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* This is a very good roundup of some of the major challenges facing Exelon’s push to pry loose ratepayer subsidies for two of its Downstate nuclear power plants during the upcoming veto session…
“The first question we get from the speaker’s office is, ‘Where’s the governor?’” Exelon executive Tim Hanley said last week during a meeting with the Quad-City Times editorial board. “The governor’s office asks, ‘Where’s the speaker?’” […]
Gov. Bruce Rauner has repeatedly declined to comment on the Exelon drama. Democrats in the General Assembly find it ironic that they are being asked to save hundreds of union jobs in a Republican-held Senate district, while Rauner continues to do battle with public unions.
Rauner might have no option but to give in, if Quad-Cities Generating Station is to survive 2018. And Democrats know it. […]
Lawmakers have said that a bailout for a coal-fired Dynergy plant in Southern Illinois would have to be part of the overall package, Hanley said. That’s sure to be another strike against any sweeping energy deal, as far as the influential Clean Jobs Coalition is concerned.
So, in a nutshell, there’s a proposed rate-hike that would include cash from taxpayers in the mix. There’s a politically prescribed bailout for a coal plant just to get any package out of committee in the House. The governor has done little but waffle. And the entire thing hinges on a six-day veto session, three days on either side of Thanksgiving.
It’s basically a game of chicken. Somebody is gonna have to blink first, but then that somebody is gonna catch the blame for a rate hike.
* More…
[Sen. Donne Trotter] and other sponsors of the [Exelon] legislation, including Republican state Sens. Chapin Rose of Mahomet and Neil Anderson of Rock Island, say negotiations with Exelon, environmental and consumer groups, the renewable energy industry and downstate utility Ameren Illinois have continued in the intervening months.
“It’s coming together, and hopefully by the time we get back on Nov. 15, there’ll be enough consensus that we can move forward with it and get it through the Senate as well as the House,” Trotter said, noting that some House members were in attendance and that House Speaker Michael Madigan, D-Chicago, made a brief appearance.
But, of course, there’s more to this package than just Exelon’s big asks. ComEd, for instance, wants an unprecedented new pricing plan.
* Joe Cahill at Crain’s says we need some baby steps on ComEd’s idea and proposes a pilot project instead…
Commonwealth Edison is pushing Illinois lawmakers to approve a dramatic change in electricity pricing based on little more than the utility’s assurance that most customers would save money under the novel approach.
ComEd says it has examined customer usage patterns and determined that “demand pricing” would reduce bills for two-thirds of its customers. Under a demand-based pricing system, bills reflect the amount of power each customer uses during periods of peak electricity demand.
ComEd would track how much power each customer uses during the half-hour period of highest electricity use every day—perhaps a time when a hair dryer, refrigerator, washing machine and air conditioner are running simultaneously. The utility would set rates and compute bills based on the average of those daily peaks over the course of a month (excluding weekends and holidays).
Vice President Scott Vogt says the new system would allow customers to control their electric bills by avoiding big spikes in usage. But he emphasizes that two-thirds would save money even if they don’t change current consumption patterns. Those who see their bills rise could mitigate or reverse the increase by adjusting their electricity usage. “We think this is the fairest way to do it,” Vogt says.
Really? It will take more than ComEd’s say-so to convince me, and legislators should be equally skeptical. ComEd is asking them to lead Illinois into unknown territory. No state has yet authorized mandatory demand pricing for residential electricity customers. So far, proposals to impose demand pricing on all residential consumers have been withdrawn or rejected in 13 states, according to the Alliance for Solar Choice.
* Related…
* Rivals aim to halt New York subsidies that would mean billions to Exelon
posted by Rich Miller
Thursday, Oct 20, 16 @ 10:59 am
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If Com Ed is going to lose money by lowering bills for two thirds of customers, why do they want this change in rate structure? Seems fishy to me…
Comment by CCP Hostage Thursday, Oct 20, 16 @ 11:04 am
And, don’t forget…
http://kwqc.com/2016/10/18/exelon-to-pay-more-than-a-billion-dollars-in-back-taxes/
Also, Exelon has been playing at the property tax assessment game for years now in DeWitt County (and probably in Rock Island and Ogle). Extension after extension has been filed with the Illinois Property Tax Appeals Board by their lawyers. The monies in question have to sit until this is resolved. if resolved in Exelon’s favor, entities such as the school districts will be out even more. Yep… Exelon needs more money from taxpayers to stay competitive! (very heavy snark)
http://www.ptab.illinois.gov/Minutes/2016Meeting/agenda20160209.pdf
Exelon Generation Co., LLC: #14-03166-I-3 (DeWitt)
Appellant originally filed with the PTAB on 4-14-15. A total of 180-days has been granted for the submission of evidence. Appellant is requesting an additional 90-day extension due to the complexity of preparing evidentiary and documentary materials and contentions of law with regard to the assessment of this nuclear power station.
Comment by Anon221 Thursday, Oct 20, 16 @ 11:10 am
Does anyone really believe ComEd has all those high-priced lobsters and lawyers working this, and your bill will go down?
Comment by wordslinger Thursday, Oct 20, 16 @ 11:14 am
The more I read about the Com-Ed plan structure, the stranger it sounds.
And we’re not talking about power pricing based on market prices when the power is used.
We’re talking about power delivery charges during certain times.
The power market fluctuates throughout the day. The cost of the power lines is the same at all times.
Is there something I’m missing?
Comment by m Thursday, Oct 20, 16 @ 11:22 am
==two-thirds would save money even if they don’t change current consumption patterns==
I hope they have a video of Scott Vogt saying this with a straight face.
Comment by Jocko Thursday, Oct 20, 16 @ 11:41 am
I have read about a power company in some other state that had a similar time of day pricing, but also gave customers one weekend “free day” per week. Free as in use all the electricity you want during a 24 hour free day at no cost whatsoever on the bill. If Comed would throw that in, they might get more support for their time of day proposal.
Comment by DuPage Thursday, Oct 20, 16 @ 11:42 am
I used to consult in rate regulation and never thought deregulating power generation made economic sense. At least then you had staff trained to evaluate proposals like these and Commissioners to decide based on legal principles.
Giving subsidies to unregulated businesses is the worst of both worlds. I would vote no.
Comment by Last Bull Moose Thursday, Oct 20, 16 @ 11:43 am
Word - maybe. Ameren also has an army of lobbyists and AG Madigan is pretty much dead set against SB 1585.
Comment by Team Sleep Thursday, Oct 20, 16 @ 11:44 am
“Vice President Scott Vogt emphasizes that two-thirds would save money even if they don’t change current consumption patterns.”
Two-thirds of the customers would save money if they don’t change the rates. That is a no brainer! Dear IL G.A., please do NOT pass this bill. Thank you
Comment by Mama retired Thursday, Oct 20, 16 @ 11:45 am
- m - Thursday, Oct 20, 16 @ 11:22 am: “Is there something I’m missing?”
Yes, corporate greed.
Comment by Anonymous Thursday, Oct 20, 16 @ 11:46 am
The ComEd say-so was fine for Jim Thompson.
Comment by Anonymous Thursday, Oct 20, 16 @ 11:53 am
When has ComEd ever lied to anyone? Oh, yeah, there was that one time; and also that time that …, and then there was when ComEd told the ICC…, and the time when ComEd …
Ok, forget I asked.
Comment by Nobody Sent Thursday, Oct 20, 16 @ 12:11 pm
m. Part of the plan is to shift demand so less generating capacity is needed. Baseload plants are designed to run flat out at all times. These have the lowest marginal costs but high capital costs. Mid cycle plants are designed to vary their output. Medium capital costs and medium marginal costs. Peaking units may only run 100 hours a year. These have low capital costs but higher marginal costs.
If you can use pricing to smooth out demand, the system can change and total costs reduced.
Comment by Last Bull Moose Thursday, Oct 20, 16 @ 12:15 pm
Ah Chapin Rose, ever the hypocrite. Now welfare for people, only big business.
I wonder if he wants the Excelon execs to take a drug test before they get their handout?
Comment by JS Mill Thursday, Oct 20, 16 @ 12:20 pm
“I wonder if he wants the Excelon execs to take a drug test before they get their handout?”
Well played.
I salute you.
Comment by Michelle Flaherty Thursday, Oct 20, 16 @ 12:55 pm
I hear Rose’s test came back positive for cheese fries.
Comment by wordslinger Thursday, Oct 20, 16 @ 12:59 pm
I think the best reason to keep the two nuclear plants open is for their carbon reduction potential. However, there seems to be quite a few moving parts (coal plant bailout, new electricity pricing structure, ratepayer subsidies, renewable energy incentives, etc.) to get a deal done to preserve the nukes. What we really need is a carbon fee or tax imposed at the national level that would properly value low emission energy resources like nuclear, renewables and energy efficiency. That’s not likely to happen anytime soon, so now we’re left with a diverse set of stakeholders trying to negotiate behind closed doors on a number of very sticky issues. It’s sure going to be hard to please everybody. I wonder which groups will get the short end of the stick.
Comment by Going nuclear Thursday, Oct 20, 16 @ 1:09 pm
===Democrats in the General Assembly find it ironic that they are being asked to save hundreds of union jobs in a Republican-held Senate district, while Rauner continues to do battle with public unions.===
As I see it, Rauner is doing battle with all unions, both public and private. A prime example is his recent push to get right to work zones across the state. Maybe his thinking is that it is better to loose these jobs, if they are union jobs, whatever the cost might be to the Illinois economy while creating non-union jobs. A union free Illinois appears to be one of his major goals.
Comment by Hit or Miss Thursday, Oct 20, 16 @ 1:21 pm
“Commonwealth Edison is pushing Illinois lawmakers to approve a dramatic change in electricity pricing…”
I would guess that in a few years Commonwealth Edison will seek permission to do dynamic load shedding of its customers. It is the logical next step and will save ComEd a substantial amount of money.
Comment by Small town taxpayer Thursday, Oct 20, 16 @ 1:35 pm
In 2015, Illinois generated 40% more electricity than it needed. 40% And we need to pass a multi-billion dollar subsidy why?
Comment by BEST Dave Thursday, Oct 20, 16 @ 2:35 pm
>A massive game of “chicken”
Trouble is, both Rauner and the four tops seem to be willing to drive Illinois right off the cliff. And I don’t mean just this issue.
Comment by Earnest Thursday, Oct 20, 16 @ 2:48 pm
@JSMILL
=I wonder if he wants the Excelon execs to take a drug test before they get their handout?=
Good idea. Along with that I’d love to see the Chicago Alderman and state legislators take a drug test before receiving their paychecks.
What’s the over/under on what percentage that would fail?LOL
Comment by Illinois bob Thursday, Oct 20, 16 @ 4:08 pm