US DOE orders PJM to keep Constellation plant online for 90 more days

The US Department of Energy directed PJM Interconnection LLC to keep 760 MW of natural gas- and oil-fired power generation capacity in Pennsylvania online for another 90 days, citing an emergency in the region.

The move follows the Trump administration's May 30 order that initially delayed retirement by 90 days of two units at the 50-year-old Eddystone Generation Station. Eddystone 3-4 had been slated to retire May 31.

"The summer season has not yet ended, and the production of electricity from the Eddystone units will continue to be critical to maintaining reliability in PJM this summer," Energy Secretary Chris Wright said in the Aug. 27 order that will keep the plants in operation until at least Nov. 26. "This need is evidenced by the fact that the Eddystone units were called on by PJM to generate electricity during heat waves that hit the region in June and July."

The Eddystone Generation Station, owned by Constellation Energy Corp. is a six-unit facility on the Delaware River in Eddystone, Pennsylvania, just south of Philadelphia.

The extension continues the Trump administration's use of Section 202(c) of the Federal Power Act, which authorizes the DOE secretary to allow -- or require -- power plants to operate during defined emergencies for up to 90 days. The administration has used that authority to delay planned retirements of fossil-fueled plants.

Earlier this month, the Trump administration used section 202(c) to extend operations at CMS Energy Corp., J.H. Campbell plant in Michigan for an additional 90 days.

That move drew criticism from the Midcontinent ISO and the Michigan attorney general, who said it was unnecessary and imposed unfair costs for consumers. PJM, however, welcomed the administration's decision, saying it helps mitigate supply and demand imbalances in the region.

"PJM supports the [DOE's] extension of its order ... to defer the retirements of certain generators operating in PJM's footprint," a PJM spokesperson said in an Aug. 28 e-mail to Platts, part of S&P Global Energy.

"The department's Aug. 28 extension of its order is a prudent, term-limited step that will retain the covered generators for a period of 90 days."

PJM in July posted its highest-ever capacity auction clearing price at $329.17/MW-day for the 2026-2027 delivery year, which it attributed to tightening supply and demand conditions.

Following the results, then-Federal Energy Regulatory Commission Chairman Mark Christie warned of a reliability "crisis" in the region.

Grid Strategies, a Washington, DC-based consulting firm, estimated that keeping Eddystone online costs $69.8 million annually, or about $17.4 million per quarter.

On Aug. 18 FERC approved PJM's cost recovery proposal, which allocates the costs of running the plant on a load-ratio share basis.

A spokesperson for Constellation was not immediately available for comment.