Washington state and a consortium of public interest groups filed federal lawsuits in early March to stop an “emergency order” from the Trump administration in mid-December that required a barely functional coal-fired power plant in Centralia to continue operating, despite a year-end shutdown and a planned $600 million conversion to natural gas.
The emergency order was issued by US Energy Secretary Chris Wright under the Federal Energy Act and was to continue until March 16, 2026, with a possible extension, predicting a long-term power shortage and forcing owner TransAlta Corp. to operate the 730 MW Unit 2 of the Centralia Centralia. The plant’s original closing date was scheduled to comply with a state law banning coal-fired power generation in 2026 and beyond. The independent power producer and the state agreed to convert the facility. which opened in 1971, to natural gas by the end of 2028.
The lawsuit, filed in federal appeals court in San Francisco, follows a January hearing request from the agency that was denied without a hearing. A separate lawsuit is also filed in this court by a consortium of public interest groups. led by Earthjustice. In its filing, the state asks the court “to hold Centralia’s order unlawful, vacate and set aside and grant such other relief as it deems just and proper.”
The lawsuits claim the ordered operation is illegal under federal law, claiming there is no actual power supply emergency.
“Trying to force Washington to restart a defunct power plant is not only illegal, it would also endanger public health,” said Washington Attorney General Nick Brown. “Washington State will not be harassed.”
Brown also sued the department in U.S. District Court in Seasttle, alleging that it violated the Freedom of Information Act (FOIA) “by unlawfully withholding records” related to the order to reopen the plant.
The federal lawsuit says the DOE order “presents no legitimate factual basis, much less substantial evidence, to support its claim that maintaining Centralia as a coal-fired facility is necessary to ‘serve’ any emergency.” It claims the federal agency “misconstrues and misrepresents the sources it cites as support for an emergency,” saying the order “can only be explained as intended to benefit the coal industry rather than any true ’emergency’ in the Northwest.”
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Centralia Unit 2 is the last operating coal plant in the state, with Unit 1 closing in 2020 and a final closure and conversion agreement in effect since 201. Puget Sound Energy agreed to buy power for 15 years from the upgraded facility.
Although technically still open, the plant had ceased all operations in preparation for the shutdown and currently does not produce power from coal. The conversion to gas still needs the required regulatory approvals and a final investment decision expected in 2027.
John Kousinioris, CEO and president of Calgary, Alberta-based TransAlta, previously said the conversion to natural gas would reduce the plant’s emissions intensity by 50%. On a March 6 quarterly earnings call, he said Washington’s strong hydropower supply makes running the plant unnecessary.
“Our region has moved beyond reliance on coal and this plant to meet our energy needs with cleaner sources,” Earthjustice attorney Patti Goldman said in a statement. “This illegal DOE order … forces a decrepit coal plant to produce unreliable power while worsening pollution and inevitably raising energy rates for Washington residents.” His suit represents the NW Energy Coalition, Washington Conservation Action and Climate Solutions, the Sierra Club and the Environmental Defense Fund.
