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Exelon Announces closure of Three Mile Island-1 in 2019

May 31, 2017 On Tuesday, May 30th 2017, Exelon said the failure of power markets to properly value the benefits of nuclear generation is one reason the company has decided to shut its Three Mile Island-1 nuclear unit in Pennsylvania.  Exelon is expected to permanently shut the 890 MW unit in Middletown, Pennsylvania , “on or about September 30, 2019, absent needed policy reforms,” the company said in a statement Tuesday.  Three Mile Island-2 permanently shut after a March 1979 accident caused a partial meltdown.

Before PJM’s capacity auction for the 2020-21 planning year, the results of which were announced last week, the company said it would decide by September whether to close TMI-1 if the unit did not clear, as it had not in the previous two years. TMI-1, and Exelon’s Quad Cities-1 and -2 in Illinois , did not clear the auction, the company said May 24. Generating units which do not clear the auction will not receive capacity payments in the future years; they can continue to provide power at that time, but are not obligated to do so and may, in fact, shut.

Exelon said in a letter Tuesday to regional transmission operator PJM Interconnection that TMI-1 “is unprofitable and has lost more than $300 million over the past five years despite being one of Exelon’s best-performing plants.”  TMI-1, Exelon said in its letter, “is highly dependent on energy market prices that are at all-time low levels as a result of a number of factors, including market rules that do not value the clean, resilient electricity provided by nuclear energy. As PJM’s CEO has acknowledged, policymakers have ‘tried to politely ignore these things but they … are no longer ignorable.'”

Exelon President and CEO Chris Crane said in the company’s statement Tuesday: “Like New York and Illinois before it, the Commonwealth [of Pennsylvania ] has an opportunity to take a leadership role by implementing a policy solution to preserve its nuclear energy facilities and the clean, reliable energy and good-paying jobs they provide. We are committed to working with all stakeholders to secure Pennsylvania ‘s energy future, and will do all we can to support the community, the employees and their families during this difficult period.”

Under programs adopted in New York and Illinois last year, utilities and other load-serving entities selling power to customers in those states are required to purchase one zero-emission credit (ZEC) for each megawatt-hour sold up to a maximum quantity cap established under each state’s program.

The ZEC proceeds are distributed to eligible generators in those states for zero-emission megawatt-hours they produce to compensate them for the environmental benefit of avoiding carbon emissions . Exelon had said it would be forced to close some of its economically challenged nuclear units in those states if those programs were not adopted.

 

Source: Platts

Exelon Announces closure of Three Mile Island-1 in 2019

May 31, 2017 On Tuesday, May 30th 2017, Exelon said the failure of power markets to properly value the benefits of nuclear generation is one reason the company has decided.

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Welcome to Stanwich Energy Advisors

Welcome to our newly designed website.  Please check out our services and our approach to get a better understanding of the capabilities of Stanwich.

Welcome to Stanwich Energy Advisors

Welcome to our newly designed website.  Please check out our services and our approach to get a better understanding of the capabilities of Stanwich.

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Manufacturing Case Study

State: Connecticut
Industry: Manufacturing
Service: Risk Management & Energy Procurement

Client: A large metals manufacturing company engaged Stanwich Energy to help manage their risk exposure while shopping for a managed variable electricity contract.

Result: Stanwich reduced the client’s risk and also achieved significant savings of 17 percent.

Summary: The client owns a number of large manufacturing facilities throughout the country.  The company turned to Stanwich to gain better visibility into, and control over, energy spend and procurement.

After studying the client’s demand profile, Stanwich recommended a new approach to buying power.  By shifting their heavy manufacturing to off-peak hours, there was a tremendous opportunity to capture cost savings due to low wholesale power prices.  Since the client was on a fully fixed rate in the past, Stanwich secured a favorable on-peak block and structured the contract to allow the off-peak hours to float on the index market. The result: A year-over-year cost savings of 17%.

Manufacturing Case Study

State: Connecticut Industry: Manufacturing Service: Risk Management & Energy Procurement Client: A large metals manufacturing company engaged Stanwich Energy to help manage their risk exposure while shopping for a managed.

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Data Center Case Study

State:  New York
Industry: Data Center
Service: Energy Procurement

Client: A large publicly traded financial institution with data centers in New York

Result: Stanwich Energy reduced energy costs 14% via trigger price fixed option

Summary:  This particular client has always had a low appetite for risk and finds that fixed pricing is very helpful when projecting costs for the fiscal year. The engagement with this customer underscores the client centric approach Stanwich takes to energy procurement.

Stanwich helped this customer mitigate risk in this high-spend area by taking advantage of low market conditions to secure favorable fixed rates. Stanwich worked closely with suppliers to provide this client with sophisticated products that were tailored to fit the company’s unique risk management approach.  Initially, prices weren’t competitive.  Stanwich recommended an index with a trigger price that was approved by the customer to automatically lock in a low rate when the market began to trend lower.  Advising this customer means that Stanwich must continuously monitor the energy markets to meet budgetary goals and objectives, identify opportunities to reduce spend, and manage the customer’s exposure to risk.

Stanwich Energy’s robust reporting and analytical tools have proved useful in measuring the success of implemented energy supply contracts. Customized reports deliver visibility into the customer’s energy spend through a summary view of all managed energy supply contracts that include cost avoidance figures.  Stanwich manages the data needed to assess the performance and ongoing status of the overall procurement strategy.

Data Center Case Study

State:  New York Industry: Data Center Service: Energy Procurement Client: A large publicly traded financial institution with data centers in New York Result: Stanwich Energy reduced energy costs 14% via.

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