nuclear-news

Competition from clean energy results in Illinois Bill to help Exelon nuclear corporation

Consumer advocates and business groups, however, quickly questioned the need for legislation that would benefit a single company.

Exelon, critics gird for battle as pro-nuclear bill is filed in Ill. Jeffrey Tomich, E&E reporter EnergyWire: Friday, February 27, 2015 The stage is set for an energy policy showdown in Illinois after lawmakers from both parties introduced a bill aimed at aiding three Exelon Corp. nuclear plants that have struggled in recent years in the face of increasing competition from wind energy and natural-gas-fired generation.

The legislation filed in the House and Senate would replace the Illinois renewable energy standard with a low-carbon portfolio standard requiring 70 percent of electricity used in areas served by large investor-owned utilities to come from low-carbon sources of generation…….

The proposal intensifies an energy policy debate that’s been brewing in Illinois for more than a year. The debate encompasses politically powerful Exelon, the nation’s largest nuclear operator, power producers Dynegy Inc. and NRG Energy Inc., and a coalition of clean energy advocates pushing a rival bill that would significantly expand the use of renewable energy and energy efficiency…….

A bill introduced last week by the recently formed Clean Jobs Coalition also calls for creation of a cap-and-invest program to help the state reduce carbon dioxide emissions as would be required by U.S. EPA’s Clean Power Plan. It is a policy that, if implemented, should also benefit Exelon’s nuclear fleet (EnergyWire, Feb. 20).

Both legislative proposals focus on a desire to create or save jobs. Citing a report issued by state agencies last month, sponsors of legislation filed yesterday said at stake are 8,000 jobs directly and indirectly supported by Exelon’s Illinois nuclear fleet, which supplies about half the power used in the state.

“It’s a jobs bill,” state Rep. Larry Walsh (D) said as he introduced the bill at the news conference.

Chris Crane, Exelon’s CEO, has threatened to close one or more of the company’s Illinois nuclear plants unless the company sees “a path to sustainable profits” (EnergyWire, Feb. 7, 2014).

Chicago-based Exelon has said three of its six nuclear plants in Illinois — Byron, Quad Cities and Clinton — have sustained losses in recent years. Beyond that, though, the company has provided few details, citing a policy not to break out financial performance of specific units.

Dominguez, however, offered anecdotal evidence yesterday, saying the 1,065-megawatt Clinton plant lost $100 million last year.

Financial performance of specific plants varies depending on whether units are shut down for refueling, he said. But the overall trend isn’t favorable.

“Year over year, what we’ve observed with regard to these three plants is that we’re suffering losses and we’re not able to cover our cash costs, much less make a profit,” Dominguez said………

Consumer advocates and business groups, however, quickly questioned the need for legislation that would benefit a single company.

“This bill rewrites Illinois energy policy to increase costs for public and private entities statewide and benefits only Exelon,” said Steve Davis of the Illinois Association of Wastewater Agencies, part of a coalition of business and consumer interests opposing the bill.

The coalition also includes the Illinois Industrial Energy Consumers and is working with the AARP.

David Kolata, executive director of the Chicago-based Citizens Utility Board, a ratepayer-funded consumer advocate and member of the Clean Jobs Coalition, said the proposal would raise utility bills an estimated $300 million a year.

Exelon’s nuclear plants have been paid for “several times over” from when they were owned by Commonwealth Edison, Kolata said. The nuclear plants were spun off into Exelon’s generating subsidiary after Illinois’ retail electric market was restructured……….http://www.eenews.net/stories/1060014164

February 28, 2015 - Posted by Christina Macpherson | politics, USA