Attached is a news release from Exelon announcing the results of the 2019/20 PJM Capacity Auction.
Mile Island did not “clear” the 2019-2020 PJM Base Residual Capacity
Auction. Last year TMI did not clear the 2018-2019 capacity auction.
That means the plant will not receive capacity payments for those
periods. While PJM capacity payments are only one source of the plant’s
operating revenue, they are an important source. While this outcome is
disappointing, there are no current plans to close TMI, but the plant
remains financially challenged.
There are a number of factors
that play into a retirement decision, and the results of this auction
are only piece of that decision-making process. Some of the other
pieces include operating costs, total revenue, long-term commitments,
and the potential for federal/state regulatory or legislative
environmental policies that adequately compensate the plant’s around the
clock zero-emission energy production. As long as state and federal
energy policies fail to adequately compensate nuclear energy’s many
environmental and economic benefits, we will continue to experience
challenges to the profitability of many of the nation’s nuclear
facilities, including TMI. We remain hopeful that power markets will
recover, but if we do not see a long-term path to sustainable
profitability, we must consider all options, including shutdown.