Update: Pa. Senate Nuke Bill Places Obligation On Utilities Only
April 09,2019
The newly filed bill in the Pennsylvania Senate (Senate Bill 510) to provide subsidies to nuclear generation would place the procurement obligation on electric distribution companies only, similar to a previously reported House bill
Senate Bill 510 provides that beginning June 1, 2019, and each year thereafter, Tier III alternative energy credits (nuclear credits) shall be purchased by electric distribution companies. There is no obligation for retail suppliers to undertake such procurements
Similar to the House bill, Senate Bill 510 also includes provisions for nuclear plants to participate in a PJM capacity market opt-out, with cost recovery dependent on structure. To the extent there is a mechanism in PJM for LSEs to be assigned such opt-out capacity costs, then LSEs would assume such costs. Otherwise, costs would be assigned to the EDCs
Hearings were recently held on the House version of the bill. See links below for coverage: