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Nuclear Power Plant Closure Resolution Act Of 2014 And Policy Alternatives

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MEMORENDUM

Policy Options to Address the Economic Unsustainability of Nuclear Power Plants in Illinois

To: Senator Mattie Hunter, Illinois Senate Environment and Energy Committee Chair
From: Jon McDonnell, Policy Analysis and Energy Impact Center
Date: April 30, 2015
Subject: Nuclear Power Plant Closure Resolution Act of 2014 and Policy Alternatives

Executive Summery

In Illinois, three large nuclear power facilities, belonging to the energy giant Exelon, are under threat of premature closure. They have lost the ability to be economically competitive in Illinois’ energy market. Illinois’ nuclear energy sector and Exelon have set extremely high standards for efficiency, safety, and reliability and the closure of these plants will result in the loss of thousands of jobs, a weaker state economy, the opening of the gates for more environmentally harmful sources of power, and would make it harder for Illinois to comply with new federal standards. The Illinois House of Representatives devised a bill called The Nuclear Power Plant Closure Resolution Act, which sought out to establish committees to study the effects of the closure of these facilities and to provide possible market-based solutions. As you have requested, I have analyzed policy alternatives for Nuclear Power Plant Closure Resolution based on robustness, feasibility, effectiveness, and equity. I have concluded that a state-wide production tax credit would be a fair, robust, and effective policy to keep Illinois’

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