DAGSBORO, DE - Electric transmission company PJM has announced the upcoming deactivation of Indian River Unit 4, a coal-powered electric generator in Sussex County that has been in operation since 1957.
The generator was originally scheduled to close in June 2022 but was kept operational under a Reliability-Must-Run (RMR) agreement to ensure reliable power supplies while Delmarva Power completed transmission upgrades. The deactivation was then scheduled for December 2026. PJM says Delmarva Power has completed those upgrades ahead of schedule, allowing for Indian River 4 to be removed from the energy system without fear of causing issues with grid reliability.
PJM says the RMR agreement will now be terminated in February 2025, about 22 months earlier than expected. The closure, according to officials, will save nearly two years of RMR payments.
“Delmarva’s good work to complete this project far ahead of schedule is a win for our customers, both from a reliability and affordability perspective,” said Mike Bryson, Sr. Vice President – Operations at PJM. “PJM regards RMR arrangements as a last resort to keep units temporarily operational to maintain system reliability while we make transmission improvements to balance the system, so the sooner we can get the work done, the better.”
Energy company NRG, which operated the plant at PJM’s request, tells WBOC that employees at the generator will be offered the opportunity to apply for open positions within the company. The company is also prepared to provide transition assistance and severance in accordance with company policy and collective bargaining agreements.
“The retirement of the plant means the end of an era of dedicated service,” a spokesperson for NRG said Monday. “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.”
