Illinois Utility Boasts of Improved Reliability

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Amid recent concerns about tests to the nation's electric grid, Illinois utility company Commonwealth Edison (ComEd) (Chicago, Illinois) said its customers saw improved grid reliability relative to a year ago.

ComEd, part of Exelon Corporation (NYSE:EXC) (Chicago), services about 70% of the state's population, with some 4 million customers across the northern parts of Illinois alone. Over the first four months of the year, the company said power outages were down 13% from year-ago levels, and when outages did occur, customers saw a 72% reduction in duration.

"It wasn't long ago that residents needed to have a flashlight at the ready, because outages were expected," said David R. Perez, an executive vice president and chief operating officer at ComEd. "But ComEd's investments in grid modernization over the past decade have increased resiliency and improved overall reliability for northern Illinois residents and businesses--in fact, we were named the most reliable American utility last year."

The parent company, Exelon, said in its first quarter earnings report that it plans to make an additional $31.3 billion in capital expenditures over the 2023-26 period. Roughly two-thirds of that is slated for electric distribution projects.

Calvin Butler, the chief executive officer of Exelon, said the company was positioned to lead during the energy transition, while ensuring customers enjoy grid efficiencies.

"Our teams are focused on the things that matter to our customers: safety, reliability, sustainability and affordability, while ensuring our actions are grounded in taking an equitable and inclusive approach to the communities we serve," he said in the earnings presentation.

ComEd is expected to make about $11.1 billion in capital investments over the 2023-26 period, following 2022's investment of $2.5 billion. About 75% of each year's planned spending will go to electric distribution.

ComEd added Thursday that its track record has improved, "despite continued challenges facing the electric grid, including more severe weather as a result of climate change and increased demand from electric vehicles (EVs) and other electrified technologies."

Data centers, too, are expected to add novel strains to the grid in the long term. T5 Data Centers (Atlanta, Georgia) announced plans to develop a 160-acre site northwest of Chicago that would support up to 480 megawatts of IT capacity.

ComEd's announcement on efficiencies, meanwhile, follows a report from the North American Electric Reliability Corporation (NERC) that grids will face renewed tests this year.

"Weather services are expecting above-average summer temperatures across much of North America, potentially creating challenging summer grid conditions," NERC said.

Here in Texas, the Electric Reliability Council of Texas (ERCOT) can expect another year of complications. ERCOT saw peak demand of nearly 85,000 megawatts (MW) in mid-July, setting records for the operator.

With Texas relying more on renewable power sources, meanwhile, NERC warned the intermittent nature of wind and solar energy can create new challenges, such as meeting demand in the evening hours, when solar capacity ebbs.

Texas faces another significant challenge in the form of weather. CenterPoint Energy reported about 700,000 power outages after severe weather Thursday night left at least four people dead.

"There has been damage to several of our facilities in our Houston-area service territory," CenterPoint said.

A changing climate tends to make weather events more severe. Thursday night's weather triggered widespread tornado and severe thunderstorm warnings across much of the Houston metropolitan area. Wind gusts as strong as 100 miles per hour were reported.

Texas refineries have not been affected by the thunderstorms that struck Southeastern Texas on Thursday. Industrial Info continues to monitor refineries in the region closely and will provide further information as soon as it becomes available.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).