Transcript ComEd: Energy Industry Challenges and Responses

The Electric Utility:
Present and Future
Illinois Global Partnership Meeting
with the World Bank Energy
Mission
Chicago, IL
October 17, 2008
Fidel Marquez
Vice President
External Affairs & Large Customer
Services
The New Energy World
 The Gale Force Winds of Change in the U.S. Electric Industry:
 Change in business cycle
• Entering a cycle of “high capital investment”
• Time to build new generation
• Time to rebuild aging infrastructure
 Changing Economics
• Global demand driving energy prices and
costs to maintain, operate and build out infrastructure
 Changing Environment
• Increasing awareness of “Climate Change” and dawn of carbonconstrained economy
 Changing Customer Expectations
• Increased reliance on electricity; declining tolerance for interruptions
• Evolving demand for “individualized” solutions from “one-size-fits-all”
service model
• Evolving expectations around utility’s role in relation to its customers
The Industry must revitalize itself in an environment where global economic
dynamics, customer expectations, and environmental concerns are driving
prices higher but where economic pressures are reducing tolerance for
price increases.
2
Energy Efficiency Portfolio: The Value Proposition
 ComEd’s 3-year portfolio of energy efficiency
programs, approved by the Illinois
Commerce Commission
• Reduces energy consumption by 1.2
million MWh
 Energy needed to power 140,000 homes for
one year
• Reduces peak load by 330 MW
In a world where
climate change is real
and global forces are
impacting energy
prices, consumers are
in serious need of
information about
energy management.
 Eliminates the need for large peaker or single
unit coal plant
Consumers are looking
for opportunities to
• Reduces carbon
 Equivalent to removing 100,000 cars from the road reduce environmental
impacts as well as
• Saves customers a net $155 million after
lower their energy bills.
program costs
• Positions Illinois as a national leader
 Illinois will rank second among states for energy savings
 ComEd will rank third among utilities for energy savings
3
Energy Efficiency Programs - 2008
Residential
Residential Lighting

Discounts the cost of compact fluorescent
lamps (CFL) and makes them available
through retail stores.
Appliance Recycling

Offers customers cash incentives to turn-in
their working, second refrigerators and
freezers, as well as room air conditioners.
Multi-Family “All-Electric” Sweep

Utilizes approved contractors to direct-install
electricity-saving devices and select fixtures
in all-electric multi-family properties at no
charge.
Commercial
C&I Prescriptive

Menu of incentives for common C&I efficiency
measures (lighting technologies, motors and
HVAC units). Incentives are fixed and paid on
a per-unit basis.
C&I Custom

Offers custom incentives for more complex
measures, including industrial process
improvements.
C&I Retrocommissioning

Underwrites a portion of the cost of
retrocommissioning studies and
implementation of low-cost/no-cost energysaving measures by qualified commissioning
authorities.
Small C&I CFL Intro Kit

Offers small C&I customers (<100kW
demand) no-cost CFLs via a customer mail-in
postcard.
4
Customer Strategy: “Information Gateway”
 ComEd Website Redesign
• Outage Communication
- Interactive Map of Territory and Outage information
- Maintain current functionality of registered online users
o Report an Outage
o Check Status of Outage
- Improve Storm Restoration content
- Text Messaging and Mobile-enabled Reporting of functionality pilots
being explored
• Environmental Programs (information, tools and tips)
- Allow customers to learn more about and sign up for energy savings
programs – Nature First, Real-Time Pricing, Home Energy Audits, etc.
• E-Commerce Strategy
- Paperless Billing option
- Allow customer Pay Now, One Time Payment, Schedule Payments
- Online enrollment/subscription for programs – To Enroll/Un-Enroll
5
The Utility of the Future
The Utility of the Future
Smart Grid
6
PowerCo
1234
Home area network
•
•
•
Smart meter
“ Delivery automation ”
sensors and controls
Distributed
generation
Transmission
sensors and
automation
,
Data collection,
processing, and
back office
•
Automated• Metering Infrastructure (AMI) - Includes the installation
of
•
advanced meters that allow the utility to know instantly of a customer
outage and allow customers the tools to manage their bills.
Distribution Automation - Automation of electric system to allow for real time
outage detection and restoration.
Home Area Network (HAN) - In-home devices facilitate direct load control
and make customers aware of their energy consumption to encourage
conservation.
Smart Grid will enhance reliability and empower customers
to save money and reduce their impact on the environment.
7
Q&A