Department of Energy Mandates Centralia Unit 2 Remain Available for Operation for 90 Days
Rhea-AI Summary
TransAlta (NYSE: TAC) confirmed that its subsidiary TransAlta Centralia Generation LLC received an order from the U.S. Department of Energy requiring Centralia Unit 2 in Washington State to remain available for operation for 90 days, through March 16, 2026. The company says it is evaluating the Order and will cooperate with state and federal authorities. Additional details will be provided as they become available.
Positive
- Centralia Unit 2 ordered available for 90 days until March 16, 2026
- TransAlta will engage with state and federal governments
Negative
- Order imposes immediate operational obligation on TransAlta subsidiary
- Company must evaluate compliance implications before providing further details
Key Figures
Market Reality Check
Peers on Argus
Pre-news, TAC was down 0.8% while key peers showed mixed moves: KEN (+0.31%), NRG (+0.33%), PAM (-0.46%), TLN (+5.54%), VST (+4.08%). No clear sector-wide pattern aligns with TAC’s move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 12 | Dividend declaration | Positive | -1.2% | Board declared common and preferred share dividends for early 2026. |
| Dec 09 | Long-term contract | Positive | +3.5% | 16-year 700 MW tolling deal for Centralia Unit 2 coal-to-gas conversion. |
| Nov 17 | Asset acquisition | Positive | -2.3% | Agreed to buy 310 MW contracted Ontario gas portfolio for $95M. |
| Nov 17 | Portfolio sale counterparty | Positive | -2.3% | Hut 8 announced sale of 310 MW Ontario plants to TransAlta. |
| Nov 06 | Earnings update | Negative | -11.4% | Q3 2025 results with $238M Adjusted EBITDA but $62M net loss. |
Recent news often saw negative or muted price reactions, even to generally constructive corporate and capital allocation updates, with only the Centralia conversion agreement aligning positively.
Over the last few months, TransAlta reported several notable events. Q3 2025 results on Nov 6 showed solid operations but a $62M net loss and drew a -11.44% reaction. On Nov 17, it announced a $95M acquisition of a 310 MW Ontario gas portfolio, plus the related Hut 8 sale disclosure; shares fell about 2.33%. A Dec 9 tolling agreement to convert Centralia Unit 2 and secure 700 MW capacity to 2044 saw a 3.54% gain. The Dec 12 dividend declaration coincided with a modest decline. Today’s DOE order directly touches the same Centralia asset, following that recent long-term contract news.
Market Pulse Summary
This announcement detailed a U.S. Department of Energy order requiring Centralia Unit 2 to remain available for 90 days, until March 16, 2026. It follows prior news about a long-term tolling agreement and coal-to-gas conversion at the same facility, highlighting Centralia’s system importance. Investors may watch for further disclosures on operational impacts, regulatory coordination with state and federal authorities, and how this temporary mandate affects the timing and economics of previously announced Centralia plans.
AI-generated analysis. Not financial advice.
CALGARY, Alberta, Dec. 17, 2025 (GLOBE NEWSWIRE) -- TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) confirms that its subsidiary, TransAlta Centralia Generation LLC, has received an order (the Order) from the United States Department of Energy. The Order mandates that Centralia Unit 2 in Washington State remain available for operation, for a period of 90 days, until March 16, 2026.
TransAlta is currently evaluating the Order and will work with the state and federal governments in relation thereto. Further information regarding the Order will be provided as it becomes available in due course.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of thermal generation and hydro-electric power. For over 114 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 70 per cent reduction in GHG emissions or 22.7 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
For more information about TransAlta, visit our web site at transalta.com.
Cautionary Statement Regarding Forward-Looking Information
This news release includes “forward-looking information,” within the meaning of applicable Canadian securities laws, and “forward-looking statements,” within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking statements”). Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as “may”, “will”, “believe”, “expect”, “estimate”, “anticipate”, “intend”, “plan”, “forecast”, “continue” or other similar words. Forward-looking statements are intended to provide the reader information about management’s current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements are subject to important risks and uncertainties and are based on certain key assumptions. All forward-looking statements reflect TransAlta’s beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking statements, you should not put undue reliance on forward-looking statements and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking statements due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to our most recent MD&A and the 2024 Integrated Report, including the section titled “Governance and Risk Management” in our MD&A for the year ended December 31, 2024, filed under TransAlta’s profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov.
Note: All financial figures are in Canadian dollars unless otherwise indicated.
For more information:
| Investor Inquiries: | Media Inquiries: |
| Phone: 1-800-387-3598 in Canada and US | Phone: 1-855-255-9184 |
| Email: investor_relations@transalta.com | Email: ta_media_relations@transalta.com |
FAQ
What did TransAlta (TAC) announce about Centralia Unit 2 on December 17, 2025?
How long must Centralia Unit 2 remain available under the DOE order affecting TAC?
Will TransAlta (TAC) contest the Department of Energy order for Centralia Unit 2?
Which TransAlta entity received the DOE order about Centralia Unit 2 (TAC)?
When will TransAlta (TAC) provide more information about the DOE order for Centralia Unit 2?
