FirstEnergy announced today that it plans to retire two coal-fired Pennsylvania power plants by the end of October.
A combination of low electricity prices and high costs to meet environmental regulations has pushed the utility to action, shuttering the equivalent of 2,080 MW at the two plants, representing around 10% of FirstEnergy's total generation capacity. According to the company's press release, these two plants would have required around $280 million in environmental compliance costs, or around 30% of FirstEnergy's total estimated spending to comply with the Environmental Protection Agency's Mercury and Air Toxics Standards.
About 380 plant employees and generation-related positions are expected to be affected. The company announced the deactivation of nine plants last year.
Looking ahead, the company notes that the deactivation of these two plants will ensure that "nearly 100 percent" of FirstEnergy's electricity originates from low- or non-carbon emitting sources. Its new generation mix will be 56% coal ("clean coal" scrubbed units), 22% nuclear, 13% renewables, and 9% gas/oil.
The article Regulatory Costs Prompt FirstEnergy to Shut Down Coal Power Plants originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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