Delaware’s Indian River Unit 4, a coal-fired generator owned by NRG, will retire nearly two years ahead of its scheduled closure, according to a recent announcement from PJM.
Originally, NRG informed PJM in June 2021 of plans to retire Indian River 4 in 2022. However, PJM’s reliability analysis revealed that shutting down the 411 MW unit would create potential grid reliability issues. In response, PJM identified a series of transmission upgrades to resolve these concerns.
Transmission Upgrades Complete
Delmarva Power, the local transmission owner, has now completed the required transmission enhancements. As a result, PJM confirmed that the Indian River 4 plant can retire 22 months ahead of schedule, in February 2025.
The unit had been under a Reliability Must-Run (RMR) agreement, which temporarily kept it operational to ensure grid stability while the necessary transmission upgrades were being completed. With the final segment of upgrades finished, PJM has notified NRG that the RMR arrangement will be terminated.
Benefits of Early Retirement
Mike Bryson, PJM’s Senior Vice President for Operations, praised Delmarva Power’s efforts, saying that completing the transmission work ahead of schedule was a win for customers, improving both reliability and affordability. He emphasized that RMR arrangements are a temporary measure to maintain system reliability while addressing transmission issues.
The final savings from the early retirement of Indian River 4 will depend on FERC’s approval of a proposed settlement rate, according to PJM.
The official retirement of Indian River 4 is set for February 2025, marking a significant step in the region’s transition to cleaner energy while maintaining grid reliability.
