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Sunday, May 19, 2024

Rauner signs Exelon subsidy bill to ensure nuclear plants remain open

Shutterstock nuclear plant workers toon

Contributed photo

Contributed photo

In a move that averts massive job losses from Exelon Corp.’s Clinton and Quad Cities nuclear plants, Gov. Bruce Rauner signed a bill into law today that effectively prevents the closure of these facilities.

The power package provides $235 million in subsidies annually to support the struggling plants.

Although the measure appeared to be relatively smooth, the path to approval was not obstacle-free, as last-minute changes to language were crafted via amendments, delaying passage by several hours.

For example, passages providing workers with union pay rates were omitted.

Had the legislation failed, the Clinton facility would have faced a shutdown by June 1 and the Quad Cities Cordova site would have followed suit a year later. With the Cordova location employing approximately 800 people, it ranks as Rock Island County’s largest property taxpayer.

The nuclear power plants employ approximately 1,500 workers total, and their operations impact 4,200 affiliated jobs, Bill Stoermer, spokesman for the Quad Cities station in Cordova, said.

“Along with keeping open two of the state’s reliable and efficient nuclear power plants, passage of the bill will maintain Illinois’ competitive electric rates and preserve and create tens of thousands of jobs,” Stoermer said.

The Clinton plant supplies almost $12 million in property tax revenue to the state, with more than half ($7.6 million) funneled to the local public school district.

State Sen. Chapin Rose (R-Mahomet), who represents the 51st District where the Clinton plant is based, praised Rauner for his participation in negotiations. Rose was the driving force behind Senate Bill 1585, known as the “Future Jobs Energy Bill,” as a sponsor who advocated strongly for constituents.

“The threat of the Clinton Power Plant closing is very real,” Rose said. “We need to give them every opportunity possible to keep this plant open and preserve 1,900 jobs in East Central Illinois.”

Had the measure failed, the economic fallout from a plant closure would have directly affected class sizes and teacher positions in the Clinton School District.

“It is our lifeline as far as DeWitt County is concerned,” Clinton City Administrator Tim Followell said, citing the plant’s status as the source of approximately 50 percent of the city’s property tax income. Followell testified in support of keeping the Clinton plant open during hearings in Springfield.

Crain’s, the online Chicago business website, called SB 1585 the “biggest energy bill in 20 years.”

Now that it is passed, the measure will not only safeguard jobs and key funding for the regional and state economy, but also protect Illinois consumers by placing a ceiling on future electric rate increases.

“For jobs, for ratepayers, for the state of Illinois, this is a good bill,” state Sen. Neil Anderson (R-Rock Island) said.

The victory was decisive in a time of contention among state government leaders in Springfield. Going forward, the law will provide hundreds of millions of dollars each year to support the two nuclear power plants, invest in clean energy and energy efficiency, and protect consumers on multiple levels by stabilizing an important sector of the state’s economy.

"This process shows that when all parties are willing to negotiate in good faith, we can find agreement and move our state forward," Rauner said.

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