Summary
This 8-K filing by Exelon Corporation (EXC) on April 16, 2019, addresses a critical development regarding Exelon Generation Company's (Generation) 42.59% stake in the Salem Nuclear Power Plant (Salem). PSEG, the operator and decision-maker for Salem, submitted deactivation notices for Salem Units 1 and 2 to PJM, with potential retirement tied to the 2022/2023 capacity auction. This action is contingent on the New Jersey Board of Public Utilities (BPU) decision regarding PSEG's application to have Salem participate in the state's Zero Emission Certificate (ZEC) program. Investors should note that if Salem 1 and 2, along with PSEG's Hope Creek plant, are approved for the ZEC program, PSEG has indicated it would withdraw these deactivation notices and exception requests. The BPU decision was expected on or about April 18, 2019, making this a time-sensitive situation with direct implications for Exelon's nuclear generation assets and potential future earnings from these facilities.
Key Highlights
- 1Exelon Generation Company, LLC has a significant ownership interest (42.59%) in the Salem Nuclear Power Plant (Salem) Units 1 and 2.
- 2The operator of Salem, PSEG Power LLC, has filed deactivation notices for Salem Units 1 and 2 with PJM.
- 3These deactivation notices are linked to PJM's 2022/2023 capacity auction scheduled for August 2019.
- 4PSEG is seeking approval for Salem 1 and 2 (and Hope Creek) to participate in New Jersey's Zero Emission Certificate (ZEC) program.
- 5PSEG has stated it will withdraw the deactivation notices if Salem 1 and 2 are selected for the ZEC program.
- 6A decision from the New Jersey Board of Public Utilities (BPU) on ZEC program participation was anticipated around April 18, 2019.