http://www.canadianmanufacturing.com/regulation/illinois-props-of-pair-of-unprofitable-nuclear-plants-offering-billions-in-subsidies-180279/
Illinois props up pair of unprofitable nuclear plants, offers billions
in subsidies
Move will save thousands of jobs, ensure clean energy production, but
manufacturers say subsidies to weaken businesses by raising electricity
costs
December 8, 2016
by John O'Connor, The Associated Press
SPRINGFIELD, Ill.—Illinois Gov. Bruce Rauner approved a plan Dec. 7 that
will provide billions of dollars in subsidies to Exelon Corp. to keep
two unprofitable nuclear plants from closing prematurely.
The Republican appeared at Riverdale High School in Port Byron to sign
legislation he said will save thousands of jobs by rewarding Exelon for
producing carbon-free energy.
In addition to $235 million a year for Exelon to prop up nuclear plants
in the Quad Cities and Clinton, the plan provides hundreds of millions
of dollars in energy-efficiency programs and assistance to low-income
energy users.
“I was unwilling to gamble with these communities, gamble with thousands
of good-paying jobs and gamble with our energy future,” Rauner said in a
statement. “While this legislation isn’t perfect, it allows us to
protect jobs, ratepayers and taxpayers.”
The law ensures the plants in Cordova and Clinton stay open for 10 years
and allows for expansion of alternative power generators, such as wind
and solar.
It caps the increase in ratepayer bills at an average of 25 cents a
month for the 13-year life of the deal for ComEd customers in northern
Illinois and 35 cents a month for Ameren users in central and southern
Illinois. But both companies assert that costs should go down, at least
initially.
These increases come on top of a $127.5 million rate increase—about $2
per monthly bill—that the Illinois Commerce Commission approved for
ComEd this week. Ameren issued a statement Wednesday that the ICC
approved a $14.5 million rate decrease, dropping power costs for the
typical Ameren customer beginning next month.
Exelon said in a statement that the measure, known as the Future Energy
Jobs Bill, “safeguards the state’s top source of clean energy, protects
and creates thousands of jobs and strengthens the Illinois economy,
while preserving competitive rates.”
Rauner previously criticized “special deals” for corporations, but last
week said closing the plants would have “devastated the two communities.”
Critics including BEST Coalition, a non-profit that opposes the deal,
say the nuclear plants aren’t needed because Illinois produces 41 per
cent more energy than it needs and exports the excess. BEST Coalition
said subsidizing the plants will mean a steep increase in rates.
The Illinois Manufacturers’ Association complained that Rauner had
weakened the state’s chances at recruiting middle-class jobs because of
power costs to manufacturers. The group said in a statement that
Illinois lost nearly 10,000 “high-paying jobs” in the past year while
neighbouring states have grown.
“Building a guaranteed electric rate hike into state law and reversing
20 years of deregulation (are) not the answer to get our economy booming
again,” the group said.
But state Rep. Elaine Nekritz, a Northbrook Democrat who sponsored a
“clean energy” bill that later was folded into the Exelon subsidy
matter, said the “new law is a tremendous victory for Illinois” with
“more jobs, more savings for consumers, cleaner air and smarter energy
choices.”
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