Exelon to Shut 4 Pennsylvania Units

Exelon Power, the power generating subsidiary of Exelon Corp. (EXC - Analyst Report), announced plans to shut down 4 units at two plants in southeastern Pennsylvania, effective May 31, 2011. The plants which are to be shut down include, Units 1 and 2 of Cromby Generating Station and Units 1 and 2 of Eddystone Generating Station.
 
In a filing, Exelon Power said the units are no longer economical to operate or necessary to meet the shrinking demand for electricity in the region. Exelon said it estimates it will incur $258 million in pre-tax charges as a result of the closings.
 
The shut down will result in elimination of 280 jobs in the area, of which 220 are at the Cromby and Eddystone plants and the rest are at Exelon Power’s headquarters in Kennett Square, Pennsylvania. The job reductions related to the closings will occur between the end of the first quarter of 2010 and late 2011. The company said it is exploring various ways to ease the impact on workers, including finding other jobs for the affected workers with it or other Exelon subsidiaries, and buyouts.
 
Located on the Schuylkill River in Phoenixville, Pennsylvania, the Cromby Generating Station has a 144-megawatt coal-fired unit and a 201-megawatt unit that operates on natural gas or fuel oil, which were placed in service in 1954 and 1955, respectively. When both the units are decommissioned, Cromby will close.
 
Eddystone Generating Station on the Delaware River in Eddystone , Pennsylvania , has a 279-megawatt coal-fired unit and a 309-megawatt coal-fired unit, both placed in service in 1960. The closings at Eddystone will leave the plant with four oil-burning generators that can produce 60 megawatts among them and two generators that are run during peak demand, burn either natural gas or oil, and can produce 380 megawatts each.

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