GenOn Energy Inc. and Midwest Generation, a subsidiary of Edison International, independently announced this week they are closing aging coal-fired power plants, as reported by Industrial Info Resources.
Houston-based GenOn announced the closure of 3,140 megawatt (MW) of power facilities by 2015, including 2,980 MW of coal-fired plants and a 160-MW natural gas-fired plant in New Jersey, according to Industrial Info. Ten plants are planned to close between June 2012 and May 2015.
GenOn stated in an earnings press release that the reason for the closure was that “forecasted returns on investments necessary to comply with environmental regulations are insufficient.”
The Chicago Tribune reported that Midwest Generation would be closing two coal-fired plants in Chicago earlier than planned. Its 326-MW Fisk plant is expected to close by December of this year, while its 542-MW Crawford plant is reported to close by the end of 2014.
Industrial Info says the announcements regarding utilities” plans to take aging coal-fired power plants offline, come as low natural gas prices and increased legislation regarding emissions continue forcing generators to make decisions about the futures of the their coal-fired fleets.
To read the Industrial Info report, click here (registration required).