Department of Energy Orders 90-Day Operation for Centralia Unit 2 Through June 14, 2026
TransAlta’s Centralia Generation LLC has been ordered by the U.S. Department of Energy to keep Centralia Unit 2 operational for 90 days until June 14, 2026. On March 31, 2026, 1,148,549 Series B preferred shares will convert into Series A, resulting in 10,778,462 Series A and 1,221,538 Series B outstanding.
1. DOE Mandate for Centralia Unit 2
TransAlta Centralia Generation LLC received a U.S. Department of Energy order requiring Centralia Unit 2 in Washington State to remain available for operation until June 14, 2026, extending its operational readiness by 90 days. The company is evaluating the directive and coordinating with state and federal authorities on compliance.
2. Operational and Financial Implications
Maintaining availability of the coal-fired unit could support incremental electricity sales during peak demand, potentially bolstering short-term revenue. TransAlta will incur additional operational and maintenance costs to ensure readiness, which may affect margins for the second quarter.
3. Preferred Share Conversion Results
On March 31, 2026, 1,148,549 Series B preferred shares will convert into Series A shares on a one-for-one basis, increasing Series A to 10,778,462 and reducing Series B to 1,221,538. The shift alters the mix of fixed- and floating-rate dividend obligations in TransAlta’s capital structure.