Can IL Utilities Offer Upgrade to Prevent Outages

Major utility companies in the state of Illinois want to update their electric system in order to prevent power outages during big storms. However, they are at odds with state authorities and therefore the plan may not move forward. For now, big storms often mean power outages in this state.

ComEd, the largest electric utility in the state, is pushing hard to get the updates approved. However, many authorities in the state say that ComEd is being too ambitious with its plan. The governor of Illinois, the utility regulators and various consumer advocates all say that although it’s a great idea to update the electric system, it’s not something that ComEd or neighboring utility company Ameren Illinois can actually afford to make happen.

It is no wonder that ComEd wants to make changes to prevent outages caused by storms. There have been ten large storms in their service area this year, leaving their customers without power for sometimes days at a time. The largest of the storms, which occurred on July 11, 2011, caused a loss of power for almost one million customers. Dealing with it led to a cost of $80 million.

What ComEd wants is a Smart Grid program. They are seeking the governor’s signature on Senate Bill 1652, a 10 year plan costing $2.5+ billion. So far, they are being met with resistance. The problem is that the cost would be passed on to customers. Although it has the potential to save customers money in the long run, authorities are concerned about placing the burden of upgrades on consumers rather than on the utility companies themselves. This is an ongoing battle.

Sources: http://online.wsj.com/article/SB10001424053111903885604576488512668810974.html, http://www.dailyherald.com/article/20110815/news/708159767/