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Op-Ed: Lawmakers should say 'no' to
subsidies for Exelon nuclear plants
[The Center Square] Michael Patrick
Flanagan
As federal lawmakers deliberate over President Joe
Biden’s $1 trillion plan to beef up American infrastructure, few might
have noticed that the current plan also includes a $6 billion credit
line for nuclear plants. Americans of all stripes should be concerned
that some of these funds in this credit line could go to prop up
profitable nuclear plants that don’t appear to need help.
Such a question hits hard
in Illinois. Recently, the Illinois state legislature approved a bill
that offers nearly $700 million in subsidies to Exelon for its Byron and
Dresden nuclear plants and Gov. J.B. Pritzker ultimately signed the
legislation into law. The problem? Not only have independent analyses
shown the nuclear plants to be profitable, Exelon is also under intense
legal scrutiny for corruption. Why would lawmakers on any level even
consider rewarding the company with subsidies? |
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 For starters, the two nuclear plants Exelon claims are struggling – Byron and
Dresden – are actually operating at a profit. In fact, the Independent Market
Monitor verified the profitability of the plants, finding that Byron is
operating at a budget surplus of $77.5 million without subsidies and Dresden is
operating at an annual budget surplus of $83.7 million also excluding subsidies.
The Electric Power Supply Association, in fact, testified to the profitability
of these plants in June of this year before the U.S. Senate Energy and Natural
Resources Committee. What’s more, the Independent Market Monitor for PJM, the
power grid operator for the area including parts of Illinois, has stated that
not a single nuclear plant on the PJM system is at risk of retirement.
The fact that these plants don’t need public subsidies isn’t a matter of
opinion, but fact. This point was driven home earlier this year by Illinois
State Senate President Don Harmon, who pointed to independent economic analysis
that found Exelon’s plants were economically viable and didn’t need public
welfare to survive. “Independent market monitors believe these plants can be
profitable,” Harmon said in a statement, directly contradicting the narrative
Exelon has repeatedly foisted on lawmakers and the public.
Second, consider Exelon’s recent track record. The company was fined $200
million last year over bribery and corruption charges and is currently under a
deferred prosecution agreement with the federal government. As if that weren’t
enough of a stain on the company’s character, Illinois regulators are in the
process of investigating whether Commonwealth Edison (ComEd) – a subsidiary of
Exelon – charged its customers for any costs associated with this bribery
scandal. The Illinois Commerce Commission (ICC) voted unanimously to launch the
investigation following a staff report that recommended looking into whether
ComEd saddled customers with costs “not properly recoverable.”
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These actions reveal at least one instance of
proven corruption and potentially a scheme to make customers pay for
the bribery scandal. Should federal or state officials really hand
more public dollars to Exelon? Exelon thinks so, which is why the
company was seeking a bailout at the state level in Illinois and
worked feverishly to gather allies at the local level to give its
cause a homegrown flavor.
 Exelon’s poor-mouthing might fool some, but the company’s story
simply doesn’t hold up to the light of truth. Its nuclear plants
aren’t struggling to stay alive. They’re profitable and independent
analysis shows it. Those plants don’t need $6 billion in new federal
subsidies or this bailout at the state level funded by the
hardworking families and businesses of Illinois.
Even if the plants did need financial assistance, should lawmakers
really hand over vast sums of public dollars to a company that has
engaged chronically in crony capitalism and corruption and which is
now under a deferred prosecution agreement with the federal
government? Of course not
It's disheartening to see our state handing away hundreds of
millions in taxpayer money to a known dubious actor and to see our
federal lawmakers considering to follow suit. Many Illinoisans are
infuriated over the giveaway of their tax dollars to energy plants
already flush with cash, and rightfully so. Both the lawmakers and
Exelon should be held accountable for this shakedown.
Michael Patrick Flanagan is a former U.S. Congressman
who represented Illinois’ 5th District. |
