PSEG Will Close Hudson County Coal Plant In 2017

JERSEY CITY, NJ — In a move that environmental activists are touting as a win-win situation, PSE&G announced Wednesday that it will be “retiring” two New Jersey coal plants in 2017.

PSE&G officials stated that the company’s Hudson Generation Station in Jersey City and its Mercer Generation Station in Hamilton Township will be retired on June 1, 2017.

Bill Levis, president and COO of PSE&G Power, stated that the motivating factor behind the coming shutdowns was the “sustained low prices of natural gas” which have been putting “economic pressure” on the two plants for years.

“We could not justify the significant investment required to upgrade these plants to meet the new reliability standards," Levis said. "The plants have been infrequently called on to run and neither plant cleared the last two [PJM Interconnection] capacity auctions. The plants' capacity payments have been critical to their profitability and PSE&G’s ability to continue to invest in modernizing them."

PSE&G officials emphasized that the company is “committed to treating the approximately 200 employees at Hudson and Mercer fairly” as it prepares to close the two plants.

"These plants have played a critical role in powering the growth and economic expansion of New Jersey and PSE&G is grateful to our employees who have played a part in building and running them for the past 50 years," said Levis. "We will work with our union and PSE&G leadership to ensure that the plants continue to operate safely through their retirement dates and to place as many employees as possible within PSE&G's family of companies."

With the announced closing of the coal plants, New Jersey's energy now will be split almost evenly between nuclear and natural gas, with a small but growing amount of renewable energy, the company announced.

PSE&G officials noted that the company is “evaluating all options” for future use of the sites.

According to PSE&G, the Mercer Generation Station was opened in 1960. It currently has a capacity of 632 mw. Hudson Generation Station was opened in 1968 and had a capacity of 620 mw.

Jersey City Mayor Steven Fulop released a statement on Wednesday praising the decision.

“We have worked with environmental groups over the last few years to advocate for the closing of the Jersey City station, which contributed to pollution and dangerous air quality for [our] residents,” Fulop said. “We commend PSE&G for this decision that will improve quality of life in Jersey City.”

"This is victory for the environment and the people of New Jersey and the region," Jeff Tittel, director of the New Jersey Sierra Club stated Wednesday. "The closing of these two plants is a turning point in our battle against dirty coal and for clean air in the entire region."

Tittel continued:

"The Hudson and Mercer coal plants are some of the largest generators of air pollution and greenhouse gasses in the entire state... The toxic mercury and air pollution from coal plants had led to hospitalization and other health effects. Carbon pollution leads to smog and triggers asthma. Closing these plants is an important way to reduce air pollution and improve the health of thousands of New Jersyans... The Mercer Generating Station in Hamilton is not only the largest source of air pollution in the region, it is also been one of the largest sources of water pollution. The plant has killed up to 70 million fish and fish larvae per year including more than 30 species of fish."

The Sierra Club previously filed a notice to sue the Mercer facility for creating an allegedly harmful situation for the sturgeon population in the Delaware River.

“[PSE&G's decision] would be a boon for air quality in all of north Jersey,'' Director of Environment New Jersey Doug O'Malley told NJ.com.

Photo: Hudson Generating Station, Wikimedia Commons

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