Wholesale power prices for electricity are currently 15 percent below 2011 levels and are almost 60 percent lower than 2008.
As a merchant power producer, EEI's business is market dependent.
Weak capacity prices in downstate Illinois, driven in large part by market seams issues between the Midwest Independent Transmission System Operator, Inc. (MISO) and the PJM Regional Transmission Organization (PJM), are factors adding to this challenge and the decision to reduce staff.
EEI's operations continue to be severely challenged by the high cost of environmental controls.
"This decision is one we regret having to make," said William H. Sheppard, president of EEI. "It is an unfortunate situation, but we are taking this action now because we are faced with lower demand for our electricity and very low sales prices; however, even with these efforts, we will need to continue to prudently reduce our costs."
Other merchant generators around the country, like EEI, have also taken a number of significant actions within their own operations including staff downsizing and reductions, selling combustion turbine generators, closing of multiple energy centers and decelerating the construction of large-scale scrubber projects.
EEI operates 1002 MW of generation in Joppa, selling the power throughout the Midwest.