TransAlta Converts Centralia Unit 2 to Natural Gas with 700 MW Capacity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Source: Globenewswire
- Project Overview: TransAlta plans to convert its Centralia Unit 2 facility in Washington from coal to natural gas generation, with a contracted capacity of 700 MW, providing reliable power to Puget Sound Energy under a long-term, 16-year contract through 2044.
- Investment Scale: The project is projected to require approximately $600 million in capital expenditures, with an anticipated build multiple of about 5.5 times, significantly enhancing TransAlta's financial returns while extending the useful life of its legacy assets.
- Environmental Impact: The conversion is expected to reduce the facility's emission intensity by approximately 50%, aligning with clean energy regulations and bolstering TransAlta's competitiveness in the renewable energy market.
- Strategic Significance: This conversion project will maintain TransAlta's core position in the Pacific Northwest and further solidify its market share by meeting the power needs of Puget Sound Energy.
Analyst Views on TAC
Wall Street analysts forecast TAC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TAC is 17.38 USD with a low forecast of 12.96 USD and a high forecast of 19.44 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 12.700
Low
12.96
Averages
17.38
High
19.44
Current: 12.700
Low
12.96
Averages
17.38
High
19.44
About TAC
TransAlta Corporation owns, operates, and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia. It provides municipalities, medium and large industries, businesses, and utility customers with affordable, energy-efficient, and reliable power. Its portfolio includes hydro, wind, solar, battery storage, natural gas, and thermal power. Its segments include Hydro, Wind & Solar, Gas, Energy Transition, Energy Marketing, and Corporate. It has over 88 energy assets in the portfolio. It has a diversified fleet of hydro, wind, solar, natural gas, and cogeneration generates over 9,000 megawatts of electricity. It delivers renewable energy solutions for large-scale commercial partners, including technology companies. It operates a fleet of electrical power generation assets, including Antrim Wind Project, Lakeswind Facility, Old Town Wind Project, White Rock East Project, Mass Solar Project, Fortescue River Gas Pipeline, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
