Coal

Delaware’s last coal plant to close ahead of schedule

The 411 MW generator can retire nearly two years early following the completion of necessary transmission upgrades, PJM said.
Delaware’s last coal plant to close ahead of schedule
(Courtesy: Robert Thiemann via Unsplash)

Delaware’s Indian River Unit 4, a coal-fired generator owned by NRG, will retire nearly two years ahead of its scheduled retirement, according to an announcement from PJM.

In June 2021, NRG told PJM it planned to retire Indian River 4 in 2022. PJM then conducted a reliability analysis, which indicated that the 411 MW unit’s removal would lead to grid reliability issues. The grid operator identified a series of transmission solutions to address those issues.

Delmarva Power, which owns the transmission in the region, has completed the needed transmission additions, PJM reported through its PJM Inside Lines publication. This means the coal plant in southern Delaware can retire 22 months before it was scheduled.

Indian River 4 has been under a Reliability Must-Run (RMR) arrangement. Now that Delmarva Power has completed the final segment of the necessary transmission upgrades, PJM has notified NRG of its intent to terminate the RMR arrangement.

The unit will officially be retired in February 2025. The final determination of the total savings will depend on FERC’s approval of a proposed settlement rate, PJM said.

“Delmarva’s good work to complete this project far ahead of schedule is a win for our customers, both from a reliability and affordability perspective,” said Mike Bryson, PJM’s Sr. Vice President for Operations. “PJM regards RMR arrangements as a last resort to keep units temporarily operational to maintain system reliability while we make transmission improvements to balance the system, so the sooner we can get the work done, the better.”

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