Exelon "will defer any decision about the future operations of its Clinton nuclear power plant for one year," the company said Thursday.
Exelon officials have said the company might need to permanently shut the single-unit, 1,098-MW plant in Illinois because it has been losing money for some time.
Five Exelon nuclear units at its Byron, Clinton and Quad Cities plants in Illinois have been economically challenged due to a number of factors, including competition from natural gas-fired generation and subsidized renewables, particularly wind power, the company has said.
Exelon announced September 10 that it will defer for one year a decision on whether to shut its Quad Cities and Byron nuclear plants in Illinois after both cleared electricity grid operator PJM Interconnection's supplemental capacity auction for 2017-2018.
Exelon CEO Christopher Crane called the decision "a short-term reprieve," noting in a statement that day that the four units "remain economically challenged."
Exelon said September 10 that though the Midcontinent Independent System Operator region "capacity auction held earlier this year helped reduce Clinton's economic losses," the plant "remains economically challenged and is at risk of premature retirement if conditions do not improve."
The company said Thursday it plans to bid Clinton into the MISO capacity auction for 2016-17.
"MISO's announcement this week acknowledging the need for market design changes in southern Illinois is a key factor in the company's decision to defer for an additional year," Exelon said.
"On Oct. 27, MISO posted an issues statement saying reforms to its capacity market process may be required to drive future investments and help ensure a reliable electricity supply for customers, and it plans to engage stakeholders to consider such reforms," it added.
Crane said in the statement Thursday: "We are encouraged by MISO's statement and the potential for market reforms that are necessary to ensure long-term reliability in southern Illinois. However, the Clinton plant remains unprofitable and more needs to be done."
Exelon has pinned much of its hopes for keeping Byron, Clinton and Quad Cities in operation on passage by the Illinois General Assembly of legislation establishing a low-carbon portfolio standard for the state's two biggest electric utilities, Commonwealth Edison, an Exelon subsidiary, and Ameren.
That legislation would establish a surcharge on electricity used in the state that would be paid to some carbon-free generators, potentially increasing the revenues of Exelon's nuclear units in the state by hundreds of millions of dollars annually. However, the assembly did not vote on the legislation before adjourning its annual session at the end of May.
Exelon said Thursday that deferring a decision on Clinton's future "also will provide Illinois policymakers with more time to consider policy reforms and potential legislation that will level the playing field for all forms of carbon-free electricity and best position the state of Illinois to comply with the" US Environmental Protection Agency's Clean Power Plan.
