ComEd Announces Elmhurst Substation Expansion Project to Power Regional Economic Growth

Rhea-AI Summary

ComEd announces the expansion of its Elmhurst transmission substation to support future energy needs and increase electricity capacity growth in DuPage County and northern Illinois. The project, expected to be completed by December 2025, aims to enhance the region's power resiliency and enable future capacity upgrades for economic and business growth.

Insights

Energy Sector Analyst

The expansion of ComEd's 345 kV Elmhurst transmission substation is a significant development for the energy infrastructure in DuPage County and northern Illinois. From an energy sector perspective, this enhancement is a strategic move to address the increasing demand for electricity, which correlates with economic growth and urban development. By bolstering the transmission system's capacity, ComEd is not only ensuring the reliability of the current supply but is also positioning itself to handle anticipated growth. This is particularly relevant as the shift towards electric vehicles and renewable energy sources intensifies the load on local grids.

For investors and stakeholders, this project signals ComEd's commitment to long-term operational excellence and customer satisfaction. The ability to meet future energy needs is a critical factor in attracting businesses to the area, potentially leading to an uptick in economic activity. Additionally, the increased resilience of the transmission system could translate to fewer outages, which in turn could reduce operational costs related to power interruptions. While the capital expenditure for this project is substantial, the potential for enhanced service reliability and customer base expansion could offer a favorable return on investment over time.

Financial Analyst

Investments in utility infrastructure, such as the one being made by ComEd, often have a direct impact on the financial health of the company and its attractiveness to investors. The capital outlay required for the substation expansion is a critical figure that stakeholders should monitor. It is essential to balance the short-term financial burden with the projected long-term gains in efficiency, capacity and reliability. These factors can contribute to a more stable regulatory environment and potentially lead to favorable rate adjustments, benefiting ComEd's revenue stream.

Moreover, infrastructure improvements are usually seen as a positive indicator of a utility's growth prospects and financial stability. As such, this project could influence investor confidence and ComEd's stock market performance. The completion timeline extending to December 2025 means that the financial benefits may not be immediate, but the anticipation of growth could have a positive effect on the company's valuation in the interim.

Urban Development Expert

From an urban development standpoint, the expansion of the Elmhurst transmission substation is a proactive measure that aligns with broader regional planning initiatives. As cities and counties like DuPage continue to expand, there is a concurrent need for infrastructure that can support new businesses and residential areas. Reliable power is a cornerstone of modern urban development and ComEd's project can be seen as an enabler of future growth.

Investments in energy infrastructure can also have a multiplier effect on local economies. They often lead to job creation during the construction phase and can attract new businesses that require a stable energy supply. This can stimulate further investment in the region and contribute to a positive cycle of growth and development. In this context, the substation expansion is not just a utility upgrade but a foundational investment in the region's economic future.

Upgrades support future energy needs and electricity capacity growth for homes and businesses in DuPage County and northern Illinois

CHICAGO--(BUSINESS WIRE)-- ComEd today announced the expansion of its 345,000-volt (345 kV) Elmhurst transmission substation, a critical infrastructure investment that will prepare the region for future power needs and increase resiliency of the transmission system. Construction is now underway, with the project expected to be complete by December 2025. Investments to expand the substation will support continued dependability for existing customers and will allow for future capacity upgrades to be made to foster continued economic and business growth for the region.

“ComEd is proud to maintain and grow the most reliable grid in the country, which requires proactive planning to meet the future power needs of our customers,” said Mark Baranek, senior vice president technical services at ComEd. “Investments like the expansion of the Elmhurst substation will ensure the grid is primed to support local business growth for many years to come.”

This substation is one example of how ComEd is taking action to modernize the grid to support increasing demand as a result of the accelerated adoption of electric vehicles (EVs), residential heat pumps and solar deployments in Illinois. Following the upgrades to this substation, ComEd will be able to increase high-voltage transmission capacity in the region as demand continues to grow.

“Through all areas of its business, ComEd is looking at ways to prepare the grid for the future, and that includes looking at the potential for business growth in our communities,” said Greg Bedalov, president and CEO of Choose DuPage. “The expanded capabilities of this substation will continue to make DuPage County an attractive location for large, commercial and industrial businesses who depend on a reliable and resilient grid to maintain their operations.”

“This investment in critical infrastructure means DuPage County residents can now benefit from the increased resiliency of the transmission system and find their electric power is more reliable, especially during high-use periods and inclement weather. It’s important that these upgrades take place now, while also providing for future enhancements based on the residential and business needs of our community,” said DuPage County Board Chair, Deborah Conroy.

Engineering and design for this $93 million project began in 2023 and construction is currently underway. Construction of this substation is being completed by a diverse, local firm, Ruiz Construction Systems. Customers currently served by this substation will not experience interruptions in power delivery due to construction.

“We are proud to be part of the team advancing technology and connectivity for northern Illinois,” said Gonzalo Ruiz, CEO of Ruiz Construction Systems. “As a long-time partner of ComEd, we are excited to work on another innovative grid project.”

Upgrades from this project will support increased connectivity to neighboring substations in northern Illinois, increasing the overall resiliency of the system. By increasing the number of connective pathways from substation to substation, ComEd is hardening the high-voltage transmission system to perform better during severe weather.

This project builds on ComEd’s commitment to maintaining nation-leading grid reliability. Since beginning its smart grid investments in 2011, ComEd has helped customers avoid more than 22 million outages and save more than $3.8 billion in outage-related costs.

ComEd is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), a Fortune 250 energy company with approximately 10 million electricity and natural gas customers – the largest number of customers in the U.S. ComEd powers the lives of more than 4 million customers across northern Illinois, or 70 percent of the state's population. For more information visit ComEd.com, and connect with the company on Facebook, Instagram, LinkedIn, X, and YouTube.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240410533116/en/

ComEd Media Relations

312-394-3500

Source: ComEd

FAQ

What is ComEd expanding?

ComEd is expanding its 345,000-volt Elmhurst transmission substation.

When is the project expected to be completed?

The project is expected to be completed by December 2025.

What are the goals of the substation expansion project?

The goals include supporting future energy needs, increasing electricity capacity, enhancing power resiliency, and enabling economic and business growth.

Where is the focus of the expansion?

The expansion focuses on DuPage County and northern Illinois.