Bloomberg: FirstEnergy, Exelon nuke plants may not survive PJM auction

|About: Exelon Corporation (EXC)|By:, SA News Editor

PJM Interconnection, which operates the biggest power market in the U.S., will hold an auction in May 2017 to award contracts to suppliers, which could decide the fate of some nuclear power plants that have struggled to make money because of competition from cheaper gas-fired electric plants and renewables.

A Bloomberg analysis says four of the nuclear plants submitting bids - FirstEnergy's (NYSE:FE) Davis-Besse in Ohio and Eaver Valley in Pennsylvania, as well as Exelon's (NYSE:EXC) Three Mile Island in Pennsylvania and Byron Nuclear Generating Station in Illinois - may not be able to supply power cheaply enough to make the cut, and could be forced to close if they fail to win contracts.

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