Canada-based power generation company TransAlta has received regulatory approval for a 11-year power purchase agreement (PPA) for its coal-fired Centralia Power Plant in east of Centralia, Washington, US.

Under the PPA, TransAlta will sell electricity generated from the power plant to Puget Sound Energy (PSE) starting from 2014 to 2025.

PSE will acquire 180MW of coal transition power in December 2014 and will increase the volume to 280MW in the following year.

From December 2016 to December 2024, the company will buy 380MW of electricity, while in 2025 the volume will drop to 300MW.

TransAlta president and CEO Dawn Farrell said PSE is the company’s largest customer for Centralia coal transition power.

"The approval of the contract has now been confirmed and ensures PSE customers will benefit from competitive power and the power plant will continue to serve to Washington’s power needs to the end of 2025," Farrell added.

The contract along with existing hedges means that almost 35% of Centralia’s total available production will be contracted from 2014 until the end of 2020 and around 65% will be contracted from 2021 through 2025.