Wright told TransAlta to seek tariff waivers at FERC with rate recovery possible.
  • Following the order, lawsuits are pending as state regulators and environmental advocacy groups say DOE must-run orders misuse authority, and the Sierra Club estimates roughly $65 million added costs to ratepayers, totaling $128 million.
  • Despite Washington law, the DOE could issue orders for at least five other coal-fired plants, potentially costing U.S. utility customers up to $65 million each, according to Grid Strategies.
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The spokesman-Review broke the news in Spokane, United States on Tuesday, December 16, 2025.
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