Public Service Enterprise Group (PSEG) will close the 620-MW Hudson Generation Station in Jersey City, N.J., and the 632-MW Mercer Generation Station in Hamilton Township, N.J., on June 1, 2017.

“The sustained low prices of natural gas have put economic pressure on these plants for some time. In that context, we could not justify the significant investment required to upgrade these plants to meet the new reliability standards,” Bill Levis, president and COO of PSEG Power, said in a statement released on October 5. “The plants have been infrequently called on to run and neither plant cleared the last two PJM capacity auctions. The plants’ capacity payments have been critical to their profitability and PSEG’s ability to continue to invest in modernizing them.”

PSEG said it is committed to working with union representatives to limit the impact of the closures on the 200 affected employees, roughly split between the two facilities.

“These plants have played a critical role in powering the growth and economic expansion of New Jersey and PSEG is grateful to our employees who have played a part in building and running them for the past 50 years,” said Levis.…

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