Exelon Rages at the Wind
Exelon (EXC), the owner of the nation's largest fleet of nuclear power plants, is having a tirade about wind power. According to The New York Times, Exelon claims the federal production tax credit (PTC) is distorting energy markets because the credit can be larger than the average value of electricity produced. Surges of wind energy during periods of low demand can drive the market price of electricity below zero.
Exelon complains that when market prices are negative, its nuclear plants lose revenue and the comapny has to pay grid operators to accept their electricity. Wind farms and other generators are no different, but Exelon claims wind plants could remain profitable under negative pricing conditions because wind power earns a PTC of approximately $22 per megawatt-hour....624 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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