The order, in effect at least until March 16, 2026 to prevent claimed risk of winter power outages, follows two similar Trump orders this year directed at plants in Michigan and Pennsylvania. Wright cited the nation’s “unprecedented surge in electricity demand,” saying the Energy Dept “will continue taking action to keep America’s coal plants running.”

Washington state officials counter that the power plant is completing a shutdown agreed to in 2011. “The workers have moved on,” they said. “There’s no coal left to burn.” 

Washington Gov. Bob Ferguson, Attorney General Nick Brown and state Dept. of Ecology Director Casey Sixkiller released a joint statement condemning the “11th-hour efforts to prevent the TransAlta power plant in Centralia from ceasing coal power generation.” 

They added: “Under the guise of ‘emergency powers,’ Wright is attempting to force Washington state’s dirtiest power plant to continue burning coal. Let’s be clear: There’s no emergency here.”  It is unclear when or if the state will join Michigan and Pennsylvania in filing a federal lawsuit against the closure. 

Keeping the facility open beyond 2025 offers a reliable supply of power essential for grid stability in the Northwest, according to Wright. The department ordered the Bonneville Power Administration to handle power transmission from the Centralia plant. Rate recovery is available through federal regulations governing energy emergencies, according to Wright. 

Plans were already in place to reopen the site as a 700-MW gas-fired power generator by 2028, with Puget Sound Energy agreeing on Dec. 9 to purchase power from the updated facility. 

Gas Conversion is 'Priority'

Calgary, Alberta-based TransAlta confirmed in a statement to ENR that it it is evaluating the federal directive and “will work with state and federal governments.”  But it said “the coal-to-gas conversion project remains a priority for TransAlta,”

The company said it will provide more details regarding the directive “in due course.” 

The Energy Dept. cited a "resource adequacy report" saying blackouts in the U.S. were on track to potentially increase 100 times by 2030 if power continued to be taken off-line. The agency also noted a North American Electric Reliability Corp. 2025-2026 “winter reliability assessment” that the Northwest region is at elevated risk during periods of extreme weather, such as prolonged cold snaps.

The report also said delays threatening completion of new battery storage, solar and wind power-generating projects. But Trump administration policies also are hindering expansion and connection of those power projects to transmission systems.

The state officials said that instead of helping stabilize the Washington power market, the federal action “is more likely to drive up costs and expose Washington communities to more pollution.”

TransAlta’s plan to spend $600 million to convert the facility from coal to natural gas-fired generation and operate it until the end of 2044 is part of the agreement with Puget Sound Energy. TransAlta anticipated a final investment decision made after receipt of all required approvals in early 2027, including the agreement.

John Kousinioris, TransAlta CEO and president, previously said that converting to natural gas would “lower the emission intensity profile of the facility by approximately 50%.” He also said facility operation as a gas power plant "will generate long-term contracted cash flow for TransAlta, earning a full return on capital within the contract term.”  

On its website. TransAlta says Centralia is a merchant plant, with costs such as environmental upgrades not passed on to customers. The company says it has invested more than $300 million in coal pollution control technology at the plant, including scrubbers and low nitrogen dioxide burners. 

TransAlta did not confirm status of contractor selection for the gas conversion, but Kousinioris previously said the company "is well-positioned to execute this project given our deep technical, operational and engineering experience gained in previous coal-to-gas conversions.”

Washington’s Clean Energy Transformation Act requires state utilities to end all coal-fired generation by 2026 as part of a push toward greenhouse gas neutrality in 2030 and emission-free grid by 2045. 

'Federal Overrreach'

“This federal overreach is incredibly unproductive,” Lauren McCloy, utility and regulatory director of NW Energy Coalition, a 100-member utility, business and civic clean energy advocacy group, told ENR. “Keeping a plant open that is slated for closure is not useful or economically feasible. This order takes resources and focus away from addressing the real challenges we have.” 

McCloy said the Energy Dept. is “misinterpreting regional resource adequacy assessments” that do not indicate an imminent emergency, but show the system is adequate to meet demand in the near-term, even factoring in the long-planned Centralia coal plant retirement. 

But forecasts assume a high level of uncertainty about how much load from data centers will materialize in the region. “The solution is to continue to plan for, acquire and build the new resources and transmission that we need to meet that load as it materializes,” McCloy said. 

Christina Wong, Washington Conservation Action interim CEO, added that burning coal is an expensive way to produce energy, and Patti Goldman, Earthjustice attorney, called the federal order a “fake emergency.” 

At least five coal-fired plants also set to close at year end in Colorado, Indiana and Louisiana could be the next targets of DOE stay-open orders.