Exelon Announces Outcome of 2020-2021 PJM Capacity Auction
May 24 2017 - 8:30AM
Business Wire
Three Mile Island nuclear plant among
facilities that did not clear in auction, placing it at risk of
early retirement
Exelon Corporation today announced that its Three Mile Island
(TMI) and Quad Cities nuclear plants did not clear in the latest
PJM capacity auction, highlighting the challenge nuclear energy
continues to face without compensation for its ability to produce
electricity without harmful carbon and air pollution and to
contribute to grid resilience.
TMI did not clear in the past three PJM base residual
auctions. TMI remains economically challenged as a result of
continued low wholesale power prices and the lack of federal or
Pennsylvania energy policies that value zero-emissions nuclear
energy. Exelon has been working with stakeholders on options for
the continued operation of TMI, which has not been profitable in
five years.
States like New York and Illinois have enacted innovative
policies that fairly compensate nuclear and renewable energy for
their environmental attributes. Signed into law in December, the
Future Energy Jobs Act (FEJA) will create significant environmental
and consumer benefits in Illinois, while also creating thousands of
clean energy jobs and providing job training for the future
workforce.
“Exelon remains fully committed to keeping the Quad Cities plant
open, provided that FEJA’s Zero Emissions Credit program is
implemented as expected and provided that Quad Cities is selected
to participate,” said Joe Dominguez, Exelon’s executive vice
president of Government and Regulatory Affairs and Public Policy.
“However, Quad has not been selected to receive ZECs under the FEJA
program to date.”
Exelon’s other nuclear plants in PJM cleared in the auction for
the 2020-2021 planning year. Oyster Creek did not participate in
the auction, as the plant is scheduled to retire in 2019.
Capacity auctions are 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 is the fifth delivery year for which
capacity auctions have been held under “capacity performance”
reforms ordered by the Federal Energy Regulatory Commission to
increase power plant reliability and strengthen the region’s energy
supply. The reforms were an important step in recognizing nuclear
energy for its year-round reliability in all weather extremes. The
auction results take effect June 1, 2020.
Cautionary Statements Regarding Forward-Looking
Information
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, that are subject to risks and uncertainties. The factors
that could cause actual results to differ materially from the
forward-looking statements made by Exelon Corporation and Exelon
Generation Company, LLC (Registrants) include those factors
discussed herein, as well as the items discussed in (1) Exelon’s
2016 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b)
ITEM 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations and (c) ITEM 8. Financial Statements and
Supplementary Data: Note 24, Commitments and Contingencies; (2)
Exelon’s First Quarter 2017 Quarterly Report on Form 10-Q in (a)
Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1,
Financial Information, ITEM 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations and (c) Part I,
Financial Information, ITEM 1. Financial Statements: Note 17; and
(3) other factors discussed in filings with the SEC by the
Registrants. Readers are cautioned not to place undue reliance on
these forward-looking statements, which apply only as of the date
of this press release. None of the Registrants undertakes any
obligation to publicly release any revision to its forward-looking
statements to reflect events or circumstances after the date of
this press release.
Exelon Corporation (NYSE: EXC) is a Fortune 100 energy company
with the largest number of utility customers in the U.S. Exelon
does business in 48 states, the District of Columbia and Canada and
had 2016 revenue of $31.4 billion. 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. Exelon is one
of the largest competitive U.S. power generators, with more than
33,300 megawatts of nuclear, gas, wind, solar and hydroelectric
generating 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 2.2 million residential, public sector and business
customers, including more than two-thirds of the Fortune 100.
Follow Exelon on Twitter @Exelon.
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Exelon CorporationPaul AdamsCorporate
Communications410-470-4167paul.adams@constellation.com
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