Proposal Expands Access to Clean Energy
Options, Creates Jobs and Provides More Customer Choice
Legislation being introduced today in the Illinois General
Assembly will expand support for renewable energy in Illinois and
ensure that energy consumers and the state economy will continue to
benefit from affordable power, a more secure and resilient grid and
innovation that is establishing Illinois as a leader for a greener,
cleaner future.
“The Smart Grid is the platform for our energy future,” said
ComEd President and CEO Anne Pramaggiore. “It provides the
flexibility needed to further integrate clean, renewable energy
onto our power system, while enhancing the resiliency of the grid
and meeting the growing demand among customers for more energy
choices. HB3328/SB1879 offers a balanced and sustainable plan for
Illinois to build upon this platform and enable energy customers to
realize the full potential of a 21st Century grid.”
Sponsored by State Senator Kimberly A. Lightford (D-Maywood),
State Representative Bob Rita (D-Blue Island) and State Rep. Ed
Sullivan (R-Mundelein), the legislation will create at least 400
full-time equivalent jobs in Illinois. These initiatives will
initially result in a modest decrease on the average monthly
customer bill and a modest increase in later years, but when
averaged over the entire 10 years of the program the impact on
customer bills is essentially zero.
“This legislation will not only drive growth in renewable
energy, it also makes it possible for people at all income levels
to benefit from it by participating in community solar projects,
without having to shoulder the cost of a rooftop system,” said Sen.
Lightford.
Pramaggiore outlined the new initiatives, emphasizing the
importance of building upon the smart grid program that was
established with the 2011 enactment of the Energy Infrastructure
Modernization Act (EIMA).
“Our legislation maximizes the critical investments that are
being made in Illinois’ energy and economic future, such as the
Smart Grid program,” said Pramaggiore. “We need to take full
advantage of the infrastructure enhancements we have recently made
and recognize that the next evolution of the grid is necessary to
meet the demands of a fast-moving digital economy that places a
high priority on reliable power.”
The legislative proposal includes measures to strengthen the
security and resiliency of the grid, the construction of
microgrids, community solar projects and the expansion of energy
efficiency programs.
More Power Resiliency and Security for Critical
Infrastructure
The legislative package features a proposal to construct
microgrids, which are small power grids that can connect to the
main grid or operate independently, reinforcing reliability and
resiliency during extreme weather or other events. HB3328/SB1879
would enable ComEd to invest $300 million in six microgrids that
will service public facilities and infrastructure that are integral
to healthcare, homeland security, transportation and water
services. The microgrid program would also create at least 300
full-time equivalent jobs.
"We need a comprehensive energy policy in Illinois and one
important part of that policy should be preparing for the
unexpected,” said Rep. Rita. “The microgrids proposed in this pilot
project will protect and strengthen our critical electric
infrastructure, while we are also working to find new ways to
produce the energy we need to power our homes and economy. We will
work together this spring to find the right mix for our energy
future."
Accessible, Affordable Solar Power for the Community
While current Illinois law allows homeowners to generate their
own solar power and sell excess power back to the grid, apartment
dwellers and others without suitable space or those who can’t
afford the investment cannot enjoy the benefits of owning renewable
generation. ComEd’s legislative proposal would expand access to
solar power to all types of homeowners from all income levels by
encouraging development of community solar projects. It would
require utilities to offer Meter Aggregation, which makes use of
digital smart meter technology to create a “pool” of
community-based solar power that can be shared by multiple
customers. To ensure the equitable sharing of grid costs, utilities
would recover residential delivery costs through a combination of
charges, including a demand charge, that better reflect how the
grid is used and makes sure low-income customers aren’t subsidizing
those who can more easily afford solar energy and other new grid
uses.
Jumpstarting the Electric Vehicle Market for a Greener
Illinois
An Electric Vehicle (EV) Charging Station Pilot program is
designed to jumpstart the electric vehicle market in Illinois by
authorizing utilities to invest up to $100 million to construct
5,000 publicly accessible EV charging stations over a five-year
period.
The stations would be located in five target areas: (1) publicly
accessible parking facilities to support residents of multi-unit
dwellings; (2) workplace locations accessible to employees and
visitors; (3) municipal parking lots; (4) long-term or overnight
public parking; and (5) economically disadvantaged areas.
Each station will be powered by solar generation and the energy
needs will be included in the Illinois Power Agency’s annual
procurement. The program will create at least 50 full-time
equivalent jobs, including construction, engineering and project
management positions.
Expansion of Energy Efficiency Programs for Greater Energy
and Cost Savings
HB3328/SB1879 would build upon the success of ComEd’s Smart
Ideas energy efficiency programs, which have saved customers more
than $1 billion on their electric bills and eliminated 16.5 billion
pounds of CO2 emissions from the atmosphere since 2008. The
legislation would allow utilities to expand energy efficiency
offerings, including investments in voltage optimization, which
allows for precise monitoring and control of the energy delivered
to homes and businesses, decreasing energy losses while maintaining
high quality power. Voltage optimization can reduce energy
consumption by up to 1.9 billion kWh, reducing CO2 emissions by up
to 2.8 billion pounds or the equivalent of removing 276,074 cars
from the road. This program will also allow utilities to earn a
return on energy efficiency investments and thereby incent more
efficiency, and will allow costs to be amortized over five years,
mitigating rate impacts. The program will create at least 50
full-time equivalent jobs, including construction, engineering and
project management positions.
“The energy efficiency programs that have been in place for the
past eight years have produced excellent results but it will be
hard to achieve higher goals without the additional investment and
innovation that this legislation supports,” said Rep. Sullivan.
Additional Assistance for Customers in Need
Under the legislation, utilities will be able to help even more
Illinoisans facing financial hardship, including families and
seniors, veterans and nonprofits. Through the Smart Grid program
(EIMA), ComEd is currently committing $50 million through 2016 in
critical financial assistance to help customers in need pay their
electric bills. The legislation extends these programs for another
five years through 2021, enabling ComEd and utilities serving more
than 3 million customers to contribute $10 million per year to
existing EIMA financial assistance programs or similar
programs.
Refining the Renewable Portfolio Standard for a Greener
Energy Future
The legislation refines the State of Illinois’ existing
renewable portfolio standard to better serve as a viable solution
for ensuring a green energy future in our state. Specifically, the
amendment refines the Illinois Renewable Portfolio standard
established in 2007 to better incorporate what has been learned
over the last eight years, including the impacts of municipal
aggregation. The legislation will release funds available today for
investment in wind and solar energy. It also will ensure that the
Illinois Power Agency (IPA) will procure renewable energy credits
for customers who receive energy supply from a utility and for the
majority of residential customers who receive energy supply from an
Alternative Retail Electric Supplier (ARES).
New Rate Structure for Equitable Sharing of Grid
Costs
The legislation proposes a rate structure that allows for
innovative new uses of the grid while ensuring that related costs
are borne by those who directly benefit. Residential customers
would pay for power delivery based on their peak demand, instead of
overall consumption. In use for years for commercial and industrial
and other non-residential customers, demand-based rates accomplish
three key goals: (1) incent peak reduction; (2) allocate costs of
the electric grid more fairly to ensure that residential customers
only pay their fair share of costs; and (3) better align utility
revenue with the fixed costs needed to ensure a reliable grid.
“Illinois residents and businesses will all benefit from the
lean and green energy options designed to deliver energy more
efficiently, reduce carbon emissions, take energy security to the
next level and drive Illinois’ digital economy,” said Pramaggiore.
“The programs we’re proposing are investments in our state’s
long-term energy and economic future. We look forward to a dialogue
with policy makers and stakeholders about the many customer
benefits of this legislation, from cost savings to a cleaner
environment and greater protection from severe weather and
potential major emergencies.”
Commonwealth Edison Company (ComEd) is a unit of Chicago-based
Exelon Corporation (NYSE: EXC), the nation’s leading competitive
energy provider, with approximately 6.6 million customers. ComEd
provides service to approximately 3.8 million customers across
northern Illinois, or 70 percent of the state’s population. For
more information visit ComEd.com, and connect with the company on
Facebook, Twitter and YouTube
ComEd Media Relations(312) 394-3500
Exelon (NYSE:EXC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Exelon (NYSE:EXC)
Historical Stock Chart
From Apr 2023 to Apr 2024