Oyster Creek, Quad Cities and Three Mile Island nuclear plants did
not clear
Exelon Corporation (NYSE:EXC) today announced that the Oyster Creek,
Quad Cities and Three Mile Island nuclear power plants did not clear in
the PJM capacity auction for the 2018-19 planning year. The auction is
held annually by grid operator PJM to ensure enough power generation
resources are available to meet demand in its region covering all or
part of 13 states and the District of Columbia. This auction was the
first held under new “capacity performance” reforms designed to spur
investment in power plants that will improve their performance and
strengthen electric grid reliability.
The nuclear plants that did not clear in the auction will not receive
capacity revenue from this auction. Although capacity revenue in a
single year is an important consideration in a plant’s long-term
viability, it is just one of several factors Exelon will use to make
decisions about its plants’ future operations. Exelon is obligated to
inform PJM this fall if any of its nuclear plants will not be
participating in the auction next year.
“The PJM market reforms are a step in the right direction to recognize
nuclear energy’s high reliability, and while three of our plants in PJM
did not clear, we view the auction results as an encouraging sign that
these reforms will begin to level the playing field,” said Chris Crane,
Exelon president and CEO. “We will consider auction results, along with
other data points, including EPA’s Clean Power Plan, as we make
decisions about the future of these critical long-life assets.”
The new capacity auction rules were approved by the Federal Energy
Regulatory Commission (FERC) to reflect the changing nature of the
generation fleet as more intermittent renewable and gas-fired generation
comes online. The reforms will result in fossil generators investing in
their power plants to ensure reliability during extreme weather events
and to have sufficient fuel on hand.
Exelon spends nearly $1 billion annually on its nuclear plants to add
the latest technologies and keep them operating safely and reliably.
Over the next few weeks, PJM will hold two transitional auctions to
supplement PJM’s prior capacity purchases for the 2016-17 and 2017-18
planning years with the new capacity performance product.
Exelon Corporation (NYSE:EXC) is the nation’s leading competitive energy
provider, with 2014 revenues of approximately $27.4 billion.
Headquartered in Chicago, Exelon does business in 48 states, the
District of Columbia and Canada. Exelon is one of the largest
competitive U.S. power generators, with more than 32,000 megawatts of
owned capacity comprising one of the nation’s cleanest and lowest-cost
power generation fleets. The company’s Constellation business unit
provides energy products and services to more than 2.5 million
residential, public sector and business customers, including more than
two-thirds of the Fortune 100. Exelon’s utilities deliver electricity
and natural gas to more than 7.8 million customers in central Maryland
(BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO).
Follow Exelon on Twitter @Exelon.
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