House Appropriations Chairman Jim Struzzi Submits Comments Supporting Key-Con Consent Decree, Urges Approval to Protect Jobs and Grid Reliability
1/16/2026
HARRISBURG – House Appropriations Committee Republican Chairman Jim Struzzi (R-Indiana) today submitted public comments in strong support of the proposed Consent Decree between the Pennsylvania Department of Environmental Protection (DEP) and Keystone-Conemaugh Projects, LLC (Key-Con), operator of the Keystone and Conemaugh Generating Stations. The decree, currently under public review in the Court of Common Pleas of Indiana County, settles potential violations while establishing enforceable milestones for environmental compliance, allowing the plants to preserve the option to operate beyond their previously announced 2028 retirement date.

In his comments, Struzzi highlighted the stations' critical role in Pennsylvania's economy: "The Keystone and Conemaugh Generating Stations have long served as pillars of strength for Pennsylvania's energy landscape and local economies... Together, these facilities generate approximately $5 million in annual property taxes, directly funding our schools, municipal services, and community initiatives." Struzzi emphasized that the decree prevents the severe economic fallout from early closures, "protecting the livelihoods that define our rural communities."

Struzzi also stressed the plants' importance to the PJM grid and local communities: "Beyond their economic contributions, Key-Con's 3.4 GW of coal-fired capacity is indispensable to the PJM grid, delivering dependable, dispatchable power that has proven resilient in extreme conditions, such as during Winter Storms Uri and Elliott... Yet, even more critically, these stations are lifelines for the families and communities they serve - bolstering the tax base that sustains public services, preserving blue-collar jobs that offer stability and dignity, and fostering economic vitality in Armstrong and Indiana Counties where such opportunities are paramount."

He pointed out the urgency amid PJM's grid challenges: "This agreement comes at a crucial juncture as PJM Interconnection grapples with mounting reliability concerns... The December 2025 Base Residual Auction secured just 134,479 MW of unforced capacity, missing reliability thresholds by 6,623 MW and resulting in a suboptimal 14.8% reserve margin - far from PJM's 20% goal. With escalating demands from data centers and the swift decommissioning of reliable generation, alongside warnings from NERC's 2025 Reliability Risk Priorities Report about potential blackouts, Key-Con's weather-hardened output is more vital than ever." Struzzi noted the decree's balance of ELG compliance (e.g., Bottom Ash system enhancements by 2026 and FGD wastewater treatments by 2028) with flexibility, aligning with Pennsylvania's recent exit from RGGI.

"This decree will protect employment, strengthen our energy grid, and advance environmental goals in a way that avoids needless plant retirements," Struzzi stated. "It affirms Pennsylvania's commitment to a comprehensive energy policy that serves all stakeholders."
Struzzi urged prompt approval: "I strongly encourage DEP and the Court to approve this decree without delay." 
Full comments are available here

Representative Jim Struzzi represents Pennsylvania's 62nd District, encompassing portions of Indiana County and covering key energy assets such as the Conemaugh Generating Station. For more information, visit repstruzzi.com



Representative Jim Struzzi
62nd District
Pennsylvania House of Representatives

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