Liberty on Tap since 1984
A continuation of the Zion/Exelon debacle: Revealing information WHY Exelon decided to mothball Zion in 1998
I am heading a grassroots effort to restart the dual Zion Nuclear Facility which was prematurely shuttered in 1998. I need the help of all Freedom Pubbers to spread the word and get involved.
An article written by Jeff Long, "Zion powers up for teardown", was published in the Tribune on Friday, June 11th.
I responded by writing the following commentary/Voice of the People piece, which I submitted on Thursday, June 16: I am still waiting to hear back from the Tribune with a positive response.
Jeff Long's 6/11/10 article on the Zion Nuclear Plant fails to answer this key question: Is Exelon intentionally wasting the Zion nuclear plant in order to limit electric supply to the market for the purpose of keeping the market prices for Exelon’s other massive generating units higher and the rates consumers pay for electricity? http://www.chicagotribune.com/news/local/northnorthwest/ct-met-zion...
An account of Exelon’s history has made clear that the 1998 mothballing of the dual Zion facility was for "economic" reasons and not for other reasons such as safety.
An article published by nuclear expert Rod Adams on Monday, June 14, 2010, reveals an Exelon source who appears to confirm that the main reason for Zion's closure was to withhold its huge 2,100 MG supply of power from the market to kept prices higher for Exelon’s other generation units. In so doing the shuttering of Zion allowed Exelon to keep its overall prices and profits high and the rates paid by consumers for electricity. Here is the article's revealing excerpt:
"My sources tell me that the issue is not technical, but financial. The financial issue is not whether or not the project cost is too much for the amount of capacity that can be delivered, but the effect that the additional capacity will have on the market price for electricity in the service territory. These people were classically trained businessmen, they think it is perfectly legitimate to make the determination that if adding capacity lowers customer prices to the point where the total company revenue would be less than it was before, the investment in restoration would be wasted and should be avoided."
Rod Adams' full article, dated June 14, 2010, can be found at http://atomicinsights.blogspot.com/ It is entitled Public vs. Private Power.
Mr. Long’s Tribune article leaves these question unanswered:
1) Has Exelon simply wasted/destroyed the Zion asset since its mothballing in1998, rather than to inject Zion's low-cost supply into the market and reduce the overall market-clearing price for Exelon's other massive generating units for the express purpose of increasing Exelon's profit line?
2) Why hasn't/doesn't Exelon at least offer the Zion plant on the market to see if any responsible party will take Zion over and run it to produce its cheap power for the poeple of Illinois and the region
Illinoisans have already paid billions of dollars (including the decommissioning charges) in prior rates for this plant.
The intentional wasting of Zion by Exelon in these times of high prices and the need for low-cost emmissions-free electricity seems almost criminal (Intentionally withholding electric supply is a well-known tactic used by some generators of electricity to increase the price for their remaining supply in the market. This is prohibited under federal regulations.).
It isn't enough for Exelon to say that “we have looked at re-opening Zion and ‘it doesn't make sense.’” We now know what that means for consumers who paid billions of dollars for this plant. It means wasting the Zion asset is likely preferred by Exelon because it keeps market clearing prices higher and overall profits higher for its other generation assets.
Are Illinoisans going to stand for Exelon's possible minipulation of the energy market as consumers of electricity?
Exelon has a duty to the media, to consumers and to the public to answer the two questions that Jeff Long's Zion article of Friday, June 11th failed to address.
An article written by Jeff Long, "Zion powers up for teardown", was published in the Tribune on Friday, June 11th.
I responded by writing the following commentary/Voice of the People piece, which I submitted on Thursday, June 16: I am still waiting to hear back from the Tribune with a positive response.
Jeff Long's 6/11/10 article on the Zion Nuclear Plant fails to answer this key question: Is Exelon intentionally wasting the Zion nuclear plant in order to limit electric supply to the market for the purpose of keeping the market prices for Exelon’s other massive generating units higher and the rates consumers pay for electricity? http://www.chicagotribune.com/news/local/northnorthwest/ct-met-zion...
An account of Exelon’s history has made clear that the 1998 mothballing of the dual Zion facility was for "economic" reasons and not for other reasons such as safety.
An article published by nuclear expert Rod Adams on Monday, June 14, 2010, reveals an Exelon source who appears to confirm that the main reason for Zion's closure was to withhold its huge 2,100 MG supply of power from the market to kept prices higher for Exelon’s other generation units. In so doing the shuttering of Zion allowed Exelon to keep its overall prices and profits high and the rates paid by consumers for electricity. Here is the article's revealing excerpt:
"My sources tell me that the issue is not technical, but financial. The financial issue is not whether or not the project cost is too much for the amount of capacity that can be delivered, but the effect that the additional capacity will have on the market price for electricity in the service territory. These people were classically trained businessmen, they think it is perfectly legitimate to make the determination that if adding capacity lowers customer prices to the point where the total company revenue would be less than it was before, the investment in restoration would be wasted and should be avoided."
Rod Adams' full article, dated June 14, 2010, can be found at http://atomicinsights.blogspot.com/ It is entitled Public vs. Private Power.
Mr. Long’s Tribune article leaves these question unanswered:
1) Has Exelon simply wasted/destroyed the Zion asset since its mothballing in1998, rather than to inject Zion's low-cost supply into the market and reduce the overall market-clearing price for Exelon's other massive generating units for the express purpose of increasing Exelon's profit line?
2) Why hasn't/doesn't Exelon at least offer the Zion plant on the market to see if any responsible party will take Zion over and run it to produce its cheap power for the poeple of Illinois and the region
Illinoisans have already paid billions of dollars (including the decommissioning charges) in prior rates for this plant.
The intentional wasting of Zion by Exelon in these times of high prices and the need for low-cost emmissions-free electricity seems almost criminal (Intentionally withholding electric supply is a well-known tactic used by some generators of electricity to increase the price for their remaining supply in the market. This is prohibited under federal regulations.).
It isn't enough for Exelon to say that “we have looked at re-opening Zion and ‘it doesn't make sense.’” We now know what that means for consumers who paid billions of dollars for this plant. It means wasting the Zion asset is likely preferred by Exelon because it keeps market clearing prices higher and overall profits higher for its other generation assets.
Are Illinoisans going to stand for Exelon's possible minipulation of the energy market as consumers of electricity?
Exelon has a duty to the media, to consumers and to the public to answer the two questions that Jeff Long's Zion article of Friday, June 11th failed to address.
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