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Kleinman Center For Energy Policy Estimates Bill Supporting Nuclear Power Plants Would Cost Ratepayers $500 Million A Year

Christina Simone, Director Of Policy and External Affairs at the University Of Pennsylvania Kleinman Center For Energy Policy updated her estimate of the cost of a bill to support nuclear power plant operations in the Commonwealth, putting the cost at an estimated $500 million a year to ratepayers.

The option she based her estimate on was creating a new Tier III requirement in the state Alternative Energy Portfolio Act for nuclear power and other zero-carbon sources of electric generation.

The proposal would require electric distribution companies to purchase Tier III credits to cover 50 percent of the total power sold in their service territory, regardless if sold by the distribution company’s default supply or by a competitive retail supplier.

Click Here to read Simone’s analysis.

The actual bills creating the nuclear power plant support program are expected to be introduced shortly.

PPL Utilities has estimated this option for supporting nuclear power plants would cost its customers $130 million a year.

Electricity costs in Pennsylvania for electric service default customers decreased 15 percent between 1996, when competitive electric generation was started, and 2016.

“Residential customers taking restructured default generation and transmission service from their local utility have the potential to save over $818 million in 2016, compared to inflation-adjusted 1996 regulated generation and transmission costs.”

As a point of comparison, when the Public Utility Commission required utilities to pass along their savings from federal tax laws changes in 2018, PPL returned $72 million to its customers in a refund. The total refunds to electric utilities were about $277.4 million resulting in an average distribution rate decrease of 4.74 percent.

(Photo: Three Mile Island Nuclear Power Plant, Dauphin County.)

NewsClips:

Maykuth: Customers Would Pay Millions To Rescue PA Nuclear Reactors, Including Some Already Profitable

AP-Levy: Rescuing PA’s Nuclear Power Plants Could Come With Conditions

Cusick: Unsolicited, PUC Commissioner Sends Legislators A Breakdown Of Nuclear Bailout Options

Industrial Customers Oppose Evolving PA Nuclear Subsidy Proposal

A Pizza Shop Owner Worried About Three Mile Island Closing, Others Don’t See Major Impact

Climate Concerns Rise As Clock Ticks For Aging Reactors

There Really, Really Isn’t A Silver Bullet For Climate Change

Rep. Vitali To Hold Informational Meeting March 11 On Nuclear Power's Contribution To Zero-Carbon Energy Production In PA

Letter: Reject Bailouts Of The Nuclear Industry - Rep. Ortitay

Op-Ed: Why Should Electric Customers Subsidize Nuclear Generation? - President Of PPL