FirstEnergy ready for more coal retirements
FirstEnergy and American Municipal Power have entered into a non-binding agreement to build an 873 MW natural gas peaking facility.
The project is expected to reduce FirstEnergy's transmission spending for projects related to plant deactivations by about $200 million through 2016, bringing transmissions pending to the $500 to $700 million range. The company expects to spend $150 million of that in 2013.
The facility would be located on the grounds of FirstEnergy's existing Eastlake Plant in Eastlake, Ohio due to its existing transmission system interconnections and the fact that it is located in a region that could be impacted by the deactivation of older power plants. Earlier this year, FirstEnergy announced that nine older, coal-fired power plants, including the Eastlake Plant, would be deactivated.
AMP will provide construction financing and own 75 percent of the generation output when complete; FirstEnergy will fund and own the remaining 25 percent.
If approved, the project is expected to be completed in 2016.
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Goodbye to coal?