The Federal Energy Regulatory Commission denied a cost-recovery filing submitted by TransAlta related to expenses incurred at the Centralia coal plant in Washington state. The costs stemmed from operational requirements imposed under emergency orders issued by the Trump administration beginning in December 2025, which prevented the facility from retiring as originally scheduled.
TransAlta sought reimbursement for funds spent maintaining the coal plant in operational status following the initial emergency directive. Subsequent orders continued the requirement, with the most recent issued on September 11, 2026, representing the fourth such directive. These orders mandated that the facility remain available through December of this year, despite the plant never being activated to generate electricity under any of the emergency provisions.
Environmental organizations, including the Sierra Club, have opposed the administration’s use of emergency authority to keep the facility open. They characterize the effort as an unlawful extension of emergency powers designed to override Washington state’s planned energy transition away from coal generation. According to Sierra Club representatives, the accumulated costs associated with maintaining the plant have exceeded $50 million while generating no electricity output.
FERC’s rejection of the cost-recovery plan prevents ratepayers in the region from bearing the financial burden of these expenses. The Sierra Club indicated it would continue legal challenges against what it describes as an improper exercise of emergency authority, arguing that consumers should not subsidize the operation of an economically unviable aging coal facility.
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