Under the agreement, PSE will buy 180MW of firm, base-load coal transition power from TransAlta starting December 2014, and will further buy 280MW in the following 12 months.
The company will also buy 380MW of power from TransAlta from December 2016 to December 2024, and in the last year of the contract it will buy 300MW.
This agreement will advance a separate TransAlta agreement with state government and the environmental community to phase out coal-fired power generation in Washington by 2025.
Gov. Chris Gregoire said TransAlta and Puget Sound Energy came together to help advance the state’s goal of replacing coal-fired power.
"This will help our state move toward more environmentally sustainable energy," Gregoire added.
Environmental groups have supported the power purchase agreement between PSE and TransAlta.
"We applaud Puget Sound Energy for working with TransAlta to transition Washington State off of coal and in the process assist Lewis County and the workers to make the transition onto clean energy," Sierra Club Beyond Coal Campaign senior director Bruce Nilles said.
The Washington Utilities and Transportation Commission are yet to approve the proposed TransAlta-PSE power purchase deal.
