Exelon Announces Outcome of 2018-19 PJM Capacity Auction
August 24 2015 - 08:00AM
Business Wire
Oyster Creek, Quad Cities and Three Mile Island
nuclear plants did not clear
Exelon Corporation (NYSE:EXC) today announced that the Oyster
Creek, Quad Cities and Three Mile Island nuclear power plants did
not clear in the PJM capacity auction for the 2018-19 planning
year. The auction is held annually by grid operator PJM to ensure
enough power generation resources are available to meet demand in
its region covering all or part of 13 states and the District of
Columbia. This auction was the first held under new “capacity
performance” reforms designed to spur investment in power plants
that will improve their performance and strengthen electric grid
reliability.
The nuclear plants that did not clear in the auction will not
receive capacity revenue from this auction. Although capacity
revenue in a single year is an important consideration in a plant’s
long-term viability, it is just one of several factors Exelon will
use to make decisions about its plants’ future operations. Exelon
is obligated to inform PJM this fall if any of its nuclear plants
will not be participating in the auction next year.
“The PJM market reforms are a step in the right direction to
recognize nuclear energy’s high reliability, and while three of our
plants in PJM did not clear, we view the auction results as an
encouraging sign that these reforms will begin to level the playing
field,” said Chris Crane, Exelon president and CEO. “We will
consider auction results, along with other data points, including
EPA’s Clean Power Plan, as we make decisions about the future of
these critical long-life assets.”
The new capacity auction rules were approved by the Federal
Energy Regulatory Commission (FERC) to reflect the changing nature
of the generation fleet as more intermittent renewable and
gas-fired generation comes online. The reforms will result in
fossil generators investing in their power plants to ensure
reliability during extreme weather events and to have sufficient
fuel on hand.
Exelon spends nearly $1 billion annually on its nuclear plants
to add the latest technologies and keep them operating safely and
reliably.
Over the next few weeks, PJM will hold two transitional auctions
to supplement PJM’s prior capacity purchases for the 2016-17 and
2017-18 planning years with the new capacity performance
product.
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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version on businesswire.com: http://www.businesswire.com/news/home/20150824005330/en/
Exelon CorporationPaul Elsberg, 312-394-7417Corporate
Communicationspaul.elsberg@exeloncorp.com
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