Exelon to Close New Jersey Nuclear Plant Ahead of Schedule
February 02 2018 - 12:08PM
Dow Jones News
By Austen Hufford
Exelon Corp. will shut down a New Jersey nuclear power plant in
October, a year ahead of schedule as cheaper energy sources
continue to challenge the nuclear industry.
Nuclear plants have been hurt in recent years as rising
natural-gas supplies have led to low wholesale electricity
prices.
Exelon said higher operating costs and low electricity prices
prompted it to accelerate closing the Oyster Creek plant, located
near the New Jersey coast in Ocean County about 60 miles east of
Philadelphia. Shutting down Oyster Creek, which can produce enough
electricity to supply about 600,000 homes, also helps it avoid a
refueling outage scheduled for this fall that would have required
material purchases starting later this month, the utility holding
company said.
Several states, including New Jersey, have considered or
implemented subsidies to nuclear plants to keep them running. A new
law in Illinois lets Exelon collect up to $235 million annually
from customers to keep two plants open. Last month, federal energy
regulators rejected a Trump administration proposal aimed at
helping struggling coal-fired and nuclear plants.
Last week, NextEra Energy Inc. said it expected to close the
Duane Arnold Energy Center, a nuclear power plant in Iowa, in 2025.
It is licensed to operate until 2034, but the company said it
didn't think there would be demand for its output for that long. It
took a $258 million after-tax charge to write down the value of the
nuclear plant.
In 2010, Exelon reached a deal with New Jersey regulators to
close the Oyster Creek plant at the end of 2019, 10 years ahead of
its then-scheduled closure date. That agreement allowed Exelon to
avoid building an expensive cooling tower.
The plant employs about 500 people, the company said. Exelon
said some workers will stay on decommission the facility while
others will be offered jobs elsewhere in the company.
Exelon has estimated it will cost more than $1 billion to
decommission the plant. This year, Exelon expects to incur noncash
charges of between $150 million and $185 million in connection with
its plan for Oyster Creek.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
February 02, 2018 11:53 ET (16:53 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Exelon (NYSE:EXC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Exelon (NYSE:EXC)
Historical Stock Chart
From Apr 2023 to Apr 2024