TESTIMONY DELIVERED BY RUTH CAPLAN
January 20, 2015
Background: I came to Washington DC in 1982 to lobby against tax subsidies for nuclear and coal plants. I had learned that without accelerated depreciation and shortened tax lives, nuclear plants would not be economical and that legislation was pending to extend these tax benefits. Up on the shores of Lake Ontario, our small citizens group had defeated plans for three nuclear plants and saved ratepayers untold billions of dollars. Even back in the mid-1970s, we knew that wind, solar and energy efficiency were better deals for ratepayers and the environment.
Fast forward to today: DC government has been promoting Sustainable DC. To date, the initiatives have been far from earth shattering, but I have much hope that great strides lay ahead of us. This will only be possible if the PEPCO/Exelon merger is not allowed to go forward. The DC Public Service Commission must come out unequivocally in opposition to this merger. Here’s why.
Conclusion: To achieve Sustainable DC goals in any meaningful way, we must have more direct control over our energy future. This will be impossible with monopoly control by Exelon. The DC Public Service Commission must serve the people and our future and not approve the merger.
Fast forward to today: DC government has been promoting Sustainable DC. To date, the initiatives have been far from earth shattering, but I have much hope that great strides lay ahead of us. This will only be possible if the PEPCO/Exelon merger is not allowed to go forward. The DC Public Service Commission must come out unequivocally in opposition to this merger. Here’s why.
- DC must not be shackled with the albatross of Exelon’s aging nuclear plants. They are not economical to run and are increasingly susceptible to accidents as the pipes and reactor age. The Public Service Commission’s hands will be tied as ratepayers will be forced to pay the cost for these aging plants.
- DC government and residents will have their ability to move toward an energy-efficient/solar future blocked by Exelon which will exercise its monopoly control as the largest utility in the nation.
- For instance, Exelon has been a leading opponent of the federal Production Tax Credit for wind power. Maybe this is why my electric rates for 100% wind through Washington Gas Energy Services have risen by 33% in just three years.
- And here is what we can expect from Exelon in PEPCO’s service territory: In 2014, Exelon used the threat of nuclear plant closures to kill a strong renewable energy bill in Illinois, by arguing that wind power is the primary reason that several of its Illinois reactors are uneconomical.
- At the federal level Exelon is successfully lobbying EPA to allow a “subsidy of $6/MWh to save the 6% of nuclear capacity it believes is at risk of closure (about 5,700 MW), totaling $270 million/year. That money could build enough wind power—completely unsubsidized—to replace any at-risk nuclear generation within 10 years.” (Source: NIRS: Killing the Competition, Sept. 2014)
- Exelon has petitioned the NYPSC for above market rates for the Ginna nuclear plant on Lake Ontario which would cost ratepayers an additional $111 million/year. (Ibid.) Thank goodness we prevented the construction of 3 reactors just east of Ginna on Lake Ontario!
- What happened to the idea of least-cost energy planning which was getting traction before the de-regulation tsunami hit the country?
- Why are we looking at the free market for renewables and socialism for nuclear plants?
- If Exelon is allowed to merge with PEPCO, it will be the largest electric utility in the nation. Monopoly control with its stranglehold on ratepayers and policymakers is not in the interest of ratepayers, taxpayers or the District government.
Conclusion: To achieve Sustainable DC goals in any meaningful way, we must have more direct control over our energy future. This will be impossible with monopoly control by Exelon. The DC Public Service Commission must serve the people and our future and not approve the merger.
