Dive Brief:

• As Illinois struggles with how to meet the EPA's 30% greenhouse gas reduction targets, Exelon Corp. said it supports a carbon tax that would keep the state's nuclear generators viable.
• The company has said a tax of more than $10 per ton would keep carbon-free nuclear plants running. About 43% of Exelon's generation is currently at risk.
• States can choose to comply with EPA requirements regionally or individually; in Illinois, banding together with other states to comply could save the region an estimated $3 billion annually.

Dive Insight:

A carbon tax is not a new idea, but in Illinois it's getting a second look as the state ponders how to comply with substantial emissions reduction targets and a nuclear fleet struggling to be competitive. Officials at Exelon say a carbon tax would help keep them competitive while guiding the state to compliance with greenhouse gas targets.

The EPA has given states a few ways to comply with emissions targets, allowing them to work together or individually. That flexibility is setting the stage for a varied landscape of proposals like the carbon tax, and the Chicago Tribune reports that executives at Exelon believe utilities would prefer a more uniform, national approach.

The Tribune spoke with David Brown, senior vice president of federal government affairs at Exelon. According to Brown, there is some "slim" chance the utility sector as a whole could back a return to cap and trade or carbon tax plans in Washington.