The changes that affect Bay Shore units 2-4 in Oregon, Eastlake Plant units 1-4 in Eastlake, Lake Shore Plant in Cleveland and Ashtabula Plant in Ashtabula are designed to reduce operating costs and provide more predictability while maintaining availability for future operations, as needed.
During the period of September 2010 through August 2011, the affected units will operate in response to customer demand.
Beginning September 2011, for approximately 18 months, the Bay Shore and Eastlake units will be available only in the winter and summer months, and the Ashtabula and Lake Shore plants will be temporarily idled.
As a result of the operating changes at the plants, the company estimates it could write off up to $287m in value related to the assets, and this write off could result in a reduction of up to $0.59 per share of common stock in the third quarter of 2010.
The changes are subject to review by the Midwest Independent Transmission System Operator, PJM Interconnection and the independent market monitors to ensure that there is no negative impact on system reliability.
