5.4.1 Setting the Value of Nuclear Power

LPDD Recommendation: “FERC, regional transmissions operators, and states should continue and then complete ongoing efforts to fully value the benefits of nuclear power.”

LPDD Recommendation: State legislatures or utility commissions could impose a nuclear portfolio standard that would co-exist alongside existing RPS or broaden the scope of existing RPS to incorporate all ‘clean’ energy, including nuclear power.

NYISO carbon pricing proposal

Carbon Pricing Straw Proposal would reflect the cost of carbon emissions in wholesale energy market offers via a “carbon charge.”  

Ohio’s nuclear subsidies

A monthly electricity surcharge, from 85 cents for residential customers up to $2,400 for industrial customers, collecting in total $150 million/year to subsidize two nuclear power plants.

New York’s ZEC program

Under its Clean Energy Standard, New York established a ZEC program for struggling nuclear plants based on the difference between the social cost of carbon and existing electricity prices.

Illinois’ ZEC program

The Future Energy Jobs Bill establishes a ZEC program to compensate nuclear generators for the benefits provided by their emissions-free generation, valued at the Social Cost of Carbon.

New Jersey’s ZEC program

Bill S-2313 establishes a Zero Emissions Certificate (ZEC) program to maintain New Jersey’s nuclear energy supply.

NCSL paper, State Options to Keep Nuclear in the Energy Mix

Reviewed a variety of different policy mechanisms to support nuclear power, including Zero Emissions Credits, Nuclear Energy Standards, advanced cost recovery, carbon taxes or cap-and-trade, power purchase agreements, and tax incentives.

PJM Carbon Study

PJM has proposed to study the effects of a carbon price on wholesale markets in tandem with the carbon pricing discussion being advanced by PJM members in stakeholder processes.