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
Should l Buy TAC?
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.
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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: 12.360
Low
12.96
Averages
17.38
High
19.44
Current: 12.360
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.
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- Market Adaptability: The company stated that mothballing Sheerness Unit 1 is a prudent financial decision that ensures the ability to quickly return the unit to service when market fundamentals or contracting opportunities arise, thereby maximizing the long-term value of the asset.
- Data Center Strategy Progress: TransAlta expressed satisfaction with the ongoing progress of its data center strategy, indicating a proactive approach to exploring growth potential in emerging markets while diversifying its power generation assets.
- Environmental Responsibility Commitment: Since 2015, TransAlta has achieved a 70% reduction in greenhouse gas emissions, equivalent to 22.7 million tonnes of CO2e, reflecting the company's strong commitment to sustainability and environmental responsibility.
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- Long-term Value Commitment: As one of Canada's largest wind power producers, TransAlta is committed to providing reliable power to customers while aligning with sustainable development goals, further solidifying its leadership position in the energy sector.
- Emission Reduction Achievement: Since 2015, TransAlta has achieved a 70% reduction in greenhouse gas emissions, equivalent to 22.7 million tonnes of CO2e, demonstrating its proactive environmental responsibility, which may enhance investor confidence.
See More
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- Government Collaboration Assessment: TransAlta is currently evaluating the order and plans to work with state and federal governments to ensure compliance, which will enhance the company's transparency and credibility in regulatory matters.
- Sustainability Commitment: TransAlta has achieved a 70% reduction in greenhouse gas emissions since 2015, equivalent to 22.7 million tonnes of CO2e, demonstrating its ongoing commitment to environmental responsibility, potentially increasing its attractiveness to investors.
- Long-Term Value Goals: As one of Canada's largest producers of wind power, TransAlta is focused on providing reliable power to medium and large industries and utility customers, further solidifying its leadership position in the energy market.
See More
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Earnings Call Information: TransAlta Corporation's Q3 2025 earnings call transcript and presentation have been released, providing insights into the company's financial performance.
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- Sustainability Commitment: TransAlta has achieved a 70% reduction in GHG emissions since 2015, equivalent to 22.7 million tonnes CO2e, showcasing its efforts in sustainability, which may attract shareholders interested in ESG investments.
- Leadership in Power Generation: As one of Canada's largest producers of wind power, TransAlta's diversified approach in power generation not only enhances its market competitiveness but also lays a solid foundation for future sustainable growth.
See More
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- Preferred Share Dividends: The company also announced quarterly dividends for various preferred shares, including $0.17981 for Series ATA.PR.D and $0.43088 for Series ETA.PR.H, enhancing the attractiveness of its capital structure.
- Sustainability Commitment: TransAlta has achieved a 70% reduction in greenhouse gas emissions since 2015, equivalent to 22.7 million tonnes CO2e, demonstrating its proactive efforts in environmental responsibility.
- Long-term Value Creation: As one of Canada's largest wind power producers, TransAlta is dedicated to creating long-term value for shareholders by providing reliable power services, aligning with the UN Sustainable Development Goals.
See More
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- Unit Mothballing Decision: TransAlta has decided to temporarily mothball Sheerness Unit 1 effective April 1, 2026, for up to two years, aiming to retain flexibility for future economic opportunities while ensuring the unit remains fully operational through the winter season.
- Market Adaptability: The company stated that mothballing Sheerness Unit 1 is a prudent financial decision that ensures the ability to quickly return the unit to service when market fundamentals or contracting opportunities arise, thereby maximizing the long-term value of the asset.
- Data Center Strategy Progress: TransAlta expressed satisfaction with the ongoing progress of its data center strategy, indicating a proactive approach to exploring growth potential in emerging markets while diversifying its power generation assets.
- Environmental Responsibility Commitment: Since 2015, TransAlta has achieved a 70% reduction in greenhouse gas emissions, equivalent to 22.7 million tonnes of CO2e, reflecting the company's strong commitment to sustainability and environmental responsibility.
See More
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- Operation Order Confirmation: TransAlta's subsidiary, TransAlta Centralia Generation LLC, has received an order from the U.S. Department of Energy mandating that Centralia Unit 2 in Washington State remain operational for 90 days until March 16, 2026, ensuring continued power supply from this generation unit.
- Government Collaboration Assessment: TransAlta is currently evaluating the order and plans to collaborate with state and federal governments to ensure compliance, which will help maintain the company's operational stability and regulatory adherence in the U.S. market.
- Long-term Value Commitment: As one of Canada's largest wind power producers, TransAlta is committed to providing reliable power to customers while aligning with sustainable development goals, further solidifying its leadership position in the energy sector.
- Emission Reduction Achievement: Since 2015, TransAlta has achieved a 70% reduction in greenhouse gas emissions, equivalent to 22.7 million tonnes of CO2e, demonstrating its proactive environmental responsibility, which may enhance investor confidence.
See More
TransAlta Receives 90-Day Operation Order from U.S. Department of Energy
- Operation Order Confirmation: TransAlta's subsidiary, TransAlta Centralia Generation LLC, has received an order from the U.S. Department of Energy mandating that Centralia Unit 2 in Washington State remain operational for 90 days until March 16, 2026, ensuring stability in power supply during a critical period.
- Government Collaboration Assessment: TransAlta is currently evaluating the order and plans to work with state and federal governments to ensure compliance, which will enhance the company's transparency and credibility in regulatory matters.
- Sustainability Commitment: TransAlta has achieved a 70% reduction in greenhouse gas emissions since 2015, equivalent to 22.7 million tonnes of CO2e, demonstrating its ongoing commitment to environmental responsibility, potentially increasing its attractiveness to investors.
- Long-Term Value Goals: As one of Canada's largest producers of wind power, TransAlta is focused on providing reliable power to medium and large industries and utility customers, further solidifying its leadership position in the energy market.
See More
TransAlta announces CAD 0.065 dividend payout
TransAlta Dividend Announcement: TransAlta (TAC) has declared a quarterly dividend of CAD 0.065 per share, consistent with previous dividends.
Dividend Payment Details: The dividend is payable on April 1, with shareholders of record on March 1, and the ex-dividend date set for February 26.
Earnings Call Information: TransAlta Corporation's Q3 2025 earnings call transcript and presentation have been released, providing insights into the company's financial performance.
Hut 8 Developments: Hut 8 has announced the sale of power plants as part of its strategy to focus on digital infrastructure development.
See More
TransAlta Declares Quarterly Dividend of $0.065 per Share
- Quarterly Dividend Announcement: TransAlta's Board of Directors declared a quarterly dividend of $0.065 per common share, payable on April 1, 2026, to shareholders of record on March 1, 2026, aimed at enhancing shareholder returns and attracting more investor interest.
- Preferred Share Dividends: Additionally, TransAlta announced quarterly dividends for various preferred shares, including a 2.877% rate for ATA.PR.D and a 6.894% rate for ETA.PR.H, demonstrating the company's commitment to different investor groups and further solidifying its capital structure.
- Sustainability Commitment: TransAlta has achieved a 70% reduction in GHG emissions since 2015, equivalent to 22.7 million tonnes CO2e, showcasing its efforts in sustainability, which may attract shareholders interested in ESG investments.
- Leadership in Power Generation: As one of Canada's largest producers of wind power, TransAlta's diversified approach in power generation not only enhances its market competitiveness but also lays a solid foundation for future sustainable growth.
See More
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- Quarterly Dividend Announcement: TransAlta's Board of Directors declared a quarterly dividend of $0.065 per common share, payable on April 1, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Preferred Share Dividends: The company also announced quarterly dividends for various preferred shares, including $0.17981 for Series ATA.PR.D and $0.43088 for Series ETA.PR.H, enhancing the attractiveness of its capital structure.
- Sustainability Commitment: TransAlta has achieved a 70% reduction in greenhouse gas emissions since 2015, equivalent to 22.7 million tonnes CO2e, demonstrating its proactive efforts in environmental responsibility.
- Long-term Value Creation: As one of Canada's largest wind power producers, TransAlta is dedicated to creating long-term value for shareholders by providing reliable power services, aligning with the UN Sustainable Development Goals.
See More
