Keeping Illinois nuclear plants open saving some customers $237 a year

Nuclear energy is paid when energy prices fluctuate.

In September Illinois Parliamentarians Passed Watershed Clean Energy Act It has established the state as a leader in decarbonization efforts. One of the key provisions of the law was the commitment to keep existing nuclear power plants online, even if the power plants were not profitable.

Reactors generate electricity without emitting greenhouse gases, but when other forms of energy, such as natural gas and renewables, become really cheap, they often become uncompetitive. However, Illinois needed to keep its nuclear fleet online in order to reach its clean energy goals.

Currently, according to state regulators, utility customers in the northern part of the state and around Chicago are saving an average of $ 237 annually in energy charges under the law.

At the end of April, Illinois’s utility Commonwealth Edison Illinois Commerce CommitteeLocal regulators have stated that they will provide 3.087 cents of credit per kilowatt hour from June 1st to May 31st, 2023.

The exact amount of credit depends on the amount of energy your customers use, but on average, credits save $ 19.71 per month, or $ 237 per year, according to the Illinois Commerce Commission.

The Clean Energy Act of Illinois has agreed to keep nuclear power plants open if they lose money, but if energy prices rise, the owner of the nuclear power plant, Constellation Energy, will make money. We have also set an upper limit on the amount of money that can be paid. (During February Exelon has spun out part of its business to Constellation Energy.. )

Energy prices are rising thanks to Russia’s invasion of Ukraine and subsequent global efforts to move away from Russia’s energy pipeline.

“The Climate & Equitable Jobs Act, passed last year, works as intended by operating these critical zero-carbon energy facilities during historic low-cost periods and protecting consumers in the event of energy price spikes. “Constellation Energy told CNBC in writing on Wednesday.

“So far, Illinois consumers haven’t paid any money to nuclear power plants under the law. Instead, they’ll get a fair amount of credit,” said Constellation Energy.

“We are proud that our commitment to achieving carbon-free electricity by 2045 has already saved consumers just months after the law,” a written statement at the time. Said Governor JB Pritzker.

Behind the scenes of Illinois law, Illinois is a plant so that if energy prices fall again and existing Illinois nuclear power plants become uneconomical, the state can continue to meet its decarbonization goals. Is to pay to keep it open.

But now, while energy prices are high, ComEd Energy customers in Illinois are regaining money.

Timing is devastating as high inflation in the United States is putting pressure on consumers.

“For families suffering from high inflation costs, this is a welcome bailout. What could have been a nuclear subsidy was wisely negotiated for a multi-billion dollar jackpot for consumers in Illinois. . ” Illinois Clean Jobs Coalition (ICJC)Joint group Illinois Organization, Said in a written statement. “This deal demonstrates the wisdom of Illinois’ approach to combating the climate crisis and saving consumers money while creating high-paying, equitable clean energy jobs.”

Credit does not affect all utility customers in Illinois.Customers served by the utility AmerenServes less than 3 million customers, primarily in the central and southern regions of Illinois, and therefore does not receive energy credits because Ameren is exempt from the law.