The Daily Item, Sunbury, PA

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August 18, 2009

Power plant may lay off 83

By Tricia Pursell

SHAMOKIN DAM — As many as 83 workers at an eastern Snyder County power plant may be out of work for two months, beginning in September.

Jeff Specht, plant manager at Sunbury Generation, said cool summer weather cut energy consumption, causing wholesale electric prices to fall and likely remain deflated over the coming months.

The plant has seen significant lows during its peak power producing months of June, July and August, Specht said. While normally, everyone is turning on air conditioners, this summer, with record low temperatures, was an exception.

“Forecasts continue to show a downward trend in the fall for the market conditions affecting the plant,” he said. “All conditions are beyond our control.”

But it’s not the only power service provider experiencing the decline. The whole industry and all its competitors are, he said, because of weak demands in the energy market.

“The weather has been extremely low,” Specht said, referring to the summer months, “so demands continue to decline.”

In order for the plant to make the adjustments to meet these challenges and to protect the long-term viability of the plant, he said, it is preparing its employees for a temporary layoff.

“We have certain intended actions,” Specht said. “We’re looking at shutting down over the fall period.”

These expected layoffs will occur between September and November. But they will only happen if market conditions continue to follow the downward trend, Specht said.

“It’s all market driven,” he said.

The plant told its employees on Thursday that layoffs are a possibility.

“One of our intended actions is to maintain a minimal plant force,” Specht said.

As of Monday, the plant was looking to maintain a total of 19 union employees in the fall. Three management positions, recently vacated, were not filled. Three other contracted management employees recently were let go, Specht said.

The plant is operating with 102 union employees and 26 managers.

“We are looking at hopefully market conditions returning to normal operations in December,” Specht said. “We want to be able to maintain the ability to quickly respond as market pricing occurs.”

Sunbury Generation will maintain employee benefits and cover co-pays until employees return to work.

“We understand the hardships,” Specht said. “We’re doing what we can for them.”

Sunbury Generation services into the PJM regional transmission organization market, which coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia.

Sunbury Generation formerly was owned by Pennsylvania Power & Light and Wisconsin Public Service and now operates alongside its general partner, Corona Power LLC, in Shamokin Dam.

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