Dive Brief:
- During its Q2 2014 earnings report, Exelon Corp announced it will postpone deciding whether to close its emissions-free Illinois nuclear facilities until the end of 2015, by which time state lawmakers will determine what incentives will be available for Exelon to help the state meet the EPA’s targeted 30% emissions reduction from the 2005 level by 2030.
- Exelon Corp., which previously said it would decide by the end of 2014 whether to close three of its six Illinois nuclear facilities, said its Q2 2014 net income was up 10% to $522 million from Q2 2013’s $490 million, even though its revenue dropped to $6 billion from Q2 2013’s $6.1 billion due to deals aimed at diversifying its generation portfolio away from nuclear.
- Exelon’s purchase of Pepco Holdings Inc. for $6.8 billion is expected to close in mid to late 2015 and the company also just announced it would purchase Integrys Energy Services, a retail electricity supplier to Chicago, for $60 million.
Dive Insight:
Exelon 2Q 2014 profits were up 6.5% because lower energy prices were offset by lower income taxes and by grid operator payments to the nuclear facilities for holding generation in reserve.
The Illinois legislature is currently working on laws to guide the state in meeting the new federal emissions reduction rules and Exelon has been lobbying both in the state and in D.C. to win compensation for the environmental and economic benefits its nuclear plants provide.
Illinois agencies are writing reports aimed at determining the economic value of Exelon’s nuclear facilities, including for the tax revenue and jobs benefits the provide as well as for the energy they produce, and numbers are expected to be available to lawmakers by the end of the year.
