ComEd Customers Benefit from Improved Reliability in the First Four Months of 2024

Rhea-AI Summary

ComEd reported a 72% improvement in reliability for the first four months of 2024, compared to the same period in 2023. This improvement includes a 13% reduction in power outages and a significant decrease in outage duration.

Enhanced performance can be attributed to ongoing grid modernization efforts, including storm hardening, vegetation management, and cable replacement, all aimed at building resiliency.

ComEd's reliability gains have positively impacted northern Illinois, helping avoid 21.7 million outages and saving customers over $3.8 billion since 2012.

These advancements have made Illinois attractive for businesses, resulting in 15 new commercial projects and $8.6 billion in local investments. ComEd is also committed to clean energy, meeting 96% of customer energy needs with decarbonized sources and aiming for 100% under the Climate and Equitable Jobs Act.

Positive

• 72% improvement in reliability for the first four months of 2024 compared to the same period in 2023.
• 13% reduction in power outages.
• Significant decrease in outage duration.
• Grid modernization efforts include storm hardening, vegetation management, and cable replacement.
• Helped customers avoid 21.7 million outages since 2012.
• Saved customers over $3.8 billion in outage-related costs since 2012.
• Secured 15 new commercial projects in 2023, adding 4,385 jobs and $8.6 billion in local investments.
• Meeting 96% of energy needs with decarbonized sources, aiming for 100% under the Climate and Equitable Jobs Act.

Negative

• Increased demand from electric vehicles and other electrified technologies may pose future challenges.
• More powerful storms due to climate change could threaten grid reliability.

Insights

Financial Analyst

ComEd's report on improved reliability highlights significant operational improvements that can positively influence stakeholder confidence and market perception. A 72% reduction in outage duration and a 13% reduction in the number of power outages are impressive figures, showcasing effective grid modernization strategies. For investors, these improvements suggest that ComEd's investments in infrastructure are paying off, potentially leading to increased customer satisfaction and lower operational costs in the long run. Reduced outage costs, estimated to save customers 3.8 billion, can enhance the company's financial stability and profitability. Additionally, the ability to attract new commercial projects due to reliable power can drive revenue growth. However, investors should also consider the ongoing costs associated with maintaining and upgrading the grid amid evolving challenges like climate change and rising energy demands. Balancing these investments with financial returns is important for sustained profitability.

Market Research Analyst

The improved reliability of ComEd's services is a strong selling point for attracting businesses to northern Illinois. The company's ability to secure 15 new commercial projects, adding 4,385 jobs and 8.6 billion in local investment, indicates a positive economic impact. This trend is likely to continue as businesses seek dependable power sources, especially for critical operations like data centers. The report's emphasis on clean and reliable energy also aligns well with broader market trends toward sustainability and decarbonization. Investors should note that the increased emphasis on renewable energy and the implementation of the Climate and Equitable Jobs Act (CEJA) position ComEd as a forward-thinking utility company. This can enhance the company's brand image and attract environmentally conscious customers and investors. However, the transition to renewable energy sources comes with its own set of challenges, including the need for substantial capital investments and potential regulatory hurdles.

First four months of the year see 72 percent improvement in reliability

CHICAGO--(BUSINESS WIRE)-- Despite continued challenges facing the electric grid, including more severe weather as a result of climate change and increased demand from electric vehicles (EVs) and other electrified technologies, ComEd in the four months of 2024 delivered improved reliability as compared to the same period in 2023. Customers saw a 13% reduction in the number of power outages and a 72% reduction in outage duration.

“It wasn’t long ago that residents needed to have a flashlight at the ready because outages were expected. But ComEd’s investments in grid modernization over the past decade have increased resiliency and improved overall reliability for northern Illinois residents and businesses- in fact, we were named the most reliable American utility last year,” said David R. Perez, ComEd EVP and COO. “Through our continued grid modernization to address current and future challenges and the hard work of our more than 6,300 employees, we’re committed to reliably powering lives for the more than 9 million people we’re privileged to serve.”

ComEd’s performance comes as the company faces more powerful, storms and continues to focus on power grid investments and innovations, storm hardening and vegetation management solutions, and cable replacement to ensure continued strong service as new challenges impact the grid and as customer needs evolve. In 2023, ComEd saw record reliability in several areas, including a reduction in the frequency of outages. This work led the company to be named the most reliable utility in the nation in 2023.

ComEd customers have seen continuous improvement in grid reliability performance in recent years, with fewer customer outages at any point in the company’s history, and outages with a shorter duration when they do occur. Since ComEd started smart grid improvements in 2012, it has improved overall reliability by more than 70 percent, helping customers avoid nearly 21.7 million outages and save more than $3.8 billion in outage-related costs.

“ComEd’s commitment to grid modernization is important to the state’s economic growth, as reliable power is essential to nearly every company looking for a new or expanded location,” said Intersect Illinois CEO Dan Seals. “We work with companies from a variety of industries with unique power needs, and Illinois’ availability of clean and reliable power is a key differentiator for the state.”

Strong reliability has been a driving factor for businesses seeking to expand and grow in the region, with ComEd last year securing 15 new commercial projects, including nine data centers, collectively set to add 4,385 jobs at their facilities and more than $8.6 billion in local investment. In addition to strong power reliability, business and residential customers alike enjoy access to an abundance of clean energy, with ability to meet 96 percent or more of customers’ energy consumption today with decarbonized energy sources and plans to reach 100 percent thanks to the recent passage of the state’s Climate and Equitable Jobs Act (CEJA).

ComEd is continuing to promote programs that expand renewable energy sources, with a significant boom in community solar last year, and with various clean energy incentive programs to make the path to a lower carbon future – whether that includes heat pumps, electric vehicles (EVs) or beyond – more affordable and accessible for communities across its northern Illinois service territory.

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 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, Twitter, Instagram and YouTube.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240516242343/en/

ComEd Media Relations

312-394-3500

Source: ComEd

FAQ

How much did ComEd improve reliability in the first four months of 2024?

ComEd reported a 72% improvement in reliability for the first four months of 2024 compared to the same period in 2023.

What was the reduction in power outages reported by ComEd in early 2024?

ComEd experienced a 13% reduction in the number of power outages in the first four months of 2024 compared to the same period in 2023.

What are the key factors contributing to ComEd's improved reliability?

Key factors include grid modernization efforts such as storm hardening, vegetation management, and cable replacement.

How many outages has ComEd helped customers avoid since 2012?

ComEd has helped customers avoid nearly 21.7 million outages since 2012.

What has been the financial impact of ComEd's reliability improvements since 2012?

ComEd's reliability improvements have saved customers over $3.8 billion in outage-related costs since 2012.

How is ComEd contributing to clean energy in Illinois?

ComEd meets 96% of customer energy needs with decarbonized sources and aims to reach 100% thanks to the Climate and Equitable Jobs Act.

What new commercial projects did ComEd secure in 2023?

ComEd secured 15 new commercial projects in 2023, including nine data centers, adding 4,385 jobs and $8.6 billion in local investments.

What challenges does ComEd face despite improved reliability?

ComEd faces challenges such as increased demand from electric vehicles and more powerful storms due to climate change.