The largest coal burning power plant operating in Pennsylvania is being shut down.
Homer City Generation will decommission its coal power generating units and wind down operations over the next ninety days.
There will also be a series of layoffs.
The Indiana County company says a number of factors contributed to the decision: the low price of natural gas, higher prices for coal, unseasonably warm winters and environmental regulations.
That environmental regulation is the state of Pennsylvania’s intention to join the Regional Greenhouse Gas Initiative.
A release from the company says the RGGI will “severely limit Homer City’s ability to plan long term and it will handcuff the business in making further investments with an uncertain regulatory future.”
“This is an unfortunate day for us at Homer City because we did everything possible to maintain our operations,” said Homer City President and CEO William A. Wexler.
“Everyone at Homer City was committed to helping power our community and no one embodied that commitment more than our workers. We will continue to look to utilize all of Homer City’s hard assets, including its existing infrastructure, to find a higher and better use(s) to continue to support the community.”