Be wise in choice of energy efficiency plans

Seven years ago, the employees of ComEd made a commitment to our customers to deliver a portfolio of energy-saving programs that would one day be world class. Last month, we received the U.S. EPA's highest award for energy efficiency programs — the Energy Star Partner of the Year award — not for the first time, but for the fourth.

Our efficiency programs have saved $1 billion in energy costs for our customers and 16.5 billion pounds of carbon emissions. ComEd has been a leader — in thought and action — on energy efficiency.

We supported the law that created efficiency requirements in 2007, and indeed helped shape the balance that the law struck between energy savings and customer costs.

The universe of good-but-unproven energy savings ideas is vast, and without some protection for ratepayers for whom every penny counts, the implementation of these ideas can quickly cost more than they benefit.

Some lobbying groups in Springfield have introduced legislation that would upend this balance, increasing residential ratepayers' bills over the next 10 years. Their bill would remove spending caps altogether and alter the cost-benefit analysis required of all efficiency spending to include such considerations as “comfort,” somehow quantified. These groups also claim the additional efficiency investments would create 32,000 jobs — or 300,000, depending on the day and the lobbying group.

We at ComEd share the enthusiasm of the environmentalists backing this so-called “Clean Jobs Plan,” as there is certainly more to do on energy efficiency and renewable energy. We would propose, though, that there is a smarter, fairer, more affordable way to do more: that is, the Future Energy Plan — Senate Bill 1879 — sponsored by Sen. Kim Lightford and Rep. Bob Rita.

ComEd's Future Energy Plan supports energy efficiency in three important ways, which collectively leverage the $2.6 billion investment that ComEd — and Illinois ratepayers — are making into the smart grid to create even more energy and customer savings.

It's a plan for energy savings that builds on the foundation of smart grid and benefits all customers, not just those who know to, have the time to, and can afford to opt in to energy savings programs.

First, the Future Energy Plan provides for voltage optimization, an exciting, smart grid-enabled technology that allows us to more precisely control the amount of energy flowing on portions of the grid and to thereby reduce energy usage for some customers and energy loss for all customers.

Through voltage optimization, we can save enough electricity to power 200,000 homes and eliminate enough carbon emissions to equal removing more than 275,000 cars from the road.

Second, the plan provides for investment in energy savings programs that exceed the current energy efficiency spending cap. While the so-called “Clean Jobs” bill would eliminate this cap entirely, removing cost protections for our customers, the Future Energy Plan allows for spending over the cap only if approved by the Illinois Commerce Commission based on concrete plans that count real benefits and costs.

Under the Future Energy Plan, energy efficiency spending and associated energy savings will increase, and in a measured, cost-conscious way.

Third, the Future Energy plan provides for shifting how we calculate residential customer rates to how we already calculate commercial customer rates: through a demand-based rate system. With demand-based rates, customers are empowered to achieve energy and cost savings and capitalize on the true power of the smart grid.

A demand-based rate system also creates stronger alignment between utility costs and utility rates, which will allow ComEd to continue to be an increasingly strong and innovative supporter of renewable energy and energy savings initiatives.

We believe that the delivery of energy efficiency programs should be part of our core mission as a business. These programs are good for our customers, for the economy of our service territory and for our environment. We are proud to be running one of the largest and most effective energy savings portfolios in the country. And we look forward to providing for even more energy savings in the future — savings which leverage current investments in the smart grid, which are cost-conscious, and which impact all customers on the grid — through the Future Energy Plan.

Val Jensen is senior vice president for customer operations at ComEd.