nuclear-news

No new contracts for 3 Exelon nuclear reactors: they may now close

Dive Brief:

• Three of Exelon’s nuclear power plants failed to get new contracts at the annual PJM Interconnection capacity auction for 2017-18, putting their future at risk.
• The plants, Byron and Quad Cities in Illinois and Oyster Creek in New Jersey, could now close after they were priced out of the market by cheaper competitors. Traditionally, the company has made between $1-8 per megawatt-hour in revenue from the sale of power from these plants.
• This year’s PJM capacity auction saw power supply prices rise from last year’s three year low of $59.37 per MW to $120 per MW.

Dive Insight:

Exelon relies on the capacity auction to keep funding the expensive nuclear facilities it operates. Without contracts, however, the utility could be forced to turn to federal and state regulators for a bailout.

Exelon has yet to seek such a resolution. Prior to the results of the auction being announced, an Illinois House Resolution charging the Environmental Protection Agency, the Federal Energy Regulatory Commission and grid operators to adopt more nuclear-friendly policies was floored. ……http://www.utilitydive.com/news/exelon-nuclear-plants-may-retire-after-failing-to-secure-new-contracts/267503/

May 31, 2014 - Posted by Christina Macpherson | business and costs, USA