Homer City Generation coal plant to consider deactivating units in May 2023

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Homer City Generation, the largest coal plant in Pennsylvania, said it is considering deactivating units in May 2023 and will base its decision in part on the state’s entry into the Regional Greenhouse Gas Initiative.

Officials said that any decision on whether or not to decommission will depend on several factors, including ongoing operating performance; the ability to support a one- or two-unit operation; ongoing maintenance and operating costs; forward power and coal prices; availability of coal supply; and regulatory uncertainties – including those related to the RGGI.

“We’re proud of the investments we’ve made in the Homer City Generating Station and the work of our talented team of employees,” Homer City President and CEO William Wexler said, “We look forward to engaging with the local community on alternative uses, including, but not limited to the installation of renewable generating capacity, given the significant amount of infrastructure located on the site.”

As it mulls its decision, the company requested an exception to the must-offer requirement for PJM’s upcoming 2023/2024 base residual auction. A final decision on not partaking in the base residual auction for certain units – and the subsequent deactivation of those units – will be made by April 4.

Any units that are deactivated would be removed from service in May of 2023. Officials said there is no immediate impact on the 129 employees at the facility. The plant, located 50 miles from Pittsburgh, has been open since 1969.