### DOE Orders Delay in Retirement of 760 MW at Pennsylvania Plant to Prevent Power Emergency

In a decisive move to ensure grid reliability, the U.S. Department of Energy (DOE) on Friday instructed Constellation Energy and PJM Interconnection to delay the planned retirement of 760 MW of oil- and gas-fired peaking capacity at the Eddystone power plant in Pennsylvania. The units, originally slated for deactivation the next day, are now required to remain operational at least until August 28, with the possibility of an extension.

The emergency directive arises amid concerns relayed by PJM, the grid operator overseeing power distribution across 13 Mid-Atlantic and Midwest states and the District of Columbia. PJM had alerted DOE to potential power shortages under extreme demand conditions expected this summer, prompting the federal intervention. The control room's analysis suggested that without these peaking units, the grid might need to resort to demand response measures to prevent outages.

Support for DOE's order was echoed by PJM, which described the action as a “prudent, term-limited step” that provides a 90-day window for further evaluation of the generators' longer-term necessity and viability. The Federal Power Act's section 202(c) grants the DOE secretary the authority to mandate continuous operation of power plants during emergencies, a measure that has been invoked 17 times since August 2020.

In accordance with the order, Constellation Energy is mobilizing efforts to ensure Eddystone units 3 and 4 remain operational. Paul Adams, a spokesman for Constellation, confirmed immediate steps are being taken to retain essential staff and perform necessary maintenance to guarantee safe and reliable operations through the summer months.

PJM initially approved the retirement of Eddystone units 3 and 4, installed between 1967 and 1970, for February 2024, concluding that their shutdown posed no significant reliability risks. However, the emergent circumstances necessitated the reevaluation of this decision. Additionally, on Friday, PJM permitted the deactivation of two gas-fired units in Virginia, totaling 80 MW, by Buchanan Generation, effective July 1.

The emergency order extends beyond the immediate operational adjustments for Constellation Energy, potentially impacting the company's $16.4 billion acquisition of Calpine. As part of the merger proposal pending approval by the Federal Energy Regulatory Commission (FERC), Constellation committed to divesting four power plants totaling 3,546 MW in PJM's eastern region, where Eddystone is situated, to mitigate concerns about market power.

The cost implications of continuing to run the Eddystone units, including ensuring Constellation secures a profit, will be borne by ratepayers. Public Citizen’s Energy Program director, Tyson Slocum, emphasized the financial and maintenance challenges posed by operating such aging units. Similarly, Kit Kennedy from the Natural Resources Defense Council highlighted potential public health impacts and increased electricity costs resulting from the extended operation of Eddystone units.

DOE has indicated the development of a methodology to identify reserve margins for all FERC-regulated regions, with a protocol set to be published by July 7. This method will assist in determining which generation resources are critical for system reliability and should therefore be maintained. This ongoing evaluation will also apply to the Eddystone units, as detailed in DOE’s recent order.