Summary
Exelon Corporation, through its subsidiary Exelon Generation Company, LLC, announced on December 2, 2009, the permanent retirement of four generating units (Units 1 & 2 at Cromby Generating Station and Units 1 & 2 at Eddystone Generating Station) effective May 31, 2011. This decision, approved by the Board of Directors, stems from the determination that these 50-year-old, Philadelphia-area units are no longer economically viable to operate and are not needed to meet regional electricity demand. The retirement will result in an estimated pre-tax charge of $258 million, encompassing severance, plant shutdown costs, accelerated depreciation, and inventory write-downs. The retirement will impact approximately 280 positions across the affected plants and corporate support functions. Exelon is exploring options to mitigate the impact on affected employees. While two peaking units and four smaller oil-burning units at Eddystone will continue operations, the Cromby Station will be fully shut down. The company has also scheduled a conference call for December 2, 2009, to discuss these developments.
Key Highlights
- 1Exelon to retire four generating units (Cromby Units 1 & 2, Eddystone Units 1 & 2) by May 31, 2011.
- 2Decision driven by the uneconomic nature of operating 50-year-old plants and reduced regional demand.
- 3Estimated pre-tax charges of $258 million associated with the retirement activities.
- 4Includes $219 million in accelerated depreciation and $18 million in severance costs.
- 5Approximately 280 positions will be affected by workforce reductions.
- 6Cromby Generating Station will be fully shut down; Eddystone will retain some operational units.
- 7Exelon will hold an investor conference call on December 2, 2009, to discuss the announcement.