American energy giant Exelon has decided to keep Clinton nuclear plant operational in Illinois for another year, which has a gross electric output of 1,078MW.
The firm intends to bid the energy generating facility into the Midcontinent Independent System Operator (MISO) capacity auction for the 2016-2017 planning year.
Clinton has been unprofitable for the firm which operates six nuclear plants in the state of Illinois.
Exelon said that the deferment of the decision to shut down the nuclear facility is in part affected by MISO’s announcement earlier this week that it plans to consider reforms to its capacity market process.
The operator had acknowledged the need for market design changes in southern Illinois in order to drive future investments and ensure reliable power supply for its consumers.
Exelon president and CEO Chris Crane said: "We are encouraged by MISO’s statement and the potential for market reforms that are necessary to ensure long term reliability in southern Illinois.
"However, the Clinton plant remains unprofitable and more needs to be done."
Other factors prompting Exelon to keep the facility operational include recent positive results from the Illinois Power Agency’s capacity procurement for 2016 and long-term impact of the Environmental Protection Agency’s (EPA) Clean Power Plan.
This decision is also expected to offer additional time to Illinois lawmakers to consider policy reforms that Exelon believes to be critical for its business.
Exelon has also previously announced to keep its loss making nuclear power units active in Quad Cities and Byron, even after repeatedly threatening to close them without state aids.
In a separate deal, Exelon Generation has signed a 20-year power purchase agreement (PPA) with Wolverine Power Supply Cooperative to deliver 153MW of power to the latter from its Michigan Wind 3 project.
Exelon intends to start construction for the facility in Sanilac County in spring 2016 and start its commercial operation by December 2016.
Image: Clinton nuclear power generating station in Illinois. Photo: courtesy of Daniel Schwen / Wikipedia
