Company will bid Illinois plant into 2016-2017 MISO capacity auction
Exelon Corporation (NYSE: EXC) today announced that it will defer any
decision about the future operations of its Clinton nuclear plant for
one year and plans to bid the plant into the Midcontinent Independent
System Operator (MISO) capacity auction for the 2016-2017 planning year.
MISO’s announcement this week acknowledging the need for market design
changes in southern Illinois is a key factor in the company’s decision
to defer for an additional year. On Oct. 27, MISO posted an issues
statement saying reforms to its capacity market process may be required
to drive future investments and help ensure a reliable electricity
supply for consumers, and it plans to engage stakeholders to consider
Other factors driving the decision include recent positive results from
the Illinois Power Agency’s capacity procurement for 2016 and the
long-term impact of the Environmental Protection Agency’s (EPA) Clean
Power Plan, among others.
“We are encouraged by MISO’s statement and the potential for market
reforms that are necessary to ensure long term reliability in southern
Illinois,” said Chris Crane, Exelon president and CEO. “However, the
Clinton plant remains unprofitable and more needs to be done.”
The decision to defer for a year on the future of the Clinton nuclear
plant also will provide Illinois policymakers with more time to consider
policy reforms and potential legislation that will level the playing
field for all forms of carbon-free electricity and best position the
state of Illinois to comply with the EPA’s Clean Power Plan.
The EPA’s Clean Power Plan, which mandates significant reductions in
carbon emissions from power plants, will require states and the power
sector to find the most cost-effective solutions to achieve the required
A report issued by the Illinois Environmental Protection Agency pursuant
to Illinois House Resolution 1146 determined that the loss of two
nuclear plants in the state would increase emissions by about 24 million
short tons, more than doubling the emissions reductions required under
the EPA’s carbon reduction rules and making it twice as costly to
comply. The Illinois EPA calculated the incremental societal cost of
losing two plants at more than $10 billion -- a figure that does not
include the additional billions of dollars early retirements would cost
in the form of higher energy bills, reduced electric reliability and
MISO holds a capacity auction annually to ensure enough power generation
resources are available to meet demand in its region covering southern
Illinois and much of the Midwest. The next MISO capacity auction for
planning year 2016-2017 is scheduled for late March 2016.
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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Copyright Business Wire 2015
Source: Business Wire
(October 29, 2015 - 8:00 AM EDT)
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