If to the State: If to Company:

Governor’s Executive Policy Office TransAlta Centralia Generation LLC PO Box 43113 c/o TransAlta USA, Inc. Olympia, WA 98501-3113 724 Columbia Street NW, Suite 320 Attention: Keith Phillips Olympia WA 98501 Telephone No.: (360) 902-0630 Attention: Lori Schmitt Facsimile No.: (360) 586-8380 Telephone No.: (360) 742-3052 Email: Keith.Phillips@gov.wa.gov Facsimile No.: (360) 742-3093

Email: Lori_Schmitt@transalta.com and

with a copy (which shall not constitute notice Attorney General’s Office, Ecology Division to the Company) to: PO Box 40117

K&L Gates LLP Olympia, WA 98502 425 Fourth Avenue, Suite 2900 Attention: Laura J. Watson Seattle, WA 98104 Facsimile No.: (360) 586-6760 Attention: Liz Thomas Email: LauraW2@atg.wa.gov Facsimile No.: (206) 370-6190 Email: liz.thomas@klgates.com

[Signature page follows]

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IN WITNESS WHEREOF, the Parties have executed this Memorandmn of Agreement as of the day and year first set forth above.

THE STATE OF WASHINGTON

By: Christine 0. Gregoire Title: Governor

THE COMPANY

TRANSAL TA CENTRALIA GENERATION LLC

President

[Signature Page - TransA/ta/State Memorandum of Agreement}