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Energy-Efficiency Funds and Demand Response Programs, Illinois

Updated July 2007

What public-purpose-funded energy efficiency programs are available in my state?

Illinois' 1997 restructuring law provides a small amount of funding for energy-efficiency programs (approximately $3 million annually, statewide) through non-bypassable flat monthly charges on customer bills. The 10-year program, administered by the Illinois Department of Commerce and Economic Opportunity (DCEO), expired in 2007. Though no programs are currently available to federal facilities, the Illinois Commerce Commission is pursuing options for energy efficiency, renewable energy, and demand response programs to exist as part of the state's final step towards the deregulation of electricity, which took place beginning in January 2007.

As part of the restructuring settlement approved by the state legislature, Commonwealth Edison (ComEd) agreed to allocate $225 million (on a one-time basis) to a Clean Energy Trust Fund in order to support environmental initiatives, energy-efficiency programs, and renewable energy projects.

The trust fund is administered by the Illinois Clean Energy Community Foundation . Energy efficiency grants are available through the foundation, although these funds are primarily targeted toward local, hard-to-reach market segments. The grant programs involve an annual or semi-annual submission process.

What utility energy efficiency programs are available to me?

No utility energy efficiency programs are currently available to federal customers.

What load management/demand response options are available to me?

The PJM Interconnection (PJM), a regional transmission organization (RTO), offera two demand response programs.

  • The Emergency Load Response Program provides participants with a payment representing the marginal cost of power at the nearest hub on the PJM system (the locational marginal price, or "LMP") or $0.50/kWh, whichever is greater, for providing load reductions when notified by PJM of a system emergency. Compliance with any load reduction request is voluntary; no penalties are assessed if a participant decides not to provide a load reduction. Retail electricity customers may participate through any PJM Member (for example, their electricity provider) or directly, by registering as a Special Member with PJM.
  • The Economic Load Response Program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. As with the PJM emergency program, participation is fully voluntary. Program participants have the choice of two options: the Day-Ahead or Real-Time Option. In the Day-Ahead Option, participants submit load reduction bids (of at least 100 kW) into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices. In the Real-Time Option, participants can decide at any time to provide load curtailments (with one hour notice to PJM), and receive payment based on the real-time electricity price. Retail electricity customers can participate in the program through any existing PJM Member, such as their utility, a third-party electricity supplier, or a specialty "curtailment service provider" (CSP). Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both the emergency and economic programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation.

ComEd's Smart Returns Program provides a variety of load reduction opportunities.

  • The Voluntary Load Response Program (PDF 161 KB, 2 pp) pays customers for responding to individual load reduction requests with at least one hour notice. Participants are notified of the payment level in advance of each event and are guaranteed at least $0.25 per kWh for their reduced usage. The program is open to any customer in ComEd's service territory, although electricity customers of ComEd are eligible for greater incentives. To participate, a customer must be able to curtail at least 10 kW of peak load.
  • The Energy Cooperative Program (Rider 32) (PDF 91 KB, 2 pp) pays participants to provide load curtailments with at least one hour notice by ComEd, for up to 120 hours per year. In exchange, the participant is paid $35/kW at the end of the year, based on the average load reduction. ComEd will provide energy management software free of charge.
  • The Early Advantage Program (PDF 105 KB, 2 pp) is designed for customers who require more flexibility in the amount of advance notice, but who can provide load curtailments of at least 1 MW per event. The incentive level depends upon the program terms required by the participant.
  • The Alliance Program (Rider 30) (PDF 93 KB, 2 pp) is an interruptible program that provides customers with bill credits in exchange for committing to reduce to a firm power level at the request of ComEd.
  • The Capacity Based Load Response Rider (PDF 186 KB, 2 pp) allows customers to bid and receive payment for load reductions. Customers must commit to at least 100 kW per load response request, and can choose from two payment schedules and two notification periods (30 or 90 minutes).

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Ameren runs the Customer Energy Exchange program, which offers credit to commercial and industrial customers for voluntary reductions during peak hours. Credits range from $0.10-$1.20 per kWh reduced. To qualify for this program, customers must be able to reduce their load by at least 500 kW, and also must have an interval meter and a computer with a fax machine and internet access.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) website provides information on programs in Illinois that offer incentives for renewable distributed generation. These programs may be of interest to federal customers:

The Illinois Department of Commerce and Economic Opportunity offers both rebates and grants at various times to eligible customers via the Clean Energy Program. Currently, the following programs are being offered:

The Renewable Energy Resources Trust Fund targets solar photovoltaic and wind projects larger than 100kW, as well as solar thermal, biomass, and fuel cell projects.

Are there energy efficiency programs sponsored by state government?

For information on energy efficiency programs offered by the state, see the section on public purpose programs (above).

What additional opportunities are available to me?

Federal customers also have opportunities to pursue energy-efficiency projects with utilities (such as Ameren, ComEd, MidAmerican, Northern Illinois Gas, and People's Gas) that have area-wide contracts with GSA and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of each utility's participation.