Exelon Corporation has announced that all their Illinois nuclear plants cleared the PJM transition capacity auction for the 2016-17 planning year. Auction results take effect June 2016.
It’s the first of two transitional auctions PJM is holding to supplement its prior base capacity auctions with the new capacity performance product, designed to strengthen electric grid reliability.
The Federal Energy Regulatory Commission (FERC) ordered new capacity auction rules aimed at enticing generators to invest in their plants, ensuring they are reliable during extreme weather events and have sufficient supplies on hand.
Exelon spends nearly $1 billion annually on its nuclear plants, adding the latest technologies to keep them safely and reliably operational.
“We continue to be encouraged by these auction results, which along with EPA’s Clean Power plan, begin to properly value nuclear power for their reliability and low-carbon benefits,” said Chris Crane, Exelon president and CEO. “These auction results, as well as other factors, will come into play as we analyze the current and expected economics of each of our plants.”
Grid operator PJM holds annual capacity auctions to ensure enough power generation resources are available to meet demand in 13 states and the District of Columbia.