Summary
This 8-K filing from Exelon Corporation, dated May 24, 2017, announces the results of the PJM capacity auction for the 2020-2021 planning year. The key takeaway for investors is that two of Exelon Generation Company's nuclear plants, Quad Cities and Three Mile Island, did not clear in this auction. Consequently, these specific plants will not receive capacity revenue for the 2020-2021 period, which begins in June 2020. This outcome could materially impact the future revenue streams of these facilities. While two nuclear plants will not generate capacity revenue, the filing details that other Exelon nuclear plants in the PJM market did clear the auction. The company also notes that its Oyster Creek nuclear plant is scheduled for retirement in 2019 and therefore did not participate. The filing includes a table outlining the cleared nuclear and fossil capacity volumes and prices by zone, providing a granular view of the auction results across different regions within the PJM market.
Key Highlights
- 1Exelon's Quad Cities and Three Mile Island nuclear plants failed to clear the 2020-2021 PJM capacity auction.
- 2These two plants will not receive capacity revenue starting from June 2020.
- 3Other Exelon nuclear plants in the PJM market did successfully clear the auction.
- 4The Oyster Creek nuclear plant, scheduled for retirement in 2019, did not participate in the auction.
- 5The filing details cleared capacity volumes and prices across various zones (COMED, EMAAC, SWMAAC, MAAC, BGE, RTO).
- 6Nuclear capacity cleared at prices ranging from $77 to $188 per MW-day depending on the zone.
- 7A press release detailing the auction results is attached as an exhibit.