Indian River power plant to close
The coal-fired Indian River power plant is scheduled to retire in February 2025, company and power grid officials announced Dec. 23.
The power plant, which has been in operation since 1957, had been scheduled to close in 2022, but it continued to operate under a Reliability-Must-Run agreement made with power grid operator PJM Interconnection.
The agreement allowed Delmarva Power to continue operating until transmission upgrades could be completed.
PJM said in a statement that Delmarva Power has completed the needed transmission additions that will enable Indian River Unit 4, a 411 MW electrical generator, to retire 22 months before its scheduled deactivation date. PJM, in coordination with Delmarva Power, has made the determination that Indian River Unit 4 is no longer needed for the reliability of the electricity grid.
As of Dec. 18, officials said Delmarva Power completed the Vienna-Nelson line upgrade, the final segment of the necessary transmission upgrades that will allow Indian River 4 to be removed from the system without causing grid reliability issues. Following line upgrade, PJM notified NRG of its intent to terminate the RMR arrangement.
“The RMR arrangement will terminate officially in February 2025, about 22 months ahead of schedule. Terminating the RMR arrangement early will save consumers nearly two years of avoided RMR payments,” PJM said.
The final determination of the total savings will depend on the Federal Energy Regulatory Commission’s approval of a proposed settlement rate, officials said.
“The retirement of the plant means the end of an era of dedicated service. We empathize with the impact this has on our dedicated employees and the local Delaware residents, but are grateful for the opportunity to ‘keep the lights on’ and serve in partnership with the community for more than 68 years,” NRG officials said in a statement. “Employees have been offered the opportunity to apply for open positions within NRG, and the company is prepared to provide transition assistance and severance in accordance with all NRG policies and applicable collective bargaining agreements. Unit 4 continues to operate until its final closure. We will remain focused on the safety of all employees and protecting the environment.”
NRG Senior Manager of General Communications Ann Duhon said there are 53 employees at the plant with 30 contractors. She had no information on the future of the plant.
