{"id":19830,"date":"2019-12-20T09:30:13","date_gmt":"2019-12-20T14:30:13","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=19830"},"modified":"2019-12-20T10:38:42","modified_gmt":"2019-12-20T15:38:42","slug":"decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2019\/12\/20\/decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act\/","title":{"rendered":"Decision by federal regulators underscores urgency of passing Illinois\u2019 Clean Energy Jobs Act"},"content":{"rendered":"<p><a href=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2019\/12\/FERC_blog.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-19833\" src=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2019\/12\/FERC_blog-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2019\/12\/FERC_blog-300x200.jpg 300w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2019\/12\/FERC_blog-768x512.jpg 768w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2019\/12\/FERC_blog-1024x683.jpg 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>On <a href=\"https:\/\/blogs.edf.org\/energyexchange\/category\/ceja\/\">several occasions<\/a>, we have argued that Illinois leaders should act swiftly to adopt the Clean Energy Jobs Act. Now, we see renewed evidence that the legislation needs to be adopted quickly to defend Illinois customers from skyrocketing electricity prices and protect the environment from dangerous pollution. Indeed, the clock is ticking if Illinois leaders want to prevent such an outcome.<\/p>\n<p>After more than a year awaiting a decision, the Federal Energy Regulatory Commission today issued an <a href=\"https:\/\/elibrary-backup.ferc.gov\/idmws\/file_list.asp?document_id=14822906\">order<\/a> that pertains to PJM Interconnection\u2019s capacity market. This market was created to ensure there is enough power reserves in the region spanning portions of Illinois, 12 other states and the District of Columbia to maintain reliability during extreme weather or other unplanned events.<\/p>\n<p>Illinoisans may not realize it, but in addition paying for the energy they use, they also pay for power to be on standby for extreme events, like a polar vortex or heat wave. But they\u2019re about to pay a lot more under this new ruling from FERC \u2014 both in electricity bills and environmental health costs.<\/p>\n<p><!--more--><\/p>\n<p><strong>A big cost hike for customers<\/strong><\/p>\n<p>While actual electricity prices have been relatively low in recent years, \u201ccapacity\u201d has steadily grown as part of peoples\u2019 bills. According to the Illinois Commerce Commission, capacity now accounts for <a href=\"https:\/\/www.citizensutilityboard.org\/blog\/2019\/08\/19\/qa-the-biggest-consumer-battle-of-2019\/\">approximately one-fifth<\/a> of the supply charge on a customer\u2019s bill. In Northern Illinois, these capacity payments total $1.8 billion per year, in exchange for the promise that power plants will be available for the top five to 10 highest-use hours in a year.<\/p>\n<p>At an ICC hearing earlier this year, a representative of PJM <a href=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2019\/12\/06-26-19_Policy_Session.pdf\">admitted<\/a> that the grid operator\u2019s market design leads to far more capacity than they need \u2014 almost 75% more, an amount he called \u201cclowny.\u201d<\/p>\n<p>This decision will stunt new renewable growth, instead rewarding existing resources including fossil fuel plants in Illinois. Carbon-free resources that are deemed to benefit from state policies would have a hard time competing in this market.<\/p>\n<p>That\u2019s why this ruling was sought by big out-of-state corporations that own fossil fuel power plants. As the market stands now, it has become more difficult for these outdated plants to compete in the face of new technologies like solar and wind, which are becoming cheaper to build and operate.<\/p>\n<p>By prioritizing the capacity reserve of polluting energy, FERC\u2019s decision is expected to increase customer costs by $864 million, according to <a href=\"https:\/\/gridprogress.files.wordpress.com\/2019\/08\/consumer-impacts-of-ferc-interference-with-state-policies-an-analysis-of-the-pjm-region.pdf\">a report from Grid Strategies, LLC<\/a>. This is believed to be the largest electricity cost increase in state history.<\/p>\n<p><strong>Why is CEJA the right response?<\/strong><\/p>\n<p>Under the Clean Energy Jobs Act, the Illinois Power Agency \u2014 instead of PJM \u2014 would be empowered to conduct the state\u2019s capacity market auction.<\/p>\n<p>The IPA is well-positioned to carry out this role, as it already manages the power purchases of the state\u2019s biggest utilities and its mission includes protecting customers from unnecessary cost hikes. Reforming Illinois\u2019 capacity market in this way would give the state unprecedented control to decide which types of resources \u2014 including those that are carbon-free \u2014 best meet the needs of the state and ensure that northern Illinois customers save money.<\/p>\n<p>Action needs to be taken quickly. The next PJM auction is set for early 2020, making it essential that Illinois act immediately to avoid cost spikes and damage to our clean energy future.<\/p>\n<p>We are encouraged by Gov. Pritzker\u2019s <a href=\"https:\/\/www.nwherald.com\/2019\/11\/08\/clean-energy-bill-will-be-taken-up-next-year-pritzker-says\/az3jyr3\/\">recent comments<\/a> suggesting that energy legislation will be part of the coming year\u2019s agenda. We hope that he and lawmakers take note of the PJM decision and act without any further delay.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On several occasions, we have argued that Illinois leaders should act swiftly to adopt the Clean Energy Jobs Act. Now, we see renewed evidence that the legislation needs to be adopted quickly to defend Illinois customers from skyrocketing electricity prices and protect the environment from dangerous pollution. Indeed, the clock is ticking if Illinois leaders &#8230;<\/p>\n","protected":false},"author":115252,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[113415,42996,40302],"tags":[],"coauthors":[],"class_list":["post-19830","post","type-post","status-publish","format-standard","hentry","category-ceja","category-smart-power","category-illinois"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Decision by federal regulators underscores urgency of passing Illinois\u2019 Clean Energy Jobs Act - 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\/2019\/12\/20\/decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Decision by federal regulators underscores urgency of passing Illinois\u2019 Clean Energy Jobs Act - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"On several occasions, we have argued that Illinois leaders should act swiftly to adopt the Clean Energy Jobs Act. Now, we see renewed evidence that the legislation needs to be adopted quickly to defend Illinois customers from skyrocketing electricity prices and protect the environment from dangerous pollution. Indeed, the clock is ticking if Illinois leaders ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blogs.edf.org\/energyexchange\/2019\/12\/20\/decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act\/\" \/>\n<meta property=\"og:site_name\" content=\"Energy Exchange\" \/>\n<meta property=\"article:published_time\" content=\"2019-12-20T14:30:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-20T15:38:42+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2019\/12\/FERC_blog-300x200.jpg\" \/>\n<meta name=\"author\" content=\"Christie Hicks\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Christie Hicks\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/energyexchange\\\/2019\\\/12\\\/20\\\/decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/energyexchange\\\/2019\\\/12\\\/20\\\/decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act\\\/\"},\"author\":{\"name\":\"Christie Hicks\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/energyexchange\\\/#\\\/schema\\\/person\\\/03f609c16159e72258bab51b3b0329ca\"},\"headline\":\"Decision by federal regulators underscores urgency of passing Illinois\u2019 Clean Energy Jobs Act\",\"datePublished\":\"2019-12-20T14:30:13+00:00\",\"dateModified\":\"2019-12-20T15:38:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/energyexchange\\\/2019\\\/12\\\/20\\\/decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act\\\/\"},\"wordCount\":602,\"image\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/energyexchange\\\/2019\\\/12\\\/20\\\/decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/blogs.edf.org\\\/energyexchange\\\/wp-content\\\/blogs.dir\\\/38\\\/files\\\/2019\\\/12\\\/FERC_blog-300x200.jpg\",\"articleSection\":[\"CEJA\",\"Clean Energy\",\"Illinois\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/energyexchange\\\/2019\\\/12\\\/20\\\/decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act\\\/\",\"url\":\"https:\\\/\\\/blogs.edf.org\\\/energyexchange\\\/2019\\\/12\\\/20\\\/decision-by-federal-regulators-underscores-urgency-of-passing-illinois-clean-energy-jobs-act\\\/\",\"name\":\"Decision by federal regulators underscores urgency of passing Illinois\u2019 Clean Energy Jobs Act - 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