37 Comments - Abe the Babe - Wednesday, Sep 2, 15 @ 10:55 am: Just close Clinton, use operating profits from the entire fleet to subsidize Quad Cities, and ride out the storm until GHG rules take affect. - Name/Nickname/Anon - Wednesday, Sep 2, 15 @ 10:58 am: The biggest thing to take out of this article is that while they will likely make $1bil+ more, Quad Cities still loses money. The announcement on closure of Quad will be short coming. - Name/Nickname/Anon - Wednesday, Sep 2, 15 @ 11:00 am: Abe the babe- The best deal on that end would be to make a deal with Spfld to close CWLP Generation, Keep Clinton open and CWLP employees transfer to Exelon/ComEd. - Formerly Known As... - Wednesday, Sep 2, 15 @ 11:01 am: ==Exelon will collect more than $270 million in additional revenue at its Illinois nuclear plants for the year beginning in June 2016== ==want the General Assembly to approve another $300 million in additional customer charges to subsidize their nuke plants== Sounds like they just got their $300 Mill. Or at least 90% of it. - BEST Dave - Wednesday, Sep 2, 15 @ 11:03 am: Actually, it’s not clear that Quad would have lost money had Exelon bid the plant into the auction the way they did for the 2016-2017 auction which Quad Cities cleared. To review. Quad cleared the auction when the clearing price was just under $59. Yet a year later, they didn’t clear despite the price being doubled. Perhaps Exelon should answer how it was able to offer and clear Quad for a fraction of the price for the 2016-2017 auction, but couldn’t offer at the same price for 2018-2019. Is Quad Cities in danger of closing because Exelon chose a different bidding strategy? - walker - Wednesday, Sep 2, 15 @ 11:11 am: That’s why this bill has been delayed — waiting to see how much they get from other sources. - Abe the Babe - Wednesday, Sep 2, 15 @ 11:12 am: ==Exelon chose a different bidding strategy?== Of course they did. The Exelon bean counters found out that withholding (or in this case bidding near their caps so as not to clear) would yield more capacity revenue overall than if they cleared more plants. Again, they love free markets until they don’t. - Tournaround Agenda - Wednesday, Sep 2, 15 @ 11:16 am: Corporate welfare at its finest. - Qui Tam - Wednesday, Sep 2, 15 @ 11:19 am: =The best deal on that end would be to make a deal with Spfld to close CWLP Generation, Keep Clinton open and CWLP employees transfer to Exelon/ComEd.= Thank You. The CWLP plant should never have been built in the first place. It was marginal speculation even when market prices were higher. - Not Rich - Wednesday, Sep 2, 15 @ 11:22 am: quad cities is a “distribution problem” not a cost efficiency problem.. - Wordslinger - Wednesday, Sep 2, 15 @ 11:27 am: If you said $300 million tax increase, a lot of people would plotz. Exelon is an expert at maximizing profit while minimizing public awareness. - Anon - Wednesday, Sep 2, 15 @ 11:28 am: Wow. Exelon is a for-profit company that sells a commodity (electricity, with much of the Illinois nuke power being exported out of state to consumers elsewhere); it is not the regulated utility that delivers power. Exelon itself asked that Illinois deregulate (separate generation from delivery), and it got the nukes FOR FREE (ratepayers had paid for them, and then Exelon was given them without cost). Now Exelon wants to boost its stock price through state interference with the free market though a $1.6 billion artificial subsidy — at a time that Illinois cannot provide services for many of its neediest citizens, and grapples with the worst funded pension system in America). Enough already. They already got more than a BILLION dollars through PJM capacity auctions this summer. How can Illinois elected officials possibly justify private bailouts and prioritizing of corporate profits over state services. Geez. - Senator Clay Davis - Wednesday, Sep 2, 15 @ 12:00 pm: “Not Rich” is right. Exelon’s problem is a lack of transmission line capacity. If they had sufficient transmission, they could sell power to customers in east coast states where prices are higher. But building those lines would cost billions and take the better part of a decade, so they just spread around ~$1m in campaign contributions every election cycle and keep around 50 lobbyists on retainer. It’s just a better “investment” to manipulate the levers of power than actually solve the problem. - Rich Miller - Wednesday, Sep 2, 15 @ 12:02 pm: ===But building those lines would cost billions and take the better part of a decade=== Not my impression at all. - Arizona Bob - Wednesday, Sep 2, 15 @ 12:02 pm: Exelon/ComEd have always known how to play Illinois and Chicago government like a violin. The right palms have been greased, the right campaign contributions have been made, so now they’re just waiting for a “quiet time” to take their plunder. There’s no better return on investment out there than “investment” in Illinois and Chicago corruption! Just ask AFCSME, IEA,IFT, CTU, AFLCIO….. - Not Rich - Wednesday, Sep 2, 15 @ 12:13 pm: I believe they are finishing a new power line out of Byron that will make that plant profitable. I also believe that once they get approval to build a new distribution line from a plant they are able to get the cost back thru a rate system.. - Carefulwhatyouwishfor - Wednesday, Sep 2, 15 @ 12:22 pm: If Quad Cities and Clinton are unprofitable, it’s certainly Exelon’s right to close them. If the state wants to subsidize these plants in order to save the jobs and tax revenues and meet EPA carbon mandates, that’s something the state has the option to consider. While the profitability of Exelons other plants and the history of how they obtained them make for a interesting reading, they really have little bearing on the decisions that Exelon and the state need to make relative to the 2 plants. - Anon221 - Wednesday, Sep 2, 15 @ 1:53 pm: Sorry about the double paste above:( - Reo Symes, M.D. - Wednesday, Sep 2, 15 @ 2:15 pm: @BEST Dave — That comment is about as clear as your disclosure of who’s funding the BEST Coalition. - BEST Dave - Wednesday, Sep 2, 15 @ 2:35 pm: “- Carefulwhatyouwishfor - Wednesday, Sep 2, 15 @ 12:22 pm: If Quad Cities and Clinton are unprofitable, it’s certainly Exelon’s right to close them. If the state wants to subsidize these plants in order to save the jobs and tax revenues and meet EPA carbon mandates, that’s something the state has the option to consider. While the profitability of Exelons other plants and the history of how they obtained them make for a interesting reading, they really have little bearing on the decisions that Exelon and the state need to make relative to the 2 plants.” You’re absolutely right that it’s up to Exelon to decide whether they want to close their “unprofitable” plants. But the whole point of all this capacity revenue is that Exelon chose to pursue two different bailout strategies. The first was to exaggerate the crisis” of the Polar Vortex (PJM still had 5,000 MW of reserve capacity and a slew of measures to use) to change the rules of the auction to benefit nuclear generators. They were successful with this, even over the objections of the chair of the Federal Energy Regulatory Commission. The result of that effort is all this increased revenue flowing their way. Their second bailout effort is in the ILGA which wisely waited to see the results of the first bailout before agreeing to a second. When all three auctions have been completed, Exelon will have received well over a billion dollars thanks to the new rules. A wildly profitable company that has received all this revenue doesn’t need a bailout from struggling ratepayers. Oh, and as to the “each plant is judged on its own” argument. You’re absolutely right. But I don’t recall Mitsubishi come crying to Springfield for a bailout before they closed their IL facility. Nor have I seen Target or WalMart or Starbucks or anyone else come every time it turns out they have an unprofitable plant. They don’t and neither should Exelon. - Cannon80 - Wednesday, Sep 2, 15 @ 3:15 pm: BEST Dave - Maybe you can share with the other readers who BEST Coalition is? BEST is out there trying to talk a big game, but we have yet to hear who the companies you represent are. Seem’s a little suspicious if you ask me. I suspect the people who pay you have a lot to benefit from nuclear plant closures. Also, your comments on the how Exelon had to “exaggerate the crisis” on the polar vortex are inaccurate. PJM only had 1200 megawatts of reserve capacity and just what were those other options? I’m not sure how relevant an appointed FERC chair dissenting on the rules really matters when the other four commissioners who voted were overwhelmingly for the tougher rules. Bay was appointed to help run Obama’s green agenda, so you saying he wasn’t for the new changes doesn’t really support your case. - Senator Clay Davis - Wednesday, Sep 2, 15 @ 3:15 pm: @Rich: Short-distance transmission lines (like the one connecting the Byron plant to the burbs) are easier to permit and build, especially when they’re in-state and only require one regulatory approval from the ICC. Solving the bottlenecks that create Exelon’s problem would require building a transmission line from the Quads into western Ohio, at least. That would be hundreds of miles, cost far more, and require regulatory approval in IL, IN and OH. Other interstate lines have slowed for years because of similar difficulties. - BEST Dave - Wednesday, Sep 2, 15 @ 3:32 pm: Actually Cannon, Bay said the following in his lead sentence which is directly relevant: “The Commission often confronts complicated questions about costs and benefits. This case does not present such complexity. Today’s order authorizes PJM to impose costs on consumers with no corresponding benefits. These costs could be significant – in excess of a billion dollars.” - BEST Dave - Wednesday, Sep 2, 15 @ 3:34 pm: Clay, The Byron line will alleviate almost all of the problem at Byron and a fair bit of the problem at Quad. You’re right of course that more needs to be done, but Exelon has conveniently forgotten to share the good news about the rate-based Byron line with leadership and members of the GA. How convenient. - BarStool Jake - Wednesday, Sep 2, 15 @ 3:56 pm: @BEST Dave I see you ignored Cannon80’s comments about who makes up BEST? Some readers are now curious. The Byron line will be negligible for Quad, if you would like to see a dollar per megawatt hour price impact, go to the state’s report they conducted earlier this year. (PJM broke out the prices) Quad’s impact was less than 30 cents per megawatt hour. I’m not sure how forcing generators to be more reliable is a bad thing for us ratepayers? Without a doubt it will be reflected on our bill, but you know Illinois has some of the cheapest power prices in the country. If it means my power not going out when it’s -20 degrees so what. - Reo Symes, M.D. - Wednesday, Sep 2, 15 @ 4:05 pm: - BarStool Jake - It’s a front group for the coal companies. - BEST Dave - Wednesday, Sep 2, 15 @ 4:06 pm: Argumentum ad hominem - from the Latin for “to the person” is a logical fallacy that occurs when one attacks the person making an argument rather than the argument itself. - BarStool Jake - Wednesday, Sep 2, 15 @ 4:18 pm: Reo Symes - You are most likely spot on. BEST Dave is ducking and dodging the real questions, which brings into the light BEST’s motives and how much anyone can really believe what they say. Rest assured you and I as Illinois ratepayers will most likely lose. - BigAl - Wednesday, Sep 2, 15 @ 5:14 pm: Not looking so good for BEST right now. - Anonymous - Wednesday, Sep 2, 15 @ 5:26 pm: Every month I’m shocked at my Com Ed bill. Year over year, less electricity used and my bill is almost double what it was two years ago. Appalling. - BigAl - Wednesday, Sep 2, 15 @ 5:29 pm: BarStool Jake -BEST Dave just vanished! I think he didn’t like what you had to say. He can’t deny working for the coal companies because if it ever got out his Aileron Communications company would be finished! Google search that name and see what comes up .. - BEST Dave - Wednesday, Sep 2, 15 @ 6:03 pm: Oh good grief you trolls are funny. For what it’s worth, the biggest beneficiary nationally of the capacity performance rules are the nuclear generators. The largest nuclear generator, and the company that has been widely reported as helping to craft and push the new rules is Exelon. As to Illinois, the largest beneficiary of the new capacity performance rules are generators, but especially nuclear generators. The largest generator of power in Illinois is Exelon, dwarfing the second largest generator by about 2 to 1. - BigAl - Wednesday, Sep 2, 15 @ 6:14 pm: Somebody can’t take criticism. Who does BEST represent? The second largest generator in Illinois? COAL? - BigAl - Wednesday, Sep 2, 15 @ 6:20 pm: Name calling isn’t helping your case. Readers, want to know if you represent Dynegy and NRG? If not just say it. - Jburton - Wednesday, Sep 2, 15 @ 7:43 pm: BEST Dave- everytime you are called out for being a coal backer you fail to deny it. I see you for what you are, nothing more then a snake in the grass. To me and anyone who follows the energy sector, you have lost all credibility. It’s clear to me and hopefully many others BEST coalitions motives. The evidence is in the words you refuse to say. Article after article. You’re finished! - Ddunc33 - Thursday, Sep 3, 15 @ 8:27 am: All you have succeeded in doing BEST Dave is proved how shady you really are. You spend countless hours commenting on every article written about Exelon, yet you won’t take two seconds to respond to a question about who you represent at BEST COALition or where their funding comes from. You sir are a joke, and people are starting to catch on. - Anonymous - Thursday, Sep 3, 15 @ 10:18 am: Oh snap, someone got taken to the woodshed! Sorry, comments for this post are now closed.