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Exelon needs to get to the table

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Illinois

* The full release is here, but this is pretty solid spin, particularly the highlighted text…

Members of a broad coalition of environmental, business, health, faith and community groups said that the Illinois Clean Jobs Bill (SB1485/HB2607) is the best way for Illinois to comply with the standards called for by President Obama’s Clean Power Plan, the final EPA rule released today that calls for states to reduce carbon pollution from power plants by nearly one-third by 2030.

They urged members of the General Assembly and Gov. Bruce Rauner to support the legislation to ensure that Illinois meets the new standards, and can capture new jobs, consumer savings and health benefits.

“The Illinois Clean Jobs bill offers our state the best opportunity to comply with the EPA standard, while also showing that a better environment and a better economy go hand in hand,” said Jen Walling, Executive Director of the Illinois Environmental Council. Walling added that speedy passage of the bill would also make Illinois eligible for incentives available to states that comply quickly.

The Illinois Clean Jobs Bill would meet the clean power goals by increasing the share of energy Illinois generates from renewable energy sources, such as wind and solar, to 35% by 2030, and boosting energy efficiency goals to 20% by 2025. Walling noted that the recent comments by Exelon on the future of their nuclear plants makes the need to dramatically increase renewable energy production a necessary step to comply with the Clean Power Plan.

Dave Kolata, Executive Director of the Citizens Utility Board (CUB), said that the bill would also save customers $1.6 billion by 2030 according to a study by CUB. That would translate into average household savings of nearly $100 per year.

“By strengthening state efficiency standards, the Clean Jobs bill is the only measure in the General Assembly that allows Illinois to meet the new power plant standards while helping Illinois families save more than $1 billion on their power bills. This is a win-win for Illinois,” Kolata said.

A series of studies have confirmed CUB’s conclusion that clean energy measures, like those contained in the Illinois Clean Jobs Bill, will save customers money. The Union of Concerned Scientists determined that the bill would save customers 23% (or $22 per month) by 2030. In just the past week, a study by Georgia Tech University predicted that the Clean Power Plan would mean savings of 20% for Illinois customers.

Chris Nickell of Springfield-based American Wind Energy Management said that the bill would employ more than 32,000 additional workers than there are today and sustain that level for the next decade, and said that the bill would help Illinois capture wind and solar projects that have been built in states with more aggressive clean energy policies.

“We can no longer delay getting Illinois’ renewable energy policy right,” he said. “We have now fallen behind Oklahoma for installed wind, and every day that passes, rural communities across our state are missing out on tax revenue and farmers are missing out on lease payments. It’s time to make help Illinois compete in this growing field.”

Yes, those Exelon nuke jobs are important, but Exelon wants to completely shut out other alt power industries from any benefits, even though those industries can employ lots more people here.

If Exelon wants to save its plants, it needs to get its collective rear to the bargaining table and end its unilateral corporate blackmail attempt.

posted by Rich Miller
Monday, Aug 3, 15 @ 1:25 pm

Comments

They may have missed the boat.

Comment by okgo Monday, Aug 3, 15 @ 1:32 pm
That new rule is going to be litigated for years.

Comment by Formerly Known As... Monday, Aug 3, 15 @ 1:33 pm
Interesting interview with former Exelon CEO Rowe:

http://www.eenews.net/stories/1060022403

Has a few different views about the future of nuclear than Crane.

Meanwhile, keep in mind that Crane’s big buy at the moment is PEPCO, and his strategies most likely revolve around that deal- the deal that will can make or break his CEOship.

Latest Exelon quarter call: http://seekingalpha.com/article/3371015-exelon-exc-christopher-m-crane-on-q2-2015-results-earnings-call-transcript?page=5&p=qanda&l=last

From page 5 of that call:

Dan L. Eggers - Credit Suisse Securities (USA) LLC (Broker)
And I don’t mean to beat this to death (32:49) for this, but would closing a Quad or a Clinton show up noticeably as accretive to you guys on 2017 numbers?
Christopher M. Crane - President, Chief Executive Officer & Director
We don’t – we have not looked at that, and don’t look at it. We analyze the plants as a standalone in their own economics, so it’s about a plant losing money. We have not evaluated; others have and others have talked about the impact to consumers on those units closing. The state itself did that assessment, and there is some material impact on the consumer, but we have not evaluated anything specific to Exelon.

Comment by Anon221 Monday, Aug 3, 15 @ 1:45 pm
Where’s my smart meter while were talking about electricity?

Comment by foster brooks Monday, Aug 3, 15 @ 2:00 pm
Anon221,

Great catch on the earnings call comments. These guys simply need to stop misleading Wall Street and Illinois legislators. Anyone who believes that Exelon has not looked at the impact on the overall company economics from shutting down one or more of their nuke plants is very, very gullible indeed.

And Rich, you nailed it. Exelon clearly needs to “end its unilateral corporate blackmail attempt.” They have to stop their “all for me and none for thee” approach to Springfield. But it’s so deeply ingrained in their nature they may not be able to help themselves.

Comment by BEST Dave Monday, Aug 3, 15 @ 2:06 pm
==Anyone who believes that Exelon has not looked at the impact on the overall company economics from shutting down one or more of their nuke plants is very, very gullible indeed.==

Couldn’t agree more. In fact, im sure somewhere in their Loop HQ they’ve had a handful of PHDs running the numbers for the past year.

I’m surprised these “analysts” didn’t challenge that.

Comment by Abe the Babe Monday, Aug 3, 15 @ 2:26 pm
Exelon’s inconsistencies — being ardently pro-competition until they have a special ask for $1.3 billion from IL ratepayers — and the company’s blackmail approach probably should prompt the General Assembly to pass up their demands in an energy bill for 2016. Exelon is in line for HUGE new money from IL ratepayers in the upcoming PJM capacity auctions, and it’s nukes will benefit longterm with the new clean power rules out of Washington. Lawmakers may feel that fixing our state budget problems demand priority over asking citizens to fork over yet more money to Exelon in the form of a special corporate bailout for a highly profitable company.

Comment by anon Monday, Aug 3, 15 @ 2:30 pm
This is not the time for Exelon to overplay their hand. Not only are more folks now willing to call their bluffs, they are beginning to want to punish them for continued corporate welfare.

Comment by walker Monday, Aug 3, 15 @ 2:37 pm
How many windmills are needed to equal the output of one reactor? There won’t be a bird left in the sky.

Comment by That Guy Monday, Aug 3, 15 @ 2:38 pm
http://www.treehugger.com/renewable-energy/north-america-wind-turbines-kill-around-300000-birds-annually-house-cats-around-3000000000.html

Comment by Anon221 Monday, Aug 3, 15 @ 2:52 pm
At least the birds will die with only two eyes!

Comment by sss Monday, Aug 3, 15 @ 3:15 pm
The problem with wind, solar and switch grass is that they are very, very expensive forms of energy. The reason Illinois will sure up it’s nuclear fleet is because if they don’t it will disappear. Yes, green energy produces a few good-paying jobs during construction, but it doesn’t create liveable, on-going wages/jobs like nuclear power plant. Why not get rid of all the subsidies to all forms of energy and let them compete without government handouts? Fact is, green energy simply means that they want your green tax dollars!

Comment by Gutandreplace Monday, Aug 3, 15 @ 3:23 pm
Gutandreplace- did you even read the State’s report? Sound bites are just “junk” food for thought.

Comment by Anon221 Monday, Aug 3, 15 @ 4:09 pm
“Gutandreplace” and “THat Guy”:

Welcome to Capitolfax.

I find it completely serendipitous when new folks show up out of the blue with matching talking points.

You “guys” should really meet. Maybe in the employee break room?

j/k

To your question: I think it takes about 2,000 windmills to equal one nuke. I do not know how many birds died in Chernyobl.

Comment by Juvenal Monday, Aug 3, 15 @ 4:11 pm
Gut and Replace - Yes, eliminate all the subsidies for all energy sources and the cheapest, cleanest option will be…wind and solar. Your statement is inaccurate by about a decade. The costs for renewables have dropped dramatically while the costs for coal and nukes have increased.

The debate in Illinois is about achieving carbon reductions at the lowest cost. That solution clearly is not nuclear power, or Exelon wouldn’t be trying to blackmail legislators for a $1.5 billion bailout.

Comment by Senator Clay Davis Monday, Aug 3, 15 @ 4:20 pm
Juvenile,

Typically a reactor runs at about 90% capacity. Typically a windmill runs at about 25% capacity. (when and how hard the wind blows). So, lets multiply your 2,000 by 4 and include the caveat that it is incredibly inconsistent.

Then just say Chernyobl or Bengazi or whatever a bunch of times and feel better about your argument.

Comment by That Guy Monday, Aug 3, 15 @ 4:41 pm
That Guy, Illinois wind farms actually operate at about 35-40% capacity factor, so producing the same amount of electricity as the average nuke reactor (900 MW) would take about 2250MW of wind, or around 1100 turbines.

Chernobyl Chernobyl Benghazi Fukushima Three Mile Island

Comment by Senator Clay Davis Monday, Aug 3, 15 @ 5:00 pm
There should be no new legislation at this time. A lot of work needs to be done on the state implementation plan for the Clean Power Plan. In the interim there will be a PJM capacity auction result and a MISO capacity auction.

Time to start the work on the CPP implementation plan absent the notion of finalizing without as much of the data and input necessary to formulate an effective and final state plan that benefits Illinois as much as possible.

BTW I still haven’t seen that study of the 32,000 full time equivalent jobs created by the clean jobs legislation. Would like to see what the salary or hourly wage rates are and what are the benefits. Are they full time 40 hours/week jobs with long career spans? Just sayin!

Comment by nadia Monday, Aug 3, 15 @ 8:08 pm
“BTW I still haven’t seen that study of the 32,000 full time equivalent jobs created by the clean jobs legislation. ”

Ask your legislator for a copy! Mine even had a version with a map to show where all the jobs were and what the pay level was…

Comment by sss Monday, Aug 3, 15 @ 8:14 pm
So it’s already known where the “32,000 additional jobs” are located, with pay rates, benefits, and other conditions in advance of the legislation passing? That kind of sounds like Exelon guaranteeing nothing about keeping plants open even if they get their legislation. Wow, if a legislator has that info why wouldn’t they be rushing to pass the bill? I’ll ask my legislator for their copy.

Comment by nadia Monday, Aug 3, 15 @ 8:22 pm
I agree that Exelon needs to get to the bargaining table, but I don’t believe this is a choice between nuclear and renewable energy.

If any of the nuke plants in the state are shutdown early, I think they will be replaced mostly with new natural gas plants.

This will impede long-term investment in renewables. I’d rather see the nukes kept running to help with the transition to more zero-carbon resources and less reliance on natural gas.

Comment by Going nuclear Monday, Aug 3, 15 @ 9:54 pm