GenOn expects to deactivate 3140 MW of coal-fired generating capacity by 2015

Source: GenOn Energy, Inc.

GenOn expects to deactivate 3,140 MWs of coal-fired generating capacity in PJM between June 2012 and May 2015 because forecasted returns on investments necessary to comply with environmental regulations are insufficient. (See table for affected power plants) 

Plant / Location


Expected Deactivation Date

Elrama / PA


June 2012

Niles / OH


June 2012

Portland / PA


January 2015

Avon Lake / OH


April 2015

New Castle / PA


April 2015

Shawville / PA


April 2015

Titus / PA


April 2015

Glen Gardner / NJ


May 2015




The units expected to be deactivated and timeframes are subject to further review based on market conditions. In particular, while the initial analysis for additional environmental controls at Avon Lake indicated that forecasted returns on those investments were insufficient, the evaluation of the returns on those environmental controls is continuing. 

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: (i) the May 2012 expiration of a tolling agreement for the 630 MW Vandolah facility in Florida; (ii) the previously announced retirement of the 482 MW Potomac River generating facility in Virginia in October 2012; and (iii) the previously announced retirement of the 674 MW Contra Costa generating facility in California in May 2013, subject to regulatory approvals. Additionally, in January 2012, GenOn sold the previously mothballed 586 MW Indian River generating facility in Florida for $11.5 million. These fleet reductions, taken together with 3,140 MW of deactivations in the table above, 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. This includes 4,085 MW of coal-fired capacity in PJM.

Environmental Capital Expenditures

Since 2000, GenOn has invested approximately $2.4 billion in environmental controls for the existing plants expected to remain in GenOn's fleet after the deactivations. Compared to 1990 emission levels, 2011 NOX emissions were reduced by 78% and SO2 emissions were reduced by 90% for those generating facilities. 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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