AEPS bailout to COST $981 MILLION annually

HARRISBURG, Pa. (March 1) – Citizens Against Nuclear Bailouts (CANB) has issued the following statement in response to draft nuclear bailout legislation that has been made public.

Adding nuclear power generation to the Alternative Energy Portfolio Standards (AEPS) is a bailout, and there is no hiding its crippling cost to consumers. The Kleinman Center for Energy Policy at the University of Pennsylvania has evaluated the proposal and detailed in an article that projects this nuclear bailout legislation would force Pennsylvania ratepayers to pay an additional $981 million annually in higher electricity bills.

This unprecedented, unnecessary proposal would add a new, third tier of 50 percent to Pennsylvania’s AEPS in the form of a renewable energy credit to the benefit of three profitable corporations: Exelon, FirstEnergy Solutions and Talen Energy. In fact, nuclear energy corporations operating in Pennsylvania profited $640 million in 2018, according to PJM’s Independent Market Monitor. Combine that with a $981 million tax, and these corporations would stand to pocket a profit of more than $1.6 billion.

To put the size and scope of this cash grab into perspective, the cost of this proposed nuclear bailout is more than Exelon already received from New York ($580 million annually) and Illinois ($230 million annually) combined. Another nuclear operator, PSEG, recently received a $300 million annual bailout in New Jersey, and now regulators are questioning whether a bailout is justified based on the true financial reports of PSEG’s nuclear facilities.

Citizens Against Nuclear Bailouts continues to ask legislators to stand with their constituents over profitable nuclear corporations and shareholders.

Citizens Against Nuclear Bailouts is a diverse coalition of Pennsylvania citizens’ groups, power generators, and energy, business and manufacturing associations.