{"id":13588,"date":"2017-07-25T09:44:25","date_gmt":"2017-07-25T13:44:25","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=13588"},"modified":"2017-07-26T14:19:59","modified_gmt":"2017-07-26T18:19:59","slug":"a-tale-of-two-utilities-one-illinois-power-provider-looks-ahead-while-the-other-wont-budge","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2017\/07\/25\/a-tale-of-two-utilities-one-illinois-power-provider-looks-ahead-while-the-other-wont-budge\/","title":{"rendered":"UPDATE: A tale of two utilities: One Illinois power provider looks ahead, while the other won\u2019t budge"},"content":{"rendered":"

\"TaleOfTwo\"Energy Exchange published an original version of this post in July 2016. This post updates the original to reflect recent developments in Illinois.<\/em><\/p>\n

As a utility executive, it is the best of times, it is the worst of times. It is the age of innovation, it is the age of stagnant tradition. With a nod to Charles Dickens, it is the epoch of environmental improvement, it is the epoch of continued pollution.<\/p>\n

Perhaps no state better represents those extremes than Illinois, where Commonwealth Edison (ComEd) in the north is considering new business models and embracing greenhouse-gas reductions, while Ameren in the south is rejecting change and virtually anything related to clean energy.<\/p>\n

<\/p>\n

Consider energy efficiency. ComEd\u00a0recently celebrated<\/a> $2.5 billion in customer savings as a result of efficiency, and will invest $350 million each year for the next four years in energy efficiency programs.\u00a0Ameren on the other hand, is trying to get out of<\/a> the efficiency targets it agreed to as part of the Future Energy Jobs Act<\/a>. The historic bipartisan legislation included provisions to double Illinois\u2019 energy efficiency portfolio, meaning the state\u2019s two largest utilities \u2013 ComEd and Ameren \u2013 would significantly up their efficiency efforts.<\/p>\n

Yet Ameren is trying to go back on its word and asking the Illinois Commerce Commission to break the Future Energy Jobs Act agreement. The utility recently filed a proposal<\/a> that would fall short of the legislation\u2019s energy efficiency savings goals \u2013 by 27 percent \u2013 for the next four years.<\/p>\n

Rejecting efficiency is not just an affront to the lungs of Ameren\u2019s customers \u2013 since cutting energy waste reduces the need to burn dirty coal \u2013 it also drains the pocketbooks of the southern Illinois utility\u2019s customers, because efficiency is by far\u00a0the cheapest<\/a>\u00a0means to ensure reliable electricity.<\/p>\n

[Tweet “One Illinois Power Provider Looks Ahead, while the Other Won\u2019t Budge”]<\/p>\n

 <\/p>\n

Consider, moreover, the calculation of greenhouse-gas reductions. ComEd has adopted an EDF-CUB\u00a0metric<\/a>\u00a0for evaluating how utility investments reduce pollution. Ameren\u00a0wants<\/a>\u00a0to delay its adoption.<\/p>\n

Rejecting performance metrics is also an affront to basic business economics, which maintains companies should be rewarded relative to how they reach their goals. Rebuffing measurements harms Ameren\u2019s customers, too, who must continue to buy power from the utility without any guarantee the company will reduce pollution.

The introduction and rapid advance of new technologies\u00a0offers enormous opportunities to increase and improve energy services.\u00a0<\/p>\n<\/div><\/p>\n

The introduction and rapid advance of new technologies \u2013 including sophisticated\u00a0sensors<\/a>, smart electric meters, and advanced communications \u2013 offers enormous opportunities to increase and improve energy services. ComEd feels these innovations require changes to the utility business model, which for the past several decades featured risk-averse and inefficient monopolies. The northern Illinois firm\u00a0sees the potential<\/a> for moving from a pipeline business \u2013 which simply pushes electrons through its wires \u2013 to a dynamic platform, which would profit by enabling entrepreneurs and others to help supply both power and new amenities.<\/p>\n

Ameren, in contrast, seems trapped in the past, hoping it can ignore new technologies, as well as new economics that favor efficiency and clean energy. Such a backward-focused approach may be more comfortable for executives who are accustomed to guaranteed profits, but it will ultimately hurt the utility as new firms invest in innovation and customers adopt efficiency and distributed energy resources.<\/p>\n

The power sector is changing. No doubt EDF will continue pushing ComEd to be more aggressive in its clean energy efforts, but in the meantime, we\u2019re happy to see the utility embracing energy efficiency and emerging energy technologies. Ameren executives, in contrast, hope they can ignore the desires of their customers, the needs of the environment, and the challenges of new competitors. While no one claims to know with certainty what the future holds, one Illinois utility is willing to look forward; the other is stuck in the status quo.<\/p>\n","protected":false},"excerpt":{"rendered":"

Energy Exchange published an original version of this post in July 2016. This post updates the original to reflect recent developments in Illinois. As a utility executive, it is the best of times, it is the worst of times. It is the age of innovation, it is the age of stagnant tradition. With a nod …<\/p>\n","protected":false},"author":39893,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[254,27600],"tags":[],"coauthors":[],"class_list":["post-13588","post","type-post","status-publish","format-standard","hentry","category-energy-efficiency","category-utilities"],"acf":[],"yoast_head":"\nUPDATE: A tale of two utilities: One Illinois power provider looks ahead, while the other won\u2019t budge - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2017\/07\/25\/a-tale-of-two-utilities-one-illinois-power-provider-looks-ahead-while-the-other-wont-budge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UPDATE: A tale of two utilities: One Illinois power provider looks ahead, while the other won\u2019t budge - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"Energy Exchange published an original version of this post in July 2016. 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