Summary
Exelon Corporation (EXC) and its subsidiary Exelon Generation Company LLC announced on June 1, 2015, that the proposed Low Carbon Portfolio Standard (LCPS) legislation is unlikely to be enacted during the current Illinois legislative session. This development has implications for the future operations of Exelon's nuclear plants in Illinois. While no immediate decisions regarding plant closures have been made, Exelon Generation is evaluating the economic viability of its Illinois nuclear facilities. The company has upcoming obligations to inform grid operators PJM and MISO about potential non-participation in capacity auctions and resource adequacy planning for the upcoming years. Investors should monitor Exelon's ongoing dialogue with policymakers and its decisions regarding these critical operational timelines.
Key Highlights
- 1Low Carbon Portfolio Standard (LCPS) legislation in Illinois will not be enacted in the current legislative session.
- 2Exelon Generation is evaluating the economics of its Illinois nuclear plants.
- 3Exelon Generation must inform PJM Interconnection by September 2015 if any plants will not participate in the May 2016 capacity auction.
- 4Exelon Generation must inform Midcontinent Independent System Operator (MISO) by December 2015 if the Clinton plant will not operate during the next MISO resource adequacy planning year (starting June 1, 2016).
- 5No decisions have been made regarding potential plant closures at this time.
- 6Exelon intends to continue discussions with Illinois policymakers regarding reforms that recognize the value of its nuclear plants.