AES Corp. announces pact to terminate PPA for coal-fired plant in Maryland

The AES Corporation announced an agreement to terminate the Power Purchase Agreement for its 205 MW Warrior Run coal-fired power plant in Maryland. The offtaker, Potomac Edison, a subsidiary of FirstEnergy Corp., agreed to terminate the PPA for a total consideration of $357M, subject to approval by the Maryland Public Service Commission. If approved, the early termination of the PPA is forecasted to save Potomac Edison’s customers nearly $80M over the next seven years, and will help the State of Maryland achieve its decarbonization targets. "This agreement is another milestone in our journey toward decarbonization," said Andres Gluski, AES President and Chief Executive Officer. "Following the contract termination, we see interesting opportunities to repurpose the Warrior Run site for low carbon solutions that continue to serve local communities." Under the terms of the agreement, AES will continue to operate the Warrior Run plant through at least May 2024. AES will work with existing employees to manage a responsible transition. AES will maintain full operational control of the site following decommissioning.