Legislation introduced in both the House and Senate in Springfield, Ill., on Thursday would give Exelon's six nuclear power plants in the state economic viability for up to six years, the company said in a news release.
Exelon has said its nuclear fleet in the state was struggling due to economic headwinds that include stagnant demand in a post-recession era and stiff competition from natural gas and wind power, especially the former, which has seen dynamic priced changes since hyrdofracking became widespread.
At the greatest risk of closure are the Byron, Clinton and Quad Cities nuclear plants, Exelon has said.
The measure, introduced as bill 1585 in the Senate and 3293 in the House, “would help reduce carbon emissions, increase renewable energy and maintain affordable, reliable electricity for consumers and businesses. In addition, the measure will ensure continued operations of the state’s nuclear power plants, which are responsible for nearly half of all electricity produced in Illinois,” Exelon said.
The initiative, which is called Illinois' Low Carbon Portfolio Standard, came directly from a state report released in January that detailed the economic impact of the state's nuclear power fleet. It was one of five options spelled out in that report, which did not refer to any of the options as a recommendation.
The legislation would require 70 percent of the electricity used in the area defined by the retail markets of Commonwealth Edison and Ameren Corp. to come from low carbon sources.
“Under the proposed legislation, certain electric utilities would be required to purchase low-carbon energy credits to match 70 percent of electricity used on the distribution system from qualified sources, which include solar, wind, hydro, nuclear, tidal, wave and clean coal,” according the the company's statement.
The bill also allows for a charge to be handed down to customers, which Exelon touts as lower than the hike customers would see if the nuclear plants were to shut down.
“For example, a consumer price cap would limit the impact to a 2.015 percent annual increase compared to 2009 rates, or about $2/month for the average Illinois residential electricity customer, less than the increase customers would face if the nuclear plants close early,” Exelon said. “In addition, if wholesale electric prices exceed a certain level, any excess revenues would be rebated to all Illinois electric customers on their bills.”
The law has a potential end date. It would be in effect through either through Dec. 31, 2021 or when the state adopts a program that would put it in compliance with the Environmental Protection Agency's Clean Power Plan – with the end date being whichever of those two markers comes last.
Exempted from the bill, which has bipartisan support, are electric cooperatives and municipal utilities.
Exelon Senior Vice President of Governmental and Regulatory Affairs ad Public Policy Joseph Dominguez called the bill a “cost-effective, market-based” measure that would help Illinois on economic and environmental fronts. “I commend our state lawmakers for their leadership and urge them to enact this bill into law,” Dominguez said in a statement.
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