The Shapiro administration is asking the Indiana County Court of Common Pleas to approve a consent decree that would allow the Keystone and Conemaugh Generating Stations to continue operating beyond their planned 2028 closure, while requiring environmental upgrades to meet federal wastewater standards.
The plants, operated by Keystone-Conemaugh (Key-Con) Projects LLC, each produce roughly 1,700 megawatts of electricity. Under the proposed agreement, operations could extend from their cease operations date on Dec. 31, 2028, through 2032 if new wastewater treatment systems are installed on a court-enforceable timeline.
“Pennsylvanians are worried about rising energy costs right now and they need reliable, affordable sources of power to ensure our homes and businesses can keep the lights on without breaking the bank,” said Gov. Josh Shapiro.
The Pennsylvania Department of Environmental Protection (DEP) on April 20 filed the 93-page unopposed motion to enter the consent decree with Key-Con, an agreement that DEP Secretary Jessica Shirley said would balance energy reliability with environmental safeguards.
“This consent decree keeps electricity on the grid and ensures that these power plants reduce their impact on Pennsylvania’s waterways,” she said. “DEP now has an enforceable schedule for required improvements, as well as enforceable penalties if milestones are missed.”
Federal agencies and grid operators, including PJM Interconnection, have raised concerns about the reliability impacts of premature plant retirements amid increased growth in electricity demand.
At the same time, labor and legislative leaders have urged continued operation of these facilities to protect jobs, local economies, and grid stability.
“On behalf of the hardworking men and women of IBEW Local 459, we appreciate Gov. Shapiro’s common-sense leadership on energy policy, as evidenced by this decision to help keep Keystone and Conemaugh producing power for longer,” said Aric Baker, president of the union. “With this action, the governor helps protect hundreds of family-sustaining union jobs, our local economies, and energy consumers all across Pennsylvania.”
U.S. Sen. Dave McCormick (R-PA) also backs the proposal, noting this week that the extension of the Keystone and Conemaugh Generating Stations would guarantee more power.
“I was glad to work with Gov. Shapiro on this and appreciate his decision,” the senator said. “The extension of the Keystone and Conemaugh Generating Stations will guarantee more power and keep great-paying jobs in Pennsylvania. These plants generate the reliable baseload power that Pennsylvania families, manufacturers, schools, hospitals, and emergency services rely on every day.”
Additionally, the Pennsylvania Coal Alliance (PCA) endorsed the plan, calling it a “significant and pragmatic step” to maintain baseload generation.
“PCA strongly supports this consent decree because it gives Key-Con the critical option to keep these vital 3,400-megawatt facilities operating beyond their previously announced Dec. 31, 2028, retirement date,” said PCA Executive Director Rachel Gleason.
And while court approval is essential, Gleason added that it’s only the first step.
“It is critical that state and federal policymakers advance supportive energy policies that keep plants like Key-Con operational through calendar year 2034,” she said. “Such policies will protect grid reliability, safeguard blue-collar jobs, stabilize electricity prices, and secure long-term demand for Pennsylvania coal.”
Gleason also pointed out that while concerns over grid reliability and resource adequacy have been echoed for over a decade, the risk of shorting the grid has intensified in recent years.
“Data center demand is easy to blame for these developments, but the reality is subsidies for unreliable sources, cap and tax programs like the Regional Greenhouse Gas Initiative, and market structure has prematurely retired the resources we need most,” said Gleason. “The continued operation of Keystone and Conemaugh is necessary to prevent a grid crisis.”
President Donald Trump on April 21 also posted an endorsement on Truth Social of the consent decree, which requires the company to apply for permits within 60 days of court approval, begin construction within 90 days of permitting, complete upgrades within 180 days, and start operating the new systems within 60 days after completion. Financial penalties would apply if deadlines are missed.
DEP said it received more than 700 public comments before seeking final court approval. Officials argue the plan will help avoid energy supply shortfalls and rising electricity costs while reducing pollutants discharged into Pennsylvania waterways.