By Matt Grossman
Exelon Corp. expects to record a non-cash impairment charge in the third quarter related to the planned shutdown of a power station in Massachusetts, the company said in a Friday regulatory filing.
The planned permanent shutdown of the final two operating units at Mystic Generating Station, scheduled for May 2024, will lead to a non-cash impairment charge of $350 million to $550 million on a pre-tax basis in the third quarter, Exelon said.
In June, Exelon had filed a complaint with the Federal Energy Regulatory Commission against the regional power-grid operator, ISO New England. The complaint sought to keep open the possibility of the plant's units eight and nine staying operational beyond 2024. The FERC denied the complaint on Aug. 17, Exelon said, leading the company to schedule the plant's closure.
In addition to the impairment charge, Chicago-based Exelon expects to record higher depreciation expenses through the plant's closure. The expected incremental non-cash pre-tax expense will be $75 million to $125 million annually until the plant is closed, Exelon said.
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