Exelon (NYSE:EXC) has decided to cancel the previously deferred extended power uprate projects at its LaSalle and Limerick nuclear stations.
The nation’s largest nuclear operator revealed the decision in an 8-K financial filing with the U.S. Securities & Exchange Commission (SEC).
As a result of this decision, the costs for these projects currently capitalized in property, plant and equipment became impaired and therefore Exelon and Exelon Generation LLC will record in the second quarter a pre-tax charge, including early contract termination costs, to operating and maintenance expense of approximately $100m.
Last fall, Exelon said it was scaling back its renewable energy and nuclear power capital spending by more than $2bn.This includes delaying long-discussed extended power uprates at both the Limerick in Pennsylvania and the LaSalle nuclear plants in Illinois.
Now Exelon is pulling the plug on those nuclear power increases altogether. Exelon has alluded to anemic growth in power markets as concern when it comes to major capital investments.
Exelon had said in November that Limerick project completion would be delayed from 2017 until 2021. LaSalle project completion would be deferred another two years from 2018 until 2020. The increase for each unit at LaSalle and Limerick would be approximately 150 MW.
Now those plans have been scuttled.