PJM Interconnection, the regional electric transmission company, has announced the early deactivation of Indian River Unit 4, a coal-powered electric generator in Sussex County, Delaware. The unit, which has been operational since 1957, was initially slated for closure in June 2022 but continued to operate under a Reliability-Must-Run (RMR) agreement to maintain reliable power while Delmarva Power upgraded its transmission infrastructure.
Delmarva Power has now completed the necessary upgrades ahead of schedule, allowing PJM to terminate the RMR agreement and shut down Indian River Unit 4 earlier than expected. The deactivation, now set for February 2025, will occur about 22 months sooner than originally planned.
“This early closure is a win for our customers, both in terms of reliability and affordability,” said Mike Bryson, Senior Vice President of Operations at PJM. “We consider RMR arrangements as a temporary solution to ensure system reliability while we make necessary upgrades, so completing this work ahead of schedule is a significant achievement.”
The closure will result in nearly two years of savings from RMR payments. PJM officials emphasized that the decision to deactivate the unit was made with no adverse impact on grid reliability, thanks to Delmarva’s timely upgrades.
NRG Energy, which has operated the plant at PJM’s request, announced that employees at the Indian River Unit 4 will have the opportunity to apply for other positions within the company. The company also pledged to provide transition assistance and severance benefits in accordance with company policy and collective bargaining agreements.
“The retirement of the plant marks the end of an era of dedicated service,” a spokesperson for NRG stated. “While we empathize with the impact on our employees and the local community, we are grateful for the opportunity to have served and partnered with the region for more than 68 years.”
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