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LCG Publishes 2024 Annual Outlook for Texas Electricity Market (ERCOT)

LCG, October 10, 2023 – LCG Consulting (LCG) has released its annual outlook of the ERCOT wholesale electricity market for 2024, based on the most likely weather, market, transmission, and generator conditions.

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LCG Publishes 2024 Annual Outlook for Texas Electricity Market (ERCOT)

LCG, October 10, 2023 – LCG Consulting (LCG) has released its annual outlook of the ERCOT wholesale electricity market for 2024, based on the most likely weather, market, transmission, and generator conditions.

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Industry News

GenOn Expects to Deactivate 3,140 MWs of Generation

LCG, March 1, 2012--GenOn Energy, Inc. yesterday reported plans to deactivate 3,140 MWs of coal-fired generating capacity in PJM between June 2012 and May 2015. GenOn's projected returns on facility investments necessary to comply with environmental regulations are insufficient. A key Environmental Protection Agency (EPA) regulation driving the plant deactivation is the Mercury and Air Toxics Standards (MATS) for power plants.

GenOn does plan to invest $586 to $726 million over the next decade for major environmental controls at some of its remaining generating stations to meet air and water environmental regulations.

GenOn plans to deactivate the following power plants:

Expected Deactivation Plant / Location /MWs /Date
--------------------------------------
Elrama / PA / 460 / June 2012
Niles / OH / 217 / June 2012
Portland / PA / 401 / January 2015
Avon Lake / OH / 732 / April 2015
New Castle / PA / 330 / April 2015
Shawville / PA / 597 / April 2015
Titus / PA / 243 / April 2015
Glen Gardner / NJ / 160 / May 2015
--------------------
Total 3,140

The units expected to be deactivated and timeframes are subject to further review based on market conditions.

GenOn has additional fleet reductions planned, including: (i) the May 2012 expiration of a tolling agreement for the 630 MW Vandolah facility in Florida; (ii) the previously announced retirement of the 482 MW Potomac River generating facility in Virginia in October 2012; and (iii) the previously announced retirement of the 674 MW Contra Costa generating facility in California in May 2013, subject to regulatory approvals. Additionally, in January 2012, GenOn sold the previously mothballed 586 MW Indian River generating facility in Florida for $11.5 million. These reductions, plus the 3,140 MW of deactivations, total 5,512 MW of reduced generating capacity for GenOn.

GenOn will have 19,490 MW of generating capacity, after accounting for these capacity reductions and adding the 719 MW Marsh Landing generating facility in California (scheduled to become operational in mid-2013).

GenOn was formed on December 3, 2010 through the merger of Mirant Corporation and RRI Energy, Inc.
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