A coal-fired transition power purchase agreement between TransAlta USA and Puget Sound Energy was approved by Washington State regulators.
Under the PPA with TransAlta, PSE will buy 180 MW of baseload coal transition power starting in December 2014. In the following 12 months the contract increases to 280 MW. From December 2016 to December 2024 the contract is for 380 MW, and in the last year the contract volume drops to 300 MW.
The state legislature in 2011 passed a bill confirming a collaborative multi-party agreement among TransAlta, lawmakers, environmental organizations and labor representatives. The parties agreed to a timeline for the state's transition to cleaner fuels, while preserving family wage jobs and the economic benefits of the low cost, reliable power generated by the Centralia plant.
The legislation allows long-term contracts, through 2025, for sales of coal transition power from the 1,340 MW Centralia facility. In July 2012, TransAlta and PSE announced they had entered into a long-term agreement that would see power deliveries beginning in December 2014 and running through to December 2025. The coal transition PPA was subject to review and approval by the Washington Utilities and Transportation Commission.