Talen Energy Corporation – Power Plant Retirement

Analysis Group was retained by Talen Energy in its Federal Energy Regulatory Commission (FERC) cost-based rate filing for two Maryland power plants. The Brandon Shores and H.A. Wagner power plants were scheduled for retirement at the end of May 2025. In late 2023, PJM, the regional power system operator that relied on the plants, determined that the closings could compromise power system reliability in the mid-Atlantic region, particularly around Baltimore, where the plants were located. Talen Energy claimed it could not continue to operate and maintain the plants without an assurance that its costs would be recovered.

An Analysis Group team led by Principal Todd Schatzki and including Vice President Joseph Cavicchi, and Managers Carlo Gallimberti and Samuel Spare, compiled, reviewed, and analyzed the cost data necessary to comply with FERC’s filing requirements. This included gathering asset test-year costs for the two power plants, developing cost-based rate schedules consistent with FERC precedent, and completing a cost-of-capital analysis to support the determination of the return on rate base. Dr. Schatzki also filed written testimony.

A settlement was reached, and the cost-of-service rate schedules were accepted by FERC. According to a statement from Talen Energy, the two power plants will remain in operation until May 31, 2029.