DoE Orders Constellation Energy to Delay Retiring 760 MW of Production

The U.S. Department of Energy has issued an emergency order for Constellation Energy Corporation (NASDAQ:CEG) and PJM to continue operating 760 MW of oil- and gas-fired peaking capacity in Pennsylvania. Let’s shed some light on the development.

An aerial view of a power plant, symbolizing the company’s investments in energy infrastructure sector.

According to reports from UtilityDive.com, the DoE ordered Constellation Energy Corporation (NASDAQ:CEG) and PJM Interconnection to continue operating 760 MW of oil- and gas-fired peaking capacity in Pennsylvania that the company had planned to deactivate on May 31, 2025. The emergency order aims to to keep operating two units at Constellation’s Eddystone power plant near Philadelphia until at least August 28, in order to address acute resource adequacy concerns within PJM’s territory, which spans 13 states and the District of Columbia.

PJM supported the order, calling it ‘a prudent, term-limited step that will retain the covered generators for a 90-day period’. However, not everyone seems to be onboard with the decision. The two units were installed between 1967 and 1970 and could pose ‘significant public health impacts and increase electricity costs for people in Michigan and Pennsylvania’, according to Kit Kennedy, power sector managing director at the Natural Resources Defense Council. Meanwhile, Tyson Slocum, director of Public Citizen’s Energy Program, stated:

“Trump’s last minute emergency order — issued literally on the last day these power plants were set to operate — causes significant, expensive complications. Old units like Eddystone require both minor and major maintenance — maintenance that was deferred because of its planned retirement on May 31. Extending the life of the unit will force ratepayers to shell out money to cover expensive maintenance and overpay for expensive power that will result in American households paying even higher electricity bills, as Trump’s emergency order requires consumers to pay 100% of all costs to get the plant up and running, including a guaranteed profit for Constellation.”

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