Capitol Fax.com - Your Illinois News Radar » Rauner administration agrees in principle to Exelon deal
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Rauner administration agrees in principle to Exelon deal

Wednesday, Nov 30, 2016 - Posted by Rich Miller

* I’m told by a source very close to the negotiations that Gov. Rauner’s administration has agreed “in principle” to support a new deal on the bill to prevent the closure of two of Exelon’s nuclear power plants and expand alternative energy sources.

I’m also told there are “hard” caps on rate increases for residential ratepayers and commercial users, and the proposed microgrids and some other items have been dropped from the measure to save money.

There have been plenty of doubts around the rail that the Rauner administration could actually get something done here. But they negotiated well into the night last night (when things just about fell apart) and then restarted bright and early this morning (6 o’clock) and got it done.

Waiting on react and more details. Stay tuned.

…Adding… Exelon folks have confirmed this as well.

       

45 Comments
  1. - A guy - Wednesday, Nov 30, 16 @ 10:23 am:

    Someone better tell someone. Or better yet, someone better confirm this with someone. Maybe more than one someone.


  2. - Gman - Wednesday, Nov 30, 16 @ 10:23 am:

    I have been following the Exelon negotiations. I understand they have dropped some of their requests. It has been said here before but one troubling fact remains: Exelon is getting a bailout. Through that bailout, the company would keep open two nuclear plants that Exelon itself has declared are not economically viable. In any other business, owners themselves would have to deal with a money-losing operation. Exelon thinks it’s exceptional, however. Why should Illinoisans absorb the cost of keeping these unneeded plants open? We’re still waiting for a sensible answer.


  3. - Anon221 - Wednesday, Nov 30, 16 @ 10:29 am:

    The clock is ticking. Testimony going on in the Senate (Rm 400) right now. Not everyone has been included in the dialogue and changes. May pass and get signed, but there may be repercussions unforeseen or just ignored. Exelon may have to drop the Dec 1. I think they should, but I doubt they will because that is their biggest leverage point. Rita had promised to send the Amend 4 back to the House Committee if there were significant changes so they could be reviewed. Rush this through, and some political careers may pay the costs.


  4. - Winnin' - Wednesday, Nov 30, 16 @ 10:31 am:

    Surprised Rauner would agree to screw manufacturers.


  5. - Anon221 - Wednesday, Nov 30, 16 @ 10:41 am:

    The AG’s office is really ticked off. AARP is not supporting either. Does Rauner care? Probably not. Should legislators care? Do they want AARP financing attack ads in the next election? Maybe they won’t care either because of Rauner Bucks. But will Rauner Bucks last the life of this bill??? GA Vote records will.


  6. - Winnin' - Wednesday, Nov 30, 16 @ 10:43 am:

    Doubtful Rauner’s folks would participate with AG Madigan involved. Petty, petty. Bad in the long run.


  7. - Foster brooks - Wednesday, Nov 30, 16 @ 10:47 am:

    I cant wait for the higher rates, the bright side Emil Jones wasn’t in on the negotiations


  8. - SportShz - Wednesday, Nov 30, 16 @ 10:47 am:

    Does the Gov realize that HGOP members Ives, Morrison, and Bartinick have all come out against this huge, anti-free market bailout for Exelon?


  9. - Rich Miller - Wednesday, Nov 30, 16 @ 10:49 am:

    ===Does the Gov realize that HGOP members Ives, Morrison, and Bartinick have all come out against===

    That’s three out of 118. There will always be opponents to stuff like this.


  10. - Rich Miller - Wednesday, Nov 30, 16 @ 10:50 am:

    Also, you cite those three like their opposition should somehow be a deal killer. Curious as to why you think that.


  11. - Anon221 - Wednesday, Nov 30, 16 @ 10:51 am:

    I can see the possibility of a presser with Rauner shrugging his shoulders and saying, “Hey, I tried.” His principles are as moveable as his TA goalposts. And this is not TA related, just a good “exercise” for the supes.


  12. - SportShz - Wednesday, Nov 30, 16 @ 10:54 am:

    @Rich Miller - not a deal killer, but shows some serious conservative cracks in the HGOP caucus


  13. - Anon221 - Wednesday, Nov 30, 16 @ 10:58 am:

    IL Manufacturers Association just testified strongly against this bill. Is Rauner planning to just ignore them??? Chem also- 3rd largest manufacturing sector in IL. Ignore them to reward Exelon???


  14. - Rich Miller - Wednesday, Nov 30, 16 @ 10:59 am:

    ===serious conservative cracks===

    Meh. They’d be cracking almost no matter what.


  15. - Rich Miller - Wednesday, Nov 30, 16 @ 11:02 am:

    ===Is Rauner planning to just ignore them???===

    IMA didn’t support dereg, either.


  16. - Anon - Wednesday, Nov 30, 16 @ 11:07 am:

    Interesting that on the same day the Governor agrees to subsidize a nuclear plant the market says we no longer need California announces that PG&E is going to pay the affected communities $85 million over the next decade as it prepares to close its last nuclear plant there. Guess Rauner forgot how to negotiate.


  17. - Anon221 - Wednesday, Nov 30, 16 @ 11:10 am:

    Rich- Granted, but a lot has changed since then. Natural gas was the game changer that Exelon, who wanted the dereg, had not planned for. A lot of the testimony is concerning who is more important in this bill. Exelon cannot even guarantee that they will be able to honor the 10 years because something might change in the future.


  18. - Rich Miller - Wednesday, Nov 30, 16 @ 11:12 am:

    Not disagreeing on your point, Anon221. Not loving a subsidy to Exelon, either.


  19. - Broncogirl - Wednesday, Nov 30, 16 @ 11:13 am:

    It is not a bailout it is a subsidy just like Wind and Solar get. Nukes are clean 0 emissions but can’t be competitive when competition is subsidized. True free market needs an even playing field.


  20. - Team Sleep - Wednesday, Nov 30, 16 @ 11:13 am:

    Ives & Morrison are turning into modern versions of Shane Cultra. They vote no on pretty much everything.

    I for one am glad the legislature and negotiators took their time and stalled this past the spring and overtime sessions.


  21. - Abe the Babe - Wednesday, Nov 30, 16 @ 11:13 am:

    ==IMA didn’t support dereg, either.==

    While ultimately successful, Dereg had a LOT of unknowns. With this bill its pretty clear what the impacts are, who’s paying, who’s being paid, etc. Although how much seems to be a matter of dispute but I always take to the bank any estimates that Exelon or comed provide to the GA.

    Snark/


  22. - Rich Miller - Wednesday, Nov 30, 16 @ 11:16 am:

    === Nukes are clean 0 emissions===

    LOL. Unless you count that radioactive waste with a half life in the millions of years.

    ===can’t be competitive when competition is subsidized===

    The construction of those plants was heavily subsidized. And I assume taxpayers are gonna have to pay to deal with the waste issue.


  23. - Anon - Wednesday, Nov 30, 16 @ 11:17 am:

    So we have gone 2 years without a budget and now the governor agrees to eliminate the one competitive advantage we have? For these large employers what will their increase equate to in terms of a real estate tax increase or workers comp increase?


  24. - Team Sleep - Wednesday, Nov 30, 16 @ 11:18 am:

    The card caps are huge. Rich - as you noted yesterday I cannot imagine the teeth gnashing if schools in the suburbs saw their utility rates skyrocket.


  25. - Anon221 - Wednesday, Nov 30, 16 @ 11:19 am:

    Rich- I’ve gotta admit, this is a good “squirrel!!!” from the budget issues, though, for Rauner.


  26. - Abe the Babe - Wednesday, Nov 30, 16 @ 11:19 am:

    @broncogirl

    You don’t actually believe that stuff do you?

    Don’t quit your day job. And if you are involved in energy policy…quit your day job!


  27. - Anon221 - Wednesday, Nov 30, 16 @ 11:22 am:

    Rich- taxpayers already pay for nuclear waste storage. We have been doing so for years.

    http://www.cnbc.com/2016/07/05/how-the-department-of-energy-became-a-major-taxpayer-liability.html


  28. - Gman - Wednesday, Nov 30, 16 @ 11:40 am:

    I have been following the Exelon negotiations. I understand they have dropped some of their requests. The fact that Exelon is getting a bailout. If the plants are not economically viable why not do what other companies do? “In any other business, owners themselves would have to deal with a money-losing operation.” Why should Illinoisans absorb the cost of keeping these unneeded plants open? I am still waiting for that explanation.


  29. - MiketheSage - Wednesday, Nov 30, 16 @ 11:45 am:

    This is the right decision. Why would Illinois give up on two plants that produce gobs of electricity with no GHG emissions. Wind and solar may someday produce Nuke scale reliability, but it’ll take a while. Forest from the trees people.


  30. - JohnnyPyleDriver - Wednesday, Nov 30, 16 @ 11:46 am:

    The RPS fix has been a dire need for years. The solar for low income folks is awesome. Glad they dropped the demand charge. Alternative energy and efficiency money is awesome.

    LOL at “even playing field.” Fossil fuels have been subsidized for CENTURIES


  31. - SportShz - Wednesday, Nov 30, 16 @ 11:46 am:

    Who would have thought “Shaking Up Springfield” really meant negotiating and approving a bailout for Exelon?


  32. - Winnin' - Wednesday, Nov 30, 16 @ 11:54 am:

    Wasn’t Dereg negotiated in the IMA offices? They got the best deal - an opportunity to shop around. They got the lowest prices in the nation.


  33. - Rich Miller - Wednesday, Nov 30, 16 @ 11:55 am:

    ===Wasn’t Dereg negotiated in the IMA offices?===

    Yep. And then shortly thereafter they bowed out.


  34. - One Day - Wednesday, Nov 30, 16 @ 1:19 pm:

    Rauner has completely outfoxed the House and Senate Democrats on this Bill. When it passes - because the Dems have no choice or they risk offending labor - Rauner’s going to look like the only adult in Springfield. His popularity numbers will get a huge bump and this will pair well with Trump saving Carrier jobs in Indiana. it’s a new day in Springfield.


  35. - Going nuclear - Wednesday, Nov 30, 16 @ 1:20 pm:

    There is no such thing as an unsubsidized unit of energy in this country. Even oil and natural gas production still get government incentives.

    I like the proposed deal. I would rather see the nukes kept open than have to heavily rely on natural gas for electricity generation. Hopefully this will help provide a smoother transition to lower-cost renewables and efficiency, with energy storage just around the corner. It is also an opportunity for Illinois to join California, New York, Maryland and other states that are demonstrating leadership in working towards a low-carbon economy.


  36. - unconscious observer - Wednesday, Nov 30, 16 @ 1:33 pm:

    can this pass without industrials on board?


  37. - wordslinger - Wednesday, Nov 30, 16 @ 2:08 pm:

    Why are the allegedly at-risk nuke jobs a top priority for the governor while the thousands who lost jobs from his squeeze the beast play mean oogats?

    Under what theory of conservative capitalism does the government levy a surtax on individuals and small businesses to underwrite the supposedly failing subsidiaries of a corporation that banked $2.2 billion in profits last year?

    Who believes that Exelon was really going to shut down those plants and start paying decommission costs, at a minimum of $500 million each?

    Same old ComEd/Exelon extortion story. They demand the moon and the stars, and the politicians claim it’s a victory when they only give away the stars.


  38. - unconscious observer - Wednesday, Nov 30, 16 @ 2:24 pm:

    @wordslinger Exelon won’t start paying that money out for years. they keep the decommissioning cash in a trust fund for at least 10yrs before they make any real disbursements.


  39. - NorthsideNoMore - Wednesday, Nov 30, 16 @ 2:37 pm:

    The same folks bemoaning a energy deal would be blasting away at him if the Guv sat on his hands and let the plants close, the jobs go bye bye and the tax revenues from said plants disappear from the states coffers. Oh and watch the devastating affects to the local communities if the plants close.


  40. - wordslinger - Wednesday, Nov 30, 16 @ 2:41 pm:

    UO, your trust in the Exelon trust funds is unwarranted.

    They’re $800 million short, at least. That’s real money, even for them.

    And given how they crazily underestimated the costs of building their nukes, it’s a fair assumption that they’re low-balling the cleanup, too.

    http://www.chicagobusiness.com/article/20160618/ISSUE01/306189996/exelons-nuke-cleanup-funds-fall-short


  41. - The Cardinal - Wednesday, Nov 30, 16 @ 2:50 pm:

    Anon 221 AARP should get on board CUB has been on this bill for a long time, it appears they can do math better or do better math ?


  42. - Anon221 - Wednesday, Nov 30, 16 @ 3:07 pm:

    The Cardinal- The AARP and CUB divide is not the only divide out there. There are several enviro groups that I have supported in the past that will not have my support in the future because of this bill. I realize they may have seen this as the only way to be able to fix the RPS and to get other renewable efforts to go through, since Exelon so vehemently shut any and all of those down for years because it would (possibly) cut into their profits. and, BTW, Exelon touts itself as a large player in the renewables marketplace- http://www.powermag.com/exelon-americas-leading-nuclear-generator-keeps-the-faith-on-nukes/ .

    Exelon bundled the RPS and renewables into this bill to get their subsidies for the nuclear plants. It wasn’t the other way around, so while I understand why CUB and the Sierra Club and all the others in the Clean Jobs Coalition have signed on, I stand with those who point out there are severe problems with this “deal” and old Dan’l Webster would be the first to point that out to them.


  43. - Anon22 - Wednesday, Nov 30, 16 @ 4:03 pm:

    @Rich

    “The construction of those plants was heavily subsidized. And I assume taxpayers are gonna have to pay to deal with the waste issue.”

    I believe the feds already provide subsidies for waste and fuel disposal.


  44. - BEST Dave - Wednesday, Nov 30, 16 @ 5:48 pm:

    ComEd just testified that the supposed residential rate cap to $0.25/ month applies to a whole class, not to individuals. Violations result in a report from the ICC to ILGA. ILGA then put in position of being a rate maker to force Exelon and ComEd to give back money.

    These are bogus caps on all but the largest 106 customers in Illinois.


  45. - One who knows - Wednesday, Nov 30, 16 @ 7:50 pm:

    That’s not true best Dave. Read the bill. There’s a report to the general assembly but the commission has the authority to issue corrective action and is required to do so if the cap is triggered. The report just explains the reasons for the corrective action.


Sorry, comments for this post are now closed.


* Buried nugget and magic beans
* Open thread
* SUBSCRIBERS ONLY - Supplement to today’s edition and some campaign stuff
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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

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


Loading


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

Archives
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
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




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