Talen Energy in October notified the grid operator of its intent to shut three oil-fired units and a natural gas combustion turbine unit at its H.A. Wagner facilities by June 2025.
Ongoing efforts to de-carbonize the grid have prompted power plant owners to shutter facilities powered by fossil fuels and shift to more renewable energy sources, such as wind and solar. The shift, however, has created reliability issues during periods of peak demand or when sun and wind fail to generate enough power.
The units, located in Anne Arundel County outside of Baltimore, Maryland, have a combined generating capacity of 844 megawatts.
The deactivation of the units would adversely affect the reliability of the power system without transmission upgrades, PJM said.
Last month, the PJM board approved a set of transmission projects, which includes adding new substations and power lines, with an estimated cost of $5 billion. The enhancements are aimed at maintaining the reliability of the regional power system amid data center load growth and power plant retirements.
Under the Reliability Must Run (RMR) arrangement, Talen Energy must continue to operate the Wagner units until the planned upgrades are completed in the 2028 time-frame, the grid operator said.
