The two nuclear power plants-the 1,078MW Clinton power station in Clinton and the 1,871MW Quad Cities Generating Station in Cordova- are planned to be closed on 01 June 2017 and 01 June 2018 respectively.
The firm said that the decision, which will affect approximately 4,200 jobs, comes as the state lawmakers failed to pass Next Generation Energy Plan legislation which would helped in keeping the two nuclear power plants running.
Exelon said in a statement: "While the Illinois legislative session has not ended, the path forward for consideration of the Next Generation Energy Plan legislation is not clear."
The Next Generation Energy Plan involves nearly doubling of energy efficiency programs and will provide $1bn in funding for low-income assistance, among others.
Exelon president and CEO Chris Crane said: "We have worked for several years to find a sustainable path forward in consultation with federal regulators, market operators, state policymakers, plant community leaders, labor and business leaders, as well as environmental groups and other stakeholders.
"Unfortunately, legislation was not passed, and now we are forced to retire the plants."
Capable of producing more than $1.2bn in economic activity annually, the two power plants lost $800m in the past seven years.
According to a state report, the closure of two power plants would result in increased wholesale energy costs to $645m per year.
Image: The Clinton nuclear generating station located in Illinois, US. Photo: courtesy of Daniel Schwen/Wikipedia.
