Stop The Cuomo Tax | Cost Comparison: Illinois vs. New York Nuclear Bailouts
622
post-template-default,single,single-post,postid-622,single-format-standard,ajax_leftright,page_not_loaded,,qode_grid_1300,qode_popup_menu_push_text_top,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-10.0,wpb-js-composer js-comp-ver-4.12,vc_responsive

Cost Comparison: Illinois vs. New York Nuclear Bailouts

Cost Comparison: Illinois vs. New York Nuclear Bailouts

Comparison of Nuclear Subsidy Policies: New York and Illinois – Download PDF

Nuclear subsidies in Illinois are based on the same fundamental formula — a novel invention created by the New York Public Service Commission in July 2016. Legislation enacted in Illinois in December 2016 simply adopted the salient features of the New York policy. However, the subsidies have dramatically different costs, based on other key policy elements:

  • The length of the programs, annual subsidy increases, and consumer protections
  • The numerical values of carbon prices and market price adjustment levels

In both of these elements, the NY PSC established terms for the nuclear subsidy program that are far more costly to consumers than the terms adopted in Illinois.

Salient Policy Features

Policy Feature New York Illinois Difference (NY vs. IL)
Length of Subsidy 12 years (2017-2029) 10 years
(2017-2027)
20% longer
Reactors Covered 3 reactors – 2,889 MW 4 reactors – 3,351 MW 16% greater
Social Cost of Carbon $23.09/MWh (2017) $16.50/MWh (2017) $6.59 higher (40%)
Carbon Price Adjustment $5.61/MWh None
(no carbon program)
$5.61 less
Market Price Adjustment Over $39/MWh Over $31.40/MWh $7.60 higher
Annual SCC Increase ~$2.34 every two years No increase until 2023
$1.00/year  thereafter
$3.90 more by 2023
$5.95 more in 2027
Total Cost Cap None 1.65% of 2009 retail costs N/A
Projected Cost – Annual $483 million rising to $804 million $235 million $210 million more
(proportional to capacity)
Projected Cost – Total $7.6 billion $2.35 billion $4.3 billion more
(proportional to capacity and total years)
Max. Total Power Price $56.48/MWh rising to $68.15/MWh $41.30/MWh 37% more rising to
65% more

 

New York ZEC Price Formula

Social Cost of Carbon RGGI Adjustment Market Sales over $39/MWh = NY ZEC Price

 

Tranche SCC RGGI Market NY ZEC
2017-2019 $23.08 $5.61 $0 $17.48
2019-2021 $25.19 $5.61 ? $19.59
2021-2023 $26.98 $5.61 ? $21.38
2023-2025 $29.43 $5.61 ? $23.83
2025-2027 $32.06 $5.61 ? $26.45
2027-2029 $34.75 $5.61 ? $29.15

 

Illinois ZEC Price Formula (No RGGI Adjustment)

Social Cost of Carbon NO RGGI Adjustment Market Sales over $3140/MWh = IL ZEC Price

 

Tranche SCC RGGI Market IL ZEC Price
2017-2019 $16.50 n/a $0 $16.50
2018-2023
(5 years)
$16.50 n/a ? $16.50
2023-2024 $17.50 n/a ? $17.50
2024-2025 $18.50 n/a ? $18.50
2025-2026 $19.50 n/a ? $19.50
2026-2027 $20.50 n/a ? $20.50

 

NIRS 6930 Carroll Ave., Suite 340 Takoma Park, MD 20912 www.nirs.org