The only operational unit of Delaware’s sole coal-fired power plant will shut down in February, nearly two years ahead of schedule.

Indian River Unit 4 near Dagsboro originally was scheduled to shut down in 2026 while electrical grids were upgraded to ensure reliability, but regional grid manager PJM announced on Monday, Dec. 23, that the power plant’s unit can shut down 22 months early without causing adverse impacts on the grid’s reliability.

The company has stated that this early shutdown will save consumers nearly $100 million and will soon make Delaware the sixth state in the country with no coal-fired power plants in operation.

Here are the details.

Why is the plant shutting down?

The Indian River station, located near Dagsboro, is Delaware’s only remaining coal-fired power plant and one of the state’s top air polluters. It consists of four units, three of which have been retired for at least 11 years.

PJM announced on Monday, Dec. 23, that the Indian River Unit 4, which is owned by NRG, could retire by February 2025, two years ahead of its scheduled deactivation date.

Delmarva Power, which owns the transmission lines in the region, has reportedly completed the required transmission upgrades that would enable the power plant to shut down without negatively impacting electrical reliability. PJM says this shutdown will save wholesale electricity customers around $93 million.

As of Wednesday, Dec. 18, Delmarva Power completed its final stage of transmission upgrades that would allow the power plant unit to shut down.

“Delmarva’s good work to complete this project far ahead of schedule is a win for our customers, both from a reliability and affordability perspective,” said Mike Bryson, senior vice president – operations at PJM. “PJM regards RMR arrangements as a last resort to keep units temporarily operational to maintain system reliability while we make transmission improvements to balance the system, so the sooner we can get the work done, the better.”

In June of 2021, NRG notified PJM of its intent to shut down the unit in 2022, but after PJM conducted a reliability analysis, it was concluded that this shutdown date would cause adverse impacts on electric customers, and the unit’s life was extended until December 2026 to give Delmarva Power time to upgrade the electric grid.

At the time of the announced extension, customers were expected to bear the brunt of the cost, with an estimated average monthly bill increase of around $6.45.

Indian River power plant’s dirty history

The Indian River plant has been a subject of environmental and public health scrutiny for decades.

In August of 2007, the Delaware Division of Public Health confirmed the presence of a “cancer cluster” in the area immediately surrounding the Indian River Power Plant, with a cancer rate 17% higher than the national average at the time. 

The 2007 toxic release inventory, released in 2009, listed the Indian River Power Plant as the top emitter of toxic releases, with 88% of the emissions being acid gasses known to have harmful effects on human health and safety.

In March of 2009, the grassroots environmentalist organization Citizens for Clean Power sued the Indian River Power Plant for committing over 6,000 violations of state and federal air pollution regulations.

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However, in 2011, the Delaware Cancer Consortium, the Department of Health and Social Services and the Department of Natural Resources and Environmental Control commissioned a study on the potential link between toxin exposure in nearby residents. It concluded that the power plant was not responsible for the impact on people’s health.  

In 2019, the Environmental Integrity Project confirmed that the Indian River Power Plant was contaminating groundwater with unsafe levels of toxic pollutants found in coal ash including arsenic, lithium and mercury among others. 

In 2023, the EPA acknowledged that coal ash is more dangerous than previously believed, due to levels of arsenic and radiation that pose cancer risks, while also noting widespread noncompliance with federal safeguards.

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EarthJustice calculated in May 202, that the power plant contains nearly 1.5 million cubic yards of coal ash and toxic waste, which has contaminated the area’s groundwater.

More recently, the site adjacent to the Indian River plant has been targeted as a potential area for offshore wind cables to connect on-shore. This permit was rejected by Sussex County Council this month.

Molly McVety covers community and environmental issues around Delaware. Contact her at mmcvety@delawareonline.com. Follow her on Twitter @mollymcvety.