The challenges facing CEJA
Thursday, Oct 24, 2019 - Posted by Rich Miller
* Tim Shelley at WGLT…
Four Central Illinois coal plants and a southern Illinois coal mine are slated to close by year’s end.
Environmental advocates say the Clean Energy Jobs Act would create new programs to help workers and communities impacted by the coal facility closures. And they say movement on the legislation is needed now.
Gov. J.B. Pritzker said earlier this month he does not expect action on the legislation during this year’s veto session.
But State Rep. Rita Mayfield (D-Waukegan) says that is unacceptable.
“We cannot hold this bill up while ComEd and Exelon work out their legal troubles. That is not fair to the citizens of the state of Illinois,” she said.
* But Steve Daniels points out a problem with their bill…
Exelon has pinned its hopes on the Illinois Clean Jobs Coalition, an organization made up of environmental and consumer groups that often opposed the big power company but became allies in pushing for the 2016 Future Energy Jobs Act. That law bailed out two Exelon nuclear plants while setting higher targets and providing more ratepayer money for renewable energy in Illinois.
That coalition now backs a bill that would have the state take over power-market functions in northern Illinois now performed by PJM Interconnection, which oversees markets in a multistate region from Chicago to Washington, D.C. Customers would pay more for power from carbon-free sources like nuclear plants and windmills, while buying less electricity in total than PJM does today. The measure would largely sideline the remaining coal-fired plants here and channel more money to Exelon’s nukes. Advocates say the bill wouldn’t raise overall rates.
If a bill benefits Exelon, it’s a no-go for the foreseeable future in Springfield.
* Todd Maisch with the Illinois Chamber…
In 2016, Illinois passed the Future Energy Jobs Act, requiring Illinois ratepayers to pay Exelon, a profitable company projected to make nearly $1 billion in Illinois over the next three years, to support two of its nuclear facilities. Because of these unnecessary subsidies, the capacity auction process has been distorted and federal energy regulators must now rethink the process in order to support competitive electricity costs and ensure state policy goals are respected.
There is a false narrative being promoted by the nuclear community and environmental advocates that uses a set of figures presented by an independent energy market monitor during this regulatory proceeding as the basis for saying electricity prices in Illinois will increase significantly. Those numbers are wildly mischaracterized and being used as fear-mongering to scare legislators and the public into rash decisions that will have costly consequences.
Proponents are not just conveniently ignoring the fact that, if either of the two proposed bills passes, electricity rates are guaranteed to increase, but they are actively saying the opposite.
Capacity charges account for 21 percent of your electricity bill. The capacity market reforms championed by Exelon would ultimately make Illinois acquire its own capacity, increasing those charges. As seen in other states, capacity charges would be double or more compared to what is acquired through the competitive market.
Take 21 percent of your bill and double it. That’s the size of the impact you can expect.
The enviros say rates will almost surely go up without their bill and they’ve pushed back hard against the Chamber’s analysis, claiming their bill would lower costs.
* The Clean Energy Jobs Act folks also say their bill would greatly benefit the solar and wind energy sector. But the actual alt-energy companies, particularly those involved with solar energy production, have their own bill. Let’s go back to Steve Daniels…
The nascent solar-energy industry says inaction could halt further development of solar farms in Illinois. Under the 2016 law, Illinois won’t have money to buy solar power next year, advocates say. Their proposals to free up cash for such purchases include limited fixes that wouldn’t raise rates for consumers and bigger changes that would.
Exelon stopped that bill from moving forward last spring (click here for a fact sheet). Instead, the company had its own bill and also supported the Clean Energy Jobs Act (click here for a fact sheet).
So, maybe the solution here is for the clean energy activists to craft a new package with the clean energy businesses without involving the nuclear-fueled and political hot potato Exelon.
If they don’t, then the governor isn’t going anywhere near their bill and I kinda doubt that Speaker Madigan will do something benefiting Exelon in these trying times. 60-30-1, folks.
- sulla - Thursday, Oct 24, 19 @ 3:20 pm:
FEJA’s renewable program was hugely successful. Our area saw dozens of behind-the-meter and community-scale solar projects come forward.
Wind and solar investment is uniquely suited to rural areas that have struggled to attract conventional economic development investment. These projects don’t require a large workforce and put a ton of money into local property tax coffers.
Hopefully Pritzker’s team recognizes the impact that this industry has downstate and supports legislation to make the adjustable block grant program piece of FEJA permanent.
- CEJA - Thursday, Oct 24, 19 @ 3:23 pm:
The Clean Energy Jobs Act guarantees that consumers will pay less for capacity, energy, RECs, and ZECs than they do now. It is hardwired in the bill. This is before the Trump administration jacks up capacity prices even more.
- CEJA - Thursday, Oct 24, 19 @ 3:29 pm:
Any bill that doesn’t include Illinois taking charge of its energy future through capacity market reform will be nothing but a large rate increase for consumers. We need a comprehensive bill that transitions affordably to 100% and CEJA is the only such bill.
- Annonin - Thursday, Oct 24, 19 @ 3:30 pm:
Let’s be clear energy bills will go up regardless.
January looks like a better time to thrash this all out
- Rich Miller - Thursday, Oct 24, 19 @ 3:53 pm:
=== CEJA is the only such bill===
Except the alt-energy industry doesn’t support it. Aside from Exelon, your backers are mostly activists, academics, etc. That’s fine. But the solar and wind industry should be included.
- Muddy Boots - Thursday, Oct 24, 19 @ 4:03 pm:
CEJA at 3:23: Perhaps the highest value of CapFax is the forum Rich provides for factual information to be shared with readers. To that end I have to rebut your comment at 3:23. The bill that was introduced actually significantly increases both costs and rates. Here’s the fact sheet from the CEJA website:
http://ilcleanjobs.org/wp-content/uploads/2019/10/7-17-DRAFT-SUMMARY-of-new-Amendment-to-Clean-Energy-Jobs-Act-2.pdf
There’s a carbon cap in the bill. Lots of goodies for the utilities in there on electric vehicles, gas efficiency programs etc, All that cost lots and lots of money. Bear in mind the gas companies oppose this bill.
To the bill and rate increases: Here’s the link from the CEJA website to the bill itself: http://ilcleanjobs.org/wp-content/uploads/2019/10/CEJA-7.10.19-v2-1.pdf
Anyone can scroll down to page 267, line 25 and see that rates are supposed to go down 5% in year one. But look there on page 268, line 1 and you’ll see that rates go up 1% every year thereafter. I’m no genius but that’s a rate increase every year and in year 6, we’re worse off than we started. Hmmmm, it’s no wonder why Exelon supports the Clean Jobs Coalition but why does CUB?
- illinoyed - Thursday, Oct 24, 19 @ 4:16 pm:
It’s hard to imagine what ComEd/Exelon promised the environmental community to make them carry water for another utility payday and shun their natural allies in the renewables biz. But hopefully all the federal investigations will make them rethink those alliances.
- Ok - Thursday, Oct 24, 19 @ 4:17 pm:
Rich,
I think a big part of the problem is that this mostly a fight amongst billion dollar companies.
Exelon fears losing out of capacity market payments if no bill passes.
NRG stands to gain hundreds of millions of dollars a year if no bill passes.
Vistra stands to continue to lose money if no bill passes.
The handful of billion-dollar solar/wind companies pushing their own bill stand to make more money if any bill passes. The problem is that those companies also own gas plants that stand to make a lot more money if no bill passes.
Maybe let’s not be so quick to turn it over to the billionaires so fast, Rich?
- CEJA - Thursday, Oct 24, 19 @ 4:17 pm:
We agree the renewable energy industry should be included. Our bill provides extensive funding for new renewables. But capacity market reform frees up money to pay for investments in renewables and EVs. Everything else is pure cost. Also: we have 31 sponsors in the senate and 58 in the house.
- Ok - Thursday, Oct 24, 19 @ 4:20 pm:
It’s also hard to ignore the fact that the “alt-energy” companies campaign is being led by people who formed the coal-funded front group against FEJA.
- DD - Thursday, Oct 24, 19 @ 4:41 pm:
“Our bill provides extensive funding for new renewables.”
Nobody in the renewable industry believes that. That’s why none of them on your bill. That’s Rich’s point. Exelon loves it because it bails out nukes. ComEd loves it because it increases demand through electrification. But the industry that will provide the clean energy jobs? Nope. They know CEJA won’t actually result in any non-Exelon clean energy development in Illinois.
- Ha - Thursday, Oct 24, 19 @ 4:42 pm:
Muddy you may want to work on your reading comprehension. You cluck.
- OK? - Thursday, Oct 24, 19 @ 4:44 pm:
OK, The renewable or “alt-energy” companies behind the Path to 100 legislation are listed here, they seem to be big fans of FEJA. Which ones are coal funded? https://www.pathto100.net/supporters
- DD - Thursday, Oct 24, 19 @ 4:45 pm:
CEJA,
Ever wonder why Exelon is so fully behind your bill? Todd Maisch put it best:
“No matter what you call them, these bills both would benefit Exelon…”
Yup.
- DD - Thursday, Oct 24, 19 @ 4:47 pm:
“Which ones are coal funded?”
They’re all renewable energy companies and associations so I have no idea what you’re talking about.
- Okkkkkaaayyyyy - Thursday, Oct 24, 19 @ 4:49 pm:
Actually, NRG has a bill that would require competitive bidding for a clean energy credit. All analyses show that it would be significantly cheaper than anything proposed by any other party. Why do you think all the other parties oppose it?
Lots of public concern by Exelon, clean jobs coalition, and CUB about costs but they all oppose the lowest cost bill. Why is that?
- Going nuclear - Thursday, Oct 24, 19 @ 4:52 pm:
While Governor Pritzker sorts out the various energy bills pending in the legislature, maybe he can tell us what he plans to do to curb greenhouse gas emissions in the state. It’s almost been a year since he signed an executive order entering Illinois in the U.S. Climate Alliance. Other states in this alliance have announced new policies and plans aimed at mitigating and adapting to climate change. Where’s your plan Governor?
- JS Mill - Thursday, Oct 24, 19 @ 4:57 pm:
The last bill apparently allowed Vistra to close their cleanest plants. This will hurt rural areas in a big way.
- Ok - Thursday, Oct 24, 19 @ 4:58 pm:
“They’re all renewable energy companies and associations so I have no idea what you’re talking about.”
You know exactly who I am talking about.
- CEJA - Thursday, Oct 24, 19 @ 5:02 pm:
The NRG bill funnels hundreds of millions of dollars a year to Exelon (and itself). It transfers this money from the RPS and energy efficiency. And it does nothing to rebut the trump administration’s attack on consumers and clean energy
- CEJA - Thursday, Oct 24, 19 @ 5:07 pm:
As currently drafted the alt-energy company bill is at least a $600 million a year rate hike, and it has numerous provisions that benefit ComEd. It also does nothing to prevent the Trump administration’s attack on clean energy and consumers. CEJA is the only comprehensive bill that protects pocketbooks avx the planet. Which is why we have 31 sponsors in the senate and 58 in the house
- Senator Clay Davis - Thursday, Oct 24, 19 @ 5:14 pm:
==it has numerous provisions that benefit ComEd==
Yeah? Like what?
- DD - Thursday, Oct 24, 19 @ 5:19 pm:
CEJA,
You are flat out wrong about the Path to 100 bill. As Clay Davis said, what provisions benefit ComEd?
- Jake99 - Thursday, Oct 24, 19 @ 5:21 pm:
The same guy who led BEST and tried to scare everyone about the price hikes now leads the Path to 100 and wants our money? You can’t make this stuff up ..
- CEJA - Thursday, Oct 24, 19 @ 5:24 pm:
All you have to do is read it carefully. There is a reason it was combined with the formula rate extension bill in the spring.
- Senator Clay Davis - Thursday, Oct 24, 19 @ 5:26 pm:
==There is a reason it was combined with the formula rate extension bill in the spring.==
It wasn’t. That didnt happen. You might want to get more informed before you comment on behalf of the CEJA group.
- Okkkkkaaayyyyy - Thursday, Oct 24, 19 @ 5:40 pm:
CEJA: you’ve really got to read your bill. You are completely incorrect on a factual basis. It’s embarrassing. ComEd has a fiduciary duty to their shareholders to pass legislation that increases their revenue. They cannot support legislation that reduces their revenue. The idea that rates would go down is laughable.
- DD - Thursday, Oct 24, 19 @ 5:43 pm:
“The same guy who led BEST and tried to scare everyone about the price hikes now leads the Path to 100 and wants our money?”
Yea, you’re right. It’s not at all about the dozens of companies that employ thousands of people in the Illinois renewable energy industry. Just where exactly do you think those clean energy jobs are coming from if not from all the companies that make up the Path to 100 coalition? Good grief.
- Okkkkkaaayyyyy - Thursday, Oct 24, 19 @ 5:49 pm:
CEJA again: now you are saying that the path to 100 bill has been combined with the utility formula rate bill????? That’s completely wrong. What is with these falsehoods that can be fact checked in 30 seconds on the legislature’s website?
- Jake99 - Thursday, Oct 24, 19 @ 5:54 pm:
My problem is not with the companies that make up the Path to 100 - it’s with a person who pretends to care about our wallets one moment and not the next. Pretty simple.
- DD - Thursday, Oct 24, 19 @ 6:10 pm:
Well Jake, the Path to 100 contains the same energy efficiency rate caps that were in FEJA. I’m sure you objected to those as well.
- Jake99 - Thursday, Oct 24, 19 @ 6:20 pm:
I think that is a better question for the person who headed BEST and now Path to 100 - he was the one against FEJA.
- JJ33 - Thursday, Oct 24, 19 @ 7:18 pm:
“All those clean energy jobs…”
Do you mean the handful of TEMPORARY jobs that come along with building wind/solar farms? Which the. Trend down to a very small handful that maintain such farms. I firmly support wind/solar along with nuclear for clean energy, but don’t mislead people saying things that suggest those industries employ a large amount of long term local jobs.
- JJ33 - Thursday, Oct 24, 19 @ 7:20 pm:
So is the person who is leading the Path to 100 bill simply someone who had a vendetta against Exelon since they “lost” the last fight against them and the FEJA? I mean that guy supported natural gas and coal then, but now he supports wind and solar? I’m confused…..
- Roads Scholar - Thursday, Oct 24, 19 @ 7:21 pm:
I have no dog in this fight but . . . CEJA folks could stand to listen to Rich. FEJA broke through because enviros reached accord with long-time foes ComEd/Exelon. They’re going to stall out again for a few terms because they can’t reach accord with folks who build solar panels?? It’s 60+30+1 but also getting to the floor for a vote.
- Roads Scholar - Thursday, Oct 24, 19 @ 7:45 pm:
CEJA and Pt100: the most exquisitely inside of inside baseball is precisely why FEJA happened in 2016 instead of, like, 2 years earlier. Listen to Rich.
- Jake99 - Thursday, Oct 24, 19 @ 7:49 pm:
JJ33 - sounds like he’s open to the highest bidder.
- DD - Thursday, Oct 24, 19 @ 7:53 pm:
Jake and JJ, you guys sound like the same person. Wonder what the IP address says.
- Jake99 - Thursday, Oct 24, 19 @ 8:39 pm:
DD - Now you are just trying to distract and avoid from the initial comment I made. You can’t handle a little disagreement? Why don’t you have Rich check .. I guess some people don’t like the ugly truth.
- Einstein - Thursday, Oct 24, 19 @ 9:16 pm:
FEJA happened because Governor Rauner needed a political win in the worst way and his staff bought the argument that they had put in place a rate cap, when in fact they had not. It was not a case of the GA loving nukes. It got 63 and 31 votes. Lots of revisionist history in the last couple years. Also FEJA was sold as the last time the nukes would need a bailout but here we are 3 years later with a new bailout bill fronted by enviro groups. The public isn’t stupid. We see what’s going on.
- Blue Dog Dem - Thursday, Oct 24, 19 @ 9:47 pm:
As I am sure that I am one of the few posters on this blog that paid for his own solar, the whole clean energy scam can join Sandoval in the slammer. Your lobbying efforts make me want to ….can solar completely.
- JJ33 - Friday, Oct 25, 19 @ 11:24 am:
Definitely not the same person. Like Jake said, Rich can check my IP address and prove it if he’d like. My questions were very much rhetorical and sarcastic. I would respect someone like the Path to 100 spokesperson more if they just admitted they were against Exelon instead of believing we are all just too ignorant to see it ourselves.