New Jersey-based NRG said it would shut two coal-fired power generating units at the Portland generating station in Mount Bethel by June 1, 2014 – seven months ahead of schedule.
NRG became the nation's largest competitive-rate power company in December after its acquisition of GenOn in a roughly $1.7 billion all-stock deal.
"NRG only acquired the Portland plant in December 2012 when we closed our merger with GenOn but we immediately started working with New Jersey and Connecticut and were able to resolve this issue without additional delay or cost to taxpayers," NRG east region president Lee Davis said.
The settlement resolves a 2007 lawsuit brought by the states for alleged non-compliance with the federal Clean Air Act.
NRG says it operates the plant in question in "full compliance with permits issued by Pennsylvania and denies there have been any violations of the Clean Air Act".
It conceded that settling the lawsuit was the most efficient way to resolve the dispute.
The plant's operator initially planned to shut the coal units by January 2015, in line with new EPA emissions standards becoming active.
The closures will decrease the plant’s generating capacity by 70%, knocking 401 megawatts off the current 570MW capacity.
The plant also has three dual-fuelled combustion turbines with a total generating capacity of 199MW.
NRG said under the terms of the settlement it would invest $1 million to benefit the environment in New Jersey and Connecticut.
“As a part of the settlement, we committed to make a significant investment in projects that are beneficial to the environment consistent with NRG’s focus on providing power in a way that is environmentally responsible, reliable and affordable,” Davis said.
Environmentalists praised the suit’s outcome.
“We’re glad to see NRG take responsibility for their dangerous pollution and agree to end their use of coal at the plant, however, they must still take action to clean up the dangerous waste left behind, work to safely remediate the site and provide for a fair and responsible transition for the workers and the town,” Greenpeace spokesperson Myriam Fallon said.
The consent decree will be provided to the US Department of Justice and US Environmental Protection Agency for review and comment for a period of 45 days and then must be approved by the US District Court for the Eastern District of Pennsylvania.
