"Burning money" image by Gene Case, Avenging AngelsAs reported by Scott DiSavino in Reuters, a new "capacity factor" subsidy, at ratepayer expense, is being offered by the Pennsylvania New Jersey Maryland (PJM) grid operator to Exelon Nuclear, to help prop up several uncompetitive atomic reactors in Illinois.
"Capacity factor" refers to nuclear power's 24/7 "baseload" avaiability, but ignores the fact that nuclear power plants can experience years-long safety-related shutdowns.
The article concludes that "extra revenues from the capacity auction could keep the money losing reactors operating for a few more years until possible new carbon standards are available," as Exelon lobbies "federal, state and regional policy makers [to] find ways to compensate generators for the environmental and reliability benefits that non-carbon emitting nuclear plants provide."
Of course, nuclear power is not zero carbon. And, as David Kraft, Director of NEIS, has pointed out, other sources of electricity have inherent upsides, deserving of societal support. Wind power and solar photo-voltaics, for example, as well as energy efficiency, release even less greenhouse gases than nuclear power, and also do not generate forever deadly radioactive waste.
Nor do efficiency and renewables risk catastrophic reactor meltdowns, as Exelon's age-degrading reactors in IL are at ever greater risk of experiencing. Yet, these renewable and efficiency electricity sources are not being awarded benefits, at ratepayer expense, for such society-friendly aspects.
One of those federal policies that could unduly further benefit the nuclear power industry is the Obama industry's Clean Power Plan, to be announced on August 3rd.