# FERC Rejects TransAlta Cost Recovery in Washington

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 for keeping Centralia Unit 2 available under a Department of Energy (DOE) emergency order under section 202(c). FERC said the costs should be allocated among load-serving entities (LSEs) in the WECC Northwest assessment area, rather than split between the balancing authority and reliability coordinator. TransAlta may refile with an allocation method identifying the affected LSEs; the ruling follows FERC’s October 1 rejection of a separate proposal seeking approximately $19.9 million.

- Entities operating under section 202(c) orders should align cost-recovery allocations with the geographic scope of the emergency and identify the affected LSEs in any filing.
- For utilities and market participants in the WECC Northwest assessment area, the decision clarifies FERC’s stated allocation approach for these costs; it does not approve either TransAlta recovery proposal.
- TransAlta may refile its request with the specified allocation information. The signals do not provide a filing deadline.

**Jurisdictions:** federal
**Industries:** Energy & Utilities
**Topics:** Regulatory Compliance
**Published:** November 11, 2026

### Government Entities
- Federal Energy Regulatory Commission (FERC)
- United States Department of Energy (DOE)

### Vendors
- TransAlta Centralia Generation LLC (cost-recovery applicant)

### Sources
- [FERC Again Rejects Without Prejudice TransAlta’s Cost Recovery Proposal For Compliance With DOE 202(c) Order | Troutman Pepper Locke - JDSupra](https://www.jdsupra.com/legalnews/ferc-again-rejects-without-prejudice-1688066) - JD Supra