Houston-based GenOn Holdings, LLC announced last week it will close the Cheswick Generating Station, a coal-fired power plant in Allegheny County, by Sept 15.
The move is part of a process to permanently retire three stations, the other two located in Ohio and Maryland. The decision to initiate the retirements is driven by unfavorable economic conditions, higher costs, an inability to compete with other electricity generation types, and evolving market rules that favor subsidized resources.
The Cheswick Generating Station Unit 1 was commissioned in 1970. Once the unit is retired, generation operations at the Cheswick site will cease.
The deactivation of the unit is subject to a 90-day reliability review period by PJM. Once the review period is complete, GenOn will start with a workforce reduction at the site. GenOn said it will provide benefits common in this situation to all employees affected by the workforce reduction.
“The decision to retire a power plant is always a difficult one for employees and the local communities,” GenOn CEO Dave Freysinger said. “These are not decisions taken lightly. GenOn will provide transition assistance, including advance notice, severance payments, and access to health care, in accordance with our contracts and policies to all affected workers.”
The company will continue to operate approximately 7,285 MW of electric generation facilities in Pennsylvania, New York, New Jersey, Maryland, Ohio, and California.