DAGSBORO – Delaware will soon be one step closer to its energy goals as the state’s last coal-operated power plant prepares for its final days.
Regional grid manager PJM recently announced the closure of NRG-owned Indian River Unit 4, a coal-fired generator, via press release nearly two years ahead of its currently scheduled deactivation.
NRG had previously announced its intention to close all of the coal-fired generators in the area back in 2021, seeking final closure in 2022, due to a lack of profitability. PJM, however, requested an extension for Indian River Unit 4, asking for it to be kept open to avoid grid reliability issues after the grid manager conducted a reliability analysis. The request included steps needed to ensure a closure free of those issues in the future, which have since been fulfilled, allowing for the plant to close earlier than the extended closure that was proposed.
To make it happen, along with upgrades necessary by Exelon-owned Delmarva Power, NRG and PJM continued to operate the plant via a Reliability Must-Run (RMR) arrangement, which ultimately was paid for, in part, by customers in the area. At the time the agreement was signed, the News Journal reported an average increase of around $6.45 per month which went to keeping the plant in operation.
But now, customers may see a decrease in some of those fees once again as the state works its way toward cleaner energy goals thanks to the efforts of the companies involved.
“Delmarva Power, the transmission owner in this region, has completed the needed transmission additions that will enable Indian River 4, a 411 MW electrical generator located in southern Delaware, to retire 22 months before its scheduled deactivation date,” PJM representatives said in a press statement. “PJM, in coordination with Delmarva Power, has made the determination that Indian River 4 is no longer needed for the reliability of the electricity grid.”
Shutting down the plant for good 22 months early will save customers some of the future fees associated with the RMR agreement, although PJM didn’t specify how much those savings would amount to for the average customer in the press release.
“The RMR arrangement will terminate officially in February 2025, approximately 22 months ahead of schedule. Terminating the RMR arrangement early will save consumers nearly two years of avoided RMR payments. The final determination of the total savings will depend on FERC’s approval of a proposed settlement rate,” the release states.
PJM Vice President of Operations Mike Bryson, Sr., called the early closure of the plant a win for both the customers and companies involved.
“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,” Bryson said in the press release. “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.”
