July 25, 2016 Read More →

FirstEnergy Likely Sees ‘Finite Number of Buyers’ for Aging Coal Plants in Ohio

Darren Sweeney for SNL:

FirstEnergy Corp.’s decision to abandon more than 850 MW of coal-fired capacity in Ohio, including four units at its 2,210-MW W.H. Sammis coal plant, could be part of a broader strategic shift around its merchant business.

“They’re looking to cut costs and they’re looking at shutting down assets,” Guggenheim Securities LLC analyst Shahriar Pourreza said in a July 22 interview.

The analyst noted there are a “finite number of buyers” for the business given that the portfolio includes the 908-MW Davis-Besse nuclear plant “that operates right on top of shale economics.”

The company announced July 22 it will retire units 1-4 at the seven-unit W.H. Sammis coal plant in Stratton, Ohio, in May 2020. The company also plans to sell or deactivate the 136-MW Bay Shore unit 1 in Oregon, Ohio, by October 2020. The plan to deactivate the five units is the result of challenging market conditions, according to FirstEnergy Generation President Jim Lash.

Full article ($): FirstEnergy coal retirements likely part of broader merchant shift, potential sale

Comments are closed.