Horsehead pulled the plug on 110 MW of Pennsylvania coal capacity

After deactivating its two coal-fired units in Pennsylvania in 2011 and moving to North Carolina, Horsehead Corp. told the Federal Energy Regulatory Commission that it is cancelling its market-based rate authority tariff for the Pennsylvania facilities.

Horsehead produces zinc oxide and prime western zinc metal, and is also a recycler of zinc-bearing materials, including electric arc furnace dust generated as a by-product of steel production. Horsehead’s production processes require a lot of electricity.

To meet its load at its Monaca, Pa., facilities, Horsehead owned and operated two nominally rated 55-MW coal-fired turbines. The majority of electricity generated at the Monaca facility was utilized by Horsehead’s zinc smelter, with excess energy sold into the wholesale power markets administered by PJM Interconnection.

In September 2011, Horsehead announced that the operations at its Monaca facility were moving to a new facility in North Carolina, which is nearing a construction completion. Since that announcement, Horsehead deactivated its generation at the Monaca facility and entered into a supply contract with a Pennsylvania retail electric supplier. The generating assets have not been operated since September 2011 and the company said it has not maintained the facility for operation and does not plan to operate the plant in the future. Horsehead said it provided written notifications of the deactivation to PJM.

In the past, Horsehead sold excess electricity to Duquesne Light under a Power Sales Agreement. In June 2011, Horsehead filed and the commission accepted a notice of cancellation for that agreement.

Horsehead Holding Corp. (Nasdaq: ZINC) is the parent company of Horsehead Corp.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.