FERC Rejects TransAlta’s $6.4 Million Centralia Unit 2 Cost-Recovery Request

On October 19, 2026, the Federal Energy Regulatory Commission (FERC) rejected without prejudice TransAlta Centralia Generation LLC’s request to recover $6,395,348.07 in fixed costs associated with keeping Centralia Unit 2 available under an emergency order issued by the U.S. Department of Energy (DOE) under section 202(c). The decision addresses the allocation of costs incurred to comply with an emergency power directive, rather than approving the underlying recovery request. TransAlta may submit a revised filing, but the source does not identify a deadline for doing so.

FERC’s stated concern was how the proposed costs would be distributed. The commission said the costs should be allocated among load-serving entities (LSEs) in the WECC Northwest assessment area, rather than divided between the balancing authority and reliability coordinator. That distinction matters for utilities and other market participants: a filing seeking recovery must connect the costs to the geographic scope of the emergency and identify the affected LSEs. The ruling therefore provides an allocation direction while leaving the amount and recoverability of TransAlta’s costs unresolved.

The decision follows FERC’s October 1 rejection of a separate TransAlta proposal seeking approximately $19.9 million. Both proposals were rejected without prejudice, but the reported October 19 order concerns the specific $6,395,348.07 request for Centralia Unit 2 fixed costs. The agency’s position signals that a revised submission needs more than a cost figure: it must explain which LSEs within the relevant assessment area should bear the costs and how the proposed allocation corresponds to the emergency order’s scope. The source does not state that FERC approved either proposal.

For energy contractors, utilities, and entities operating under section 202(c) orders, the ruling is a practical compliance signal for preparing cost-recovery documentation. Parties should assess the relevant service area, identify affected LSEs, and support the proposed allocation method in any filing. For firms that provide regulatory, market, or utility support services, this may create demand for careful cost attribution and stakeholder mapping when emergency directives affect generation availability. The decision is specific to the reported TransAlta filings and WECC Northwest context; it does not establish a filing deadline or resolve other potential cost-recovery questions.

• FERC rejected without prejudice TransAlta’s request for $6,395,348.07 in fixed costs.
• The costs relate to keeping Centralia Unit 2 available under a DOE section 202(c) emergency order.
• FERC said costs should be allocated among affected load-serving entities (LSEs) in the WECC Northwest assessment area.
• The commission rejected allocation between the balancing authority and reliability coordinator as the proposed approach.
• TransAlta Centralia Generation LLC may refile with an allocation method that identifies the affected LSEs.
• FERC had separately rejected a TransAlta proposal seeking approximately $19.9 million on October 1.
• Neither reported proposal has been approved, and the source provides no deadline for a refiling.
• Section 202(c) cost-recovery filings should align allocation rationale with the emergency’s geographic scope and identify the entities expected to bear the costs.