Air Pollution Control Equipment Services, Coal

GenOn to close 3,140 MW of coal-fired capacity

GenOn Energy (NYSE: GEN) expects to deactivate 3,140 MW of coal-fired generating capacity between June 2012 and May 2015 because forecasted returns on investments necessary to comply with environmental regulations are insufficient.

The affected units are:

  • The 460 MW Elrama plant in Pennsylvania, and the 217 MW Niles plant in Ohio, both expected to be shut down by June 2012;
  • The 401 MW Portland plant in Pennsylvania, expected to close in January 2015;
  • The 732 MW Avon Lake plant in Ohio, the 330 MW New Castle , the 597 MW Shawville and the 243 MW Titus units, all in Pennsylvania and expected to be shut down in April 2015; and
  • The 160 MW Glen Gardner unit in New Jersey, expected to close in May 2015.

The coal-fired units at Shawville, which is leased, will be placed in long-term protective layup. The required lease payments will continue to be made and the assets will be maintained in accordance with the lease.
Other expected fleet reductions are: the May 2012 expiration of a tolling agreement for the 630 MW Vandolah facility in Florida; and thepreviously announced retirements of the 482 MW Potomac River generating facility in Virginia in October 2012 and the 674 MW Contra Costa generating facility in California in May 2013, subject to regulatory approvals. Additionally, in January 2012, GenOn sold the mothballed 586 MW Indian River generating facility in Florida for $11.5 million. These fleet reductions, taken together with the previously mentioned 3,140 MW of deactivations, total 5,512 MW of generating capacity.
GenOn will have 19,490 MW of generating capacity, after giving effect to the deactivations and fleet reductions described above, and adding the 719 MW Marsh Landing generating facility in California, which is scheduled to become operational in mid-2013.
Since 2000, GenOn has invested approximately $2.4 billion in environmental controls for the remaining plants. In addition, GenOn expects to make further improvements by investing $586 to $726 million over the next ten years for major environmental controls at some of its generating stations to meet air and water environmental regulations.

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