Zero-emissions credits for Exelon’s nuclear power operations in Illinois and New York state boosted the company’s earnings in the first quarter of 2018, but net income nonetheless dropped on a year-over-year basis.
In its latest earnings report, the company said Wednesday generally accepted accounting principles (GAAP) net income dropped from $990 million ($1.06 per share) in first-quarter 2017 to $585 million ($0.60 per share) this year. Exelon utilities sustained $200 million in capital and operating expenses to recover from three major East Coast storms during the quarter, President and CEO Christopher Crane noted during a conference call with financial analysts.
Adjusted (non-GAAP) operating earnings, though, rose from $600 million ($0.64 per share) to $925 million ($0.96 per share). Contributing to that increase were “the favorable impacts of the New York Clean Energy and Illinois Zero Emission Standards, including the impact of zero emission credits generated in Illinois from June 1, 2017 through December 31, 2017,” Exelon said.
Exelon operates six nuclear power plants in Illinois, and had announced its intention to close the Quad Cities and Clinton facilities before the state legislature in 2016 passed a subsidy package for zero-emissions energy sources. The company has three nuclear facilities in New York state, and last year bought the James A. FitzPatrick Nuclear Power Plant from Entergy after the state government instituted its own credit program.
Exelon Generation, which operates the company’s nuclear plants, reported a steep drop in GAAP net income, from $418 million in first-quarter 2017 to $136 million in the same period of 2018. Non-GAAP operating earnings were up from $167 million to $474 million on a year-over-year basis, again with an assist from New York and Illinois.
The company is also waiting to see whether New Jersey Gov. Phil Murphy will sign nuclear subsidy legislation the state legislature passed in April. Absent that, Exelon has announced plans to close its Oyster Creek Generating Station in October.
