Jeremy L. Dillon
RW Monitor
7/11/2014
Exelon does not “intend” to close any of its nuclear plants, Chief Strategy Officer Bill Von Hoene said during an interview with Platts Energy Week early this week. The utility announced earlier this year that it would be undertaking a strategic assessment of its nuclear fleet to determine if they could compete in what some have deemed a hostile market for nuclear power. Exelon operates 23 nuclear reactors at 14 sites across the United States, but many of the plants threatened with shutdown have been rumored to be in the Illinois area. “We do not want to, and we don’t intend to close plants,” Von Hoene said during the interview. “We have no plans to do that now. We’re working very hard in a number of venues to try to address the regulatory and market-based things that will facilitate proper recognition of the value of the plants, and to allow them to continue to operate on a sustainable basis.”
However, Exelon later in the week told RW Monitor that although the utility did not want to close some of its reactors, it would do so if it made economic sense. “Exelon’s position with regard to its nuclear plants has not changed: We are in the process of assessing all potential solutions to enhance the value of the nuclear fleet and continue to engage with all stakeholders,” Exelon spokesman Paul Adams said. “But if we do not see a long-term path to sustainable profitability for a particular unit emerge, then we will consider all options, including unit shutdowns.”
Exelon first announced its assessment of its nuclear felt during a conference call for investors in early February. The utility said the competition from natural gas, along with a harsh energy policy towards nuclear, has hurt the profitability of operating a nuclear plant. In the past couple years, five stations have announced pre-mature shutdown, with many citing the economic environment as a major influence in the decision to cease operations. The tide may be turning, however, with the recent proposed regulations from the Environment Protection Agency that would charge states with limiting carbon emissions from existing power plants. The regulations would seem to place an increased value to nuclear, a carbon-free form of production, which could lead to a more hospitable regulatory and legislative situation.
