Exelon Says New York Rules Could Preserve Plants, Open Door for Hundreds of Millions in Investment
July 13 2016 - 7:12AM
Business Wire
Gov. Andrew Cuomo’s draft clean energy plan for New York would
save thousands of high-paying jobs and spur hundreds of millions of
dollars in short-term investments in energy infrastructure in
upstate New York, Exelon Corp. said today in response to a
Department of Public Service staff paper released Friday.
The proposals in the paper, if approved, would keep Exelon’s
upstate nuclear plants running as the state transitions to a 50
percent zero-carbon energy standard by 2030.
“Without Gov. Cuomo’s leadership and the development of the
Clean Energy Standard, our units at Nine Mile Point and Ginna in
Upstate New York are in jeopardy of closure,” said Joseph
Dominguez, executive vice president for Governmental and Regulatory
Affairs and Public Policy, Exelon. “These units employ 1,400
full-time workers with an annual payroll of $266 million, pay over
$47 million annually in local taxes and support thousands of
indirect jobs across New York through part-time employment and the
purchase of goods and services. We make the zero-carbon electricity
that is always available to meet our customers’ needs on the
hottest or coldest days of the year.
“If the program is approved, we will immediately reinvest
approximately $200 million in the plants in the spring and continue
to operate. If the program is not approved, we need to go in a
different direction,” Dominguez said.
The two plants produce 2.4 billion watts of zero-carbon
electricity continuously, most of which would have to be replaced
by carbon-producing generators if the plants cease to operate. The
loss of the plants would effectively eliminate the so-called
“bridge” to a low-carbon energy future for New York and make
achieving the state’s environmental goals difficult or impossible,
Dominguez said.
Exelon also confirmed that it has entered into discussions with
Entergy Corporation to buy the Fitzpatrick Nuclear Plant in Oswego,
New York.
“With Governor Cuomo’s leadership, we have an opportunity to
rescue and continue to operate a critical power plant that supports
thousands of skilled men and women,” said Chris Crane, Exelon
president and CEO. “The proposed CES program, if approved,
will give us the confidence to invest hundreds of millions of
dollars in Fitzpatrick in January to refuel the plant and upgrade
systems needed to reverse the shutdown decision.”
A New York Public Service Commission’s analysis released April
18 said that Fitzpatrick produces more than $1 billion in economic
value annually to New York. An independent study published by The
Brattle Group in December found similar economic benefits.
“We know how important saving Fitzpatrick is to New York
families and businesses,” Crane said. “And we look forward to
working with Entergy, the state, the local communities and business
leaders, and our partners in labor to save the plant.”
Cautionary Statements Regarding Forward-Looking
Information
This 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
2015 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 23; (2) PHI’s 2015 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 16; (3) Exelon’s First Quarter 2016 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 18 and (4) 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 release. Neither 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 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 2015 revenue of $34.5 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
32,700 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 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 CommunicationsPaul Adams, 312-394-7417
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