Are Renewables Being Targeted In Illinois Despite Public Support?

By Frank Andorka, Senior Correspondent

The legislature giveth with one hand and seems poised to taketh away with the other hand from the Illinois renewable energy providers.

Despite a recent survey by CleanChoice Energy that shows 83% of Illinois residents want to have the choice of clean energy as an option to supply their homes and state-sponsored support under the Future Energy Jobs Act of 2016, action in the legislature later this week could diminish solar’s growth considerably if two amendments to SB 1531 are passed as part of the bill.

At issue is the idea of “automatic renewals,” a practice widely practiced by utilities to keep customers on board. For decades, this practice allowed customers to stay with utilities automatically unless they specifically sought to change their providers.

It keeps customer-acquisition costs low – renewals of existing customers are much less expensive than getting new customers. But an amendment to SB 1531 would end the practice for “alternatives suppliers” which, in the case of Illinois, means renewable energy providers.

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There are three significant problems that the amendment would engender in the renewable energy community:

Under the new rules, renewable energy providers appear to be singled out, meaning state-sponsored utility monopolies will not have to play under the same rules. This would have the actual effect of tilting the playing field in the direction of established utilities, who could make it easier for customers to stay with them through automatic renewals.

Renewable energy providers are operating on much tighter margins than state-sponsored utilities. Even if they were being forced to operate under the same rules, utilities have the financial wherewithal to absorb additional customer acquisition costs. Most renewable energy providers do not. Therefore, the playing field is again tilted in favor of the established providers and against newcomers like solar companies.

Finally, the new rules would clearly cause problems for the newly created community solar companies ready to take advantage of the promised state support under the Future Energy Jobs Act. One of the challenges community solar providers have is the necessity for long contracts (think 25-year PPAs as an example). That’s often a much longer commitment than most community solar customers want to make. To entice them, many community solar providers will shorten the commitment to one or two years, using automatic renewals as the way to get that longer-term commitment once customers decide they are satisfied with their service. If you remove automatic renewals from community solar installations, those companies are back to arguing over 25-year commitments and frustrated consumers throwing up their hands and sticking with their traditional utility providers.

Ultimately, this is an underhanded way for utilities to keep the field tilted in their direction, and it’s one solar advocates should work to stop.

We’ll be discussing this and other issues concerning the Illinois solar market at our upcoming SolarWakeup Live! event in Chicago on June 21. Tickets are going fast, so reserve your spot now.

More:

CleanChoice Energy poll finds majority of Illinois residents want clean energy option

Illinois OKs Long-Term Renewables Procurement Plan

By Frank Andorka, Senior Correspondent

What Happened:Yesterday, the Illinois Commerce Commission (ICC) approved the state’s Long-Term Resources Procurement Plan (also known as “The Plan”), an overarching roadmap for the state to reach 25% renewable energy by 2025.

The Long-Term Renewable Resources Procurement Plan arose out of the Future Energy Jobs Act of 2016.
“With the approval of this ambitious plan, Illinois takes another step toward becoming a national leader in affordable clean energy. A more diverse power portfolio, which includes wind and solar, makes the grid more stable and affordable.

SolarWakeup’s View: Now that’s what’s called vision.

As expected, the Illinois Commerce Commission approved the Long-Term Renewable Resources Procurement Plan (the Plan), bringing to fruition the vision of Illinois lawmakers that began two years ago when the state’s legislature, utilities and clean energy advocates pushed for the passage of the Future Energy Jobs Act.

What made the Illinois plan unusual was the widespread support it received across all segments of the energy economy in the state. While not unheard of (California’s utility/legislature/renewable-energy partnership is a prime example), the Illinois plan is unusual, especially in the Midwest. Decisions like this bode well for the future of solar in the middle of the country.

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As I wrote last week as passage moved closer:

As the Midwest has moved – often glacially – toward its own solar future, most observers have pegged Minnesota as the early leader that has stood clearly head and shoulders above all the other states in the region. But I believe that as the Plan moves forward that it won’t be long before Minnesota is looking over its shoulder to see Illinois quickly approaching.

One of my favorite Illinois renewables observers, Christie Hicks, manager, Clean Energy Regulatory Implementation for the Environmental Defense Fund, said the following on the ICC’s decision:

“Hundreds of millions of investment dollars will soon be flowing into developing clean wind and solar projects that will power Illinois homes and businesses. Not only is Illinois solidifying its place at the forefront of America’s clean energy economy, it’s showing other states how to provide equitable access to renewables.”

We’re pretty pumped about the approval here at SolarWakeup, too, because it will make our SolarWakeup Live! Chicago stop later this year even more intense. We plan on arriving in the Windy City when it’s a little warmer (see this summer; We’re coming to Chicago this summer) to break it this plan down for you and what it means for the future clean energy in the Land of Lincoln.

We can’t wait, so stay tuned – details coming soon.

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Illinois Is Coming For You, Minnesota

17-0838 Final Order

Illinois Is Coming For You, Minnesota

By Frank Andorka, Senior Correspondent

What Happened:Illinois is inching closer to finalizing its Long-Term Renewable Resources Procurement Plan next month as the Illinois Commerce Commission (ICC) begins its final deliberations.

Environmental Defense Fund (EDF) Manager for Clean Energy Regulatory Implementation Christie Hicks says could jumpstart renewable energy in the state.
The Long-Term Renewable Resources Procurement Plan arose out of the Future Energy Jobs Act of 2016.
Currently before the ICC, the final plan should be approved on April 3.

SolarWakeup’s View: When Illinois lawmakers, utilities and clean energy advocates joined forces in 2016 to sign the Future Energy Jobs Act into law, they knew the end goal – jump-starting the Land of Lincoln’s renewable energy industry – wasn’t going to arrive overnight. But now, two years into the process, an overarching roadmap for the state to reach 25% renewable energy by 2025 is slightly more than 10 days away from being finalized.

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Called the Long-Term Renewable Resources Procurement Plan, it is currently before the ICC – Illinois’ public utilities regulatory body – and is scheduled to be approved on April 3. “The Plan,” as it’s known among Illinois clean energy insiders, has been the result of two years of input from all involved stakeholders and is one that is almost universally supported.

Hicks does offer one small caution, however. In the final round of briefs in the case, a group known as the “Joint Solar Parties” (a coalition of trade organizations) called for changes to the lottery process by which projects are selected for pricing blocks in the Adjustable Block Program. They argued instead for guaranteed Block 2 pricing for all projects that submit within the initial 14-day opening of the Program, and reduced penalties for projects that receive “small subscriber” adders but fail to meet their small subscriber obligations. Hicks writes that these changes, if adopted, might put a damper on the Plan’s overall success, but she hopes the ICC has the wisdom to adopt the process suggested by the IPA.

As the Midwest has moved – often glacially – toward its own solar future, most observers have pegged Minnesota as the early leader that has stood clearly head and shoulders above all the other states in the region. But I believe that as the Plan moves forward that it won’t be long before Minnesota is looking over its shoulder to see Illinois quickly approaching.

This article was updated at 7:19 pm on 3/26/18 to add information to the paragraph describing Hicks’ cautionary note. We thank Hicks for the clarification

More:

Illinois is about to release its plan to kick-start new renewables. Here’s what you need to know.

Illinois Energy Bill Makes Progress – Demand Charges Are Dropped

Senate Bill 2814 introduced during the regular session came back during the latest special session with a new amendment, House Amendment 2. This amendment had multiple objectives but the primary one is a mechanism to keep two nuclear power plants in operation. The two plants, Clinton Power and Quad Cities, were announced to be closed on June1st 2017 and 2018, respectively.

The Zero Emission Standard is the vital part of the bill that Exelon has stated would allow the plants to remain in operation. The bill also includes a fix of the renewable portfolio standard and energy efficiency investments, both touted as a positive step forward by the environmental lobby.

Two sections of the amended SB 2814 are worrisome to the solar industry, the net metering changes and demand charges. The demand charge section is onerous in its complexity, it would render the ability for consumers to know how to use energy cost effectively impossible. At the same time, it would be increasingly difficult for solar installers to explain the potential savings to homeowners or business that want to invest in solar.

Yesterday, the Governor’s Policy Advisor on Energy, Jason Heffley, found the demand rates to be “insane rates” and should be rejected. On a policy call, Representative Will Guzzardi, who sits on the Energy Committee currently reviewing the bill, said that he would not be surprised that the bill would pass without dropping the demand charge language.

Today, Governor Rauner’s team met with officials from ComEd and Exelon to discuss the issue of the demand charges. Shortly after the meeting, ComEd announced that it was dropping the demand charge provisions from the bill. The nuclear power plants, the company stated, will stay open for at least another decade.

In a statement from TASC spokesperson, Amy Heart said about the agreement, “There may still be important tweaks needed to the bill, including ensuring a full stakeholder process at the Commission when the 5% net metering cap is reached to guarantee a fair valuation of the benefits of rooftop solar, ensuring distributed solar can continue to thrive, creating job opportunities and improving Illinois’ environment.”

By Yann Brandt, November 22nd, Updated 10:07pm