FirstEnergy Generation Files for Feasibility Study for 800 MW at Eastlake

FirstEnergy Generation Corp., a subsidiary of FirstEnergy Corp., has filed an application for a feasibility study with PJM Interconnection (PJM) to install and interconnect to the transmission system approximately 800 megawatts (MW) of new combustion turbine peaking generation at its existing Eastlake Plant in Eastlake, Ohio, to help ensure reliable electric service in the region.

On January 26, 2012, FirstEnergy announced that its competitive generation subsidiaries will retire six older coal-fired power plants, including the Eastlake Plant, located in Ohio, Pennsylvania, and Maryland as a result of the U.S. Environmental Protection Agency's new Mercury and Air Toxics Standards (MATS) and other environmental regulations. The plant retirements are subject to review by PJM for possible reliability impacts.

A preliminary PJM analysis identified reliability impacts as a result of the plants being retired.

Expressing concern about capacity price impacts from the Eastlake and other retirements, the Public Utilities Commission of Ohio has directed Cleveland Electric Illuminating, Ohio Edison, and Toledo Edison to expand their energy efficiency programs to reduce the ATSI zone's capacity obligations.

FirstEnergy said that installing four new natural gas/oil-fired combustion turbines at the Eastlake Plant is one of several options FirstEnergy Generation Corp. is discussing with PJM to address the reliability issues.

"Filing the interconnection request is the first step required by PJM in order to conduct a more detailed feasibility study for the project," said James H. Lash, president, FirstEnergy Generation and chief nuclear officer. "At the same time, we are continuing our discussions with PJM regarding other steps, including transmission system enhancements, to ensure reliable electric service in northern Ohio after our power plants are retired."

While the interconnection application is the first step, if this option is ultimately implemented, it is anticipated that the turbines would be in service by the spring of 2015 when the MATS regulations take effect.