ComEd pushes for $2.6 billion power grid upgrade

ComEd is expected to introduce legislation today that touts a massive overhaul of the regulatory process so it can create a modern electric grid that supports a digital world. But skeptics see the proposal as shortchanging consumers and opening the door to automatic rate increases.

The Infrastructure Modernization Act, sponsored by state Rep. Kevin A. McCarthy, a Democrat from Orland Park, offers to invest about $2.6 billion over 10 years to upgrade its underground system and to build a new electric grid. The plan is expected to add about 2,000 jobs. ComEd also has been in discussions to partner with Peoples Gas, which aims to upgrade its natural gas system and that could create another 400 jobs.

To accomplish this, the utilities want to change the current regulatory system, which ComEd views as outdated. Instead of periodic rate cases going through a laborious and 11-month-long review under the Illinois Commerce Commission, the bill proposes annual rate changes with just part of the authority remaining with the ICC.

ComEd also would pay a one-time $200,000 fee “to compensate the commission” to get the plan up and running, said Anne Pramaggiore, ComEd president and chief operating officer.

“We're seeing the world change and we have to enhance and upgrade the grid,” said Pramaggiore.

ComEd proposed legislation last year, which died quickly after the utility was criticized for offering to help bail out the financially strapped state. Then in mid-January, ComEd announced it was preparing new legislation to pursue its goal of creating the grid that would accommodate digital devices and equipment and handle the growing population in a more secure and reliable way.

While upgrades would be welcome, the plan behind it was met with skepticism among consumer advocates, including the Citizens Utility Board, a Chicago-based consumer watchdog.

The new bill appears to provide automatic rate increases and a radical change to the regulatory process that's meant to protect consumers, said CUB Executive Director David Kolata.

“Our initial reaction is that this legislation doesn't contain nearly enough consumer protections, so we're open to discuss this,” said Kolata.

Pramaggiore said the ComEd proposal does protect consumers and creates numerous jobs during the course of the project, all while providing more stability to ComEd, so it knows what to expect financially.

“Regulatory reform is needed. It's a 100-year-old model,” said Pramaggiore. “It's very frayed, and provides unstable and unpredictable financial results for us.”