Two major coal-fired power plants in Pennsylvania set to close in 2028 will now stay open through 2032 under a proposed agreement with state regulators.

The consent decree requires the Keystone and Conemaugh plants to upgrade wastewater treatment systems and meet stricter federal standards.

Thomas Schuster, director of the Pennsylvania Chapter of the Sierra Club, said the decision from Gov. Josh Shapiro reflects a surge in energy demand from data centers, which could drive up costs statewide.

“Coal-fired power is dirty and obsolete, and the pollution controls that we need to mitigate the damage that they cause to public health and the environment are very expensive,” Schuster pointed out. “That’s why so many have retired in the last 10 to 15 years as we’ve transitioned to cheaper and cleaner energy sources.”

The Shapiro administration said the Keystone and Conemaugh Generating Stations each generate about 1,700 megawatts of electricity, enough to supply power to hundreds of thousands of homes.

Shuster noted in 2020, during the first Trump administration, updates to federal standards on toxic coal ash pollution were implemented, including limits on mercury and arsenic chemicals linked to cancer and neurological harm. Power plants planning to retire by 2028 would be exempt from installing the pollution controls but others had to comply by 2025. Many operators said upgrades were not worth it and chose to retire plants instead.

“It’s important to have protections against these pollutants getting into our rivers and streams,” Schuster emphasized. “This law was requiring pollution controls to remove them.”

Shuster argued keeping the plants online is not an economic win, nor will it add jobs. He contended it is a symptom of billion-dollar tech companies racing to build data centers for artificial intelligence. Meanwhile, AI could end up devastating employment down the line.

A mapping tool shows Pennsylvania has 108 existing data centers and 66 proposed projects.