Reesedale Power Plant to Close… 60 Jobs Cut by September 1
As many as sixty electrical employees who work at the Armstrong Power Station near Adrian will lose their jobs this fall.
by Jonathan Weaver
Armstrong County is being hit with the closure of yet another industry.
The coal-fire power station’s parent company FirstEnergy Corp. – headquartered in Akron, Ohio – announced yesterday that the station – also referred to as the Reesdale Power Plant – will be one of six retired by this September to comply with federal Environmental Protection Agency (EPA) guidelines.
In a news release, FirstEnergy Generation President and Chief Nuclear Officer James Lash elaborated.
“This decision is not in any way a reflection of the fine work done by the employees at the affected plants, but is related to the impact of new environmental rules,” Lash said. “We recently completed a comprehensive review of our coal-fired generating plants and determined that additional investments to implement Mercury and Air Toxic Standards (MATS) and other environmental rules would make these older plants even less likely to be dispatched under market rules. As a result, it was necessary to retire the plants rather than continue operations.”
FirstEnergy Spokesperson Mark Durbin said the employees could be transferred to another facility, could accept retirement if they are 55 years old or older or accept severance pay.
“We will be working with the effected employees to see if there are opportunities at other plants that they could possibly be considered for,” Durbin said. “It’s a tough day for us – you never want to have a situation where employees lose their jobs, but its all revolving around these environmental requirements so it’s something we thought very hard about and, at the end-of-the-day this was the decision we just had to make.”
According to Durbin, the MATS rules were finalized by the EPA in December 2011 and made company officials consider the loss instead of investing more into all facilities.
“It would be quite an expensive proposition, and because these power plants are older, we made the determination it made more sense to not invest in those older plants that don’t really run a lot anyway,” Durbin said. “That’s why we made the decision we did.
“We looked at all of our coal-fire power plants. The larger plants will continue operating,” Durbin said.
Those larger plants include the Bruce Mansfield Power Station in Shippingport, Beaver County – a ‘super-critical’ plant which employs more than 100 people and consumes millions of tons of coal – and the Mitchell Power Station in Courtney, Washington County.
“We are working through a plan where we have already invested a lot of money in those plants, and will have to spend even more dollars since they run more often – it would just make economic-sense to do that compared with some of these smaller plants that just don’t run very much.”
Smoke pours as rail cars bring more coal for the electric power station in Reesedale that is scheduled to be shut down by September 2012.
The Armstrong Power Station has sold power on the electrical grid since 1958.
The local shutdown might slow the economy even more in the coming months, since the Buffalo and Pittsburgh Railroad distributes coal to the power plant via its rail through North Buffalo Township and Applewold Borough.
The railroad is owned by Genesee and Wyoming, Inc., which purchased the rail system in 1988. The rail system operates a 368-mile regional freight railroad throughout western Pennsylvania and western New York.
Members of the Armstrong County Board of Commissioners are concerned by FirstEnergy’s decision.
With the rate of unemployment in Armstrong County hovering around the national average of about 8.5 percent (Armstrong November figures), the loss of 60 jobs, 46 of them union jobs, today’s announcement was not welcome, commissioners said.
In a press release, Board Chairman David Battaglia called the news a ‘huge negative’ for the County.
“Not only are good paying jobs being lost at the Armstrong Power Plant, jobs will certainly be lost in ancillary industries, support services and by small coal mining operations,” Battaglia said. “What impact is this going to have on owner-operator coal truck drivers and fleet operators that deliver the 50 of 60 thousand tons coal to that plant every month? What about the privately owned machine shops that service equipment out there?”
Genesse and Wyoming, Inc. did not issue comment on how the closure would affect the Buffalo and Pittsburgh Railroad and calls were not returned.
Battaglia also wanted to know what effect the closing will have on local coal prices.
Commissioner Rich Fink called the EPA “tone deaf” about what kind of impact the new standards will have on our coal-fired plants and the communities where they operate.
“These coal industry-related federal regulations are killing us in Western Pennsylvania, and especially here in Armstrong County where so much of our economy, including all the spinoff jobs, is tied into our coal and energy resources,” Fink said.
The other five plants closed in the tri-county grid include four from the State of Ohio – including Bay Shore Plant: Units 2-4 in Oregon, the Eastlake Plant in Eastlake, Ashtabula Plant in Ashtabula and the Lake Shore Plant in Cleveland – and one in the state of Maryland, the R. Paul Smith Power Station in Williamsport.
Local News | jweaver January 27, 2012
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By billbell, January 27, 2012 @ 6:44 AM
Just think what four more years will bring…
By FreedomFighter, January 27, 2012 @ 6:51 AM
Sheer stupidity…
By scott_starr, January 27, 2012 @ 7:10 AM
Instead of the idiot Comissioners complaining. They should be talking to companies who make Gas Fired Power Plants and touting the natural gas resources in the county.
Lose a coal fired plant, gain a gas fired plant. This isn’t that difficult to figure out….. In fact, I can put the comissioners in touch with a company which is making “green electricity” . So you get several benefits, Green (this would fit in nicely with an outdoor tourism theme…. generating electricity in harmony with nature ( you can use this for free), exploitiation of the natural gas resources, and a small foot print on the environment.
Trade the polluting coal for polluting fracking, but what the heck.
By JornJensen, January 27, 2012 @ 7:43 AM
Regarding Rich Fink’s comment – this is government working for us – this is your tax dollars and tree-huggers at work for you. Lose 60 jobs in Armstrong County, but we’ll breathe cleaner air. Bull.
I’d rather breathe some particulates and have the jobs.
Government bails out GM, banks and a bunch of other things and then allows this to happen because of a government agency that wants to ‘make life better for us’?
The EOC gets a new publically-funded EOC building as mandated by some government agency, but then that agency sends along some money to ‘help make it happen.” Well government, send along some money to update the Reesedale plant and save those 60 jobs.
Yes, I read the article – this is not a ‘mainline’ plant for the owner and yes, they do not run at all times. Its still jobs lost for Armstrong County.
By worthingtonman, January 27, 2012 @ 9:20 AM
Thank You EPA and First Energy. I guess all involved with making this decision feel secure in their jobs, but the heck with the people displaced. You can pick between the two evils in this one, but the largest portion of the blame weighs heavy on the EPA. This is just the beginning.
By elmo1011, January 27, 2012 @ 11:22 AM
Deja vu. Remember PPG, Eljer, Mushroom Mines, dredging on the river, the sewing industry jobs, defense jobs at Northpointe? I could go on and on about the jobs this county has lost. This is just more of the same. Elected officials are not in control of the private sector. That’s what so ironic since the Music Man(Battaglia)in his slick advertising as a small business owner said he would prevent job loss. By the way what was the name of that small business (never saw it in print)and when he got elected I wonder how many people did he have to lay off? Fink understands the EPA and their devistating effects on the country not only the county. In case you forgot he was laid off from the mines many years ago and understands the impact of job loss. By the way how much did it cost me a taxpayer for Porter to write the press release for Battaglia? Fink, did he write it for you too since you opposed his position? Where was Bower with his comments? Probably counting down the days until he can receive that big pension check from both elected positions. Has anyone inquired about how much that is going to cost the taxpayers? Ron Townsend your idea of a March on the Courthouse needs to happen now. But be prepared that the Communications director will probably answer your questions.
By The Phantom, January 27, 2012 @ 11:24 AM
Let’s not forget the DER cutting off the Dredging of the river because of Mussels.We lost a sand and gravel business,Barge traffic (which closed some locks and reduced hours in others) while the river fills with silt eventually killing any chance for the boating tourist business.
By ASDpayer, January 27, 2012 @ 12:10 PM
Maybe it would be an interesting idea to go to Templeton and do the studies on the number of cancer deaths in the last 35 years. I know of ten pancreatic and liver cancer deaths of residents in the last 10 years. Yes, clean air and water do trump jobs any day. Mercury is a poison and the studies confirm the detriment to health. Since we do have all this abundance of natural gas, I am with Scott Starr and would like to see a conversion to much cleaner natural gas. And a natural gas plant can get up and running in an hour unlike coal which takes up to 6 hours. This was known to be coming for at least the last 6 years, and where were the proactive visionaries?
So here is a challenge for our Senator and Rep and commissioners. Convert the place to natural gas. Use all those contacts and connections and ability to apply for grants and tax advantages and get this done.
By leaving soon, January 27, 2012 @ 2:02 PM
I’m glad that there are so many experts out there that think natural gas plant is the answer. First place it would cost more to cnvert the existing plant than it would to build a new one, secondly if they would decide to build a new plant at a cost of over 500 million dollars it would only need a staff of around 12 people not 60. Everyone that thinks this is good should also realize the incredible loss of tax dollars this is going to mean to the county, twp., and school district.(that is already going to need to raise taxes) I for one directly effect will probably be putting my home for sale and moving out of this area. This question is for everyone out there that has all the answers-if your in business and you sell a product that only so much is needed of, what do you do to make more profit, you make less and drive up the cost especially when your a monopoly. Hope all you happy about me losing my job enjoy having your electric rates double or triple.
By swilson, January 27, 2012 @ 2:04 PM
I’m sorry to see the jobs go, but this plant was rated in the top 50 of the nation’s worst polluters. Also it held title to the fifth worst mercury polluter in the NATION. If they can’t update their facility, I’m happy to see them shut it down. Yes, I agree clean air & water should trump jobs anytime. Given our abundance in natural gas, it would be great to get someone in there to convert it and save the jobs too.
By leaving soon, January 27, 2012 @ 2:25 PM
again, so everyone will quit thinking its feasable to convert it to gas- IT’S NOT- let’s see how many more companies leave when their electricity rates raise and oh ya what about all these old school buildings. The total job loss from this won’t be felt for years.
By devitt, January 27, 2012 @ 5:05 PM
“Just think what four more years will bring…”
Obama had nothing to do with this. If you read the actual press release the closing of these plants was appealed by the Bush administration, and the courts ruled in favor of the EPA. Obama was not even in office when this decision was rendered. Sorry, cannot blame him for this one. You can blame the EPA and the courts, but not Obama this time.
By JohnK, January 27, 2012 @ 6:24 PM
For all of you morons who are excited about it shutting down, I don’t want to hear any complaining when the windmills and natural gas aren’t enough to power your XBOX’s, DVRs, computers and you can’t see to put your makeup on when the rolling black outs hit. I don’t want to hear it when your electric bill triples.. at least you will be safe from the big bad coal monster…
By scott_starr, January 27, 2012 @ 6:47 PM
@leaving soon
I ask you consider things logically.
Noone is happy you are out of a job, that is a foolish statement.
I wish the power plant employed 300 people, I wish it was non or less polluting, and I wish there would be an investment in expansion.
My wish list is not happening.
Let’s look at your statement, a gas plant is cheaper to build new…. great more jobs all be it short term.
12 people to staff a natural gas plant. It is less than sixty but more than zero. I’d rather have the 60, but I’ll take the 12 jobs.
The demand for electricity is growing, besides generation of energy the next big thing will be storage of energy.
This plant is closing, it is a business decision, take this opportunity to see if we can bring in something new, an alternative to help keep people such as yourself in the area.
By realisticone, January 27, 2012 @ 6:56 PM
Speaking of CLEAN AIR< WATER and GAS BURNING – does anyone really know what "fracking" chemicals are being injected into the ground? I'll bet it's at least as poisonous as the coal burning residual!!! But hey! We get free gas and make tons of royalties so it's ok for me as an individual to know that the DEP and old EPA are looking the other way for the big cash grab!!
By weneedpower, January 27, 2012 @ 9:11 PM
These power plants have already invested millions of dollars into pollution equipment.There are many more jobs supported by these plants and many others will lose their jobs because of an out of control EPA.
By scott_starr, January 27, 2012 @ 11:51 PM
speaking of morons let’s see:
Keep mining for coal… yes that’s why each and every homeowner has to buy Mine subsidence insurance. The coal companies and miners got their money and a home owner has to pay for it…. is that Fair?
Keep fracking, yep, put those chemicals in the water table, good choice.
If you all don’t think Natural gas is enough to power the country, then you guys are stoned. Oh, and get this, when the natural gas is “fracked” it brings up guess what ?…….. oil.
Shell is looking to build a big facility in Beaver county to crack Ethylene ( from Natural gas). Anyone who has seen those plants know they are huge, HUGE plants.
So, before you idiots say How can you tout the jobs created by Natural Gas yet be against fracking. I say ” are you out of your fracking mind?” There are other ways to pull this gas up.
( It’s also like asking how one can be against drunk driving but not aclohol)
All I am saying is that we need to take a long term view, the last thing I want to have to buy is Fracking Subsidence insurance a few years down the road.
THINK PEOPLE THINK
By leaving soon, January 28, 2012 @ 9:00 AM
@scott starr
if you would do the research you would see that electricity demand is not growing, it actually decreased slightly and has now flat lined for several years.
Anyone familiar with the local system will tell you that armstrong was one of the most economical plants in the area, much cheaper to operate than the natural gas combined cycle plant in springdale owned by the same company. At the end of the day it all goes back to the fact that every business, every home will have to pay increase costs in order to simply turn on their lights. In a perfect world electricity would be free and completely non polluting, reality is much different than that. My decision has been made for me, in the name of corporate greed and over regulation.
I’ll be curious to see how big of a tax increase will be needed by the school district to make up for the loss in property tax from this facility.
I wonder how many small and large businesses can afford to operate when there cost for electricity increases.
By jerry6, January 28, 2012 @ 9:26 AM
Richard Nixon was the one who created the EPA and these Republican candidates want to do away with the EPA.
By sabercat, January 28, 2012 @ 6:08 PM
This is terrible for the county but not unexpected. However I do not think that natural gas is a better option. I agree with realisticone on the dangers of fracking. Contaminated watersheds may even be more detrimental to the area residents than polluted air. Are there studies that can be accessed on the pollution issues with this plant (just for my own interest). I don’t know what the answer is. I don’t think anyone truly does.
By JornJensen, January 29, 2012 @ 2:37 PM
I’m going to stick with leaving soon, sabercat, weneedpower, and johnk on this one. Need to take it down to cost-per-KW-produced to talk about this – gas requires expensive and much less efficient engines to run generators. Wind – well, that’s high capital cost with an extremely long payback. Sorry for all of you coal-haters, but coal is it, along with nuclear – those are the two efficient ones, with nuclear being more efficient and much more costly initial capital-wise.
You want to see windmills not at work, travel to the Van Wert area of Ohio, on the western-most edge of Ohio on route 30 and you’ll see hundreds of what I call Obama windmills – they don’t work – except in a storm. Most are expensively sitting idle. I have seen some with the curved-style blades spinning while most of the flat-blade style are doing nothing as the wind shoves my car around on route 30.
Get some magic Obama bailout money and bailout the Reesdale Plant with upgrades and keep the 60 jobs going.
By cancerfreeamerica, January 29, 2012 @ 10:38 PM
typical conservatives putting jobs in front of the public safety. Leukemia, and other cancers caused by exposures by pollutants need to be dealt with. We are not living in 1958 anymore. The company refused to put the appropriate means to deal with the pollution in the plant. The company had the money, they chose not to keep the jobs. The EPA protects us from companies who could care less about the public, the jobs, or the economy. They will not be hurting for money.
By ASDpayer, January 30, 2012 @ 12:17 AM
@Jorn
I beg to differ with some of your statements. According Professor Apt of CMU, the cheapest power plants to build are gas powered. About half the pollution, and when you figure in transportation costs, about 1/3 the cost to operate as coal. Most new plants are gas fired, and not coal. Most new plants in the next 10 years will be gas. Maybe you want to rethink the particulant thing. Want to die young, live near a coal plant.
Nuclear is way too expensive. A good source of energy, but the costs are prohibitive. France did the right thing 30 years ago and now 80% of their energy is from nuclear. You may blame Obama for windfarms, but most were built in the Bush administration. In Kansas and Nebraska, they are generating huge amounts of power. Not always reliable, but are making a small dent in the need. Last year, windmills in Kansas generated enough electricity to equal 5 coal fired plants. It goes into the grid.
It is sad that 60 jobs will be lost. The plants were already behind the curve, and this was known to be coming.
As for coal pollution. Would you eat a fish out of the Allegheny? Probably not a good idea. Fish and Game told us two years ago that every fish in our area has significant amounts of mercury. Unless you aspire to becoming a thermometer, not a good idea.
By scott_starr, January 30, 2012 @ 2:35 AM
Jorn et al. can you point me to a source about Gas Generated Electricity is less efficient than Coal ? ( I am being serious)
I’ve seen Co-gen Natrual Gas plants claiming 70% efficiency.
Green Energy is more than windmills, or solar.
By JornJensen, January 30, 2012 @ 5:45 AM
The three of you need to show us factual health data directly linked to the Reesedale power plant. The power plant has pollution equipment in place, but as the EPA continues to move the goalpost beyond 98%, so companies need to make tough business decisions – and this company has. Do you have data and proof that Allegheny River mercury levels are directly attibutable to the Reesedale power plant?
Gas-fired – gas is extremely expensive. There are countries that import most of their energy supply, so they’ll create the high prices of any gas that we produce by paying to even liqify and transport it.
Okay, we’ll call them Bush/Obama windmills.
We are our own worst enemies for real jobs.
By JornJensen, January 30, 2012 @ 6:12 AM
Scott – I need to study up on gas-fired electricity – I admit that. Internal combustion engines are extremely low in efficiency (somehwere in the 20%?) – perhaps some newer systems are higher efficiency, but 70%? I need to try to understand this better.
ASDpayer mentions France doing the right thing with nuclear – just remember the radioactive wastes from nuclear plants (I am highly pro-nuclear – I understand that there is an environmental cost to humans inhabiting the earth) and the total human fear of anything nuclear.
Let’s look at the choices:
Coal – all of the pollutants that cause this and other plants to be shut down.
Nuclear – radioactivity that can hurt you.
Gas – the never-ending fracking debate.
Wind – the manufacturing processes to manufacture the machines – the blades, the rotors, etc. They stop turning when there’s no wind.
What else?
So, each of these have their issues. There’s an environmental cost to us being here.
cancerfreeamerica – how do you propose that we make electricity? Easy enough to turn your statement around – typical liberals putting public safety ahead of jobs. By doing and performing absolutely nothing, we can be perfectly safe.
By JohnK, January 30, 2012 @ 8:12 AM
@ ASDpayer,
I know many of the retirees from the power plant. Yes, retirees.. Are you the Chicken Little who developed the commercial with the baby in the carriage coughing near a smoke stack? Give me a break. Many people retired from there..still alive, into their 80s.
It isn’t just 60 jobs lost. The truck drivers who provide coal to the plant will be going elsewhere, the machine shops who deal with the plant, vendors..there are other jobs and a TON of tax money going out of Armstrong County once again.
Take away the mercury in the river…would you STILL eat a fish out of there? NO …there is raw sewage coming from the sewage plants, so there’s another wrong statement.
By ASDpayer, January 30, 2012 @ 8:43 AM
@Scott
I have not seen any articles claiming gas is 70% efficient. Gas or coal are usually about 30-40% efficient. A gas turbine can use excess heat to create steam to run turbines and you approach 60% efficiency. Most coal plants lose some efficiency as you have to use energy to scrub the smoke stack. And then there is the coal ask problem. I read about 15 articles that started in the Washington Post and had links, some to academic writings of professors at CMU and MIT.
By worthingtonman, January 30, 2012 @ 11:25 AM
If the enviromentalist gets rid of all the coal and gas Fracking, Where do you suppose people are going to work. You will decimate this county. It is funny that most enviromentalist work at jobs that do not require coal of Fracking. I personally have many friends supporting their families working these type of jobs. The EPA scares me. The DEP scares me. Enviromentalist scare me. Its not about jobs over health. If the concerns for folks health is so high, why weren’t these plants shut down 5 or 10 years ago? It is because enough is never enough, until we completely shut down coal mining and fracking.
By maddog, January 30, 2012 @ 2:48 PM
In the name of safety, the EPA will destroy the very backbone of rural counties like ours. Windmills, solar, etc. are fine until you have no wind or not enough sun. I have nothing against hybrid options but these over zealous regulations will cause more harm than good for many Americans
By samkirk, January 30, 2012 @ 3:19 PM
And another one bites the dust…..
Typical government saving us from ourselves.
By dalereese67, January 30, 2012 @ 5:07 PM
John K and leaving soon are the same guy trying to make it seem like more people are agreeing with him.
Not trying to be mean, but Obama didn’t do anything to cause this. The regulations are partly to blame, but this was your company’s way of blaming someone else for them really wanting to close you down since you werent profitable enough.
You were operating far below capacity.. not exactly the best business model. Thats the way things are now, if you’re not turning a profit you will be closed down. What else did you expect? Put your big boy pants on and find another job like everyone else.
It’s harsh yes, but also the truth.
By JohnK, January 30, 2012 @ 11:24 PM
Dale, reading comprehension and common sense are NOT your friends. First of all, I said I KNOW alot of the retirees. I live in this community and I sometimes walk out of my house. I know this is tough for you to understand. Telling these guys to put on their big boy pants and find another job is truly ignorant. I’m glad you didn’t put your real name out there. I’m sure your family would be embarrassed that you would say something so..well, ignorant is the only word that won’t get me censored here. Families homes are at stake. There is nothing in this area and you have to throw out the “I’m a complete jerk” card? I hope that when something bad happens to you or your family, you are shown the lack of compassion and class you have shown. Have a nice life.
By dalereese67, January 31, 2012 @ 11:05 AM
Johnk/ leaving soon… are you sure that it’s my reading comprehension and common sense that are faulty, or did I only say what you didn’t want to hear?
You seem like you whine a lot and you’re one of the types of people who are always the victim.
You’re right, you are the victim (since you seem to be begging for sympathy)…YOU didn’t make the decision to skip out on college, YOU didn’t make the decision to work at the plant and stay in Armstrong County, and YOUR COMPANY didn’t make the decision to close your plant down.
Like I said, I wasn’t trying to be mean, just being honest… You neglected my one question though.. Do you really expect a company to operate at a loss just for the sake of keeping your job? Please at the very least give me your thoughts on that.
They gave you ample time to find another job, severance pay, and you’ll be getting unemployment regardless. If you get off your butt and find another job, you may make out in the deal. Instead of being a victim, you have the opportunity to take control and make something out of it.
Apparently your idea of “class” is whining and crying on a local message board. Nothing in life is given to you, get off the computer and go out and get it yourself!
By mule610, February 6, 2012 @ 11:53 PM
Let me make something clear to all you uneducated people. Being an employee at Armstrong plant, both units have been running 95% of the time in the last decade ( the newspapers are wrong).It is a very dependable and profitable plant.In 2010 management said it made $38 million. With the new regulations this plant needs some updates,It would still be profitable after adding scrubbers and cooling towers( this was already calculated). Why the new company is shutting us down I don’t know. But it seems they are using the new regulations as a scapegoat for them to make more money. So get ready for higher electric bills, higher taxes, and possibly black outs. If you would like more info go to their web sight and it will show you that they are closing these plants for business rather than enviromental reasons.
Oh, by the way the commercial about the baby by the smoke stack, does everbody know that that stack is a scrubber stack what the EPA wants?
By dalereese67, February 8, 2012 @ 4:19 PM
I don’t know if you’re referring to me, but I’m educated. Just because someone doesn’t agree with your thoughts doesn’t make them uneducated.
The three other plants that were just announced to be shut down provide <1% of First Energy's needs. If Armstrong was shut down first, was it less than that even? $38million looks like a big number, but how does this compare to other First Energy plants? There's a good chance that compared to the rest it's falling way short.
I do agree with you that First Energy is using the EPA regulations as a scapegoat to shut the plants down. It's just silly that people actually believe that and are blaming them and the president. The company pulled the rug out from under you guys, bottom line.
I don't agree with the higher bills, blackouts, etc. They wouldn't do this unless they already had a plan to replace these 4 stations output (no business would leave possible money on the table)
By mule610, February 13, 2012 @ 12:39 PM
I’m sorry if I offended anyone. What I meant about being educated was about people who believe what they see on tv and read in the paper. Such as the baby stroller by the scrubber stack that is letting out steam and limestone from the scrubber.
People hear that these plants are polluting our air. Then they drive past Keystone power plant and think how bad they really are. But they don’t really know what they are seeing they just assume it’s bad. It’s not, that is what the EPA wants at a cost of about $800 Million.
The next thing the EPA will try to regulate is limestone. Because it is used at power plants!!!!!