Bryan C.

Hanson
President and Chief Nuclear Officer

4300 Winfield Road

Warrenville, IL 60555

630.657.3611 Office
630.657.4335 Fax
www.exeloncorp.com
bryan.hanson@exeloncorp.com

May 30, 2017

Michael Bryson
Vice President, Operations
PJM Interconnection, LLC
955 Jefferson Avenue
Norristown, PA 19403-2497
Via Email: generatordeactivation@pjm.com

Re: Notice of Proposed Permanent Deactivation of Three Mile Island Unit 1 Nuclear
Generating Station effective on or about September 30, 2019

Dear Mr. Bryson:

Pursuant to PJM Interconnection, LLC (PJM) FERC Electric Tariff, Part V, Section 113 and
PJM Manual 14D: Generator Operational Requirements, Revision 38, Section 9, Exelon
Generation Company, LLC, (Exelon) hereby officially provides this Deactivation Notice to
PJM of Exelons intent to deactivate through retirement the Three Mile Island Unit 1 Nuclear
Generating Station on or about on or about September 30, 2019. This Deactivation Notice also
satisfies the 18-month notification commitment required by the Exelon-Constellation Merger
Settlement (Merger Agreement) with the Independent Market Monitor for PJM (Section
2.a.iii.).

Although the current target deactivation date is September 30, 2019, the exact date of
deactivation is unknown at this time. Safe shutdown of the facility may require the units to coast
down from maximum output as fuel is depleted resulting in an actual shutdown date that varies
slightly from the target date.

Estimates of project investment to keep the unit in operation (required by the PJM OATT, Sec.
113.1) are immaterial as the unit is uneconomic, but otherwise in good working order. However,
in satisfaction of the Section 2.a.iv. of the Merger Agreement, Exelon will provide the IMM with
its economic analysis supporting the retirement decision as expeditiously as possible.

In summary, Three Mile Island Unit 1 is unprofitable and has lost more than $300 million over
the past five years despite being one of Exelons best-performing plants. The energy market in
PJM has not adapted to the evolution of the fleet, which has caused the devaluation of resources
like Three Mile Island Unit 1. The facility is highly dependent on energy market prices that are
at all time low levels as a result of a number of factors, including market rules that do not value
the clean, resilient electricity provided by nuclear energy. As PJMs CEO has acknowledged,
policymakers have tried to politely ignore these things, but they . . . are no longer ignorable.
Sixteen other types of clean energy are supported by the Commonwealth of Pennsylvania
through the alternative energy portfolio standard, and though Three Mile Island Unit 1 produces
more clean energy than all of those sources combined, it is not eligible for support under that
program. While we are committed to working with all stakeholders to secure Pennsylvanias
energy future, unfortunately we cannot ignore the losses at the facility and must take this action
now.

All communication regarding this Notice and the proposed retirement of these units should be
directed to Jason Barker at 410.470.5824 or jason.barker@exeloncorp.com.

Sincerely,

Bryan C. Hanson
Sr. Vice President Exelon Generation
President & Chief Nuclear Officer, Exelon Nuclear

cc: Joseph E. Bowring (Monitoring Analytics)