Titus Station goes silent
They knew it was coming. It was just a little sooner than they had anticipated.
In March 2012, then-owner GenOn Energy Inc. announced that it would be closing the Titus Station Generating Plant in Cumru Township by April 2015 because of the high cost of keeping it compliant with new environmental regulations.
Lynda Adam, 52, who had been working at the coal-fired electrical plant since 1986, was saddened to hear the news, but the closure date would give her enough time to retire.
Then in December 2012, GenOn merged into NRG Energy Inc., passing on ownership of Titus Station to NRG. Five months later, NRG announced -- citing the same reasons -- that the closing date was moved up. The aging power plant began deactivation Sept. 1.
That meant Adam of Fleetwood would lose her job earlier than she expected and not retire from the plant as she intended.
"That hurt," said Adam, who has since taken on a job elsewhere as a wastewater technician.
As Titus Station deactivates, state Rep. Pam Snyder, D-Greene County, wants to see that plant owners are more accountable to the employees and for the impact the closings have on surrounding communities. She unveiled last month legislation that would create the Coal-Fired Electric Generation Deactivation Commission, a state body that would review the effects of coal plant closures.
"When I ask questions about how to regulate the plants, people tell me the cat is out of the bag, and there is no way to put it back in," Snyder said. "If I can't regulate it, I can change how decisions are made to close."
In March 2012, then-owner GenOn Energy Inc. announced that it would be closing the Titus Station Generating Plant in Cumru Township by April 2015 because of the high cost of keeping it compliant with new environmental regulations.
Lynda Adam, 52, who had been working at the coal-fired electrical plant since 1986, was saddened to hear the news, but the closure date would give her enough time to retire.
Then in December 2012, GenOn merged into NRG Energy Inc., passing on ownership of Titus Station to NRG. Five months later, NRG announced -- citing the same reasons -- that the closing date was moved up. The aging power plant began deactivation Sept. 1.
That meant Adam of Fleetwood would lose her job earlier than she expected and not retire from the plant as she intended.
"That hurt," said Adam, who has since taken on a job elsewhere as a wastewater technician.
As Titus Station deactivates, state Rep. Pam Snyder, D-Greene County, wants to see that plant owners are more accountable to the employees and for the impact the closings have on surrounding communities. She unveiled last month legislation that would create the Coal-Fired Electric Generation Deactivation Commission, a state body that would review the effects of coal plant closures.
"When I ask questions about how to regulate the plants, people tell me the cat is out of the bag, and there is no way to put it back in," Snyder said. "If I can't regulate it, I can change how decisions are made to close."
The Titus Station is slated to be fully decommissioned. Photo: Ryan McFadden
Titus closes
As it stands, PJM Interconnection LLC, which administers the power grid in the state, is the only entity with any oversight over plant closures. In the case of Titus Station, Ray Dotter, spokesman for PJM, said NRG applied for the retirement with PJM. The power grid distributor conducted research to assess whether the closure will have an adverse effect on the grid for which other plants can't compensate. It can ask the company to reconsider closing the plant, but Dotter said PJM ultimately can't require plants to remain operational.
"We can't force someone to build a power plant, and we can't force one to continue to operate," Dotter said.
Titus Station, which has three coal-fired boilers and two gas-fired or oil-fired combustion turbines with a capacity of 274 megawatts, is in its deactivation phase and will be fully decommissioned in June, said NRG spokesman David Gaier.
Certain equipment, including coal-handling equipment, and coal piles are gone. The generation and electrical equipment are offline. And the cooling tower is clean, Gaier said.
About 11 people are still at the 61-year-old plant, overseeing the deactivation, and that number will dwindle to about three to run the two combustion turbines, Gaier said. About 45 employees were laid off or left on their own because of the pending closure date. The company offered them a severance package and the option to apply to work for another NRG facility.
Gaier would not comment on whether NRG considered alternatives to shutting down the plant, such as selling it.
"Closing a plant is not done lightly, and it's done with the understanding it won't be done with adverse reliability impacts," Gaier said.
Gaier said NRG has not decided what the fate of the remaining parts of the plant will be.
Shutdown effects
With Snyder's proposed commission, the state and local government officials, affected employees and other stakeholders would be able to participate in public hearings prior to the plants being permitted to shut down. Snyder said this forum is valuable in assessing various important factors related to plant operations besides the power grid. The commission also would develop employee protections, such as minimum requirements for severance payments and the continuation of health care benefits.
PJM requires 90 days' notice before a plant shutdown, which Snyder said does not provide adequate time for the state or local government to fully assess the plant before deactivation.
Tony Sacco, president of the Cumru Township commissioners, said former owner GenOn never contacted the township that it was closing the plant, and NRG did not communicate to the township that it was moving up the closure date or what would happen with the plant besides the activity to clean the facility.
"The troubling part is the company has been very silent in any dialogue with the township and the county, and we want to know what the plan of action is," Sacco said.
As it stands, PJM Interconnection LLC, which administers the power grid in the state, is the only entity with any oversight over plant closures. In the case of Titus Station, Ray Dotter, spokesman for PJM, said NRG applied for the retirement with PJM. The power grid distributor conducted research to assess whether the closure will have an adverse effect on the grid for which other plants can't compensate. It can ask the company to reconsider closing the plant, but Dotter said PJM ultimately can't require plants to remain operational.
"We can't force someone to build a power plant, and we can't force one to continue to operate," Dotter said.
Titus Station, which has three coal-fired boilers and two gas-fired or oil-fired combustion turbines with a capacity of 274 megawatts, is in its deactivation phase and will be fully decommissioned in June, said NRG spokesman David Gaier.
Certain equipment, including coal-handling equipment, and coal piles are gone. The generation and electrical equipment are offline. And the cooling tower is clean, Gaier said.
About 11 people are still at the 61-year-old plant, overseeing the deactivation, and that number will dwindle to about three to run the two combustion turbines, Gaier said. About 45 employees were laid off or left on their own because of the pending closure date. The company offered them a severance package and the option to apply to work for another NRG facility.
Gaier would not comment on whether NRG considered alternatives to shutting down the plant, such as selling it.
"Closing a plant is not done lightly, and it's done with the understanding it won't be done with adverse reliability impacts," Gaier said.
Gaier said NRG has not decided what the fate of the remaining parts of the plant will be.
Shutdown effects
With Snyder's proposed commission, the state and local government officials, affected employees and other stakeholders would be able to participate in public hearings prior to the plants being permitted to shut down. Snyder said this forum is valuable in assessing various important factors related to plant operations besides the power grid. The commission also would develop employee protections, such as minimum requirements for severance payments and the continuation of health care benefits.
PJM requires 90 days' notice before a plant shutdown, which Snyder said does not provide adequate time for the state or local government to fully assess the plant before deactivation.
Tony Sacco, president of the Cumru Township commissioners, said former owner GenOn never contacted the township that it was closing the plant, and NRG did not communicate to the township that it was moving up the closure date or what would happen with the plant besides the activity to clean the facility.
"The troubling part is the company has been very silent in any dialogue with the township and the county, and we want to know what the plan of action is," Sacco said.
The coal cars sit at the Titus Station plant. Photo: Bill Uhrich
Although NRG is not required to inform Cumru about what will happen with the plant, Sacco said that lack of information and uncertainty have left the township in a bind because the plant contributes property taxes to the municipality and school district. As of this year, NRG is paying $43,381 in taxes to the township. The company pays $193,231 to Gov. Mifflin School District.
"In the scheme of the entire budget, does it sound like a lot?" Cumru Township manager Jeanne E. Johnston said. "But that is one and half police cars."
NRG will still be required to pay taxes. However, Sacco and Johnston expressed concern that NRG would apply for county reassessment, possibly lowering its tax bill.
In addition to the lost jobs, other companies have been affected. Norfolk Southern Corp. delivered coal to the plant. Spokesman Dave Pidgeon declined to comment on the effects the closure would have on the company, saying Norfolk Southern does not discuss customer relations.
Gaier would not comment on Snyder's legislation.
Not just Titus
According to the Pennsylvania Department of Environmental Protection, 13 coal-fired plants have been retired in the last 15 years. At least five more facilities in the state are expected to retire their coal units by 2017.
Among those that shuttered last year were Hatfield's Ferry in Greene County and Mitchell in Washington County, which Snyder said are examples of questionable decisions PJM made, because come winter, many southwestern Pennsylvania customers were asked to limit power consumption.
"Taking Hatfield's offline would impact the grid," Snyder said. "FirstEnergy was able to close down Hatfield's within 90 days of announcing it would close it. Corporate greed and profit drove that decision."
Dotter said this winter was extremely unusual, putting extra pressure on the grid.
"It's good to have additional resources to use, but we see that becoming a little tighter as more plants retire," he said.
FirstEnergy spokeswoman Stephanie Walton said Hatfield's Ferry was deactivated Oct. 9 because of the roughly $245 million it would have cost to meet federal Environmental Protection Agency standards, and that PJM's analysis concluded the plant was not required to ensure system reliability beyond its deactivation date.
"Low electricity prices and other market factors were causing Hatfield's Ferry to lose money," Walton said. "When combined with the need for Mercury and Air Toxics Standards investments as well as uncertainty around other upcoming environmental regulations, FirstEnergy determined that the plant was uneconomical. PJM's Independent Market Monitor conducted a market power analysis, which also concluded that the plant was uneconomical."
It was the lack of an open dialogue that made Snyder want to find a way to prevent the same kind of closure happening in the future in other counties.
"I was blindsided that it closed, and I hope my legislation can prevent the same thing from happening again," she said.
"In the scheme of the entire budget, does it sound like a lot?" Cumru Township manager Jeanne E. Johnston said. "But that is one and half police cars."
NRG will still be required to pay taxes. However, Sacco and Johnston expressed concern that NRG would apply for county reassessment, possibly lowering its tax bill.
In addition to the lost jobs, other companies have been affected. Norfolk Southern Corp. delivered coal to the plant. Spokesman Dave Pidgeon declined to comment on the effects the closure would have on the company, saying Norfolk Southern does not discuss customer relations.
Gaier would not comment on Snyder's legislation.
Not just Titus
According to the Pennsylvania Department of Environmental Protection, 13 coal-fired plants have been retired in the last 15 years. At least five more facilities in the state are expected to retire their coal units by 2017.
Among those that shuttered last year were Hatfield's Ferry in Greene County and Mitchell in Washington County, which Snyder said are examples of questionable decisions PJM made, because come winter, many southwestern Pennsylvania customers were asked to limit power consumption.
"Taking Hatfield's offline would impact the grid," Snyder said. "FirstEnergy was able to close down Hatfield's within 90 days of announcing it would close it. Corporate greed and profit drove that decision."
Dotter said this winter was extremely unusual, putting extra pressure on the grid.
"It's good to have additional resources to use, but we see that becoming a little tighter as more plants retire," he said.
FirstEnergy spokeswoman Stephanie Walton said Hatfield's Ferry was deactivated Oct. 9 because of the roughly $245 million it would have cost to meet federal Environmental Protection Agency standards, and that PJM's analysis concluded the plant was not required to ensure system reliability beyond its deactivation date.
"Low electricity prices and other market factors were causing Hatfield's Ferry to lose money," Walton said. "When combined with the need for Mercury and Air Toxics Standards investments as well as uncertainty around other upcoming environmental regulations, FirstEnergy determined that the plant was uneconomical. PJM's Independent Market Monitor conducted a market power analysis, which also concluded that the plant was uneconomical."
It was the lack of an open dialogue that made Snyder want to find a way to prevent the same kind of closure happening in the future in other counties.
"I was blindsided that it closed, and I hope my legislation can prevent the same thing from happening again," she said.
