FirstEnergy / Nuclear Energy

PJM auction results could push nuke operators to ‘double down’ on subsidies

Credit: Wikimedia Commons

WASHINGTON, DC — “Prices in the PJM Interconnection’s capacity auction were once again disappointing for many generators, but for operators of nuclear power plants they could be a particularly troubling sign.

The results could add to efforts to create nuclear subsidies and prove to be a turning point in the evolution of PJM’s market structure as they underscore the competing forces that are coming to a head in the wholesale market.

…Legislation to provide subsidies for nuclear plants has not been introduced in Pennsylvania, but legislators have formed a caucus on the issue and opponents are already gearing up for a fight.

In its announcement about closing TMI, Exelon argued that nuclear power should be included in Pennsylvania’s Alternative Energy Portfolio Standard or, alternatively, the state could adopt a ZEC program similar to those being implemented in Illinois and New York.

In Ohio, FirstEnergy is taking a similar strategy. The utility company is lobbying for passage of legislation that would provide $300 million a year for 10 years under a Zero Emission Nuclear Resource mechanism — essentially a ZEC under another name.”

— Peter Maloney, Utility Dive

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