The two words on everyone’s mind as they think about the electric grid are “affordability” and “reliability.” We need to keep electricity prices as low as possible while still ensuring we have enough power to keep the lights on under any circumstance.
Pennsylvania has taken a step forward toward those goals, thanks to a recent agreement between Gov. Josh Shapiro and the owners of two massive coal-fired power plants that had been slated for shutdown. The state’s Department of Environmental Protection (DEP) has given the Keystone and Conemaugh power plants more time to comply with federal regulations on waste disposal. Now, there is a realistic pathway for Pennsylvania’s last two operating coal-fired power plants to continue providing power well beyond their previously planned retirement at the end of 2028.
But that pathway is not guaranteed. Policymakers in Harrisburg and Washington must be prepared to take necessary action to keep the plants open.
At a time when our grid needs more electricity available day or night, regardless of weather, it’s hard to overstate the value of the Keystone, located in Armstrong County, and Conemaugh, nearby in Indiana County.
Individually, each is among the largest power plants on the 13-state PJM grid, and together, they would represent the largest generating source in PJM.
Keystone and Conemaugh were only needed about 30% of the time during 2025. But the plants are the insurance that keeps the system working when things get rough, as they did with winter storm Fern and its sub-zero temperatures. As PJM was hitting its longest- ever stretch of peak winter demand from Jan. 26 to Feb. 2, Keystone and Conemaugh were running nearly full out, at times even exceeding their designed capacity to keep up with demand.
It’s not an exaggeration to say that kind of performance can be the difference between life and death. When winter storm Uri hit Texas in 2021 and the grid failed to keep up, more than 200 people died, mostly from hypothermia.
Shapiro put it plainly when he announced the agreement last month: “Pennsylvanians are worried about rising energy costs right now and they need reliable, affordable sources of power to ensure our homes and businesses can keep the lights on without breaking the bank. I’m an all-of-the-above energy governor, and by upgrading the environmental controls at the Keystone and Conemaugh Generating Stations to keep them operating for longer, we will protect energy jobs and ensure Pennsylvania generates enough energy to support the regional grid while reducing their impact on our environment.”
Yet survival of the generating plants beyond 2028 is not guaranteed. The consent decree with the DEP extends certain environmental compliance deadlines and gives the plants’ owners breathing room to evaluate the investment required to operate in 2029 and beyond. Without supportive state and federal action, the economics could still tilt toward retirement. Neither Pennsylvania nor the PJM grid can afford to let that happen.
PJM, based in Valley Forge, is the control center for powering 65 million customers across 13 states, representing about 20% of the country’s GDP. The grid operator predicted last month that it faces a shortfall of 50 gigawatts or more of generating capacity over the next decade. In that kind of crisis, the 3.4 gigawatts from Keystone and Conemaugh are invaluable.
There is no short-term replacement option to replace that generating capacity. A new natural gas plant capable of producing power 24/7/365 would cost more than $7 billion and take six to ten years to site, permit and build.
Western Pennsylvania has always been an energy powerhouse. Keeping Key-Con operating after 2028 is not about clinging to the past — it is about securing the reliable foundation our region and the entire PJM grid need while new resources come online.
The consent decree was a positive and pragmatic step. The owners still face hundreds of millions in investment decisions against a backdrop of PJM market volatility and ongoing regulatory uncertainty. State and federal policymakers must do whatever is necessary to ensure these facilities can continue operating reliably beyond 2028.
Our communities, our economy, and our health and safety are at stake.
Jeff Nobers is executive director of Pittsburgh Works Together, a business-organized labor alliance dedicated to growing jobs and strengthening the industries that form the foundation of our economy, including energy, manufacturing and construction, to create opportunity for all.