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Restructuring Activities
6 Months Ended
Jun. 30, 2012
Restructuring and Related Activities [Abstract]  
Restructuring Activities
Restructuring Activities
In conjunction with the decision to shut down its Fisk and Crawford Stations at the Midwest Generation plants in September 2012, EME plans to reduce approximately 200 positions from its plant operation and administrative staff in 2012. EME recorded a charge of $9 million (pre-tax) in the second quarter of 2012 related to severance and other employee benefits due to employees affected by the planned shutdowns. The charge was included in administrative and general expense on EME's consolidated statement of operations.
Midwest Generation has sold capacity forward through May 31, 2015 for both Fisk and Crawford. Midwest Generation would expect to cover its capacity obligations associated with the Fisk and Crawford units through a combination of improved fleet performance, fleet capacity not previously sold forward and, if necessary, market transactions.
In connection with the shut down of these stations, EME expects a tax deduction equal to its tax basis in the facilities, although realization of these tax benefits may not occur for several years. At June 30, 2012, the tax basis of the Fisk and Crawford Stations were $58 million and $80 million, respectively. For further information regarding the tax benefits, see Note 1—Summary of Significant Accounting Policies—Liquidity and Restructuring Activities.