Reports related to this article:
Plant(s): View 6 related plants in PECWeb
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--With one eye on the clock and the other on the future, Illinois legislators this month passed, and the governor signed into law, an energy policy bill that includes nearly $700 million in payments to Exelon (NYSE:EXC) (Chicago, Illinois) to keep four of its economically challenged Illinois nuclear power plants open.
Exelon had said it would start the closure process for its Byron Nuclear Power Station on September 13 if a deal wasn't in place that included compensating the company for the value of non-emitting generation from its nuclear facilities. The utility also pledged the Dresden Nuclear Power Station would be taken offline in November unless it secured those subsidies. For more on Exelon's shutdown plans, see August 4, 2021, article - Exelon Plans to Close Two Uneconomic Illinois Nuclear Stations This Fall. In addition, the utility had said that two other economically challenged nuclear plants in Illinois -- Braidwood and LaSalle -- needed financial support to continue operating. The subsidies in the newly enacted law will also flow to those other plants.
Legislators' other eye was on the future. After Governor J.B. Pritzker (D) signed the bill into law on September 15, House Speaker Emanuel "Chris" Welch said, "Today is for our children, today is for our children's children." As the bill was being debated, and after the governor signed it, several elected officials said the measure, called the Climate and Equitable Jobs Act, was needed to stem rising concentrations of carbon dioxide (CO2) in the atmosphere, which was leading to more extreme weather and global climate change.
In his bill-signing ceremony, Pritzker said, "We can't outrun or hide from climate change -- not to the north where the boundary waters burn, not to the south where (Hurricane) Ida swallows lives and livelihoods in the blink of an eye. ... We've seen the effects of climate change right here in Illinois repeatedly in the last two and a half years alone: a polar vortex, devastating floods (and) microbursts that destroy buildings."
"There is no time to lose but what we can do, what we must do -- and thanks to the Climate and Equitable Jobs Act -- Illinois is doing, is fighting to stop, and even reverse, the damage that's been done to our climate." He called the new law a "giant leap forward" for the state as it works to address the effects of climate change and establish "aggressive" clean energy standards.
The new law does more than provide Exelon with new funding for its in-state nuclear plants. It also directed the state's coal-burning generators, like the Prairie State Energy Center and the Dallman Power Station, a 366-megawatt (MW) power plant operated by Springfield City Water, Light, & Power, to reduce their CO2 emissions by 45% by 2035, then close 10 years later unless they transform themselves into non-emitting generators, possibly fueled by green hydrogen. The new law also included funding for new solar and battery energy storage projects.
U.S. Secretary of Energy Jennifer M. Granholm lauded the new law in a statement, saying it shows "just what bold state-level action can do to usher in the clean energy future."
Lawmakers have wrangled over the bill for months, and things got nasty on occasion. Several legislators who opposed the bill asked rhetorically why Exelon was being rewarded after it paid a $200 million fine and agreed to a deferred prosecution agreement to resolve allegations it bribed a powerful state lawmaker. For more on that, see September 9, 2020, article - Corruption Cases Not Over for Electric Companies in Ohio and Illinois.
Exelon has long said its Illinois nuclear plants were not competitive under the rules established by grid operators.
After Illinois' legislators passed the energy bill, President and Chief Executive Christopher Crane commended the governor, the lawmakers, the union representing workers at the utility and a coalition of labor leaders and members "who worked so hard to pass this roadmap for rebuilding our economy and addressing the climate crisis by investing in clean energy in a way that ensures that jobs and environmental benefits are shared equitably."
He added the new law "offers a better future for the employees who have run these plants at world-class levels, the plant communities that we are privileged to serve and all Illinoisans eager to build a clean-energy economy that works for everyone."
Crane noted that the company's six nuclear generators in Illinois produce about 60% of the state's electricity and 90% of its carbon-free energy. Closing those plants would have significantly undermined the state's ability to fight climate change. In addition to the four facilities covered by the new Illinois law, years ago two Exelon nuclear plants in Illinois--Quad Cities and Clinton--received hefty financial subsidies from the state to compensate them for their non-emitting characteristics. For more on that, see December 20, 2016, article - Exelon Wins Financial Aid for Two Uneconomic Nuclear Plants.
Crane's statement noted that studies have shown that when nuclear plants close, plants that burn fossil fuels operate much more often, increasing harmful carbon and air pollution, especially in disadvantaged communities.
In addition to the nuclear power subsidies, Crane noted that the new law establishes a path to a zero-carbon future by scaling up renewables, investing in electrification and adopting critical job training programs and labor standards.
Merchant power plant owner Vistra Corporation (NYSE:VST) (Irving, Texas) also lauded the new law, which includes a framework that will help transform nine legacy coal-power plant sites in the state into centers for renewable energy and battery energy storage.
That transformation "is good for the environment, plant communities, consumers and the Illinois' economy," Curt Morgan, chief executive at Vistra, said in a statement. "With this framework in place, Vistra plans to build the state's largest fleet of utility-scale solar and battery energy storage facilities in downstate Illinois communities to help the state transition to renewable, zero-emission electricity generation."
Vistra estimated it will invest more than $550 million to build the renewable generation and battery energy storage projects in downstate Illinois. Assuming it wins regulatory approval and the necessary permits, the company said it plans to build six integrated utility-scale solar and battery energy storage sites and three stand-alone battery energy storage projects. Several of these projects are expected to begin operating in 2023, and all projects are anticipated to be operating by 2025.
The six integrated sites would include about 294 MW of new solar generation paired with 39 MW of battery energy storage. The three stand-alone battery energy storage projects each would have 37 MW of storage capacity, for a total of 111 MW.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Exelon had said it would start the closure process for its Byron Nuclear Power Station on September 13 if a deal wasn't in place that included compensating the company for the value of non-emitting generation from its nuclear facilities. The utility also pledged the Dresden Nuclear Power Station would be taken offline in November unless it secured those subsidies. For more on Exelon's shutdown plans, see August 4, 2021, article - Exelon Plans to Close Two Uneconomic Illinois Nuclear Stations This Fall. In addition, the utility had said that two other economically challenged nuclear plants in Illinois -- Braidwood and LaSalle -- needed financial support to continue operating. The subsidies in the newly enacted law will also flow to those other plants.
Legislators' other eye was on the future. After Governor J.B. Pritzker (D) signed the bill into law on September 15, House Speaker Emanuel "Chris" Welch said, "Today is for our children, today is for our children's children." As the bill was being debated, and after the governor signed it, several elected officials said the measure, called the Climate and Equitable Jobs Act, was needed to stem rising concentrations of carbon dioxide (CO2) in the atmosphere, which was leading to more extreme weather and global climate change.
In his bill-signing ceremony, Pritzker said, "We can't outrun or hide from climate change -- not to the north where the boundary waters burn, not to the south where (Hurricane) Ida swallows lives and livelihoods in the blink of an eye. ... We've seen the effects of climate change right here in Illinois repeatedly in the last two and a half years alone: a polar vortex, devastating floods (and) microbursts that destroy buildings."
"There is no time to lose but what we can do, what we must do -- and thanks to the Climate and Equitable Jobs Act -- Illinois is doing, is fighting to stop, and even reverse, the damage that's been done to our climate." He called the new law a "giant leap forward" for the state as it works to address the effects of climate change and establish "aggressive" clean energy standards.
The new law does more than provide Exelon with new funding for its in-state nuclear plants. It also directed the state's coal-burning generators, like the Prairie State Energy Center and the Dallman Power Station, a 366-megawatt (MW) power plant operated by Springfield City Water, Light, & Power, to reduce their CO2 emissions by 45% by 2035, then close 10 years later unless they transform themselves into non-emitting generators, possibly fueled by green hydrogen. The new law also included funding for new solar and battery energy storage projects.
U.S. Secretary of Energy Jennifer M. Granholm lauded the new law in a statement, saying it shows "just what bold state-level action can do to usher in the clean energy future."
Lawmakers have wrangled over the bill for months, and things got nasty on occasion. Several legislators who opposed the bill asked rhetorically why Exelon was being rewarded after it paid a $200 million fine and agreed to a deferred prosecution agreement to resolve allegations it bribed a powerful state lawmaker. For more on that, see September 9, 2020, article - Corruption Cases Not Over for Electric Companies in Ohio and Illinois.
Exelon has long said its Illinois nuclear plants were not competitive under the rules established by grid operators.
After Illinois' legislators passed the energy bill, President and Chief Executive Christopher Crane commended the governor, the lawmakers, the union representing workers at the utility and a coalition of labor leaders and members "who worked so hard to pass this roadmap for rebuilding our economy and addressing the climate crisis by investing in clean energy in a way that ensures that jobs and environmental benefits are shared equitably."
He added the new law "offers a better future for the employees who have run these plants at world-class levels, the plant communities that we are privileged to serve and all Illinoisans eager to build a clean-energy economy that works for everyone."
Crane noted that the company's six nuclear generators in Illinois produce about 60% of the state's electricity and 90% of its carbon-free energy. Closing those plants would have significantly undermined the state's ability to fight climate change. In addition to the four facilities covered by the new Illinois law, years ago two Exelon nuclear plants in Illinois--Quad Cities and Clinton--received hefty financial subsidies from the state to compensate them for their non-emitting characteristics. For more on that, see December 20, 2016, article - Exelon Wins Financial Aid for Two Uneconomic Nuclear Plants.
Crane's statement noted that studies have shown that when nuclear plants close, plants that burn fossil fuels operate much more often, increasing harmful carbon and air pollution, especially in disadvantaged communities.
In addition to the nuclear power subsidies, Crane noted that the new law establishes a path to a zero-carbon future by scaling up renewables, investing in electrification and adopting critical job training programs and labor standards.
Merchant power plant owner Vistra Corporation (NYSE:VST) (Irving, Texas) also lauded the new law, which includes a framework that will help transform nine legacy coal-power plant sites in the state into centers for renewable energy and battery energy storage.
That transformation "is good for the environment, plant communities, consumers and the Illinois' economy," Curt Morgan, chief executive at Vistra, said in a statement. "With this framework in place, Vistra plans to build the state's largest fleet of utility-scale solar and battery energy storage facilities in downstate Illinois communities to help the state transition to renewable, zero-emission electricity generation."
Vistra estimated it will invest more than $550 million to build the renewable generation and battery energy storage projects in downstate Illinois. Assuming it wins regulatory approval and the necessary permits, the company said it plans to build six integrated utility-scale solar and battery energy storage sites and three stand-alone battery energy storage projects. Several of these projects are expected to begin operating in 2023, and all projects are anticipated to be operating by 2025.
The six integrated sites would include about 294 MW of new solar generation paired with 39 MW of battery energy storage. The three stand-alone battery energy storage projects each would have 37 MW of storage capacity, for a total of 111 MW.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
