William A. Von Hoene, Jr. explains to USEA public policy forum what’s
at stake for the nation’s nuclear fleet
Company Website:
http://www.exeloncorp.com
WASHINGTON -- (Business Wire)
Unless policymakers take action soon, a series of additional early
nuclear power plant retirements could threaten the reliability of the
nation’s electric grid and hinder the country’s ability to meet its
carbon reduction goals, Exelon Senior Executive Vice President and Chief
Strategy Officer William A. Von Hoene, Jr. told members of the United
States Energy Association (USEA) today.
In a keynote address at the 2014 USEA Annual Membership Meeting & Public
Policy Forum at the National Press Club, Von Hoene said that current
government policies and market structures fail to account for the full
value that nuclear power provides as an always-on source of carbon-free
energy.
“The unfortunate reality for nuclear right now is that despite being the
largest, most reliable and lowest-emitting power plants – and among the
lowest cost – they are not getting recognized or compensated for those
attributes,” he said.
In addition to low natural gas prices and slow demand growth, which have
driven down wholesale electricity prices, Von Hoene pointed to
market-distorting policies that subsidize renewable generation as part
of a perfect storm of challenges threatening the continued operation of
many nuclear plants.
“Renewable energy is an important and growing part of our own generation
portfolio and a critical component of our efforts to advance clean
energy,” he said, “but government policies designed to incent investment
in low-carbon resources end up threatening that very goal by putting
increased economic pressure on certain nuclear plants.”
Von Hoene said the performance of the nation’s generating fleet during
the severe cold of the past winter underscored the critical role of
nuclear plants in ensuring the reliability of the electric grid. At the
height of the polar vortex, he explained, when some fuel sources
faltered, the U.S. nuclear fleet continued to generate electricity at
its usual, industry-leading productivity rates.
“Our nuclear fleet proved critical to keeping the lights and heat on for
millions of homes and businesses,” he said. While the PJM electricity
market serving large swaths of the Midwest and Northeast experienced
record winter demand, most other resources experienced
higher-than-expected outages rates. In fact, Von Hoene said, “many
natural gas-fired plants didn’t run, either because they couldn’t get
fuel, couldn’t start, or because other units were more cost-effective.
Similarly, wind was generating at only about one-quarter of its
nameplate.”
On the day after Earth Day, Von Hoene emphasized that, in the absence of
a federal, market-based carbon policy, closing nuclear plants
prematurely would deal a major setback to the nation’s efforts to reduce
carbon emissions.
“We simply cannot achieve our emissions reduction goals without the U.S.
nuclear fleet,” he said. “The loss of 25 percent of existing nuclear
facilities would cut U.S. progress toward achieving its 2020 climate
change goals in half. In fact, closing even a few nuclear plants could
make achieving state and national carbon reduction goals difficult or
impossible.”
Von Hoene emphasized the urgent need to repair policy shortcomings if
the nation wishes to safeguard the value of existing U.S. nuclear plants
and their role in ensuring a future energy supply that is reliable,
clean and affordable. He also commended policymakers, including those at
the Federal Energy Regulatory Commission, Department of Energy and state
commissions, who have acknowledged the need for action.
“Our state and federal lawmakers need to seriously examine, now, how
their policies must change if they want to preserve the benefits of the
nation’s nuclear fleet,” he said. “This is a national challenge, and so
we need attention of all of the nation’s policymakers to solve it.”
Von Hoene’s prepared remarks are available at www.exeloncorp.com/Newsroom/speeches.
Exelon Corporation (NYSE: EXC) is the nation’s leading
competitive energy provider, with 2013 revenues of approximately $24.9
billion. Headquartered in Chicago, Exelon has operations and business
activities in 47 states, the District of Columbia and Canada. Exelon is
one of the largest competitive U.S. power generators, with approximately
35,000 megawatts of owned capacity comprising one of the nation’s
cleanest and lowest-cost power generation fleets. The company’s
Constellation business unit provides energy products and services to
approximately 100,000 business and public sector customers and
approximately 1 million residential customers. Exelon’s utilities
deliver electricity and natural gas to more than 6.6 million customers
in central Maryland (BGE), northern Illinois (ComEd) and southeastern
Pennsylvania (PECO). Follow Exelon on Twitter @Exelon.
Contacts:
Exelon Corporate Communications
Paul Elsberg, 312-394-7417
paul.elsberg@exeloncorp.com
Source: Exelon Corporation
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