POWER BRIEF

Legislative Newsletter

August 2024

A monthly roundup of news and top highlights from the Illinois Power Agency

Attention mobile users: For best experience, rotate device to landscape mode.

TOP INSIGHTS & HIGHLIGHTS

PJM Capacity Auction Price Increase to Impact ComEd Customers Across 2025-2026

On July 30, PJM — the Regional Transmission Organization that manages the electric grid for ComEd and many east coast states – announced the results of its capacity auction for the 2025-26 delivery year. The auction produced a price of $269.92/MW-day for most of PJM’s footprint including the ComEd zone, a result over nine times higher than the 2024-25 delivery year’s capacity price of $28.92/MW-day. Capacity is an energy product that helps ensure that generation resources are available at times of high electric demand.

PJM has stated that the price increase is the result of many generator retirements, an increase in projected peak load, and implementation of Federal Energy Regulatory Commission-approved market reforms, including improved reliability risk modeling for extreme weather and resource accreditation that more accurately values each resource’s contribution to reliability.

This record high-capacity price will have implications for ComEd ratepayers starting in June 2025. The IPA estimates a $9.50 monthly bill increase for the average residential customer taking default service electricity supply from ComEd. The impact on customers served by Alternative Retail Electric Suppliers, including those participating in municipal aggregation programs, may differ depending on their rate plans.

The impact of the spike in capacity price on Illinoisans could have been more significant without the state’s Carbon Mitigation Credit program, and it will be felt more by residential customers in other states in PJM’s territory. The development of an IPA-administered Carbon Mitigation Credit (CMC) procurement process was a core component of the 2021 Illinois’ Climate and Equitable Jobs Act (CEJA) to help keep several at-risk nuclear plants online and has served to help offset any wholesale energy and capacity price increases across the last two years. The CMC price starting in June 2025 will be reduced due to higher capacity prices, thus likely resulting in a negative CMC price and a credit on ComEd customer bills. This reduction will not fully offset PJM’s capacity price increase, but the IPA estimates that the average residential monthly electric bill increase would have been $4.35 per month higher if the CMC program did not exist.

In recognition of this capacity price increase, the IPA is exploring the possibility of hedging capacity for ComEd to help manage price volatility and create price stability for ComEd eligible retail customers. Through the IPA's draft 2025 Electricity Procurement Plan (released for public comment on August 15), the Agency is soliciting stakeholder feedback to determine what options exist for hedging capacity for ComEd in advance of future PJM capacity auctions.

IPA Releases Equity Accountability System Assessment Part I

On August 16, the IPA released Part I of its Equity Accountability System (EAS) Assessment evaluating the effectiveness of statutory EAS provisions in promoting equity across the clean energy economy. Introduced into Illinois law through CEJA in 2021, the EAS works to ensure that new opportunities created by the growing clean energy economy are equitable and accessible to all. Through the EAS, the Agency is empowered to adhere to CEJA’s equity requirements and help historically underserved communities participate in and benefit from the growing clean energy economy in Illinois.

Components of the Equity Accountability System include the following:

A minimum equity standard (MES) applicable to the project workforce of companies participating in select IPA programs and procurements;

A dedicated category within Illinois Shines for solar projects submitted by Equity Eligible Contactors (EECs);

The availability of an advance of capital predating project development within the EEC category;

Bid selection preferences for utility-scale solar and wind projects committed to using a higher percentage of EECs in project construction; and

An online portal used to link clean energy companies to Equity Eligible Persons (EEPs).

Although some components of the EAS did not take effect until 2023, Illinois law requires that the IPA “publish a report evaluating the effectiveness of the equity actions point criteria” by Fall 2024, with that report delivered to the General Assembly, the Governor’s Office, and the Illinois Commerce Commission. The EAS Assessment is being released in two parts. The first part features a robust analysis of implementation of the EAS based on data collected through the Agency’s programs and procurements, stakeholder interviews, surveys and other feedback. The second part, scheduled to be released in late 2024, will provide more robust discussion of MES compliance, including compliance rates, waiver rates and related observations.

Part I of the EAS Assessment includes important information on the participation of Equity Eligible Persons and Equity Eligible Contractors in the growing clean energy economy in Illinois. The IPA invites you to review Part I of the Assessment here: Equity Accountability System (EAS) Assessment.

IPA Announces Grassroots Educators for Illinois Solar for All Program Year 2024-25

On August 8, Illinois Solar for All (ILSFA) announced a new cohort of Grassroots Educators for the 2024-25 Program Year. As trusted members of their communities, ILSFA Grassroots Educators engage and enlighten income-eligible and environmental justice residents throughout Illinois in education campaigns about the benefits of the ILSFA program. The following organizations were selected to serve as ILSFA Grassroots Educators for the 2024-25 Program Year:

A Just Harvest
Clean Community
Community Organizing and Family Issues (COFI)
Citizens Utility Board (CUB) Consumer Education Fund
El Valor
Faith in Place
Far South Community Development Corporation
Garfield Park Community Council (GPCC)
Kenwood Oakland Community Organization (KOCO)
Party Per Purpose
Plant Chicago

Illinois Solar for All Launches Revised and Improved Website

On August 8, the ILSFA program launched a revised and improved version of the ILSFA program website. The updated website makes it easier for residents, organizations and interested solar companies to learn about the program's benefits and how to participate. The website now features two distinct hubs, one for participants and another for interested solar companies, creating a tailored user experience for every visitor. In the coming weeks, the website will continue to feature new improvements and resources for participants and solar companies alike.

DID YOU KNOW?

The inaugural “IPA Summer School: Virtual Lunch and Learn for Legislators and Staff” series will wrap up in September with two sessions:

Session 3: "Advancing IPA's Equity Initiatives in the Clean Energy Transition" on Thursday, September 5, from 12:15-1 p.m.

Session 4: "IPA's Clean Energy Dashboard & Progress Toward State Clean Energy Goals" on Thursday, September 19, from 12:15-1 p.m.

Session 3 will highlight IPA-implemented equity mandates required by CEJA. It will cover the Equity Accountability System, Minimum Equity Standard, the Illinois Shines Equity Eligible Contractor category, and the Energy Workforce Equity Portal, which is designed to link clean energy companies with Equity Eligible Persons. Additionally, the session will discuss various equity initiatives the Agency has implemented to build an inclusive clean energy economy for underrepresented and underserved communities. The session will also provide an overview how ILSFA promotes equitable access to the benefits of solar energy for income-eligible and environmental justice communities.

Session 4 will discuss the IPA’s progress toward clean energy goals and highlight data visualizations from the Illinois Clean Energy Dashboard, a new data project designed to convey the story of renewable energy progress. Currently under development, the dashboard will highlight renewable energy growth in Illinois and bolster public understanding of how the IPA’s renewable energy programs and procurements support that growth. Upon its launch, the dashboard will serve as a critical tool for legislators, legislative staff and government entities in tracking progress toward clean energy goals.

Registration is required to attend these sessions. Please register in advance on the series webpage. Sessions will be recorded for future viewing. Registrants will also receive program materials to share with their constituents.

For questions or additional information, please email IPA Legislative Affairs Manager, Whitney Richardson, at Whitney.Richardson@illinois.gov.

For those who did not get a chance to attend the Session 2 of IPA Summer School: "Understanding how Consumer Protections for the IPA's Solar Incentive Programs Work” on August 15, the recording and presentation are now available on the IPA website.

In The Community

Illinois Shines and ILSFA Program Administrators Present at Peoria Solar Energy Contractor Clinic

On July 29, Program Administrators (Elevate and Energy Solutions) presented on Illinois Shines and ILSFA programs at the Peoria Solar Contractor Clinic. The event was attended by Approved Vendors and contractors in Peoria County and surrounding counties, the Illinois Department of Commerce and Economic Opportunity (DCEO), and the Minority Business Development Center (MBDC) at Illinois Central College. The event provided a platform to:

Educate current and potential contractors about Illinois Shines and ILSFA, covering program goals, participation requirements pathways for contractors;
Inform Approved Vendors participating in the IPA’s solar incentive programs and contractors about upcoming solar developments in Central Illinois;
Highlight DCEO grant opportunities;
Connect contractors to Approved Vendors and prime contractors, and
Connect contractors and Approved Vendors with eligible job trainees and job seekers.

IPA Director Presents at The Nature Conservancy’s Renewable Energy Market Standards Meeting

On August 6, IPA Director Brian Granahan presented at The Nature Conservancy’s Renewable Energy Market Standards Meeting. During the event, Brian discussed the IPA’s role in the state’s transition to an equitable energy future and highlighted various IPA initiatives to ensure an equitable, inclusive and just transition to renewable energy. During the presentation, Brian emphasized that the IPA’s commitment to equity is not merely a statutory obligation but a strategic priority that aims to transform the Illinois energy landscape in a way that benefits all Illinois residents.

The Agency thanks The Nature Conservancy for facilitating this important discussion on equity in the clean energy transition.

IPA Staff Joins Panels at Midcontinent Clean Energy Summit

Chandrika Mital (Second from right), IPA Renewable Finance Director, speaks on panel at Midcontinent Clean Energy in Indianapolis, IN.

Across August 20-21 in Indianapolis, IPA Director of Renewable Energy Finance Chandrika Mital spoke on a panel at the Midcontinent Clean Energy Summit, presented by Infocast. The panel, titled “Expanding Utility-Scale Solar & Wind,” highlighted transmission constraints for utility-scale renewable energy projects, including siting/permitting challenges, workforce limitations, and new policies that are changing the development outlook for the next few years.

Additionally, IPA Chief Legal Counsel Kelly Turner spoke on a panel titled “Expanding Community Solar & DERs.” The panel discussion focused on current regulations and incentives that are encouraging growth in community solar and other distributed energy resources, infrastructure expansions and incentive programs that are needed for continued growth of community solar and distributed generation in the MISO footprint, and more. The Summit also served as a forum for clean energy developers, corporate energy buyers, policymakers, consultants, utilities, Munis, and Co-ops to learn industry best practices and to connect with one another.

To learn more, please visit the Midcontinent Clean Energy Summit website.

Illinois Shines and ILSFA Program Administrators Table at Lake County Environmental Resource Fair

On August 24, the Illinois Shines and ILSFA teams attended the Lake County Environmental Resource Fair. The fair was held in Heron Creek Forest Preserve in Long Grove, and explored county, state and federal energy offset programs and hosted vendors and organizations in the environmental space. Presentations from Lake County Board Member Marah Altenberg, Congressman Mike Quigley and State Representative Nabeela Syed covered various environmental and clean energy initiatives.

IPA Staff Spotlight

Jenny Whidden

On August 1, Jenny Whidden joined the IPA as Media Relations Specialist.

Jenny will be responsible for broadening the media’s understanding of the Agency and its activities related to power procurement, expansion of renewable resources to support the State’s RPS, as well as equity and consumer protection initiatives. Previously, Jenny worked as a Climate Reporter for the Daily Herald and covered numerous stories in the climate sphere. In the past, Jenny has also worked as a state government reporter for the Chicago Tribune.

Ashley Butler and Katherine Ambrose

On August 1, Ashley Butler (top) and Katherine Ambrose (bottom) joined the IPA as Program Associates for ILSFA.

Ashley and Katherine will be responsible for supporting the ILSFA program’s day-to-day operations, facilitating and tracking projects related to ILSFA, among other duties. Before joining the IPA as ILSFA Program Associate, Katherine worked as an intern at the Agency, supporting the development of the Policy Study and technical reports. Ashley comes to the IPA with a background in energy efficiency and utility assistance for income-eligible Illinois residents.