Link to Fitch Ratings' Report: US Nuclear Retirements Continue Amid Low
Power Prices
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884921
Nuclear plant retirements driven by economic and policy headwinds are
likely to continue. Based on announced nuclear retirements, Fitch
Ratings expects that the amount of retired and retiring gigawatts (GW)
will outpace new nuclear plant additions between 2013 and 2025.
Key factors driving the shutdowns include low natural gas prices due to
abundant US supply and actual and anticipated penetration of renewable
generation and regulatory constructs that do not adequately compensate
for nuclear energy's non-emitting attributes.
The recent spate of announced nuclear facility retirements is not
surprising in light of the depth and duration of the current extended
downturn in wholesale power prices and policy challenges faced by
nuclear plant operators. Plant closings appear likely to continue unless
there are policy changes to address market structures and incentives.
While smaller single-unit merchant nuclear facilities are particularly
vulnerable, larger rate-regulated and merchant nuclear facilities are
also at risk.
For more information on this topic, see Fitch's full rating report on
"Pacific Gas and Electric Company," available on our website at www.fitchratings.com.
Additional information is available on www.fitchratings.com.
The above article originally appeared as a post on the Fitch Wire credit
market commentary page. The original article, which may include
hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com.
All opinions expressed are those of Fitch Ratings.
Related Research
Pacific Gas and Electric Company (A Subsidiary of PG&E Corp.)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884487
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160714005752/en/
Copyright Business Wire 2016
Source: Business Wire
(July 14, 2016 - 9:44 AM EDT)
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