Dive Brief:
- Exelon's plan to have Illinois taxpayers guarantee income from its nuclear facilities in the state would cost ratepayers $1.6 billion over five years, a new study from a consumer advocacy group reports.
- A report by the Illinois Commerce Commission, however, concluded that closing the nuclear facilities would cost $1.8 billion in annual lost economic activity and would eliminate almost 7,000 direct and indirect jobs.
- Exelon has argued that without taxpayer support, its nuclear plants will become unprofitable and likely have to retire, dramatically reducing the amount of carbon-free power in the state.
Dive Insight:
Keeping Exelon's three nuclear generators running is an expensive proposition, according to a new report commissioned by consumer advocates at BEST Coalition, which opposes Exelon's request. According to the analysis, renewable energy credits Exelon wants utilities to purchase would cost $1.6 billion over five years and could strain local budgets.
Quad-City Times reported on the study, which found average ComEd customer rates would rise $2.38 per month, and Ameren rates $2.17. An Exelon spokesman told the newspaper, however, "the costs to Illinois of allowing nuclear plants to close early are as much as 12 times greater" than closing them.
The company has backed legislation in Illinois that would keep the plants running. According to the Illinois Commerce Commission, closing the nuclear plants would cause up to a 16% jump in wholesale power prices, potentially seeing off other financial impacts including $45 million in lost economic activity.
