Exelon Corp. announced the results of the capacity auction conducted by PJM, an electric grid operator, on Monday, stating that three nuclear power plants did not clear the auction.
The auction is held on an annual basis and it conducted to ensure that the power grid has enough resources to meet energy demand of its service area, which consists of 13 states.
“The PJM market reforms are a step in the right direction to recognize nuclear energy’s high reliability, and while three of our plants in PJM did not clear, we view the auction results as an encouraging sign that these reforms will begin to level the playing field,” Chris Crane, Exelon president and CEO, said. “We will consider auction results, along with other data points, including EPA’s Clean Power Plan, as we make decisions about the future of these critical long-life assets."
Oyster Creek, Quad Cities and Three Mile Island nuclear power plants did not clear the auction. What this means is that capacity revenue that would be provided by PJM will not be available. The corporation states that this is among many factors in determining a specific power plant's long-term viability.
Exelon reports that it invests approximately $1 billion on an annual basis to keep its nuclear power plant operating and to install new technologies.
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