Logan and Chambers — Renegotiate, Refinance, Redevelop

In 2022, Starwood Energy Group accelerated the retirement of the Logan and Chambers coal plants in New Jersey by 30 months. This was achieved through a three-part strategy: renegotiating PPAs with Atlantic City Electric to save ratepayers $30 million, refinancing $200 million in debt via MetLife to fund the transition, and planning the redevelopment of the sites into grid-scale battery storage (876 MWh and 960 MWh). The move is expected to reduce CO2 emissions by 3.9 million tons.

• In 2022, Starwood Energy Group (now Lotus Infrastructure) accelerated the retirement of the Logan (225 MW) and Chambers (285 MW) coal plants by 30 months, moving the retirement date from 2024 to 2022.
• The early retirement was achieved by renegotiating Power Purchase Agreements (PPAs) with Atlantic City Electric (ACE), which saved ACE customers approximately $30 million. Under the new terms, ACE paid Starwood $228.5 million (net) instead of the original $258.5 million (net) projected for 2022 to 2024.
• To facilitate the transaction and pay ACE for the early PPA termination, Starwood refinanced using $200 million in debt from MetLife. This short-term loan tenor was attractive to institutional investors, including Zurich Insurance.
• The decommissioning of the Logan and Chambers plants in June 2022 was expected to reduce CO2 emissions by 3.9 million tons.
• Starwood plans to redevelop the former coal sites into grid-scale battery storage facilities, with capacities of 876 MWh for the Logan site and 960 MWh for the Chambers site.
• Several enabling factors supported the transaction, including the alignment with New Jersey's Energy Master Plan regarding energy storage and the approval of the New Jersey Board of Public Utilities (NJBPU) based on verified ratepayer savings.

APA

RMI (2024). Logan and Chambers — Renegotiate, Refinance, Redevelop. https://rmi.org/resources/transition-finance-case-studies-logan-and-chambers-renegotiate-refinance-redevelop/

Chicago

RMI. Logan and Chambers — Renegotiate, Refinance, Redevelop. 2024. https://rmi.org/resources/transition-finance-case-studies-logan-and-chambers-renegotiate-refinance-redevelop/.

Wikipedia

{{cite report |author=RMI |title=Logan and Chambers — Renegotiate, Refinance, Redevelop |date=25 June 2024 |url=https://rmi.org/resources/transition-finance-case-studies-logan-and-chambers-renegotiate-refinance-redevelop/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024logan, author = {{RMI}}, title = {{Logan and Chambers — Renegotiate, Refinance, Redevelop}}, institution = {RMI}, year = {2024}, month = jun, url = {https://rmi.org/resources/transition-finance-case-studies-logan-and-chambers-renegotiate-refinance-redevelop/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }