Shapiro Administration Files Motion to Enter Consent Decree on Power | Commonwealth of Pennsylvania

Harrisburg, PA - Yesterday, the Shapiro Administration sought final approval from the Indiana County Court of Common Pleas of a consent decree with Keystone-Conemaugh Projects, LLC (Key-Con), operator of the Keystone and Conemaugh Generating Stations in Indiana and Armstrong Counties, to allow continued operation of both power plants with required upgrades to meet federal wastewater discharge standards.

The Keystone and Conemaugh Generating Stations each produce approximately 1,700 megawatts of electricity - enough to power hundreds of thousands of homes. Both plants had been scheduled to cease operations on December 31, 2028, but this consent decree would allow the plants to continue operating through 2032 due to upgraded wastewater treatment equipment at both plants.

"Pennsylvanians are worried about rising energy costs right now and they need reliable, affordable sources of power to ensure our homes and businesses can keep the lights on without breaking the bank," said Governor Josh Shapiro. "I'm an all-of-the-above energy Governor, and by upgrading the environmental controls at the Keystone and Conemaugh Generating Stations to keep them operating for longer, we will protect energy jobs and ensure Pennsylvania generates enough energy to support the regional grid while reducing their impact on our environment."

"This consent decree keeps electricity on the grid and ensures that these power plants reduce their impact on Pennsylvania's waterways," said Pennsylvania Department of Environmental Protection (DEP) Secretary Jessica Shirley. "DEP now has an enforceable schedule for required improvements, as well as enforceable penalties if milestones are missed."

Federal agencies and grid operators, including PJM Interconnection, have raised concerns about the reliability impacts of premature plant retirements amid increased growth in electricity demand. At the same time, labor and legislative leaders have urged continued operation of these facilities to protect jobs, local economies, and grid stability.

"On behalf of the hardworking men and women of IBEW Local 459, we appreciate Governor Shapiro's commonsense leadership on energy policy, as evidenced by this decision to help keep Keystone and Conemaugh producing power for longer," said Aric Baker, IBEW Local 459 President. "When Governor Shapiro visited us at Keystone and spoke to the men and women who operate and maintain the facility, it was clear that he understood the importance of an all of the above energy strategy, particularly at a time where the demand on our grid and concerns about energy affordability continue to grow. With this action, the Governor helps protect hundreds of family-sustaining union jobs, our local economies, and energy consumers all across Pennsylvania."

"I was glad to work with Governor Shapiro on this and appreciate his decision. The extension of the Keystone and Conemaugh Generating Stations will guarantee more power and keep great-paying jobs in Pennsylvania. These plants generate the reliable baseload power that Pennsylvania families, manufacturers, schools, hospitals, and emergency services rely on every day. Thanks to President Trump's energy dominance agenda, Pennsylvania will continue to lead the way on generation and power the transformation of our great commonwealth," said U.S. Senator Dave McCormick.

Allowing the plants to continue operating under enforceable environmental requirements will help avoid supply shortfalls that can drive up electricity prices for consumers across the region. The required upgrades will ensure compliance with federal wastewater standards, significantly reducing the potential for pollutants to enter Pennsylvania waterways.

DEP notified the Court in December 2025 of the proposed consent decree and then solicited public comment. After receiving and responding to more than 700 comments, DEP is now asking the Court to make the consent decree final. Under the agreement, the facilities must:

• Submit complete applications for all necessary permits and authorizations to construct required Bottom Ash System upgrades within 60 days of the Court's approval of the consent decree;

• Begin construction within 90 days of receiving required permits and authorizations from DEP;

• Complete construction within 180 days of commencement; and

• Begin operating the upgraded systems within 60 days of construction completion.
  

The agreement also includes financial penalties to ensure accountability. Key-Con will be required to pay daily penalties while operating the facilities until the upgrades are complete, along with additional penalties if milestones are missed.

This approach allows Pennsylvania to meet federal environmental obligations while responding to real-time energy market conditions and stakeholder concerns about reliability, affordability, and economic impact. Additional details on the consent decree are available here.

The Shapiro Administration has consistently fought for energy affordability, including in Governor Shapiro's 2026-27 budget address, where he called for continued efforts to lower costs for families, ensure fair utility practices, and protect ratepayers from unnecessary price increases.

Governor Shapiro has made lowering costs for Pennsylvanians a central focus of his Administration's efforts around economic development and energy, consistently calling for a balanced approach that strengthens the grid, supports economic growth, and protects consumers from unnecessary rate increases. The Governor has made clear that protecting consumers and building new energy supply must go hand in hand. In January 2025, he introduced his commonsense energy strategy, the "Lightning Plan," to build new clean, reliable, and affordable energy projects across the Commonwealth.

Through the Lightning Plan and the PA Permit Fast Track Program, the Governor is cutting permitting delays, accelerating responsible energy development, and positioning Pennsylvania - the nation's second-largest energy producer and exporter - to build more power faster while keeping costs down. Independent analyses confirm these efforts will save consumers money, create jobs, and attract billions in new energy investment.