Steven P. Nesbit

Stories are unfolding (or have unfolded) in three of our key states that illustrate the challenges facing the backbone of our country’s clean, reliable electricity generation infrastructure. I write, of course, about existing nuclear power plants. On the East Coast, New York is a done deal. Indian Point-3 shut down on April 30. The state authorities are banking on offshore wind to pick up the slack. They shrug off the cost and intermittency challenges associated with deploying wind power. We’ll see.

A $6 billion lifeline for struggling U.S. nuclear power plants is reportedly included in the nearly $1 trillion bipartisan infrastructure bill currently being mulled over in the U.S. Senate, but it won’t be thrown in time to rescue Illinois’s Byron and Dresden plants, according to owner and operator Exelon.

In an August 4 statement on second-quarter earnings, Exelon’s president and chief executive officer, Chris Crane, noted that while his company is encouraged by the growth of federal support for policies that acknowledge the value of nuclear’s clean energy generation, “passage of legislation remains uncertain and, regardless, will come too late to save our Byron and Dresden plants from early retirement this fall. While we remain hopeful that a state solution will pass in time to save the plants, clean energy legislation in Illinois remains caught in negotiations over unrelated policy matters, leaving us no choice but to continue down the path of closing the plants.” (Last August, Exelon announced its intention to prematurely retire Byron and Dresden, citing long­standing economic pressures. Last week, the company filed decommissioning plans for the two nuclear facilities.)

In what could be viewed as a rather pointed message to Illinois lawmakers that time is running out to pass legislation providing a lifeline to the state’s Byron and Dresden nuclear plants, Exelon Generation this morning announced that it would file post-shutdown decommissioning activities reports (PSDARs) today with the Nuclear Regulatory Commission. The PSDARs detail long-term site restoration plans for the facilities, both of which are scheduled to shut down for good this fall—first Byron, in September, then Dresden, in November.

Czerwinski

Writing in today’s suburban Chicago Daily Herald, Madison Czerwinski, executive director of Campaign for a Green Nuclear Deal, warns of the damage to Illinois’s clean energy aspirations should the state’s policymakers fail to agree in time on legislation providing some form of aid to Exelon’s imperiled Byron and Dresden nuclear plants, both of which are slated for closure later this year. (And “in time” in this case means the next few weeks.)

Czerwinski notes in a guest column that despite the executive order signed by Gov. J.B. Pritzker in January 2019 committing Illinois to reducing greenhouse gas emissions consistent with the Paris climate agreement, electricity emissions in the state are up from last year by 36 percent—a number that will only grow in the event an acceptable bill is not forthcoming.

As Illinois lawmakers continue to debate energy legislation that would allow the state’s Byron and Dresden nuclear plants to continue operation beyond this year, Exelon would like to remind everyone—including those legislators, no doubt—of what is at stake.

Exelon on June 16 filed with grid operator PJM Interconnection to deactivate the two Byron reactors in Illinois. The move came one day after the Illinois Senate adjourned without reaching an agreement on a comprehensive energy package that would have provided nearly $700 million to keep Byron’s reactors, as well as Exelon’s Dresden and Braidwood nuclear power plants, in operation. (In August of 2020, Exelon announced that it would close the economically challenged Byron and Dresden facilities in the fall of 2021 without some form of state aid to provide compensation for their clean power.) The state’s House of Representatives also adjourned earlier this week without taking up the bill.

The Illinois Senate adjourned on June 15 without calling a comprehensive energy regulatory reform package for a vote, Capitol News Illinois reported. State Sen. Bill Cunningham (D., Chicago) and Senate president Don Harmon (D., Oak Park) said afterward that they expect a vote to happen sometime this summer as negotiations continue.

Three Illinois nuclear power plants—Byron, Dresden, and Quad Cities—did not clear in last week’s long-delayed PJM Interconnection capacity auction, Exelon Generation reported in a filing with the Securities and Exchange Commission.

The news is likely to further pressure the Illinois General Assembly to pass a comprehensive energy package—one with subsidies for the state’s financially ailing nuclear plants—before Exelon moves forward with its plan, announced last August, to prematurely retire Byron and Dresden.

A large group of nuclear and nuclear-friendly organizations, including the American Nuclear Society, sent a letter on May 24 to Illinois lawmakers urging them to pass the Climate Union Jobs Act (CUJA) before the legislature adjourns at the end of this month.

Among its provisions, the bill would create 74 million megawatt-hours of carbon mitigation credits for Exelon’s Braidwood, Byron, Dresden, and LaSalle nuclear plants. The Clinton and Quad Cities plants, which participate in Illinois’s zero-emission credit program, would not be eligible. (In August of last year, Exelon Generation, owner and operator of all six nuclear plants in Illinois, announced that it would close Byron and Dresden without state support of some kind, adding that Braidwood and LaSalle were also imperiled.)

The Illinois State Capitol in Springfield. Photo: Teemu008/Wikipedia

As Illinois lawmakers race to hammer out a compromise clean energy bill before the current legislative session adjourns on May 31, advocacy group Nuclear Matters is asking members of the state’s nuclear community to speak up in support of state aid for the struggling Byron and Dresden nuclear plants, both of which are scheduled to be prematurely retired later this year by Exelon.

Nuclear Matters has launched a letter-writing campaign to encourage individuals to contact their representatives via a pre-drafted letter to urge passage of legislation that will provide that aid. The letter is one of general support for Illinois’s nuclear plants and not an endorsement of any specific measure.

Among the 12 energy-mix scenarios analyzed in a new report from the University of Illinois at Urbana-Champaign, maintaining the current Illinois reactor fleet while also investing in advanced nuclear technology and renewable energy is the most economical path to zero carbon for the state. It is also, says the report, the path that generates the lowest lifecycle carbon emissions.

The 26-page report, Economic and Carbon Impacts of Potential Illinois Nuclear Plant Closures: The Cost of Closures, was coauthored by Kathryn Huff, who was recently appointed principal deputy assistant secretary for nuclear energy at the Department of Energy, along with Madicken Munk, a research scientist in the university’s Nuclear, Plasma, and Radiological Engineering (NPRE) Department, and Sam Dotson, a graduate researcher in NPRE’s Advanced Reactors and Fuel Cycle Analysis group. Financial support for the report was provided by Nuclear Matters.

Illinois governor J. B. Pritzker’s proposal to subsidize the state’s Byron and Dresden nuclear plants, introduced in legislative form last week, falls short, Exelon Corporation President and Chief Executive Officer Chris Crane said on May 5 during the company’s first-quarter earnings call.

“From what we’ve heard, it’s open to negotiation, but just going from the street analyst opinion and what we’ve seen, its starting point is not adequate to keep the plants’ continued operations going,” Crane stated.

When on May 7, 2013, the Kewaunee nuclear power plant in rural Wisconsin was shut down, it took with it more than 600 full-time jobs and more than $70 million in lost wages, not including temporary employment from refueling and maintenance outages. Taking into account indirect business-to-business activity, the total economic impact of the closure of the single-unit pressurized water reactor was estimated to be more than $630 million to the surrounding three-county area.

Pritzker

The office of Illinois governor J. B. Pritzker last week unveiled an ambitious energy plan for the state that includes limited subsidies for the financially ailing Byron and Dresden nuclear plants. (In August 2020, Exelon Generation announced that the two Illinois facilities would close this year—Byron in September and Dresden in November—without some form of compensation from the state, due to “market rules that favor polluting power plants over carbon-free nuclear energy.”)

The new plan, dubbed the Consumers and Climate First Act, calls for achieving 100 percent clean energy generation in Illinois by 2050 and recognizes nuclear as a means toward that end. “In the near term, the closure of nuclear plants in Illinois is likely to result in a generation gap that will be filled by dirty energy, namely fossil fuels,” the act states, adding that any support for nuclear should be “short-term and based on clearly demonstrated need.”

If there is one U.S. state you might think would be on top of the nuclear-plant-retirement problem, it’s Illinois: With 11 power reactors, more than any other state, it is number one in nuclear generating capacity. In 2019, 54 percent of its in-state generation came from nuclear power. So why, at this writing in mid-April, does Illinois still face the possibility of losing two of its nuclear plants later this year?

A research and consulting firm hired by Illinois governor J. B. Pritzker’s administration to scrutinize the financial fitness of Exelon’s Byron and Dresden nuclear plants approves of limited state subsidies for the facilities, according to a redacted version of the firm’s report made available yesterday.

The University of Illinois Student Section and Chicago Local Section of the American Nuclear Society hosted a webinar, The Role of Nuclear Power in Illinois, on Wednesday, March 31. The webinar provided information for state lawmakers and the general public about the potential consequences of closing the Byron and Dresden Generating Stations, two of the nuclear power plants in the state of Illinois.

The webinar recording has been archived and is available for viewing for free at the above link.

A group of Illinois lawmakers joined Joe Duffy, executive director of the labor coalition Climate Jobs Illinois (CJI), at a virtual news conference on March 29 to unveil a union-focused, clean energy legislative proposal that includes help for the state’s struggling nuclear power plants.

Exelon's Byron generating station in northern Illinois. The future of Byron is uncertain at this time and could impact the new power generation company, once it's formed.

Exelon Corporation announced yesterday that it intends to spin off Exelon Generation, its competitive power generation and customer-facing energy businesses, from Exelon Utilities, its group of six regulated electric and gas utilities.

The split into two publicly traded companies will “establish the nation’s largest fully regulated transmission and distribution utility company and the largest carbon-free power producer paired with the leading customer-facing platform for clean, sustainable energy solutions,” Exelon said in its February 24 announcement.

The Byron nuclear plant is scheduled to close this September. Photo: Exelon

Amid all the talk of last week’s winter storm and the resultant grid debacle in Texas, Exelon on Monday issued a press release informing customers of just how reliably its Illinois nuclear power plants have been operating this winter.

The release might also be seen as a message to state lawmakers, who have yet to produce any legislation to aid the utility’s financially challenged nuclear facilities—of which two, Byron and Dresden, have been slated for retirement later this year, given the (so-far) absence of such legislation.