As per the MoU, TransAlta, Governor Gregoire and the Washington state Department of Ecology (WA DOE) will work towards the common goal of reducing emissions while providing Washington citizens and businesses with secure, reliable power.

In addition to recognising the need to protect the value that Centralia brings to TransAlta’s shareholders, the MoU has set forth clear objectives and a definitive timeline to develop an agreement to transition the state to cleaner energy sources while protecting jobs and the local economy.

Dawn Farrell, chief operating officer of TransAlta, said: “Today’s announcement underscores TransAlta’s commitment to providing clean, affordable energy to Washington residents. Since TransAlta acquired the Centralia plant in 2000, we’ve worked closely with the state to reduce the plant’s environmental impact, investing more than $300 million into pollution controls and securing significant reductions in emissions.

“The MoU represents a commitment by our team to working with Governor Gregoire and the state to seek an agreement that would even further reduce emissions while balancing the needs of different stakeholders.”

The MoU follows Governor Gregoire’s 2009 Executive Order on Climate Change which directed the Washington state Department of Ecology to work with TransAlta to reduce the Centralia facility’s greenhouse gas emissions by 2025, the company said.

Stuart Clark, air quality program manager of WA DOE, said: “We’re optimistic that the state and TransAlta can put together a proposal that will ensure significant reductions in the Centralia plant’s emissions and protect Washington residents’ health, environment and economy. Any such proposal also should provide the company with the predictability it needs for its future operations and for its shareholders.”

TransAlta is a power generation and wholesale marketing company focused on efficiently operating biomass, geothermal, wind, hydro, natural gas and coal facilities in Canada, the US and Australia to provide customers with a reliable, low-cost source of power.