TransAlta Enters Tolling Agreement to Transition Washington Plant from Coal to Gas
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Source: SeekingAlpha
Long-term Agreement: TransAlta signed a long-term tolling agreement with Puget Sound Energy to convert its Centralia 2 coal-fired power plant in Washington to natural gas, scheduled to cease coal operations by the end of 2025.
Emission Reduction: The conversion is expected to reduce the facility's emission intensity by approximately 50%, with a planned capacity of 700 MW under a 16-year fixed price contract through 2044.
Capital Investment: The project will require around US$600 million in capital spending to extend the facility's life and facilitate the conversion, with a targeted commercial operation date of late 2028.
Future Plans: TransAlta plans to make a final investment decision after obtaining necessary approvals in early 2027.
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.
