Exelon Corporation · NASDAQ:EXC
Exelon — Bipartisan Policy Center: GHG Regulation of Existing Power Plants (December 2013)
11 slides from Exelon's conference presentation, Dec 6, 2013
Slide 1: GHG Regulation of Existing Power Plants
Bipartisan Policy Center GHG Regulation of Existing Power Plants December 6, 2013 Kathleen L. Barrón Senior Vice President, Federal Regulatory Affairs and Wholesale Market Policy
Slide 2: Exelon Overview: A Clean Energy Fleet in Restructured Markets
Exelon Overview: A Clean Energy Fleet in Restructured Markets • Exelon primarily participates in areas that have restructured markets • These markets have been restructured to promote competition among energy market participants, while maintaining strict regulatory oversight Power Generation Operati
Slide 3: Exelon is the Largest Supplier of Emissions-Free Electricity
Exelon is the Largest Supplier of Emissions-Free Electricity U.S. Sources of Emissions-Free Electricity (2012) Wood Biomass 0.9% Exelon’s Contribution Solar 0.3% Wind 11.4% Nuclear - Waste Biomass Other 1.3% 74.6% Nuclear 62.4% Nuclear - Exelon Hydropower 25.4% 22.3% Geothermal 1.4% Source: EIA Elec
Slide 4: Nuclear Benefits
Nuclear Benefits • Nuclear provides a fifth of the nation’s electricity U.S. Electricity Generation from Generation Clean Sources, 2012 • Nuclear provides 62% of U.S. clean generation Waste Biomass • Highest capacity factor (90%+) of any electricity 1.3% Nuclear Solar source Reliability 62.4% Wind 0
Slide 5: Nuclear Output and Capacity Forecast
Nuclear Output • EIA’s dated forecast of installed nuclear capacity assumes that almost all existing nuclear plants will operate well beyond a 60-year life: 120,000 US Nuclear Capacity EIA Annual Energy Outlook 2013 (Reference Case) 100,000 Impact of EIA AEO 2013 Low additional Nuclear Case Net Summ
Slide 6: A diverse group has observed challenges to the nuclear fleet
A diverse group has observed challenges to the nuclear fleet…. • “Dominion's 556-MW Kewaunee plant in Carlton, Wisconsin, may be the "canary in the coal mine" for merchant nuclear plants. “ –UBS, January 2013 • “Digging into the numbers, we see concerns for the fleet and what the outlook means for (
Slide 7: Key Market Influences Affecting Nuclear Economics
Key Market Influences Affecting Nuclear Economics • Several factors have contributed to the dramatic deterioration of nuclear plant profitability since 2008: • Natural gas prices (which fuels marginal generators in many regions) have dropped by more than 50% • Load growth is down due to both the eco
Slide 8: Profitability Small Single Unit
Nuclear Profitability Small Single Unit • Small single-unit plants have such an unfavorable cost structure Illustrative Small Single Merchant Plants Location Kewaunee 556 MW MISO Ginna 581 MW Upstate NY Duane Arnold 601 MW MISO 2015 Forecast Vermont Yankee 620 MW New England Oyster Creek 680 MW East
Slide 9: Profitability Large Single Unit
Nuclear Profitability Large Single Unit • Large single-unit plants are marginal retirement candidates that would be significantly influenced by RPS and carbon policies Illustrative Large Single Merchant Plants Location Palisades 793 MW MISO Three Mile Island 805 MW Eastern PJM Fitzpatrick 855 MW Ups
Slide 10: Profitability Large Dual Unit
Nuclear Profitability Large Dual Unit • Larger dual-unit plants in the Midwest have a lower cost structure than a single-unit, but would also be significantly affected by carbon policies Illustrative Western PJM Dual Merchant Eastern PJM Dual Merchant Dresden 1,734 MW Calvert Cliffs 1,705 MW Quad Ci
Slide 11: Impact on carbon goals without nuclear
Impact on carbon goals without nuclear Announced Retirements Source: EIA; Exelon Estimates Nuclear retirement increase assumes retirement of SONGS, Crystal River, Kewaunee, Vermont Yankee, and Oyster Creek plus 24.6 GW of additional “generic” capacity (29.4 GW total, including the announced retireme
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