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Researched by Industrial Info Resources (Sugar Land, Texas)--Exelon Corporation (NYSE:EXC) (Chicago, Illinois) on Wednesday outlined the economic consequences of efforts by New York to save three nuclear power plants from closure, and the failure of Illinois to make similar moves to save two nuclear plants there.
The plants in the two states were threatened by low power prices, and market designs that did not compensate for their carbon-free power generation, Exelon said in a stockholder presentation. However, New York's new Clean Energy Standard (CES) and accompanying Zero Emissions Credit (ZEC)--created August 1 by the New York Public Service Commission--helps maintains the role of nuclear power generation as the state strives to reduce carbon emissions by 50% by 2030. For more on the ZEC, see August 3, 2016, article Cash on the Barrel: New York Clean Energy Standard Includes Multibillion-Dollar Support for Nuclear Power's Carbon-Free Generation.
Exelon's plants in upstate New York are eligible for the CES, thus helping them survive in today's economic environment. They include the R.E. Ginna Nuclear Power Plant and the Nine Mile Point Nuclear Power Station.
Also, the FitzPatrick Nuclear Power Plant in Scriba, New, York, will be eligible for the ZEC. Exelon announced this week it will take ownership of the FitzPatrick plant from Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana). This sale has not been finalized. They reached a deal for Exelon to buy the FitzPatrick Station for $110 million but the agreement does contain provisions that could void the sale. This is also subject to approval from the NRC Nuclear Regulatory Commission and the New York Public Service Commission. This isn't expected to finalize until second-quarter 2017.
The preservation of these New York plants, according to Exelon, has saved 2,600 jobs and around $47 million in property taxes as well as preventing 16 million metric tons of additional carbon emissions.
The company told a different tale for Illinois, where it said failure to reach a legislative solution will lead to the planned closure of Exelon's Clinton and Quad Cities plants. Clinton would shut down June 1, 2017, and Quad Cities will shut down June 1, 2018. As a consequence, Illinois would see the loss of 4,200 jobs and 29-43% of property tax revenues surrounding local governments. The closures also will lead to 20 million metric tons of additional carbon emissions released, according to Exelon.
Exelon executives said the company is investing $25 billion in its utilities through 2020. Annual capital expenditures will reach $5.5 billion this year and drop to $4.6 billion in 2020.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The plants in the two states were threatened by low power prices, and market designs that did not compensate for their carbon-free power generation, Exelon said in a stockholder presentation. However, New York's new Clean Energy Standard (CES) and accompanying Zero Emissions Credit (ZEC)--created August 1 by the New York Public Service Commission--helps maintains the role of nuclear power generation as the state strives to reduce carbon emissions by 50% by 2030. For more on the ZEC, see August 3, 2016, article Cash on the Barrel: New York Clean Energy Standard Includes Multibillion-Dollar Support for Nuclear Power's Carbon-Free Generation.
Exelon's plants in upstate New York are eligible for the CES, thus helping them survive in today's economic environment. They include the R.E. Ginna Nuclear Power Plant and the Nine Mile Point Nuclear Power Station.
Also, the FitzPatrick Nuclear Power Plant in Scriba, New, York, will be eligible for the ZEC. Exelon announced this week it will take ownership of the FitzPatrick plant from Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana). This sale has not been finalized. They reached a deal for Exelon to buy the FitzPatrick Station for $110 million but the agreement does contain provisions that could void the sale. This is also subject to approval from the NRC Nuclear Regulatory Commission and the New York Public Service Commission. This isn't expected to finalize until second-quarter 2017.
The preservation of these New York plants, according to Exelon, has saved 2,600 jobs and around $47 million in property taxes as well as preventing 16 million metric tons of additional carbon emissions.
The company told a different tale for Illinois, where it said failure to reach a legislative solution will lead to the planned closure of Exelon's Clinton and Quad Cities plants. Clinton would shut down June 1, 2017, and Quad Cities will shut down June 1, 2018. As a consequence, Illinois would see the loss of 4,200 jobs and 29-43% of property tax revenues surrounding local governments. The closures also will lead to 20 million metric tons of additional carbon emissions released, according to Exelon.
Exelon executives said the company is investing $25 billion in its utilities through 2020. Annual capital expenditures will reach $5.5 billion this year and drop to $4.6 billion in 2020.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
