ComEd’s Much-Watched Bronzeville Microgrid Wins Key Backing

Chicago’s much-watched Bronzeville microgrid has scored a key win with an administrative law judge recommending that state regulators okay the Commonwealth Edison project.

Countering objections from the state attorney general, Administrative Law Judge Jessica Cardoni found the plant to be “prudent and reasonable” in a proposed order filed with the Illinois Commerce Commission last week.

The recommendation comes as the microgrid industry awaits a February 28 vote by the commission on one of the largest and most sophisticated utility microgrid projects planned in the U.S. (Case 17-0331).

Ken Horne, energy director for Navigant Consulting, described the administrative law judge’s recommendation as “a big step forward for the industry and a further sign of warming interest toward microgrids as a possible better mousetrap for serving customer distribution needs.”

The Exelon subsidiary seeks cost recovery to build the $29.6 million demonstration microgrid, designed to advance understanding of how microgrids can improve customer service.

The Bronzeville microgrid has captured industry attention as a test case both in terms of technology and regulation.

First, ComEd plans to demonstrate the practice of microgrid clustering – connecting one microgrid to another – a cutting edge approach expected to take hold as more microgrids are developed.

In addition, the proceeding grapples with issues surrounding the utility role in microgrid development, which is largely still undefined in the United States and open to controversy. At issue is who pays for utility microgrids and what part the competitive market plays in their development.

The attorney general’s office opposes ComEd’s plan to recover the Bronzeville microgrid’s costs — $25 million after federal grants are applied. The utility wants to spread the costs among the its 3.9 million customers. The attorney general argues it is unfair for all customers to pay for the microgrid, saying the facility will only directly service 1,060 customers.

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But the administrative law judge disagreed, arguing that lessons learned from the test microgrid will benefit all of ComEd’s 3.9 million customers, as well as others in Illinois and across the country.”

Information derived from the Bronzeville microgrid “will benefit every customer that takes electric delivery service in an increasingly complicated distribution-system environment,” Cardoni wrote.

Warming toward Bronzeville microgrid

The proceeding has drawn the attention of a range of energy players, who have weighed in before the commission. Some who argued against the Bronzeville microgrid early in the proceeding have since softened their position based on modifications to the plan made by ComEd.

The Environmental Defense Fund and Citizens Utility Board, an Illinois consumer group, are among those who now back the Bronzeville microgrid. The two organizations withdrew objections after ComEd agreed to work with them during Bronzeville’s second phase to develop a pilot tariff for microgrid services. The tariff would allow non-utility third parties to develop and manage microgrids.

ComEd also won their backing after prioritizing the project’s study of renewable integration onto the distribution grid.

The Illinois Competitive Energy Association, which represents competitive retail suppliers, also said it can support the project if the utility adopts certain competitive bidding and procurement procedures. Among other things, the association wants the utility to treat energy storage as it would generation – bidding for it competitively and allowing third party ownership.

Because Illinois is a restructured state, limits exist on the utility’s ability to own generation. In keeping with restructuring rules, ComEd has agreed to go out to bid for the microgrid’s distributed energy and allow it to be owned by a third party. If the utility receives no bids, or they are too high, it will lease the generation assets.

The utility opposes the idea of allowing a third party to own energy storage, arguing that the batteries will act as an integrated device on the distribution grid that it must control.  Cardoni upheld ComEd’s position in the proposed order.

The Bronzeville microgrid still faces push back from the staff of the commission, which objects to its size and recommends a smaller scale demonstration that would reduce the price by $12.3 million.

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