PSEG to close 2 remaining N.J. coal plants in 2017 (original) (raw)

NEWARK -- PSEG announced Wednesday it is shutting down its two remaining coal plants in New Jersey, a decision the company said is largely driven by tougher environmental regulations and a move toward natural gas.

The plants, which are in Jersey City and Hamilton, Mercer County, will be retired on June 1, 2017.

PSEG said its decision would affect about 200 employees who are split between the two facilities. The utility said it will work to place as many employees as possible at other facilities.

"The sustained low prices of natural gas have put economic pressure on these plants for some time," said Bill Levis, president and chief operating officer of PSEG Power. "In that context, we could not justify the significant investment required to upgrade these plants to meet the new reliability standards."

New federal standards announced last year were designed to reduce emissions of mercury and other toxic pollutants from coal-fired power plants.

The chart depicts the decline of coal in the state

PSEG said it remains committed to meeting the region's long-term energy needs and is currently investing more than $600 million in a new combined-cycled gas plant in Sewaren as well as new plants in Connecticut and Maryland.

With the planned closure of the two coal plants, New Jersey's energy will now be split almost evenly between nuclear and natural gas, with a small but growing amount of renewable energy, the company said.

"We continue to believe that it is unwise for New Jersey to become too overly dependent on one source of energy," Levis said. "With the continued low cost of natural gas, it is important that we recognize and support the full value of non-carbon, non-polluting nuclear and renewable energy."

The New Jersey Sierra Club declared PSEG's decision a victory.

"The closing of these two plants is a turning point in our battle against dirty coal and for clean air in the entire region," Sierra Club Director Jeff Tittel said. "The Hudson and Mercer coal plants are some of the largest generators of air pollution and greenhouse gasses in the entire state. ... We believe that these plants have not only hurt the environment, but have hurt ratepayers, and that's why it's so important that they are closing."

Jersey City Mayor Steven Fulop also commended the utility for its decision, saying that it will help improve the city's quality of life.

"We have worked with environmental groups over the last few years to advocate for the closing of the Jersey City station, which contributed to pollution and dangerous air-quality for residents in Jersey City," he said.

PSEG said it is evaluating all options for future use of the Mercer and Hudson sites, which opened in 1960 and 1968, respectively.

The closure would mean that there would only be one coal-fueled plant left in New Jersey: a smaller cogeneration facility in Logan Township, Gloucester County. It is leased by Logan Generating Company, an affiliate of National Energy & Gas Transmission.

Cristina Rojas may be reached at crojas@njadvancemedia.com. Follow her on Twitter @CristinaRojasTT. Find NJ.com on Facebook.

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