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
Copyright Business Wire 2015