Exelon Corporation (NYSE: EXC) today announced that all of the Illinois
nuclear plants in PJM cleared in the transition capacity auction for the
2016-17 planning year. The auction results take effect in June 2016.
This is the first of two transitional auctions that PJM is holding to
supplement its prior base capacity auctions for the 2016-17 and 2017-18
planning years with the new capacity performance product, which is
designed to strengthen electric grid reliability.
“We continue to be encouraged by these auction results, which along with
EPA’s Clean Power plan, begin to properly value nuclear power for their
reliability and low-carbon benefits,” said Chris Crane, Exelon president
and CEO. “These auction results, as well as other factors, will come
into play as we analyze the current and expected economics of each of
our plants.”
The new capacity auction rules were ordered by the Federal Energy
Regulatory Commission (FERC) to ensure reliability given the changing
nature of the generation fleet as more intermittent renewable and
gas-fired generation comes online. The reforms will result in generators
investing in their power plants to ensure reliability during extreme
weather events and to have sufficient fuel on hand, which will benefit
customers. Exelon spends nearly $1 billion annually on its nuclear
plants to add the latest technologies and keep them operating safely and
reliably.
Capacity auctions are 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.
The capacity market reforms are being implemented at a time when the PJM
region is currently experiencing its lowest wholesale electricity prices
in 10 years.
For competitive reasons, Exelon cannot disclose whether its plants
outside of Illinois cleared this auction, given the 2017-18 transition
auction taking place this week.
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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