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* From July 29th of last year…
Looks like Exelon’s Quad Cities nuclear plant is a goner come September.
Chris Crane, CEO of the Chicago-based utility giant, which also is the largest nuclear plant operator in the country, made clear on a conference call with analysts today that he doesn’t see a way to keep money-losing Quad Cities open in the absence of a state law to charge ratepayers throughout Illinois more to bolster revenues at Exelon’s nukes. Exelon says that three of its six Illinois plants are losing money as wholesale power prices remain historically low due in large part to the low cost of natural gas.
Exelon has established September as the time it must decide the future of Quad Cities, and an anticipated revenue windfall for Exelon’s nukes courtesy of a regional power-plant auction set for next month almost certainly won’t be enough, Crane said.
September came and went and all the nuke plants stayed open.
* Today…
Exelon said Thursday it will move ahead with plans to shutter the Clinton and Quad Cities nuclear plants, blaming the lack of progress on Illinois energy legislation.
The company, the parent of Chicago-area utilities provider ComEd, said the Clinton Power Station will close June 1, 2017, and the Quad Cities Generating Station in Cordova will close June 1, 2018. Both plants, the company said, have lost a combined $800 million in the past seven years, despite being “two of the best-performing plants,” the company said in a statement.
The move comes after the Illinois General Assembly adjourned earlier this week without acting on the legislation known as the Next Generation Energy Plan, which Exelon said would have helped save the nuclear plants.
* As Steve Daniels notes, there was some significant progress with Exelon’s legislation in late May, but more work has to be done…
Complicating matters is that the disagreements between Exelon and the greens aren’t the only conflicts holding back legislation. The coal industry, and power generators who rely on coal, also want ratepayer-financed help, which has run into opposition from downstate electric utility Ameren.
And much of the solar industry continues to oppose other electricity rate-design portions of Exelon’s bill that they contend would kill the residential rooftop solar business in Illinois before it even really gets started.
But with the dramatic concessions to the wind industry, Exelon has made clear its willingness to wheel and deal in order to save its nukes. May 31 has come and gone, but wide-ranging and far-reaching energy legislation in Illinois remains very much in play.
posted by Rich Miller
Thursday, Jun 2, 16 @ 10:54 am
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Hard to take a bunch of folks caught lying to the general assembly about their profit margin seriously.
Unless, of course, they were lying to their shareholders, but they probably weren’t doing that because that’d be a crime.
Comment by Anon Thursday, Jun 2, 16 @ 10:59 am
Exelon is bluffing. Wait them out before bailing them out!
Comment by K. Rodgers Thursday, Jun 2, 16 @ 11:02 am
It is difficult to believe them, having cried wolf too many times.
Don’t I recall seeing here that there is a MISO review before closure to see if the base load power is needed, with a possible price increase if found to be critical?
Comment by Jibba Thursday, Jun 2, 16 @ 11:06 am
It is apparent that if all energy subsidies were eliminated today, but environmental regs stayed in place the way that they are now, the clear winner would be natural gas.
Comment by Six Degrees of Separation Thursday, Jun 2, 16 @ 11:08 am
You go on and do what you gotta do. Just realize if you close that plant, that’s it. You’ll never get another dime again. Go ahead, kick us when we’re down.
Comment by Honeybear Thursday, Jun 2, 16 @ 11:09 am
And what would happen to the plant? Mothballs? No, it is far too valuable. Someone would buy and run it, perhaps more efficiently or with more modest expectations of profit. Isn’t that what capitalism and deregulation are all about?
Comment by Jibba Thursday, Jun 2, 16 @ 11:09 am
Did not know there was roof top solar industry. I know there is a whole lot people in the nukes making a good wage.
I am not sure natural gas will last much longer due to the dangers of fracking.
Oh well I guess this means there will be extra money for other corporations to get for those $12.00 per hour jobs they are promising.
If Exelon dose close those plants they will not be bought or reopened, they are done.
Should be about 4200 very qualified people to install the massive demand for roof top solar panels in the near future.
Comment by Augie Thursday, Jun 2, 16 @ 11:23 am
Jubba- I really don’t think there are very many investment groups that would want to buy Clinton. Really no dollars to be made there.
Comment by Anon221 Thursday, Jun 2, 16 @ 11:26 am
Utilities love de-regulation and other free market panaceas, until they don’t.
Comment by Qui Tam Thursday, Jun 2, 16 @ 11:28 am
Personally, I don’t mind a regulated utility market. Things we all need to survive, such as power and water, probably should not be subject to market forces. Nonprofit would be even better. But you can’t keep changing your mind depending on how the market goes.
Comment by Jibba Thursday, Jun 2, 16 @ 11:36 am
This is a complicated issue, but simple when you factor in Illinois’ promise to “green energy” - which translates into subsidizing massively schemes that cause us to put more green into our energy. Nuclear - though problematic - provides the most efficient and largest producer of electricity and should be touted by all of the “green” groups, but alas, it’s not for all the wrong reasons.
Comment by Captain Illini Thursday, Jun 2, 16 @ 11:38 am
@honeybear
=Go ahead, kick us when we’re down.=
ummmm…honeybear….we have stable availability of power (unlike Southern California) at reasonable rates if you don’t count the useless “renewable” subsidies. that’s one of the few things that Illinois has as an advantage over more business attractive and better run states. We also have plentiful water, which for most of the nation is a big deal. The natural advantages of Illinois for manufacturing and growth is outstanding when you include great air, rail and water transport advantages.
The only obstacles to growth are man made; dysfunctional and corrupt government, labor law heavily favoring unions over business, etc. These are correctable, but Illinois voters don’t seem to want to correct them.
BTW, I designed nukes through the early 1990s. For the last decade I’ve been designing natural gas and oil pipelines. Natural gas for power generation and eventually vehicles is the future. We have over a century of NG supply in KNOWN reserves alone in the US.
The only way this incredible US resource advantage can be lost is by idiotic, unscientific government bureaucrats in DC and statehouses.
I usually don’t like to feed trolls, but I think the message is important.
Comment by Illinois Bob Thursday, Jun 2, 16 @ 11:38 am
After buying off the entire ILGA so cheaply easily on the Smart Grid bill a couple years ago, they must be flabbergasted at the current situation.
Comment by Touré's Latte Thursday, Jun 2, 16 @ 11:40 am
–And what would happen to the plant? Mothballs? No, it is far too valuable. Someone would buy and run it, perhaps more efficiently or with more modest expectations of profit. Isn’t that what capitalism and deregulation are all about?–
By law, if Exelon permanently closes the plants, they will be required to start the very lengthy and enormously expensive decommissioning process.
Comment by wordslinger Thursday, Jun 2, 16 @ 11:48 am
If Exelon can be believed about the costs, which is a big if, the question is whether nuclear power is needed or wanted. The answer differs by person, but the benefits extend to the entire grid and the world through lack of carbon emissions. Why should the costs be limited to IL ratepayers? Alternative methods of subsidy would be better, such as proceeds from a carbon tax, grants from environmental groups, or sponsorship by a big company to offset their carbon use. Hey Google! Build a data center in Clinton and sponsor the plant!
Comment by Jibba Thursday, Jun 2, 16 @ 11:49 am
You’re right, word. You also have the problem that you’ve got a lot of used fuel stored on site that you’ll need to keep your fuel cool cooling and make water system running to serve.
They can “mothball” these stations with occasional exercising and inspection of equipment.
The only way these stations may become profitable again is by government subsidy or the idiotic Feds and state governments (in places like Pennsylvania, Texas, and Oklahoma) prohibiting fracking and NG development as they’re doing in New York state.
That’s not going to happen if the GOP holds the Senate and House and takes the WH, but if Hillary gets in and Pelosi leads the House and Schumer the Senate, anything can happen….
Comment by Illinois Bob Thursday, Jun 2, 16 @ 12:00 pm
For the sake of all Illinoisans, close all those radioactive garbage makers.
Exelon and ComEd won’t be paying for the jobs “created” when the inevitable disasters occur. Taxpayers will.
ComEd and Exelon won’t be paying for the movement of populations, either, nor for guarding the radioactive trash for generations to come.
Learn from TEPCO and the disaster in Japan.
Better yet, learn from the Germans. Shut them all down.
The sooner, the better.
Comment by Katich Walker, Jr. Thursday, Jun 2, 16 @ 12:01 pm
Similar battles on energy policy are taking place in other statehouses around the country. Tough to get a deal done that satisfies all the interest groups, with their competing agendas. Plus the state energy markets are interconnected today. What we need is a carbon tax at the national level that properly values nuclear generation. Not going to happen anytime soon unfortunately.
Comment by Going nuclear Thursday, Jun 2, 16 @ 12:23 pm
===Better yet, learn from the Germans. Shut them all down.===
The Germans are burning an awful lot of coal lately to make up the difference. Is that what we want?
Comment by Six Degrees of Separation Thursday, Jun 2, 16 @ 12:42 pm
Rauner on the bill-
But he added, “I’m concerned when a big company says in order to stay in Illinois, they need a big taxpayer subsidy.”
http://m.saukvalley.com/2016/05/09/standoff-could-be-coming-over-illinois-nuke-plants-tax-demands/a7fxkez/
Comment by Anon221 Thursday, Jun 2, 16 @ 12:46 pm
– usually don’t like to feed trolls, but I think the message is important.–
That’s rich Bob. But you entirely misunderstood my post. Go back and read it. It was against the corporate extortion and not against the nuclear industry. The “down” I was talking about was not having a budget and functional government.
I guess I’m a different kind of troll than you. I understand first then kick. If I don’t understand or think I understand I ask. You just want to kick me because I’m union. But hey, it’s an open blog.
Comment by Honeybear Thursday, Jun 2, 16 @ 12:47 pm
Funny how the world works. Illinois coal mines have survived as long as they have because we are selling Illinois coal to Germany.
Comment by Jibba Thursday, Jun 2, 16 @ 12:48 pm
“By law, if Exelon permanently closes the plants, they will be required to start the very lengthy and enormously expensive decommissioning process.”
- Instead of running a profitable facility. Call their bluff or let them go.
Comment by PENSIONS ARE OFF LIMITS Thursday, Jun 2, 16 @ 1:16 pm
Hopefully Exelon learned from the Zion plant and is prepared this time for the decommissioning process…
http://www.powermag.com/zion-nuclear-plant-decommissioning-trust-fund-depleting-quickly/
Comment by Anon221 Thursday, Jun 2, 16 @ 1:23 pm
You have to love the compassion of the public sector union workers for their private sector “brothers and sisters”. On the day after thousands lost their jobs in Bloomington they are cheering for thousands more to lose their jobs in Clinton and Cordova.
Comment by Thunder Fred Thursday, Jun 2, 16 @ 1:38 pm
First of all, while IL deregulated the market, they have slowly reregulated in on many occasions to benefit renewables. It’s now a quasi-deregulated state.
Secondly, I *love* environmentalists who are anti-carbon but then hate nukes that have zero emissions. Logic, right?
Finally, shuttering plants that contribute a significant share of energy will force the IPA to procure energy from higher cost sources.
There is no free lunch.
Comment by 4 percent Thursday, Jun 2, 16 @ 1:43 pm
===that have zero emissions===
Um, they may have no direct carbon emissions, but they produce radioactive emissions that have half-lifes in the millions of years.
Comment by Rich Miller Thursday, Jun 2, 16 @ 1:48 pm
@honeybear
I understood the point you wrote perfectly. You didn’t mention government at all.
Your union affiliation has nothing to do with this.
I responded to teach you something about the state of nuclear power and energy policy and the basis for understanding that an affordable, reliable source of power is vital to rebuilding manufacturing in Illinois, and is one of the few attractions for business that Illinois enjoys.
I apologize if I didn’t clearly communicate that message.
Comment by Illinois bob Thursday, Jun 2, 16 @ 1:52 pm
Rich, non-emergency “radioactive emmissions” from US nuclear plants are less than background radiation in most areas of the country. In a hundred year containment area breech, the reactor containment can “burp” itself to relive pressure and release some radioactive gasses, but that hasn’t happened in the US or Western Europe. Even the TMI releases were less than any levels that have been found to have any health hazards.
We can get into Fukijima or Chernobyl if you like, but those are a whole different ball game compared to US plants and licensure requirements.
Comment by Illinois Bob Thursday, Jun 2, 16 @ 1:57 pm
In a nutshell, Chernobyl didn’t have a containment building structure as US nuclear stations have had from the beginning. A fire as they had would’ve been contained in a US nuclear fire, and the radioactive materials never would have escaped.
Fukijima had the main source of fuel for their shutdown generators in an area that was vulnerable to Tsunami flooding. In the US licensing process that hazard is predictable, is identified in Safety Analysis Report (SAR) checklists, and would have never have been allowed to be constructed as it was in Japan.
There’s reason for the incredible Safety record of the US commercial nuclear industry (Federally run facilities and weapons production is another story), and it sure ain’t luck.
Comment by Illinois Bob Thursday, Jun 2, 16 @ 2:06 pm
Illinois Bob- Rich is correct that, depending on designs, most nuclear power plants emit tritium (and much smaller amounts of other radioisotopes) constantly via cooling water (blowdown lines, etc.), and that tritium levels in northern Illinois are above background levels downwind of the plants. But you knew that already. I assume you are simply discounting tritium, given that it is one of the less powerful radioisotopes, but not harmless. In fact, there are groundwater standards for tritium, reflecting medical concerns.
And I’m with Honeybear that corporate welfare is the issue, not the existence of nuclear power. Ask for some and the first step would be to show your books, and preferably find another way.
And Honeybear is no troll. Neither are you, even when I disagree with you. Respectfully…
Comment by Jibba Thursday, Jun 2, 16 @ 2:24 pm
Jibba- I’m Lovetroll baby.
Comment by Honeybear Thursday, Jun 2, 16 @ 3:12 pm
Don’t believe they will close, Zion ring a bell? Its unlikely they are bluffing or that they could reverse the process once it begins. They have lost 100s of millions. This is a business decision that will cost thousands of jobs and destroy local economies. Price of energy markets will go up in the next few years when this capacity disappears. Heavily subsidized renewables artificially holding pricing low and the cause of these plants closing.
Comment by NorthSideNoMore Thursday, Jun 2, 16 @ 3:15 pm
Jibba, with the BWRs that are at Quad and Clinton, the cooling water that condenses steam in the generator never comes into direct contact with contaminated reactor water. the cooling water is constantly monitored for emissions, and if anything even remotely approaching a health hazard was discovered, the station would “SCRAM” in a minute.
At Nuke cooling lakes like those at Clinton and Heideke near Dresden ever had anything approaching even a remote hazard, all sorts of alarms would sound and the plant would be shut down until the issue is corrected.
You sound like someone who’s in the business. Did you know that stewardesses who fly frequently at high altitudes would exceed the dosage limitations for nuclear plant workers? The levels are pretty low for them.
The only time I saw someone get dosed was at containment at Dresden. A worker was there in his suit, and I heard a constant “tone” from his audible dosimetry. I went right over there and found him straddling a high source pipe and not doing any work. He was “burning himself out” by trying to pick up as much dosage as possible so that he’d exceed his quarterly limit and get to stay home and get paid. I told RAD protection and they got him out of there. I suspect that he didn’t get fired, though, given the labor issues there at the time.
Comment by illinois bob Thursday, Jun 2, 16 @ 3:18 pm
Illinois Bob hits the nail on the head…some real business advantages in Illinois include good supplies of water and dependable/abundant electricity. Add good transportation to that list, and upgrade our government to stable (not even less expensive…just stable) and we become very attractive to manufacturing, now and in the future. If only someone would be out there selling those points…but who? Who indeed?
Comment by Jibba Thursday, Jun 2, 16 @ 4:00 pm
===and dependable/abundant electricity===
And relatively inexpensive.
Comment by Rich Miller Thursday, Jun 2, 16 @ 4:06 pm
If you believe Exelon, when those plants close prices will spike. Easy test of that theory: what happens to real time prices when the plants are down for refueling? Clinton just completed a refueling outage (12 days) and I’m sure every one here in Central Illinois saw the massive price spikes last week…. Oh wait, that didn’t happen because Illinois exports 30% of it’s power. Guess they’ll have to find another scare tactic since the facts don’t work on that one.
MISO and PJM will do reliability studies when the decommissioning notices go in. If either plant is necessary for grid reliability, they will remain open. It’s that simple.
What Exelon really doesn’t want is to have either MISO or PJM find that they are not necessary for reliability, close them and see prices drop. That would undermine their credibility on all future (and there will be future) threats to close their other plants. Unfortunately for them they can’t control demand erosion (its not like there are millions of new people moving to Illinois), increased natural gas supply or wind from surrounding states.
Previous poster Senator Clay Davis is right about the Governor’s engagement on this issue. It’s entirely partisan. Front page, above the fold, of today’s Tribune is a picture of the Governor greeting Chapin Rose’s family. Rose has to be an outspoken advocate for the Clinton plant as its in his district. It is what it is.
Comment by 1986 Bears Thursday, Jun 2, 16 @ 4:06 pm
@honeybear
Does a “lovetroll” have that pointy purple hair of the same color that’s so attractive on those SEIU T shirts?LOL
I’ve still got some of those troll dolls laying around somewhere. Won’t you even feed a cuddly troll like that?LOL
Comment by Illinois bob Thursday, Jun 2, 16 @ 4:10 pm
Thanks, 1986 Bears.
I’ll say it again, if Rauner really wants a deal here, he’ll put votes on the bill and pledge not to attack Dems for supporting a billion dollar rate hike to support a profitable company. But that would require actual political leadership and cooperation.
Comment by Senator Clay Davis Thursday, Jun 2, 16 @ 4:17 pm
Was the release of radioactivity at Three Mile Island released evenly and conveniently at times of measurement?
Go ahead. Believe the industry reporting and the press releases.
Build new subdivisions next to nuke plants.
http://ecowatch.com/2015/03/27/three-mile-island-36-anniversary/
Comment by Kasich Walker, Jr. Thursday, Jun 2, 16 @ 4:22 pm
Sounds like some of the same rhetoric coming from BEST Coalition on here. Imagine that.
Comment by Anonymous Thursday, Jun 2, 16 @ 6:50 pm
Three Mile Island was closer to disaster than most people know. So I was told by friends who were part of the expert response team. And no you should not
build subdivisions next to any power or chemical plant.
I still support the continued development of nuclear power.It can be a useful part of the energy mix.
Comment by Last Bull Moose Thursday, Jun 2, 16 @ 9:51 pm
This is becoming like the budget.
A giant mess.
Comment by Formerly Known As... Friday, Jun 3, 16 @ 4:00 am
Exelon losing money; I doubt it! What was the salary of their chief officers and what was the dividend to stockholders? Before any kind of bailout, look at the compensation to this groups. Before these avaricious companies seek handouts look to see that these put providing a service or product a higher priority than satisfying greed. Human need before corporate greed!
Comment by WETHEPEOPLE Friday, Jun 3, 16 @ 8:56 am