ZERO EMISSION CERTIFICATE APPLICATION - SALEM UNIT 1
I hereby declare under penalty of perjury that:
My name is Kevin Garrido. I am of full age. I am Vice President Finance Nuclear for Exelon Generation Company, LLC ("Exelon Generation" or the "Company"), and I am authorized to make this statement on behalf of Exelon Generation relating to materials submitted by Exelon Generation in response to certain questions related to the Zero Emission Certificate Application for the Salem Unit 1 nuclear power plant (the "Plant"), which has been submitted by the Plant's co-owner and operator, PSEG Nuclear, LLC ("PSEG Nuclear") to the New Jersey Board of Public Utilities ("Board") in the above-referenced proceeding (the "Application").
This Affidavit is being provided in this proceeding being conducted underN.J.S.A.48:3-87.3,et seq., and pursuant to the Board's rules at N.J.A.C.14:1-12.1et seq., and the Board's September 15, 2020 Order on Motions to Intervene and Participate and Access to Confidential Information concerning the confidentiality of documents
submitted to the Board generally and the confidentiality of materials submitted as part of Application.
The materials being submitted by Exelon Generation in response to the questions listed below ("Confidential Information") are labeled "CONFIDENTIAL" because they contain proprietary, Company sensitive, and/or financially, commercially, and competitively sensitive information that is not available to members of the general public. Without limitation of the foregoing, the release of the information set forth in the attached materials would injure Exelon Generation's financial and commercial position in the electricity and other markets by providing an unfair competitive advantage to other market participants, and would therefore be injurious to Exelon Generation shareholders and to consumers, particularly in the eastern United States, including New Jersey. The disclosure of this sensitive information would also have negative competitive impacts on the forward capacity markets in the PJM Interconnection ("PJM"), and default load procurements throughout PJM, including the New Jersey Basic Generation Service auction, as well as on competitive supply service in New Jersey and other PJM states.
I am advised by counsel that Exelon Generation is submitting the Confidential Information separately from the Application submitted jointly with the Plant's co- owner and operator, PSEG Nuclear, because disclosure to a competitor of such proprietary, Company sensitive, and/or financially, commercially and competitively sensitive information that is not made available to members of the general public could raise antitrust concerns, providing PSEG Nuclear with an unfair competitive advantage over other market competitors.See In re Flat Glass Antitrust Litig., 385
F.3d 350, 369 (3d Cir. 2004) (verdict finding antitrust violation supported by evidence that company provided competitor with pricing information that it had not announced publicly); In re Ductile Iron Pipe Fittings (DIPF) Direct Purchaser Antitrust Litig., 2014 WL 3971620, at *9 (D.N.J. Aug. 13, 2014) ("[P]articipation in information exchanges in highly concentrated markets involving a fungible product with inelastic demand can be indicative of anticompetitive behavior").
5. Disclosure of the Confidential Information submitted by Exelon Generation in support of the Application would be compromising to Exelon Generation in several different ways:
Capacity market information. Disclosing historical or forward-looking cost and revenue information related to the Plant would aid competitors in forming an accurate outlook of the capacity prices that the Plant would require to remain viable in the markets. Understanding this information, competitors could structure their bids to take advantage of the Plant's costs and expectations, to inform their bids to the benefit of their own unit positions. Information that should remain confidential related to this subject include:
Information related to the Plant's bidding and level of market participation; and
Information related to the historical or future expectations of Plant revenues.
Corporate financial information. The Confidential Information includes certain corporate information that if disclosed could impair the competitiveness of the business or require additional financial disclosures to
the investment community. The business of Exelon Generation includes the buying and selling of assets as part of its overall strategy. Disclosure of certain market information that is used internally as part of these assessments, such as valuation methodologies, cost of capital and future market outlooks, would disadvantage the Company significantly relative to competitors. Further, Exelon Generation does not publicly provide certain detailed financial information, nor does it provide a long-term view on forward market outlooks to the investment community and would be forced to change its disclosure policy if some of this information was released. Information that should remain confidential related to this subject includes:
Information related to the overall financial structure of the business including cost of capital estimations;
Information related to forward financial projections; and
Plant-specifichistorical or forward revenue information.
6. Given the potential harms to Exelon Generation and to competitive markets associated with the disclosure of certain information as described above, all or portions of the following responses and accompanying attachments should remain strictly confidential:
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Exelon Corporation published this content on 06 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 October 2020 20:59:04 UTC