Edison International last week said it was unable to secure financing for more than $700 million in scrubbers and other air pollution equipment required by state and federal regulations to continue operating the beleaguered 1,884-MW Homer City Generating Station Pennsylvania. The news comes on the heels of the announced closure of the firm’s two Chicago coal-fired power plants by 2014.

On Friday, as Edison International subsidiary Edison Mission Energy declined to say whether the 1969-built plant would be retired, General Electric Co.—which owns the plant and leases it to Edison Mission—announced it intended to continue operating the coal-fired power plant.

"We are working with [Edison Mission] on the potential transfer of Homer City to GE Energy Financial Services. Our intent is to continue the plant’s operations," GE said in a statement.
"We are awaiting government approval to install emissions control equipment as soon as possible, which would enhance the plant’s long-term value. These actions are subject to successful completion of negotiations with stakeholders," GE added.

Meanwhile, last week Edison International subsidiary Midwest Generation announced it would retire the Fisk Station by the end of 2012 and the Crawford Station by the end of 2014. The two Chicago coal plants total about 860 MW. Edison cited the decision to shutter the plants was in part because it was not economical to upgrade the units built in the 1950s and 1960s.

“Unfortunately, conditions in the wholesale power market simply do not give us a path for continuing to invest in further retrofits at these two facilities,” said Midwest’s president of generation Pedro Pizarro.

 Chicago Mayor Rahn Emanuel hailed Midwest’s decision in a joint statement, saying that the closures correspond with a timetable of the proposed Chicago Clean Power Ordinance that was first introduced in 2010 and reintroduced in 2011.

Sources: POWERnews, Edison International