Exelon operates six nuclear power plants in the state of Illinois. In the last ten years, Exelon has made a profit of more than twenty one billion dollars from their nuclear power plants. Exelon brags about providing ninety percent of Illinois "clean" energy from nuclear power.
The widespread use of fracking in the U.S. has resulted in very cheap natural gas which has lowered the price of electricity from gas-fired power plants. Last year, the Kewaunee Nuclear Power Plant operated by Dominion Resources in Wisconsin was shut down because the owner could not make a profit and they could not find a buyer for the plant.
Nuclear power has benefited from the low cost of nuclear fuel created by converting weapons grade fissile material from Russian nuclear warheads. This fifteen year program has just ended so the price of nuclear fuel will rise.
Many of the nuclear power reactors in the U.S. were built in the seventies and have had to be relicensed because their original design lifetimes have been exceeded. Last year Duke Energy had to shut down their Crystal River nuclear power plant in Florida because the repairs and equipment upgrades necessary to continue operations were too high.
In the past, nuclear plants could count on being guaranteed a fixed price for their electricity for decades regardless of price fluctuations in the energy market. That practice is ending and nuclear power will have to compete in the short term energy market. Without the guaranteed price support, nuclear power will be much less attractive to ratepayers and investors.
A recent analysis by the Chicago Tribune found that the Exelon power plants in Illinois have not returned a profit in the past five years. Exelon says that they may be forced to close three of their nuclear plants in Illinois because they are operating some plants at a loss. The Nuclear Regulatory Commission rules say that if a company cannot operate a nuclear power plant at a profit, they will lose their license and the plant in question will have to be sold or closed.
Exelon is calling for a Illinois state energy policy that recognizes the value of electricity generation that does not emit carbon dioxide into the atmosphere. Although they have lobbied in the past against state support of competitors power plants, now they are lobbying to have the state raise the price of electricity so they can make a profit. I wonder if the NRC would allow unprofitable nuclear power plants to operate if they have to have state assistance to survive.
Exelon has a lot of political power in Illinois. Shutting down some of the Illinois nuclear power plants would cost a lot of jobs and would cut tax revenues generated by the nuclear power plants for local municipalities. Hopefully, Illinois can find a way to balance the need for carbon dioxide free power, cheap electricity, public safety, and tax revenues without burdening the citizens with higher electricity costs or more taxes to help a particular industry.
Byron Nuclear Power Plant in Illinois:
