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Wednesday, December 2, 2009

Exelon to cut 280 jobs, shut Phoenixville plant, Delco units

Exelon Power says today it plans to "permanently retire Units 1 and 2 at Cromby Generating Station (Phoenixville) and Units 1 and 2 at Eddystone Generating Station, effective May 31, 2011." Statement here.

Exelon keeps moving from fossil fuel to nuclear, from carbon to uranium: As the Inquirer's Andy Maykuth reported Sunday, Exelon is in the process of boosting power output from its Limerick and Peach Bottom nuclear power plants. Story here.

From Exelon's statement: "Following these retirements, Eddystone Station will remain in service, operating six units capable of generating 820 megawatts.  Cromby Station will close when its units permanently retire... The four units, all in suburban Philadelphia, are no longer economic to operate and are not required to meet shrinking demand for electricity in the region." 

Exelon and its Peco Energy unit employ around 6,200 in Pennsylvania, says spokesman Tim Wirth.

“Decreased power demand, oversupply of natural gas and increasing operating costs, has led Exelon Power to retire these units,” said Doyle Beneby, senior vice president of Exelon Power, in the statement. "Unfortunately, these aging units are no longer efficient enough to compete with newer resources... These units faced a difficult year economically in 2009, and we expect the forces that contributed to the difficulties to continue for an extended period of time."

280 jobs will end at the plants "between the end of first quarter 2010 and late 2011. About 220 of the positions are located at the two power stations, the remainder at the company’s Kennett Square, Pa., headquarters." Exelon will try to find them jobs elsewhere at the company.

Cromby Unit 1, built in 1954, burns coal and produces 144 megawatts of electricity. Unit 2, built the next year, can produce 201 megawatts, burning natural gas or fuel oil. The coal-burning Eddystone units slated for closing, built in 1960, include Eddystone 1, 279 megawatts, and Eddystone 2, 309 megawatts. Including what'll be left of Eddystone, "Exelon Power will continue to operate 4,200 megawatts of natural gas, oil, hydro, and landfill generation within the PJM Interconnection," which must evaluate the shutdowns.
Posted by Joseph N. DiStefano @ 9:14 AM  Permalink | 7 comments
Comments   
  • 0 like this / 0 don't   •   Posted 9:49 AM, 12/02/2009
    Nuclear really is going to be the keystone, with the smaller, cleaner sources of power used where possible. In PA, to replace these lost utility jobs, we have to get the NRC to allow one additional nuclear unit per site at least with a state of the art, latest configuration, cheapest, cleanest, safest nuke plant. Britain's NRC has already allowed 10 such "new" plants to be built at existing nuclear plant sites. We just can't wait anymore if there is going to be enough power to keep pace with demand, and the price will either skyrocket from undersupply or there will be a high enough volume replacement. It can't just be windmills and solar and caulk. Those alone are not an energy policy.
    — CleanupPhilly
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 10:46 AM, 12/02/2009
    Yes it is sad that Phx-ville will lose the facility; living in Collegeville myself I hate to see the local area take such a hit. However, I also have high hopes that the local staff can be relocated to Limerick (or Plymouth Meeting). I am glad to read that Nuclear is being used moreso than traditional energy sources.
    — merl1n
  • 0 like this / 0 don't   •   Posted 10:48 AM, 12/02/2009
    I'd like to know what the money paid on our electric bills as "TRANSITION COSTS" covers, and why??? How much of this was Convicted Ex Senator Vince Fumo involved in getting for PECO???
    — jack4205
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 11:26 AM, 12/02/2009
    I love how Exelon/PECO can say: “Decreased power demand, oversupply of natural gas.." out of one side of their mouth while at the same time asking the PUC (Public Utility Commission) to raise our Natural Gas rates significantly in the suburbs. It's good to know our state government is looking out for the consumer against this "regulated" monopoly.
    — AlexZ
  • 0 like this / 0 don't   •   Posted 4:35 PM, 12/02/2009
    As an ex-Exelon employee, I hate to see any of my fellow friends lose their jobs, but these plants are old and outdated. Throw in the pollution that these "heaters" make and it's a good move. Most will find other positions in the company...just don't tell Chicago!!
    — Hollywood Junkie


7 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
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