OREANDA-NEWS. Exelon Corporation today announced that its Three Mile Island (TMI) and Quad Cities nuclear plants did not clear in the latest PJM capacity auction, highlighting the challenge nuclear energy continues to face without compensation for its ability to produce electricity without harmful carbon and air pollution and to contribute to grid resilience.

TMI did not clear in the past three PJM base residual auctions. TMI remains economically challenged as a result of continued low wholesale power prices and the lack of federal or Pennsylvania energy policies that value zero-emissions nuclear energy. Exelon has been working with stakeholders on options for the continued operation of TMI, which has not been profitable in five years. 

States like New York and Illinois have enacted innovative policies that fairly compensate nuclear and renewable energy for their environmental attributes. Signed into law in December, the Future Energy Jobs Act (FEJA) will create significant environmental and consumer benefits in Illinois, while also creating thousands of clean energy jobs and providing job training for the future workforce. 

“Exelon remains fully committed to keeping the Quad Cities plant open, provided that FEJA’s Zero Emissions Credit program is implemented as expected and provided that Quad Cities is selected to participate,” said Joe Dominguez, Exelon’s executive vice president of Government and Regulatory Affairs and Public Policy. “However, Quad has not been selected to receive ZECs under the FEJA program to date.” 

Exelon’s other nuclear plants in PJM cleared in the auction for the 2020-2021 planning year. Oyster Creek did not participate in the auction, as the plant is scheduled to retire in 2019. 

Capacity auctions are held annually by grid operator PJM to ensure enough power generation resources are available to meet demand in its region covering all or part of 13 states and the District of Columbia. This is the fifth delivery year for which capacity auctions have been held under “capacity performance” reforms ordered by the Federal Energy Regulatory Commission to increase power plant reliability and strengthen the region’s energy supply. The reforms were an important step in recognizing nuclear energy for its year-round reliability in all weather extremes. The auction results take effect June 1, 2020.