Three Exelon Nuclear Plants Don't Clear Capacity Auction
August 24 2015 - 9:11AM
Dow Jones News
By Ezequiel Minaya
Exelon Corp. said Monday that its Oyster Creek, Quad Cities and
Three Mile Island nuclear power plants didn't clear in the PJM
capacity auction for the 2018-19 planning year.
The nuclear plants won't receive capacity revenue from this
auction, 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.
Shares of Exelon were down 2.9% to $32.03 in premarket
trading.
Although this annual revenue is a key factor in assessing a
plant's long-term health, it is just one of several considerations
Exelon said it will use to make decisions about future
operations.
"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," Exelon Chief Executive
Chris Crane said in a news release.
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.
At the auction, power producers bid for long-term contracts to
supply electricity. Other businesses, including big consumers,
offer to pay for improvements in efficiency or even to cut grid
power. PJM chooses the best values and guarantees the winners get
paid starting in 2018 even if demand drops.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 24, 2015 08:56 ET (12:56 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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