Wednesday, July 26, 2017

Clean Nuclear Energy Handed Decisive Win in U.S. District Court

Manish S. Shah – District Court Judge Northern Illinois (Credit: Click to Enlarge.
In July 2017 District Court Judge Manish Shah, U.S. District Court of Northern Illinois, handed a decisive victory to nuclear energy supporters and plant owners in a case that challenged Illinois’s right to choose the mix of fuels used to produce power inside its borders.

The plaintiffs opposed the “Future Energy Jobs Act” recently passed by the Illinois legislature and signed into law by the governor.  That statute awards Zero Emission Credits (ZEC) to three specific nuclear generating units (two at the Quad Cities station and one at Clinton).

The ZECs could be worth as much as $235 M each year.  That additional revenue is designed to be sufficient to allow the owner – currently Exelon – to continue effectively operating the units despite unprofitably low prices at their respective power delivery points.  A provision in the law requires the computation of a “Price Adjustment” based on realized wholesale prices over the course of each year.

The price adjustment can reduce or eliminate the value of the ZEC if electricity market prices rise to a level at which the plants are profitable without the subsidy payment.

This provision was inserted to keep the program from charging ratepayers to provide unnecessary levels of support that would only serve to provide a more lucrative return to stockholders.

Read more at Clean Nuclear Energy Handed Decisive Win in U.S. District Court

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