PJM Capacity Auction Results
Attached is a news release from Exelon announcing the results of the 2019/20 PJM Capacity Auction.
Three 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.