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Exelon backs off closure threats for now

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Illinois

* No surprise here. The plug has been pulled on all the big energy-related bills this session…

“I think what will end up happening is, we’ll compromise. we’ll get everybody to the table and we’ll compromise on one omnibus bill,” House Energy Chairwoman Linda Chapa LaVia says.”So I’m pretty excited, but it’s definitely going to take a little bit longer than May 31.”

Chapa LaVia says she’s also watching and waiting for action on the federal level that could have big effects in Illinois. That’s when its expected rules will be finalized on President Barack Obama’s Clean Power Plan. There’s also a PJM capacity auction scheduled for July, which could have repercussions for Exelon’s fleet.

In a statement, Exelon spokesman Paul Elsberg recently said the company continues to believe its so-called Low Carbon Portfolio Standard is needed, and says “we remain open to participating in any and all discussions designed to enact a legislative package. The session is still in progress, and we will consider next steps after it has concluded.”

Elsberg did not directly respond to a question about whether the failure to pass Exelon’s legislation will result in a shutting of nuclear plants, nor did he say when a decision on their future will be made.

* Crain’s…

[Steve Brown, spokesman for House Speaker Michael Madigan] cited concerns lawmakers have about where electricity rates are heading, in particular after recent news that rates are spiking downstate beginning next month. That’s thanks to the surprise results of an annual auction held by MISO, the regional grid operator for downstate Illinois and all or part of 14 other states, to set the price of reserving capacity at power plants for when demand spikes during the year. […]

That puts Exelon on the spot. Without legislative action, executives have issued various threats that they will have to close as many as three Illinois nukes they say are losing money. At times, they’ve laid out May 31 as their deadline; at others, they’ve signaled they might be willing to wait a few more months if they thought progress was being made.

In an interview in April, Exelon Executive Vice President Joseph Dominguez said the company wouldn’t agree to wait until the fall veto session in November for an answer.

For this story, the company declined to reiterate that warning. Instead, in a statement, Exelon said, “We remain open to participating in any and all discussions designed to enact a legislative package. The session is still in progress, and we will consider next steps after it has concluded.”

posted by Rich Miller
Wednesday, May 27, 15 @ 10:33 am

Comments

This bill was premature. Later this summer, the grid containing five of Exelon’s six Illinois nuclear plants will conduct an auction to reserve power from generators for the years ahead. That auction is likely to result in hundreds of millions of additional ratepayer dollars per year for Exelon. Such a result would solve their problem and they wouldn’t need a second bailout voted on by legislators.

Comment by BEST Dave Wednesday, May 27, 15 @ 10:49 am
They were never going to close those plants…just another money grab by edison…great to be a stock holder in that company.

Comment by foster brooks Wednesday, May 27, 15 @ 10:52 am
Exelon is finalizing its acquisition of MD utility PECO, for $6.8 Billion in cash, and was forced to offer big consumer breaks to MD ratepayers to get approval for the purchase. Exelon will certainly appreciate $1.3 Billion from IL ratepayers, courtesy of the General Assembly, as it pursues out-of-state asset acquisitions. Nice deal if you can get it.

Comment by Anon Wednesday, May 27, 15 @ 10:59 am
You lobbied hard for a ==free market==, Exelon. You got it.

Now you are surprised when prices rise and fall?

Comment by Formerly Known As... Wednesday, May 27, 15 @ 11:03 am
This is all a bailout ruse by Exelon:

1.)Power plant operators must get permission from their RTO (PJM & MISO) to close a plant

2.) Their Clinton plant (MISO) is under contract until June 2016 by their own admission.

3.) Exelon is still waiting on the amount of PJMs proposed enhanced capacity payment and their view on the 900% increase in the downstate MISO capacity payment.

Exelon Generations continued threats to close the nukes as hollow in the short term.

Comment by SportShz Wednesday, May 27, 15 @ 11:08 am
Chapa LaVia recommends meeting HALF way?

I’ll see myself out…

Comment by McDouble Wednesday, May 27, 15 @ 11:29 am
McDouble - nicely done.

==compromise on one omnibus bill==

Careful. ==Compromise== can also be a synonym for ==Christmas tree==.

Comment by Formerly Known As... Wednesday, May 27, 15 @ 11:46 am
On one hand: since utilities are natural monopolies, what is Exleon gonna do? Quit supplying energy to its millions of customers?

On the other hand: given the current toxicity and potential for a lengthy summer session, what happens if this legislation is pushed back to the point where an even WORSE deal is made? Is a deal in veto session - especially after what could be a cruel summer - really going to be better than what we have now?

Comment by Team Sleep Wednesday, May 27, 15 @ 1:18 pm
Doing nothing can be something. In this case, I think it is.

Comment by A guy Wednesday, May 27, 15 @ 1:20 pm
This may turn out be be an historic mistake, if they don’t keep working on a solution and soon.

Comment by Anonymous Wednesday, May 27, 15 @ 3:07 pm
I’m not so sure it’s a hollow threat about Clinton. They could shoot the hostage and use it as leverage to save their other plants.

Exelon CEO Chris Crane told federal regulators that the Clinton plant lost $100 million last year. The most recent MISO capacity auction brought them a reported $13 million for that plant. Even if they’ve committed to run it until June 2016, they can still announce this summer/fall that they will close it, and it’ll take 1-2 years to finally shut it down.

Those job losses and sob stories about DeWitt County then become fodder for next year’s legislative campaign and ads in Crains and CapFax. Stay tuned for more advertisers behaving badly…

Comment by Senator Clay Davis Wednesday, May 27, 15 @ 4:14 pm