 13 Jan, 2021
Author   Kelly Andrejasich
Available at https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/illinois-to-assess-finances-of-exelon-nuclear-plants-62101728

Illinois to assess finances of Exelon nuclear plants 
The Illinois Environmental Protection Agency has hired an independent firm to delve into the financial condition of Exelon Corp.'s nuclear fleet in the state.
Citing low wholesale power prices and market rules that it says favor fossil-fueled resources, Exelon plans to retire the 2,346-MW Byron Generating Station and 1,805-MW Dresden nuclear power stations in September and November, respectively, years before operating licenses at the plants expire. The company has also said two more Illinois plants  --  the 2,384-MW Braidwood Generating Station and the 2,313-MW LaSalle County Generating Station  --  also are at risk of early closure.
The Illinois Environmental Protection Agency, or IEPA, earlier in January picked Synapse Energy Economics Inc. to assess the financial condition of the Illinois nuclear fleet and file a report by April 1.
In a Jan. 4 emergency purchase statement explaining the agency's decision to pick Synapse to do the financial analysis, the IEPA said the review is needed to allow it, other state agencies, the office of Gov. J.B. Pritzker and lawmakers to "take quick action" during the General Assembly's legislative session and before Exelon's closure timeline.
The legislative session opened Jan. 13 and is scheduled to end in May. 
The emergency purchase statement said 54% of Illinois' electricity is generated by Exelon's nuclear plants, and the state is concerned that the generation gap caused by closure of Dresden and Byron "will be filled by dirty energy, namely fossil fuels."
"In order to advance the state's clean energy goals, IEPA and the Governor's Office are assessing how and over what period of time to meet clean energy targets, which requires understanding the schedule of statewide plant closures, including Exelon's plants," the agency said. "The announced closures of a large percentage of Illinois' electric generation would have a substantial impact on the state budget and electric reliability for Illinois residents. Thus, auditing Exelon's books will help determine how rapidly to deploy renewable energy without compromising affordable or reliable electricity."
Among other things, the report will look at operating costs and risks of the plants and the amount, if any, needed to cover those costs and risks over the next five years.
In an op-ed that ran in the Chicago Sun-Times in late December 2020, Exelon President and CEO Christopher Crane called on lawmakers to act to save the plants, pointing to the success of 2016 legislation that, among other provisions, provides support to the 1,078-MW Clinton Power Station and 1,819-MW Quad Cities nuclear plants.
"As lawmakers consider a path forward, Exelon will continue to be fully transparent, including opening our financial records to any policymaker who wants to better understand the challenges facing our nuclear plants," Crane said. "At the same time, we urge all to remain focused on addressing this issue before it's too late to reverse the harm to our environment and economy."

