irstEnergy Corp. FE, +0.73% said Friday it plans to deactivate the coal-fired Pleasants Power Station in Willow Island, West Virgina, affecting about 190 employees. The stock was up 0.6% in morning trade.
The company said the decision was made after the Federal Energy Regulatory Commission rejected last month FirstEnergy subsidiary Mon Power’s plan to buy Pleasants.
The company said the Public Service Commission of West Virginia had approved the sale, subject to a number of “significant conditions,” which combined with the FERC rejection made the proposed deal “unworkable.”
FirstEnergy said the plant deactivation is subject to regulatory review for reliability impacts. “We will continue to pursue opportunities to sell the plant while planning for deactivation,” said Chief Executive Charles Jones. The stock has gained 7.7% over the past 12 months, while the S&P 500 SPX, +0.04% has climbed 17%.