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POWER BRIEF
Legislative Newsletter
September 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 | |
IPA’s Electricity Procurements Deliver Lower Prices to Default Supply Customers |  | |
The Illinois Power Agency’s (IPA) electricity procurements, which secure power for ComEd and Ameren Illinois’ eligible retail customers, have been shown in a recent Illinois Commerce Commission (ICC) report to deliver lower prices to those customers. Eligible retail customers are the residential and small commercial customers who have not switched to an Alternative Retail Electric Supplier or to real-time pricing.
While state law allows energy consumers to choose where they get their electricity, eligible retail customers represent roughly 20% of the state’s electricity consumption, excluding municipal utilities and rural co-ops. As outlined in a July 2024 ICC report, the default supply rate achieved through IPA procurement events have saved eligible retail customers significant amounts on their electricity bills. From June 2023 through May 2024, alternative supply ComEd customers collectively paid $14.58 million more per month compared to default supply customers, and about 3 cents per kWh more than ComEd’s supply price. Ameren alternative supply customers paid $10.21 million more per month, according to the report, and 2.35 cents per kWh more than Ameren’s supply price.
These differences are the product of IPA’s procurement strategies, which procure power for each delivery through twice-annual procurement events over a three-year period, resulting in substantial savings for Illinois families and small businesses. Each year, the IPA develops an electricity procurement plan outlining these strategies and conducts competitive procurements for those customers based on that plan.
On September 12, the ICC approved the results of the IPA’s Fall 2024 block energy procurement. The procurement event brings block energy under contract to meet the supply requirements of residential and small commercial customers of ComEd and Ameren Illinois who have not elected to take service from a competitive supplier. The results of the event, in part, determine the supply charges that eligible retail customers pay through utility bills. The IPA’s preliminary analysis is that the Fall 2024 Block Energy Procurement will result in lower energy prices for eligible retail customers relative to results from prior procurement events. Additionally, when considering IPA’s 2023 and 2024 procurements on average, IPA’s electricity procurements have collectively resulted in lower electricity prices after the much higher prices in 2022, reflecting the ongoing stability of electricity markets after the volatility seen in 2022.
The Agency’s 2025 Draft Electricity Procurement Plan, which was filed with the ICC for approval on September 30, outlines the IPA’s approach to ensuring continued electricity service at the lowest total cost over time for Illinois’ default supply customers. ICC approval of that 2025 Plan is expected by December.
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IPA Requests Stakeholder Feedback on New Consumer Protection Initiatives | |
In alignment with the IPA’s commitment to consumer protection across Illinois’ growing solar industry, the Agency is requesting stakeholder feedback on three new consumer protection initiatives.
The Escrow Process will be used when necessary to ensure that customers who have been promised a portion of the Renewable Energy Credit (REC) incentive payment do in fact receive that promised payment through utilization of an escrow agent as a payee. This initiative answers a concern that has arisen in the context of Illinois Shines Distributed Generation customers, where some Approved Vendors have not passed through promised REC incentive payments.
The Stranded Customer REC Adder creates an economic incentive for Approved Vendors of the IPA’s solar incentive programs to take on “stranded” customers whose original solar company has stopped moving forward with their projects due to ceased or limited operations, or for other reasons, such as disciplinary action.
Lastly, the Restitution Program will provide economic assistance to customers who have been harmed through financially detrimental experiences with solar companies for projects participating in Illinois Shines or Illinois Solar for All.
While the majority of Illinoisans choosing to install solar projects at their homes or businesses have positive experiences, the IPA is dedicated to addressing issues as they arise within the state’s fast-evolving solar industry
The Agency is requesting that stakeholder feedback on all aspects of the proposals be submitted to IPA.Solar@illinois.gov with the subject “[Responder’s Name] – Stakeholder Feedback on CP Initiatives” by October 7, 2024.
| IPA Launches Dedicated Small and Emerging Business Hub | |
On September 26, the IPA launched a dedicated Small and Emerging Business Hub (Hub), with a goal to centralize industry-specific information to help small and emerging businesses navigate the clean energy sector successfully. The Hub serves as a tool for Illinois’s small and emerging business community to connect with targeted programs and resources that meet their needs in entering the clean energy economy.
The Hub, which resides on the Energy Workforce Equity Portal, streamlines new and existing resources to small and emerging businesses navigating the solar landscape in Illinois. This includes information on essential aspects of the IPA’s solar incentive programs, step-by-step guidance on becoming Approved Vendors with Illinois Shines and Illinois Solar for All, benefits of participation, financial incentives, and support services tailored to the needs of small and emerging businesses navigating the programs and their requirements. The Hub also features a wide range of local, state, and federal resources, including business planning, entrepreneurial development, grants and funding, workforce training and human resources, and more. Small and emerging businesses can leverage the Hub’s wide range of materials to help them start and grow their businesses.
“Achieving equity across the clean energy economy requires dedicated support for individuals and small business who may not have the same institutional experience as their larger counterparts,” said IPA Director Brian Granahan. “We hope that the IPA’s new Small and Emerging Business Hub gives those entities a helpful starting point in navigating business development and growth, thus allowing enhanced access to the clean energy economy for all.”
The Hub underscores the IPA DEI’s mission to strengthen and advance equity in the clean energy industry by increasing access to the growing clean energy economy for communities that have historically been excluded from opportunities within the energy sector.
To tour the Hub and read the full announcement, please visit the Energy Workforce Equity Portal.
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The inaugural “IPA Summer School: Virtual Lunch and Learn for Legislators and Staff” series wrapped up on September 19. The Agency hosted four webinars designed to increase the Illinois legislative community's visibility into IPA-administered solar incentive programs, consumer protection and equity initiatives, and renewable energy development through data visualizations. Stakeholders can now view the recordings and decks for each session on the series webpage:
• Session 1: "Understanding the IPA's Solar Incentive Programs"
• Session 2: "How Consumer Protections for the IPA's Solar Incentive Programs Work"
• Session 3: "Advancing IPA's Equity Initiatives in the Clean Energy Transition"
• Session 4: "IPA's Clean Energy Dashboard & Progress Toward State Clean Energy Goals"
Towards the end of each session, registrants received targeted resources and educational materials for further learning and constituent communications. Those who did not attend these webinars, but are interested in receiving these resources, please email IPA Legislative Affairs Manager Whitney Richardson at Whitney.Richardson@illinois.gov.
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IPA Hosts Monthly Consumer Protection Working Group for Residents and Businesses | |
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On September 6, the Illinois Shines Program hosted a monthly Consumer Protection Working Group meeting.
The IPA is committed to consumer protection and works diligently to ensure positive experiences for Illinois residents and businesses interested in going solar. As part of that commitment, the Agency hosts these monthly meetings with a diverse set of stakeholders to create a more robust discussion around consumer protection issues. The feedback received helps inform the Agency’s strategies and decisions on a variety of consumer protection issues, including updates to Program requirements and developing new consumer education materials.
To learn about future meetings, please visit the Illinois Shines Consumer Protection page.
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Illinois Shines Team Attends Southwest Economic Development Summit | |
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On September 19, Illinois Shines Program Administrator Energy Solutions attended the Greater Southwest Development Corporation’s second annual Southwest Economic Development Summit. The event took place at Richard J. Daley College in Chicago and provided Program staff with a unique opportunity to join development discussions, breakout sessions, and informative panels with small and emerging businesses in and around Southwest Chicago. The Illinois Shines team networked with small and emerging businesses and answered questions from Equity Eligible Contractors navigating the clean energy sector.
For more information on the 2024 Southwest Economic Development Summit, please visit the Southwest Development Corporation’s website.
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IPA Staff Attend 2024 Ethics Officer Conference | |
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On September 25, IPA Chief Legal Counsel and Ethics Officer, Kelly Turner, and IPA Human Resources Manager, LaTisha Jude, attended the Illinois Executive Ethics Commission’s 2024 Ethics Officer Conference. Hosted in Springfield, this training educated Ethics Officers on their duties under the State Officials and Employees Ethics Act (Ethics Act). Additionally, this training provided resources and tips to help Ethics Officers serve as a resource to Agency employees. The Ethics Act directs state agencies like the IPA to designate one employee as an Ethics Officer who takes on a variety of responsibilities including maintaining “revolving door lists,” reviewing potential employee conflicts of interest, and much more.
The Agency thanks the Executive Ethics Commission for providing this conference.
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Jim Rouland
On October 1, Jim Rouland will join the IPA as the new Chief of the Planning and Procurement Bureau, managing all aspects of the Bureau. This includes overseeing the development, approval, and implementation of various procurement plans, managing the IPA’s solar incentive programs, and working with Program Administrators.
Jim joins the IPA with over 19 years of comprehensive experience in the energy sector, both in regulated and deregulated markets, with deep expertise in wholesale and retail energy procurement, renewable energy development, transmission and distribution rates, tariff development, and customer programs. A seasoned energy professional, Jim will play a pivotal role in the Agency’s vital work on electricity procurement and development, as well as its implementation of renewable energy programs and procurements to support the clean energy future of Illinois.
Jim’s extensive experience with energy planning & procurement, facilitating new renewable energy development, and managing clean energy programs will add significant value to the Agency’s renewable resources activities, including competitive procurements to support new utility-scale wind, utility-scale solar, and brownfield site solar project development.
Prior to joining the IPA, Jim was the Managing Consultant and Practice Area Lead for Daymark Energy Advisors. Before Daymark, Jim held various leadership positions at PPL Corporation, where he worked on strategic initiatives related to wholesale and retail electric procurement in the PJM market, alongside renewable energy-related work including across community solar project development, renewable portfolio standard implementation, and net metering policy.
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On September 3, the IPA welcomed Ella Johnson-McGowan and Hayley Wilburn to the Agency.
Ella joins the IPA as the Diversity, Equity, and Inclusion (DEI) Data Analytics Manager. In this role, Ella will expand the Energy Workforce Equity Portal and DEI Data Center, support the Equity Accountability System Assessment and the Racial Disparity Study, and develop a system to track internal DEI metrics.
Hayley joins the IPA as the Legal Fellow. During her fellowship, Hayley will support the Agency's Legal Bureau, conduct research, assist with the preparation of reports, produce energy-related white papers and presentations, and other assignments based upon Agency needs.
On September 16, Emma Sperry joined the Consumer Protection team within the IPA Legal Bureau as Associate Legal Counsel for Consumer Protection. In this role, Emma will work on a variety of consumer protection issues for the IPA’s solar incentive programs, including the development and implementation of the new consumer protection initiatives.
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