Capitol Fax.com - Your Illinois News Radar » Exelon still pushing hard for state help
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Exelon still pushing hard for state help

Monday, Apr 18, 2016

* Joe Cahill at Crain’s takes a look at why Exelon’s stock has surged 25 percent this year to date

Thanks to intervention by the bureaucrats who oversee the nation’s power grid, prices are firming up in key markets where Exelon’s nuclear plants sell juice to electric utilities. Crane has restored part of a dividend cut he was forced to impose in 2013. And after a 23-month struggle, he closed an acquisition last month that made Exelon the country’s largest electricity delivery company.

And then looks at the future

Possibly more telling will be his decisions about the future of Exelon’s worst-performing nuclear plants. He has warned of possible plant closings in Illinois if state lawmakers don’t help out. Criticizing policies that favor other forms of energy over nuclear, [Exelon spokesman Paul Adams] says Exelon “may be forced to make the appropriate decision to retire at-risk plants” unless those policies change.

Shutting power plants would shift Exelon’s balance even further toward the regulated businesses Wall Street currently favors. But it also would limit Exelon’s upside if power prices recover over the long term.

* And speaking of possible nuke plant closures

State Rep. Bill Mitchell, R-Forsyth, has Exelon’s back.

“If you remove nuclear power, you are going to see you electric bills go sky high,” Mitchell said. “In the next six weeks, the Illinois General Assembly must get down to business and pass a bill to make sure Clinton power plant stays in business and thrives.” […]

The Clinton nuclear plant has about 600 employees. Mitchell said losing them would have the same economic impact as Chicago losing 105,000 jobs.

“If Madigan had to face the loss of over 100,000 jobs, can you imagine that (would) not be on the frontburner of Speaker Madigan’s plate?,” Mitchell said.

If they can’t do a budget, which is hurting far more than just 600 employees, how are they going to do an Exelon “bailout”? Particularly this year, which has been notable for its intense voter anger.

* Exelon itself says the Clinton plant will stay open until at least May of next year

Exelon Corporation said Friday that its Clinton nuclear plant, 23 miles southeast of Bloomington, Ill., had cleared the 2016-2017 Mid-continent Independent System Operator (MISO) capacity auction, which meant that it would continue to operate through May 31, 2017, although its future after that would rely in an “urgent” policy fix. […]

Exelon said it would not wait indefinitely to make a decision on the future of the plant past the fifth month of 2017. It would make that decision sometime this year, the company said.

* The Quad City Times wants Exelon included in the “green” mix of subsidies

Last year, Exelon threatened the closure of three cash-bleeding plants, major economic engines in Quad-Cities and Clinton, Ill., unless lawmakers OK’d a plan, which included a state-imposed surcharge on users. But the company’s continued profit margins and September’s $1.6 billion windfall in PJM market auction all but killed the already controversial legislation that critics called a “bailout” intended to help “only Exelon.” Holding a trio of major employers hostage didn’t sit well with the public. The U.S. Supreme Court’s temporary stay of federal emissions standards for coal-fired plants didn’t help, either.

But Exelon brass aren’t wrong when pointing to a government-backed deck stacked against them. Wind, solar and other “renewable” sources benefit from perks within Illinois Renewable Portfolio Standard. Exelon, meanwhile, is left to makeup the shortfall when those less-consistent sources of electricity peter out.

Clouds and gentle breezes leave Exelon carrying the water. And yet, Exelon doesn’t benefit from the state subsidies that encourage wind and solar producers to flood the grid when conditions are favorable.

And that’s the problem.

* From the Union of Concerned Scientists

The nuclear industry is only able to portray itself as a low-cost power supplier today because of past government subsidies and write- offs. First, the industry received massive subsidies at its inception, reducing both the capital costs it needed to recover from ratepayers (the “legacy” subsidies that underwrote reactor construction through the 1980s) and its operating costs (through ongoing subsidies to inputs, waste management, and accident risks). Second, the industry wrote down tens of billions of dollars in capital costs after its first generation of reactors experienced large cost overruns, cancellations, and plant abandonments, further reducing the industry’s capital-recovery requirements. Finally, when industry restructuring revealed that nuclear power costs were still too high to be competitive, so-called stranded costs were shifted to utility ratepayers, allowing the reactors to continue operating.

These legacy subsidies are estimated to exceed seven cents per kilowatt-hour (¢/kWh)—an amount equal to about 140 percent of the average wholesale price of power from 1960 to 2008, making the subsidies more valuable than the power produced by nuclear plants over that period. Without these subsidies, the industry would have faced a very different market reality—one in which many reactors would never have been built, and utilities that did build reactors would have been forced to charge consumers even higher rates.

* With all that being said

An analysis conducted by the state of Illinois found that closing Clinton would cause wholesale energy prices to rise by $236 million to $341 million annually for families and businesses in the region. These cost increases do not include hundreds of millions of dollars that would need to be spent on new transmission lines. The report also found that allowing Clinton to shut down would result in the loss of almost 1,900 direct and indirect jobs and raise carbon emissions in Illinois by almost 8 million metric tons per year, the equivalent of putting more than 1.7 million cars on the road. The analysis concludes that the societal cost of the increased emissions would be almost $4 billion between 2020 and 2029.

- Posted by Rich Miller        

13 Comments
  1. - Adam Smith - Monday, Apr 18, 16 @ 2:10 pm:

    It is very telling that the UCC doesn’t make an environmental argument. Rather, the decidedly left-wing political organization makes an argument based on decades-old economic decisions, none of which change the current situation.

    We produce half our state’s electricity by carbon-free nuclear. I provides reliable and cost-competitive base load power. What’s more, it employs thousands of people in very high-paying, stable jobs and brings billions into the state economy.

    Currently, we as a state, as a nation, and as a society in general, provide huge incentives, subsidies and assistance to two big priorities: Job creation/retention, and reducing carbon pollution. But the single industry in Illinois doing the most on both fronts as the same time is left out.

    Combine the gray-haired “no nukes” crowd, the right-wing “corporate welfare” crowd, the CUB/Quinn “hate all utilities” crowd, and Exelon has an uphill battle on their hands.


  2. - okgo - Monday, Apr 18, 16 @ 2:40 pm:

    “I provides reliable and cost-competitive base load power.”

    … apparently not.


  3. - TominChicago - Monday, Apr 18, 16 @ 3:03 pm:

    Adam Smith Chicago brings in billions of dollars to the state. How about increasing the state taxes from everyone outside of Chicago to help Chicago pay its bills? This legislation is nothing more than a tax on rate payers so that the citizens of Dixon and other nuke plant cities can avoid paying property taxes.


  4. - Led Hed - Monday, Apr 18, 16 @ 3:07 pm:

    I’ve lived in Dixon my whole life and if there’s a nuke plant here it’s been hidden well. Maybe you mean Byron….?


  5. - cover - Monday, Apr 18, 16 @ 3:15 pm:

    How much of a subsidy would Illinois’ ratepayers be saddled with? Somehow I have a feeling it would be far more than the “$236 million to $341 million” increase in energy prices if Clinton were to close.

    Also, the UCC should have tackled the big future (federal) taxpayer subsidy to nuclear power that’s still not been determined yet - where will the high-level radioactive waste be stored? Last time I checked, wind and solar produce no waste by-products.


  6. - TominChicago - Monday, Apr 18, 16 @ 3:35 pm:

    Led Hed Sorry, meant Clinton.


  7. - Ghost - Monday, Apr 18, 16 @ 4:55 pm:

    let them close. then the state can seize them for oennies since they have no value as defucnt olants and turn them into public utilities. exelin gets out and we get more public energy. CWLP is an example of govt doing power better and cheaper.


  8. - foster brooks - Monday, Apr 18, 16 @ 7:23 pm:

    Exelon is full of it, call them on their bluff


  9. - Anon221 - Monday, Apr 18, 16 @ 8:40 pm:

    Exelin will continue to threaten to close Clinton. It is one of it’s weakest links. And, it will shutdown some day anyway, and at that time there will be even more taxpayer “subsidies” for oversight of the spent fuel on site- dry casks or not. Exelin does not need any more handouts!


  10. - Anon221 - Monday, Apr 18, 16 @ 8:42 pm:

    Exelon not Exelin- spellcheck!


  11. - What - Monday, Apr 18, 16 @ 9:57 pm:

    Ghost, CWLP customers pay about 15% more for electricity than ComEd customers, and about 20% more than Ameren. Don’t forget their huge rate giveaway from Springfield last fall, and the expensive coal plant they are now stuck with for decades….


  12. - Steve - Wednesday, Apr 20, 16 @ 5:32 am:

    Don’t you find it funny that Exelon doesn’t want wind tax credits here in Il but it is okay in other states where they have wind turbines and they are enjoying the taxes credit’s. Also Nuclear gets many tax credits for the government all ready.


  13. - Clinton resident - Thursday, Apr 21, 16 @ 1:17 pm:

    For those of you cheering on nuclear energy’s demise - wind and solar don’t come anywhere close (and won’t for a very long time) to the energy Illinois needs, so where do you think our energy will come from if plants close? The answer is it will result in a lot more coal and natural gas, driving up carbon emissions…


Sorry, comments for this post are now closed.


* Rauner says he'll soon announce "several really exciting" results of his trade mission
* Our sorry state
* It's just a bill
* *** UPDATED x2 - Pritzker, Mendoza respond *** Rauner gets it half right while denying all blame
* ¯_(ツ)_/¯
* Question of the day
* Gun dealer licensing bill may reboot
* PPP: Rodney Davis up by only 3, Hultgren ahead by just 4
* Rate the new Sam McCann campaign video
* Way out of context
* Did Tazewell County and Chicago ignore state law?
* Rauner calls legislators "rascals" ahead of budget talks
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............
<


Loading


* Bristow to host satellite office hours in Grani.....
* Polish & Slavic Federal Credit Union Opens Fift.....
* Barickman Blasts Democrats On Gun Rights - WGLT.....
* Bill and Wendy Full Show 4.26.18: Padiddle..
* Polish & Slavic Federal Credit Union Opens Fift.....
* *** UPDATED x2 - Pritzker, Mendoza respond *** .....
* *** UPDATED x2 - Pritzker, Mendoza respond *** .....
* Rauner gets it half right while denying all blame..
* The Latest: Gun bill override short of House vo.....
* Gun dealer licensing bill may reboot - The Capi.....


* Chicago ban on ice cream trucks melts away after 45 years
* Servers allege sexual harassment at Chicago-area restaurant
* Ford: No layoffs expected at Chicago assembly plant
* Shooting at apartment complex in Illinois leaves 2 dead
* Illinois nurses to complete sexual assault training sooner
* Wrongful death lawsuit filed after double-fatal accident
* Chicago-area diving program relieves veterans' pain, stress
* Indiana county buying back old jail for use as office space
* Coach's accusers: Schools should end relationships with him
* Woman charged in bitcoin murder-for-hire is released

* Illinois nurses to complete sexual assault training sooner
* A 48,000 percent return on a painting may be Illinois' best investment
* Schoenburg: Libertarian Kash Jackson wants to protect rights
* Plans to override gun dealer licensing veto fizzle
* Pro-gun advocates crowd downtown Springfield for annual rally
* Illinois State Fairgrounds on endangered sites list
* Illinois Senate votes to raise age to buy tobacco to 21
* Illinois State Fairgrounds, Thompson Center on endangered sites list
* Prospects of gun dealer licensing veto override appear to be fading
* Illinois Proud Penny Drive gets boost from local organizations

* Ford quitting every car in North America but two
* The convenience store chain for bougies
* Illinois House says no to sales-tax 'bounty hunting'
* Illinois pays price for budget uncertainty in $500 million deal
* Illinois pays price for budget uncertainty in $500 million bond offering


* Pompeo confirmed for Secretary of State: Duckworth (with baby) Durbin vote no
* 17-year-old girl missing from Morgan Park
* Bill Cosby’s legal team says there’s a verdict
* Playlist: What did the prospects select as their walk-up songs for NFL draft?
* Building, vehicles hit by gunfire in Skokie
* Mike Pompeo confirmed as secretary of state
* Adam L. Jahns: Final thoughts on Bears and their No. 8 pick before the draft
* Joffrey Ballet mesmerizing in Ekman’s theatrical ‘Midsummer Night’s Dream’
* US won’t stop ex-Lithuanian judge’s extradition
* 2018 NFL Draft: Start time and TV schedule for Round 1


* Who is not in “Avengers: Infinity War”?
* Bill Cosby found guilty on all 3 counts in sexual assault retrial
* Yorkville's 'Pine Village massacre' shooter, convicted of killing 5, granted parole
* White House doctor withdraws as VA secretary nominee, calls allegations against him false
* Trump says for first time that Cohen represented him in 'crazy Stormy Daniels deal'
* Not guilty plea entered in Zion home invasion slaying; new charges added
* As Ford phases out most cars, Chicago plant will produce a new SUV
* Explosion at Wisconsin oil refinery injures at least 5
* EPA chief Pruitt blasted over ethics, spending scandals: 'You are unfit to hold public office'
* Will Hinsdale South area support the next District 86 referendum?


» Reporter Finds Carrying A Gun Carries Weighty Responsibility
» Illinois Lawmaker Considers Legislation After Nashville Waffle House Shooting
» Gun Owners Rally In Springfield While Gun Dealer Lincensing Veto Remains
» April 25, 2018 - Full Show
» Illinois State Fairgrounds Named On Endangered Historic Places List
» Food, Agriculture And Politics In The Next Farm Bill; Evangelicalism In The Age of Trump
» A Flexible Schedule Is The Wellness Benefit Workers Want
» Bill Could Award Legionnaires’ Victims’ Families $2M From State
» Jailhouse Informant Bill Clears State Legislature, Heads to Rauner's Desk
» Time Running Out For Illinois' Gun Dealer Licensing Legislation


* Illinois nurses to complete sexual assault training sooner
* A 48,000 percent return on a painting may be Illinois' best investment
* Schoenburg: Libertarian Kash Jackson wants to protect rights
* Plans to override gun dealer licensing veto fizzle
* Our View: Advisory group for SCVB could benefit city
* Our View: Legislators should adopt revenue estimate resolution
* Pro-gun advocates crowd downtown Springfield for annual rally
* Illinois State Fairgrounds on endangered sites list
* Illinois Senate votes to raise age to buy tobacco to 21
* Illinois State Fairgrounds, Thompson Center on endangered sites list


* Cosby guilty at sexual assault re-trial
* 'Oh! Susanna' songwriter's statue removed amid criticism
* CoreLife Eatery adds a pop of flavor to healthy eating
* Tommy Bell out as SIU athletic director; Jerry Kill to take over
* Police search for 2 men who they believe stole scrap metal in Caseyville
* Noon update: A sunny afternoon in the Q-C
* Two Herrin men arrested in Marion after alleged armed robbery of Valero Gas
* Amanda's picks: 'Space Odyssey,' monster trucks and all kinds of jams this weekend
* Suspect in custody after man shot near SLU campus
* Illinois offers two more prospects


* Bensenville District 2 approves 5-year teachers contract
* Diversion program ordered for Lisle woman who forged COD signature
* MacLean-Fogg in Mundelein announces retirement
* Smokehouse and sports bar to open in downtown St. Charles
* Wheaton police chief leaving to take College of DuPage post

* Excerpts from recent editorials in newspap...
* Excerpts from recent editorials in newspap...
* Rep. Randy Hultgren recognizes Loyola men'...
* US Rep. Randy Hultgren visits McHenry's Pi...
* PPP: Rodney Davis up by only 3, Hultgren a...
* Are Illinois Congressmen safe in wake of D...
* Hultgren makes Earth Day pledge as newest ...
* It's official: If you prepaid your propert...
* A quick look at a few congressional races ...
* GOP breaks the glass as House outlook dark...

* Pompeo confirmed for Secretary of State: D......
* Democrats Give Muted Support To Bernie's B......
* Jared Kushner's Prison Reform Bill Blocked......
* Democrats don't love Bernie Sanders' jobs-......
* Bipartisan prison reform bill stumbles in ......

* Straight, clear thinking from women in pow......
* On Twitter, Hillary Clinton is a 'wife' ab......
* Tammy Duckworth and Working Moms Like Mine...
* The Senate celebrates Sen. Tammy Duckworth......
* Editorial: Up to the task...

* The [Thursday] Papers
* The [Thursday] Papers
* Lakeside Center Career & Training Fair at Olive-Harvey College #Ward09
* Update on the homeless sisters
* EXTRA: Rauner wins! (for now)
* Your Chicago Location Guide to The Blues Brothers
* The Billable Hour Prevails in the Legal Industry — Don’t Let Anyone Mislead You to the Contrary
* IEA RA delegate writes their disappointment in vote on NRA.
* Illinois’ ed funding bill wanted equity and that is what we have. Every CPS school is in the red. CTBA’s Ralph Martire is on Hitting Left on Friday.
* The One Guy Ryan Pace Better Not Take In The First Round Of Tonight's NFL Draft


* IEMA Highlights Role of Volunteers in Disasters
* Governor Rauner activates State Emergency Operations Center in Springfield
* February Flooding Information
* IEMA Urges People to Prepare for Severe Weather
* Governor issues state disaster proclamation for flooding in Iroquois, Kankakee, Vermilion Counties

  
* Make iPhone Great Again: Top fixes we want for America's beloved smartphone
* This AI storyteller fools humans 3 out of 5 times
* China’s smartphone market saw its biggest drop in demand since 2013
* Bill Cosby found guilty of sexual assault
* A pioneer in predictive policing is starting a troubling new project
* Comment: Xiaomi’s profit margin cap doesn’t mean a thing
* Check out our Nokia 7 plus video review

* Super Stats Pack: Hitters/Pitchers (Game 20)
* White Sox Minor League Update: April 25, 2018
* Kopech, Adolfo among prospect performers
* Your Fan Questions Answered!
* Giolito opens 5-game set in Kansas City
* Bats let Felix off hook, stymied by 'pen in loss
* Abreu day to day with flu-like symptoms


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller