Summary
Exelon Generation Company, LLC, a subsidiary of Exelon Corporation, has announced its intention to retire the Mystic Generating Station's Units 7, 8, 9, and the Jet unit on June 1, 2022. This decision stems from the company's assessment that these units will not participate in the upcoming Forward Capacity Auction in February 2019, citing the absence of regulatory reforms that properly value reliability and regional fuel security. To mitigate potential fuel supply disruptions for the remaining operating Mystic Units 8 and 9, Exelon Generation has entered into an agreement to acquire ENGIE North America's liquified natural gas (LNG) import terminal. This strategic acquisition aims to ensure a continued and reliable fuel source for these units during their operational period. The transaction's completion is contingent on regulatory approvals from the Department of Energy and the U.S. Department of Justice, with an expected closing in the fourth quarter of 2018.
Key Highlights
- 1Exelon Generation plans to retire Mystic Generating Station Units 7, 8, 9, and Jet unit by June 1, 2022.
- 2Retirement is linked to non-participation in the February 2019 Forward Capacity Auction.
- 3Decision driven by lack of regulatory reforms valuing reliability and regional fuel security.
- 4Agreement to purchase ENGIE North America's LNG import terminal announced.
- 5LNG terminal acquisition aims to secure fuel supply for Mystic Units 8 and 9.
- 6LNG terminal transaction is subject to regulatory review by the Department of Energy and U.S. Department of Justice.
- 7Expected closing of the LNG terminal acquisition is in the fourth quarter of 2018.