Exelon to decide fate of Illinois nuclear plant in September, CEO says

Dive Brief:

With legislative assistance appearing unlikely, the fate of two Exelon nuclear facilities will be determined this fall following the PJM base residual auction slated for August.
The Illinois legislature does not appear that it will take up legislation proposing a low carbon standard for the state before a veto session in November, which led Exelon CEO Christopher Crane to indicate his company would determine the plants' fate in September.
Exelon has three struggling nuclear facilities, two in the PJM market and a third in the Midcontinent ISO market, and Platts reports the CEO cast doubt on the fate of all three if they do not get taxpayer support.

Dive Insight:

Exelon had initially indicated it had strong support for a proposal to collect hundreds of millions of dollars from Illinois taxpayers to keep three plants operating, but ultimately the legislature appears it will let the session expire without considering the plan. That led Exelon CEO Crane to tell the Sanford Bernstein Strategic Decisions Conference last week that a decision will need to be made before the legislature convenes a veto session.

"If the Illinois Legislature takes up the low-carbon standard this session, that would be great," Crane reportedly said. "But we are on the clock to make an announcement or decision in September, and we will make that if [Quad Cities] doesn't clear the auction and if we don't have a bill. If it doesn't clear the capacity auction, we'll have to take the next steps in announcing its early demise."

The comments also apply to the company's Byron facility as well, which is also in the PJM market. A third struggling facility, the Clinton plant, operates in the Midcontinent ISO but is also in danger of being shuttered. Exelon operates six nuclear facilities in the state, but three have struggled to remain profitable.

Exelon had indicated it needed a decision by May 31, but a spike in reserve power prices at the Midcontinent ISO's auction may have led lawmakers to take more time.

Rep. Linda Chapa LaVia (D) signaled there may be room for talks, and issued a statement saying “it looks like the Energy Committee may have to meet and organize hearings during the summer in order to come to an agreement."