Blog Post Exelon Calls Illinois Energy Study A Good Starting Point

Nuclear energy giant Exelon, which operates six nuclear power plants in Illinois, said a recent state government study on the energy sector's economic picture was "a good starting point for discussions with lawmakers and other stakeholders about the right path forward for continuing to meet Illinois' energy needs." The company, which operates 23 reactors at 14 locations in six states, set the study in motion with threats to close at least three of its nuclear plants in the state due to the harsh economic environment that the industry finds itself in. A shale gas boom coupled with stagnant demand and an administration in Washington that favors renewable energy sources have created the equivalent of a financial perfect storm for the industry. Exelon has been lobbying for government support that would be shaped in the form of a fee charged to power sources that contribute to global warming through CO2 emissions. Exelon operates plants in Illinois, Maryland, Nebraska, New Jersey, New York and Pennsylvania, but Illinois represents the litmus test for what could be a national response to a potential spate of premature plant closures despite enormous investments, including money spent on upgrades that would extend operating licenses of NPPs an additional 20 years. Germany banned nuclear power outright in response to the Fukushima Daiichi earthquake and tsunami disaster of March 2011. The question in the United States is: Will the country allow economic entropy push the industry into a financial meltdown? Exelon's statement Monday reiterated key points made in the state study, including the finding that "the resulting increase in carbon emissions [due to nuclear plant closings] would have a societal cost of more than $18 billion." In addition, "early retirement [of three plants] would have a significant negative economic impact on the state, including $1.8 billion in annual lost economic activity and more than 7,800 job losses," the statement said. Exelon thanked the state for paying attention "such an important issue for Illinois," which is ranked 5 th in electricity generation and 9 th in electricity consumption in the United States. Nuclear power also offers a ready response to the U.S. Environmental Agency's proposed carbon dioxide rule set to take effect June 2015. "Illinois will have to act to maintain existing clean energy assets as well as develop new clean energy assets," Exelon said.