FERC rejected TransAlta’s proposed cost-recovery plan for keeping Centralia Unit 2 available under a federal emergency order, but the reported decision was not a blanket ruling that a plant must generate electricity to receive compensation. The central issue was the proposed reach of the charges: FERC said a revised plan should seek recovery only from load-serving entities in the Northwest assessment area.
What FERC rejected—and what it did not
On October 1, 2026, the Federal Energy Regulatory Commission rejected TransAlta’s plan to recover costs associated with keeping its 730-megawatt Centralia coal unit available, according to Utility Dive’s October 2 report. Utility Dive described FERC’s concern as the geographic scope of the proposed cost allocation, which included entities in CAISO and the Southwest Power Pool.
FERC indicated that TransAlta could submit a revised plan seeking recovery only from load-serving entities in the Northwest assessment area. The reported disposition does not identify any recovery amount that FERC approved; the proposal was rejected as submitted.
The commission also rejected the argument that Centralia’s lack of electricity generation, by itself, barred compensation. Utility Dive quoted FERC: “We find that the Emergency Orders’ statements that Centralia ‘shall not be considered a capacity resource’ do not preclude the commission from approving compensation for the costs that TransAlta incurred to keep Centralia operational.” This addresses whether readiness costs could potentially be compensated; it does not mean FERC approved TransAlta’s plan or any particular amount.
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How the cost figures differ
| Figure | What it refers to | Source and qualification |
|---|---|---|
| $19.9 million | TransAlta’s requested recovery for expenses associated with the first 90-day emergency order | Reported by Utility Dive in 2026; not an amount FERC approved. |
| $23 million | Additional repairs TransAlta expected to spend to keep the unit available | Reported by Utility Dive in 2026; separate from the $19.9 million request. |
| More than $50 million | Cumulative cost figure cited in Sierra Club’s criticism | Ben Avery’s statement, published by CleanTechnica on October 2, 2026; an advocacy claim, not a FERC finding. |
The figures describe different scopes and should not be added together or treated as interchangeable. In particular, Sierra Club’s “more than $50 million” claim is not the amount FERC considered approved: no approved recovery amount is reported in this disposition.
What the DOE order required
The U.S. Department of Energy’s page records that on June 12, 2026, DOE issued Order No. 202-26-28 under Section 202(c) of the Federal Power Act. It directed TransAlta to ensure Unit 2 remained available to operate from June 15 through September 12, 2026. DOE’s order page also lists filings by Washington State and public-interest groups related to the order.
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Availability under an emergency directive and actual electricity generation are distinct. Utility Dive reported, citing EIA data, that the unit had generated no electricity through July 2026; that reported period does not establish its generation across the entire emergency-order period. FERC’s reported statement concerns possible compensation for costs incurred to keep the plant operational, not payment for electricity that was generated.
Sierra Club’s October 2 statement says the first order came in December 2025, when Centralia was scheduled to retire, and that later orders continued the availability requirement after planned retirement. It describes a September 11, 2026 order as the fourth, extending the requirement through December. That later-order chronology is the organization’s account in its statement, rather than the chronology established by the DOE page cited above.
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How Sierra Club characterized the decision
Sierra Club welcomed FERC’s rejection as a win for ratepayers. Ben Avery, the organization’s Washington State Director, said the decision rejected an attempt to make consumers pay for what he called the Trump administration’s “costly coal bailout.” He also called the administration’s action illegal and said the costs had exceeded $50 million. Those are Avery’s and Sierra Club’s advocacy positions; they are not findings attributed to FERC in Utility Dive’s account.
The dispute therefore involves separate decisions and claims: DOE directed Centralia Unit 2 to remain available for a specified period, while FERC considered how costs might be allocated. Sierra Club opposes making consumers bear those costs, while FERC’s reported reasoning leaves open the possibility of compensation under a narrower, Northwest-focused proposal.
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