After issuing warnings it may have to close down half its nuclear fleet, Exelon has introduced a proposal it says would keep them open. It signals the start of what's expected to be a long debate over energy policy in Illinois.
Exelonis one of the biggest and most powerful corporations in the state.
"No one from Exelon has ever denied that the company is profitable. It is," said Joe Dominguez, Senior Vice President of Exelon Generation.
"What we're talking about is the profitability of units that are persistently losing money and our inability to keep those units open unless we recognize the important attributes that they provide."
By units, he means nuclear plants. Specifically, those in Byron, the Quad Cities and Clinton.
Exelon says that, in order to keep open three of its six nuclear plants -- and to preserve workers' jobs at those plants -- it should be rewarded for producing reliable and low-carbon energy.
The corporation is backing legislation that could have customers paying more for energy sources that don't contribute to global warming.
Identical bills were introduced in the Illinois Houseand Senatethat would allow the electric utility "to recover through tariffed charges all of the costs associated with the purchase of low carbon energy credits from low carbon energy resources."
The proposal would require that 70% of electricity generation in Illinois be generated from low-carbon sources.
But critics say Exelon is asking for a bailout and trying to hobble their renewable-energy competitors like wind generation and solar power.
The Illinois Clean Energy Coalition applauded the legislation.
“We have to ensure that proposals won’t exacerbate the state’s financial struggles, and that they are truly practical and result in short-term as well as long-term results,” said ICEC Executive Director Doug O’Brien. “While we want to continue to push for the development of technologies that will make wind and solar more efficient, it’s important to recognize that nuclear power is the only carbon-free electricity source that provides the consistent, 24/7 generation needed to power Illinois.”
Two business associations, however, offered more cautious reaction.
“Retailers are concerned with the price and reliability of electricity,” the Illinois Retail Merchants Association said in a statement. “Electricity is often the second most costly expense item in a retailer's budget. The price of electricity is an advantage Illinois has enjoyed over other Midwestern states and many states nationally. … Any proposals will be viewed through the impact we believe they will have on both reliability and price."
Greg Baise, CEO and president of the Illinois Manufacturers' Association, said in a statement that “last year's polar vortex reaffirmed the reliability of nuclear energy.”
“The possibility of premature closures in Exelon's nuclear fleet would have a ripple effect in our economy,” the statement added. “The state has produced findings from a comprehensive report about the nuclear sector, and the IMA is reviewing both this report and the Low Carbon Portfolio Standard …”
- Illinois Public Radio’s Statehouse Bureau Chief Amanda Vinicky contributed to this story.
