AES Corp. considering closing Monaca power plant

Share with others:


Print Email Read Later

AES Corp. may shut down its 125-megawatt coal-fired power plant in Monaca, AES Beaver Valley. The company filed with the region's grid operator, PJM Interconnection Inc., for permission to deactivate the plant June 1.

AES spokesman Rich Bulger said the company was "disappointed in the recent PJM auction" which determines how much electricity generators will be paid to stay open three years in the future.

Power generators who bid into a capacity auction aren't selling electricity. They're selling the promise that they'll be operating three years from now and available to generate electricity if called upon. Capacity payments can make up a fraction of a generator's revenue, with the rest coming from actual electricity sales.

AES Corp. may shut down its 125 megawatt coal plant in Monaca, AES Beaver Valley. The company filed with the region's grid operator, PJM Interconnection Inc., for permission to deactivate the plant June 1.

AES spokesman Rich Bulger said the company was "disappointed in the recent PJM auction" which determines how much generators will be paid to stay open three years in the future.

Earlier this year, Virginia-based AES Corp. announced plans to shut down other coal plants in Indiana and Ohio.

Ohio-based FirstEnergy Corp. cited PJM auction results and low power prices when it announced plans to close the Hatfield's Ferry and Mitchell power plants in southwestern Pennsylvania.

Mr. Bulger cautioned that AES hasn't made a final decision about closing its Monaca plant, but wanted to secure the option by filing with the PJM now.

PJM analysts are working to determine whether shutting down the plant will jeopardize grid reliability.


Anya Litvak: alitvak@post-gazette.com or412-263-1455.

Join the conversation:

Commenting policy | How to report abuse
To report inappropriate comments, abuse and/or repeat offenders, please send an email to socialmedia@post-gazette.com and include a link to the article and a copy of the comment. Your report will be reviewed in a timely manner. Thank you.
Commenting policy | How to report abuse

You have 2 remaining free articles this month

Try unlimited digital access

If you are an existing subscriber,
link your account for free access. Start here

You’ve reached the limit of free articles this month.

To continue unlimited reading

If you are an existing subscriber,
link your account for free access. Start here