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Brad Klein

Advancing Clean Energy in Illinois: Milestone Grid Plans Approved

The ICC has laid the foundation for grid plans that will accelerate clean energy and enhance reliability while cutting unnecessary costs in Illinois.

The Illinois Commerce Commission approved ComEd & Ameren’s first grid plans under CEJA on Thursday, December 19. In a milestone order, the ICC laid the foundation for essential grid investments that will accelerate the clean energy transition and enhance reliability while cutting unnecessary costs.

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The order is consumer-focused, minimizing rate increases while providing essential investments to prepare Illinois’ grid for the clean energy transition and rising demand.

How Did We Get Here?

Regulatory cases function like court proceedings, allowing organizations to participate by “intervening” in the case. Once approved by the Illinois Commerce Commission (ICC), intervenors can submit testimony, cross-examine witnesses, and file legal documents to influence the case’s outcome.

ELPC intervened in this case in 2023, representing a coalition of environmental organizations known as the Joint Non-Governmental Organizations (JNGOs). The group provided key recommendations to the ICC to ensure the grid plans complied with the Climate and Equitable Jobs Act (CEJA) and Illinois’ goal of transitioning to 100% clean energy by 2050. The grid plans, the first developed under CEJA, were intended to lay the foundation for grid investments that will help Illinois achieve its clean energy and equity objectives.

In December 2023, the ICC delayed a ruling on the plans, instead directing ComEd and Ameren to revise and resubmit their grid plans within three months, citing insufficient proof that the plans were cost-effective. Both utilities collaborated with community members and advocacy groups, including ELPC and its partners, to improve the plans.

A year later, the ICC has approved the revised grid plans, which reflect years of collaboration among Illinois’ utilities, advocacy groups, regulators, and communities. These plans lay the foundation for a cleaner, more equitable energy future that puts the state on track to meet CEJA’s ambitious goals.

The revised plans reflect substantial cost reductions secured through advocacy and negotiations including ELPC’s and its partners. In total, the Commission approved $1.5 billion in investments for ComEd, cutting its proposed $2 billion in spending by 25%. It approved $83 million in investments for Ameren, cutting its proposed $333 million in spending by 75%.

What’s in the Plans?

The Commission’s orders adopt key recommendations from ELPC and the JNGOs, including the following priorities:

  • Affordability and cost-effectiveness improvements: The orders require both utilities to better evaluate cost-effectiveness in future grid plans and provide clearer evaluation of environmental, customer, and equity benefits. ComEd must first focus on upgrading its areas with the highest costs of operation. Ameren must improve its cost-effectiveness approach to give more details on how its investments affect reliability and fairness in its service area.
  • Connecting distributed energy resources (DERs) to the grid: The orders push both utilities to use systems that manage and optimize DERs like rooftop solar, batteries, electric vehicle (EV) chargers, and smart appliances. These distributed energy resource management systems (DERMS) help increase the grid’s hosting capacity, freeing up valuable space for more clean energy.
  • Peak-load reduction: The orders require ComEd to reduce peak load with demand response programs. Unlike previous metrics which emphasized capability of peak load reduction, ComEd must shift its emphasis to actual reductions of peak load. Ameren must work to develop a demand response pilot or program to reduce overloads and free up further grid capacity. Peak load reduction improves grid reliability and lowers consumer costs.
  • A Virtual Power Plant (VPP) and Community Solar + Storage (CS+S) program: The ICC directed both utilities to pursue these programs in order to reduce peak load and lower consumer costs. A Virtual Power Plant (VPP) is a network of decentralized, distributed energy resources (such as solar panels, batteries, and electric vehicles) that are connected and managed through software to act as a unified, flexible power source. VPPs can help balance supply and demand, reduce peak energy usage, and provide grid services more efficiently.
  • Equitable grid modernization: ELPC and its coalition partners led efforts to develop an equity benefits framework to ensure at least 40% of grid modernization benefits reach Equity Investment Eligible Communities (EIECs) as required by CEJA.
  • Improved data access: Both utilities will collaborate with the JNGOs to develop an integrated data platform. This platform will support the development of EV charging stations and DERs, including better estimating interconnection costs, and will improve energy demand prediction to ensure clean electricity is used efficiently across the grid.
  • Improved grid performance: Both utilities will work with the JNGOs on flexible interconnection, which streamlines the process for connecting new clean energy projects and improves grid performance. The order also approved programs by ComEd to upgrade their transmission and distribution systems using advanced technologies like high-speed fiberoptic communication and control systems for DERs and other equipment. Thanks to JNGO advocacy, the cost of these upgrades was significantly reduced from ComEd’s initial $909 million proposal to $406 million.

What’s Next?

While we’re happy with the result of this plan, no plan is perfect, and this is just the first step. Looking ahead, there is still much work to be done. The next round of plans, expected in January 2026, will provide an opportunity to build on this foundation and address remaining gaps. It will take ongoing collaboration between regulators, utilities, advocates, and communities to ensure that Illinois stays on the right track.

Here’s what to expect:

  • Workshops on key programs: Future grid plan workshops will focus on critical topics like virtual power plants (VPP), community solar + storage (CS+S) programs, affordability, load forecasting, and co-location proposals. These discussions will help shape effective programs that reduce peak load and lower costs for consumers.
  • Data center analysis: Data centers were briefly addressed in this plan, but the Illinois Commerce Commission (ICC) directed both utilities to take a closer look at data center projects for compliance with state energy objectives in future plans. Workshops will also include discussions on co-location opportunities.

 

Brad Klein,

Managing Attorney

Brad Klein is a Senior Attorney working on accelerating renewable energy policies and development across the Midwest.

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