Report on Impact of Proposed Reliability Pricing Model
Synapse developed a report on the impact of PJM’s proposed Reliability Pricing Model (RPM) on Exelon nuclear facilities' capacity revenues in northern Illinois. At the request of Illinois Citizens Utility Board (CUB), Synapse analyzed the current capacity revenues earned by Exelon’s nuclear fleet in Illinois and compared those revenues to the historical six-year average prices for capacity in PJM and to the RPM “target price” as defined by a benchmark proxy peaker unit. The analysis showed that the capacity revenues for Exelon’s nuclear units in northern Illinois would increase from $100 million (2005) to over $500 million annually under RPM, on average, and that annual earnings under RPM for a single year could be as high as $1.2 billion under extreme scarcity conditions. Project completed in August 2005.