Dayton Power and Light deactivated the coal-fired Hutchings Unit 4 on June 1 and has notified PJM Interconnection of its plans to deactivate the remaining Hutchings units on June 1, 2015.
“Depending on other factors, deactivation could occur sooner than that,” said DP&L parent DPL Inc. in an Aug. 8 Form 10-Q quarterly report. “We do not believe that any additional accruals are needed related to the Hutchings Station.”
DPL is a unit of AES Corp. (NYSE: AES).
DP&L has several pending environmental matters associated with its coal units. Some of these matters could have material adverse effects on the operation of the units and stations, especially on those that do not have selective catalytic reduction (SCR) and flue gas desulfurization (FGD) equipment installed to further control certain emissions. Currently, Hutchings and Beckjord are the only coal-fired generating units or stations that do not have this equipment installed. DP&L owns 100% of Hutchings and a 50% interest in Beckjord Unit 6.
In July 2011, Duke Energy (NYSE: DUK), a co-owner at Beckjord Unit 6, filed a Long-term Forecast Report with the Public Utilities Commission of Ohio (PUCO). The plan indicated that Duke Energy plans to cease production at the Beckjord Station, including the commonly owned Unit 6, in December 2014. This was followed by a notification by the joint owners of Beckjord 6 to PJM, dated April 12, 2012, of a planned June 1, 2015, deactivation of this unit. “We do not believe that any additional environmental accruals are needed as a result of this decision,” the Form 10-Q said.
DP&L’s undivided ownership interest in coal facilities, with MW ratings showing DP&L’s shares only, is as follows:
- Beckjord Unit 6, 50% ownership, summer capacity 207 MW;
- Conesville Unit 4, 16.5%, 129 MW;
- East Bend, 31%, 186 MW;
- Killen, 67%, 402 MW;
- Miami Fort Units 7-8, 36%, 368 MW;
- Stuart, 35%, 808 MW;
- Zimmer, 28.1%, 365 MW; and
- Hutchings, 100%, 302 MW.