PJM Interconnection (“PJM”), the regional grid operator for significant parts of the Midwest and mid-Atlantic, has recently identified that nearly 12,000 MW of electricity capacity provided primarily by smaller, old coal units is “at-risk” of imminent retirement. Aging units are becoming less economic due to high maintenance costs, high coal costs, relatively low natural gas prices (natural gas is the fuel of choice for many competing generators) and the threat of climate legislation that would require massive upgrades to contain pollutants emitted by these plants.

All of these impediments come at a time when demand for electricity has substantially decreased…
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