Chicago, ComEd reach energy and equity, franchise agreements in support of local climate action plan

Published on February 03, 2023 by Chris Galford


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The City of Chicago announces two major agreements with utility ComEd this week, committing them to an energy and equity agreement and a new franchise agreement that supports more equitable clean energy access, workforce development, clean transportation options, and more.

“I am proud to announce this nation-leading Franchise Agreement and Energy and Equity Agreement, which will ensure the ongoing reliability of our electricity grid and accelerate an equitable transition to clean, renewable energy in all 77 communities,” Mayor Lori Lightfoot said. “This is a big win for Chicago, as the agreement includes up to $120 million in ComEd shareholder funds to support local climate action projects, a commitment to train more than 10,000 Chicagoans for careers in the energy sector, and meaningful improvements in coordination and local accountability with the utility.”

That shareholder word is key – ComEd shareholder funds, not customers, will pay for the creation and support of a new non-profit entity known as the Clean Energy & Equity Collaborative that will invest up to $120 million in neighborhood clean and equitable energy initiatives. ComEd will also tap into state funding to place rooftop solar on up to 200 low-income homes in disadvantaged communities annually, up to as many as 4,000, at no cost to customers. Both efforts will promote the city’s efforts to become fully powered by clean, renewable energy by 2035 and help locals achieve an annual reduction in their electric bills.

“These agreements, which will work together, are a win-win for Chicago and its residents, as they will help advance the city’s Climate Action Plan and invest in an equitable transition to a cleaner, healthier energy future for Chicago’s families and businesses,” Gil Quiniones, CEO of ComEd, said. “ComEd greatly values our century-long partnership with the City of Chicago, and we look forward to continuing to provide Chicago and its residents with record-breaking reliability that supports equitable job creation and economic development.”

Other items in the arrangements include ComEd seeking approval to construct and operate a $32.5 million Clean Energy Training Hub on Chicago’s West side to train and re-skill 10,000 residents for careers at ComEd or other companies supporting the clean energy transition while also guaranteeing Chicago residents make up 35 percent of future classes at the CONSTRUCT Infrastructure Academy dedicated to the skilled trades, and investing $3.2 million into the Chicago Builds program at Chicago Public Schools to provide a path for students interested in pursuing construction after high school.

The company will also fill 35 percent of new entry-level field trades roles and 20 percent of new customer service roles with Chicago residents from equity investment eligible communities (EIEC) or socio-economically disadvantaged area (SEDA) communities. Further, ComEd established new local participation goals for total contract value for the design, construction, and/or rehab of ComEd utility facilities in Chicago and provided a path for the city to apply a local hiring requirement for the Clean Energy Training Hub and other large projects.

The development of a new Community Resiliency Hub is also on the table as a first-of-its-kind pilot promoting and studying new technologies that advance decarbonization. For this, ComEd will seek federal funding. It is not just carbon emissions that the agreements target, though, but also energy use and costs. As a result, ComEd will invest $24 million in energy efficiency weatherization strategies for single-family and multi-unit households.

Plans to work with internet service providers to provide greater, more affordable broadband access and to maintain reliability and value are also on the table. Along the way, both sides want to make sure that the voices of those impacted by these changes are heard, so a City-ComEd Coordination Council will be set up to improve their collaboration and communities on infrastructure issues, electrification coordination, funding resources, and more. Likewise, a community advisory panel will be established to gather community feedback and input on deploying clean energy and electrification projects.

These agreements will extend for a term of 15 years, plus the option of a five-year extension. They are subject to approval by the Chicago City Council and the boards of ComEd and Exelon.