In a news release issued today, Homer City Generation announced it will consider reducing operating units after May of 2023.
The first step in that process is to submit a request for an exception to the must-offer requirement for the PJM auction for 2023/2024, which was recently done. That means that Homer City Generation would be allowed to hold off on purchasing any power from the regional transmission organization until April 4th, when a determination would be made if any units would be deactivated.
Decommission would be based on several factors, including ongoing operating performance; the ability to support a one- or two-unit operation; ongoing costs for maintenance and operation; forward power and coal prices; availability of coal; and regulatory uncertainties. One of the uncertainties mentioned in the news release is Pennsylvania’s entry into the Regional Greenhouse Gas Initative.
Homer City Generation CEO and President William Wexler said in the news release that they look forward to engaging with the the community on alternative uses for the site, which has been in operation since 1969. That could include the installation of renewable generating capacity. As of right now, none of the 129 employees would be affected by the facility.
We reached out to media representatives for Homer City Generation, but they have declined further comment.
