December 2, 2009
Exelon to close 4 Penn. generating units by 2011
(AP) — Exelon will shut four 50-year-old power generating stations near
Philadelphia in 2011 that the power generator says are no longer
economic to operate and are unnecessary to meet shrinking demand for
electricity in the region.
280 jobs will be eliminated, but the company said Wednesday that it is
looking for ways to reduce that number through such efforts as putting
workers in other open jobs and buyouts.
Exelon, based in Chicago
and one of the nation's largest power companies, said it will record
pretax charges totaling $258 million related to the shutdowns through
The company will close two units at the Cromby Generating
Station in Phoenixville and two units at Eddystone Generating Station
in Eddystone effective May 31, 2011.
"Decreased power demand,
over supply of natural gas and increasing operating costs, has led
Exelon Power to retire these units," Doyle Beneby, senior vice
president of Exelon Power, said in a statement.
comes a day after Progress Energy said it will close 11 coal-burning
power plants in North Carolina that do not have scrubbers by 2017. The
units represent about 30 percent of the company's power generation from
The company will continue to operate three coal-fired
plants in North Carolina after 2017 that are equipped with emission
controls at a cost of more than $2 billion.
The plan was
prompted by state regulators ordering the company to provide retirement
plans for the coal-burning plants that lack scrubbers to reduce
emissions. Some of the plants are more than 50 years old.
Exelon, one unit at Cromby operates on coal and the other on either
natural gas or fuel oil. They were put into operation in 1954 and 1955.
The station will close when the units are retired.
units were put into operation in 1960 and both operate on coal. Two
other units that run on either natural gas or coal and four oil-burning
units will continue to operate at the station.