Exelon Announces Outcome of 2016-2017 MISO Auction
April 15 2016 - 8:00AM
Business Wire
Clinton nuclear plant clears auction, but still
faces retirement unless policy and market reforms are
implemented
Exelon Corporation (NYSE: EXC) today announced that its Clinton
nuclear plant cleared in the 2016-2017 MISO capacity auction and is
committed to operate through May 31, 2017, consistent with its
decision last fall to operate the plant for one additional year.
However, the plant continues to lose money and will have to be shut
down unless a combination of market and energy policy reforms are
implemented to level the playing field for all zero carbon
resources and recognize nuclear energy for its environmental,
economic, rate stability and reliability benefits. A decision on
the future operations of the plant will be announced this year.
“Without urgent action on the policy front, we will have no
choice but to prepare for a potential early retirement in the face
of continued financial losses at our Clinton nuclear plant,” said
Chris Crane, Exelon president and CEO. “The loss of this plant
would have significant economic impacts on southern Illinois and
erase the environmental benefits equal to 80 percent of the wind
installed in Illinois, making it significantly harder and more
expensive for the state to meet its carbon reduction goals.”
Exelon is committed to working with state lawmakers and other
stakeholders to design comprehensive energy legislation that would
promote clean energy and advance development of the next-generation
power grid.
An analysis conducted by the state of Illinois found that
closing Clinton would cause wholesale energy prices to rise by $236
million to $341 million annually for families and businesses in the
region. These cost increases do not include hundreds of millions of
dollars that would need to be spent on new transmission lines. The
report also found that allowing Clinton to shut down would result
in the loss of almost 1,900 direct and indirect jobs and raise
carbon emissions in Illinois by almost 8 million metric tons per
year, the equivalent of putting more than 1.7 million cars on the
road. The analysis concludes that the societal cost of the
increased emissions would be almost $4 billion between 2020 and
2029.
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
auction for planning year 2017-2018 will be held in late March
2017.
Exelon Corporation (NYSE: EXC), now including the Pepco Holdings
utilities, is the nation’s leading competitive energy provider,
with 2015 revenues of approximately $34.5 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 32,700 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 approximately 2 million
residential, public sector and business customers, including more
than two-thirds of the Fortune 100. Exelon’s six utilities deliver
electricity and natural gas to approximately 10 million customers
in Delaware, the District of Columbia, Illinois, Maryland, New
Jersey and Pennsylvania through its Atlantic City Electric, BGE,
ComEd, Delmarva Power, PECO and Pepco subsidiaries. Follow Exelon
on Twitter @Exelon.
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Exelon CorporationPaul AdamsCorporate
Communications410-470-4167paul.adams@constellation.com
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