August 29, 2018 - 4:45 PM EDT
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FirstEnergy Solutions Files Deactivation Notice for Oil- and Coal-fired Plants in Ohio and Pennsylvania

Company also seeks exemption from PJM grid "must-offer" rules for fossil and nuclear plants for 2022-23 delivery year

AKRON, Ohio, Aug. 29, 2018 /PRNewswire/ -- FirstEnergy Solutions Corp. (FES) today notified PJM Interconnection, LLC (PJM), the regional transmission organization, of its plans to deactivate four fossil-fuel generating plants in 2021 and 2022.

FES is closing the plants due to a market environment that fails to adequately compensate generators for the resiliency and fuel-security attributes that the plants provide.

The plants, representing a total of 4,017 megawatts (MW) of generating capacity, are to be deactivated on the following schedule:

  • Eastlake 6, Eastlake, Ohio (24 MW, coal), June 1, 2021
  • Bruce Mansfield Units 1-3, Shippingport, Penn. (2,490 MW, coal), June 1, 2021
  • W.H. Sammis Diesel, Stratton, Ohio (13 MW, diesel oil), June 1, 2021
  • W.H. Sammis Units 5-7, Stratton, Ohio (1,490 MW, coal), June 1, 2022

In the interim, the plants will continue normal operations.

Plant closures are subject to review by PJM. If PJM determines that one or more of these units may be needed for grid reliability purposes, FES will provide information and estimates of the costs and timing to keep some or all of the units open.

Also today, FES filed requests for exemption from PJM's "must-offer" rules both for these fossil-fired plants and for FES's three nuclear generating plants, whose planned deactivations were announced March 28, 2018.

Under the must-offer rules, generating companies in the PJM region are required to make their plants' capacity available to the grid in regular capacity auctions unless granted an exception. The annual auctions are held to secure capacity three years in advance. FES is seeking exemptions from auctions covering the 2022-23 delivery year and beyond.

The FES nuclear plants and their deactivation dates are:

  • Davis-Besse Nuclear Power Station, Oak Harbor, Ohio (908 MW), May 2020
  • Beaver Valley Power Station, Shippingport, Penn., Unit 1 (939 MW) May 2021 and Unit 2 (933 MW) October 2021
  • Perry Nuclear Power Plant, Perry, Ohio (1,281 MW), May 2021

"Our decision to retire the fossil-fueled plants was every bit as difficult as the one we made five months ago to deactivate our nuclear assets," said Don Moul, President of FES Generation Companies and Chief Nuclear Officer. "The action in no way reflects on the dedication and work ethic of our employees, nor on the strong support shown by their union leaders and the communities where the plants are located.

"As with nuclear, our fossil-fueled plants face the insurmountable challenge of a market that does not sufficiently value their contribution to the security and flexibility of our power system," Moul said, adding: "The market fails to recognize, for example, the on-site fuel storage capability of coal, which increases the resilience of the grid."

The federal government is currently considering policy measures that would support fossil and nuclear generating facilities considered at risk in the current market environment, but vital to grid security and reliability. Depending on the timing of any federal policy action, deactivation decisions could be reversed or postponed.

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SOURCE FirstEnergy Solutions

Source: PR Newswire (August 29, 2018 - 4:45 PM EDT)

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