The Michigan House Energy and Technology Committee yesterday took testimony on HB 5184, the bill to expand electric choice and divest utility generation, and AARP warned that any savings from electric choice in Illinois touted by competitive market supporters may be "wiped out" by state-support being sought by Exelon for its nuclear generators.

AARP first attributed any Illinois savings to legal action taken against the original BGS-style auction, implementation of a managed portfolio for default service, and widespread opt-out aggregation.

"Meanwhile, seeking further government intervention, Exelon has signaled it will ask the Illinois Legislature to force Illinois ratepayers to subsidize its money-losing nuclear plants," AARP testified.

AARP was referencing multiple media reports concerning Exelon telling Illinois lawmakers that three of its nuclear plants in Illinois are at risk of retiring, and potential regulatory interventions to support the uneconomic plants. Crain's has most extensively covered the issue, including this scathing editorial: "Exelon loves free markets — until it doesn't"

Although Exelon has stated publicly it is not seeking a long-term state or ratepayer-backed contract, proposals that have been floated include an RPS-type credit for nuclear or similar "clean" facilities. But whatever the mechanism it will provide revenues that customers currently are not paying to the nuclear plants under the current market.

Back to Michigan, AARP says that, "Should that nuclear bail-out occur, any potential savings that could go to consumers due to lower generation prices will be wiped out as Illinois ratepayers bail out a company in a competitive business. How is that a good deal for consumers?"

Link: AARP testimony