ComEd Secures Competitive $50 Million Federal Grant for Rockford Grid Modernization

Rhea-AI Summary

ComEd has secured a $50 million federal grant from the U.S. Department of Energy's GRIP program for grid modernization in Rockford, Illinois. Combined with matching funds from ComEd and partners, the total investment will reach $116 million over 2024-2029. The project will enhance grid resilience, expand clean energy resources, and support workforce development. The initiative includes deploying advanced grid technologies, improving demand-side management, and implementing EV charging solutions. The project aligns with Illinois' Climate and Equitable Jobs Act goals for 100% clean energy by 2050.

Positive

• Secured $50 million federal grant with total project value of $116 million
• Investment strengthens grid infrastructure and supports clean energy transition
• Project enhances revenue opportunities through grid modernization
• Aligns with state clean energy goals, potentially reducing regulatory risks

Negative

• Significant matching fund requirement from ComEd
• Extended 5-year implementation timeline (2024-2029)
• Project to Rockford area, not company-wide implementation

Insights

Financial Analyst

The $50 million federal grant, combined with ComEd's matching funds and partner investments totaling $116 million, represents a significant strategic investment for EXC's subsidiary. This funding will enhance grid modernization capabilities and support clean energy initiatives, potentially strengthening ComEd's competitive position in the evolving utility landscape. The project's focus on grid resilience and clean energy aligns with regulatory requirements and positions ComEd favorably for future growth in renewable energy integration.

The investment carries minimal direct financial risk for Exelon shareholders since it's primarily funded through federal grants and partner contributions. The five-year implementation timeline (2024-2029) should provide steady, predictable project execution while supporting long-term revenue opportunities through improved grid capabilities and customer programs.

Energy Infrastructure Specialist

This GRIP funding marks a strategic advancement in grid modernization, particularly significant for its focus on edge-of-grid technologies and vehicle-to-grid (V2G) integration. The investment will enhance ComEd's ability to manage increasingly complex load patterns from EVs and distributed energy resources, important for maintaining reliability as clean energy adoption accelerates.

The project's emphasis on grid flexibility and advanced monitoring capabilities positions ComEd at the forefront of smart grid innovation. The deployment of demand-side technologies and improved grid visibility will be essential for managing the transition to renewable energy sources while maintaining the utility's industry-leading reliability metrics.

U.S. Department of Energy GRIP funding, representing one of the largest U.S. grid investments ever, bringing enhanced grid resiliency and clean energy investments to Rockford

ROCKFORD, Ill.--(BUSINESS WIRE)-- Following a competitive process, ComEd joined Governor Pritzker, the U.S. Department of Energy (DOE), the Mayor of Rockford and Region 1 Planning Council (R1) to announce the DOE has awarded ComEd $50 million in federal funding to enhance the power grid’s ability to deliver affordable, clean energy to Illinois communities. The funds will enable ComEd and its local partners to launch advanced clean energy investments, expand carbon free energy resources and offer new clean energy jobs training for the local community. This is the largest-ever ComEd Smart Grid Grant, distributed by DOE’s Grid Resilience and Innovation Partnership (GRIP) program and funded through the landmark Bipartisan Infrastructure Law.

With the addition of a funding match from ComEd and investments from a variety of innovation partners, vendors and community partner R1, the Rockford grid will benefit from a cumulative $116 million investment over the next five years, 2024-2029.

“By Investing in America, the Biden-Harris Administration is updating our energy infrastructure to ensure our U.S. power grid can provide reliable, affordable power for generations to come,” said U.S. Deputy Secretary of Energy David M. Turk. “The Department of Energy is making the largest-ever direct investment in critical grid infrastructure through projects like ComEd’s supporting essential work to build resilience while generating union jobs for highly skilled workers.”

ComEd’s project represents the largest federal Smart Grid Grant the company has ever received and is one of only 57 smart grid projects selected nationwide, part of nearly $7.6 billion in funds committed by the Department of Energy via GRIP to strengthen the grid amid changing consumer demands and increasingly severe weather, and to support innovation that is necessary for the clean energy transition. The GRIP award will further support ComEd and local communities in achieving the goals set forward in the state’s own landmark Climate and Equitable Jobs Act, or CEJA, enacted by Gov. Pritzker to help put Illinois on a path to 100 percent clean energy by 2050.

“Over the past several years, Illinois has established itself as a leader in the fight against climate change and a powerhouse in the new energy economy. Today, through a $116 million dollar investment in enhanced grid technology and resiliency, energy interconnectivity, and renewable infrastructure deployment, the Biden-Harris administration is bringing us a step closer to meeting our ambitious climate and energy goals,” said Governor JB Pritzker. “To the City of Rockford, ComEd DOE, and Region 1 Planning Council, thank you for investing in the present and future of Illinois. I am proud to be your partner in this work and look forward to seeing this project—and others just like it—come to life across the state.”

“The GRIP grant is indicative of Illinois’ emergence as a national leader in the clean energy transition,” said Gil C. Quiniones, CEO of ComEd. “These funds will not only help ComEd to modernize and decarbonize Rockford’s grid but also to prepare jobseekers for careers in the fast-growing clean energy sector. ComEd is proud to partner on this investment with the U.S. Department of Energy, the State of Illinois and a wide range of Rockford-area organizations with a role in preparing the city’s infrastructure for a cleaner, more electrified, more equitable energy future.”

Building on ComEd’s extensive development and deployment of advanced grid technologies and the maintenance of the most reliable grid in the country, ongoing work in Rockford will deploy a variety of new technology, focused on the edge of the grid, to increase the flexibility of the grid to manage the changing load patterns as more clean energy resources, like electric vehicles (EVs) and rooftop solar panels, are connected to the grid in the years ahead. This technology will enable ComEd to have greater visibility and control of grid assets while simultaneously improving grid resiliency as Illinois, like the rest of the nation, faces increased grid challenges due to the more frequent and severe weather systems caused by climate change.

“The City of Rockford is honored to be part of this impactful project to enable electrification and decarbonization,” said Thomas P. McNamara, Mayor of Rockford. “In addition to improving power quality needs in our area and supporting the expansion and development of new businesses within the city, we look forward to continued collaboration with ComEd to maximize the project’s benefits with expanded community education and local workforce development for our residents.”

Additionally, improved demand side technologies will enhance coordination with the utility to help customers make more informed decisions and help to manage energy usage. This includes pilot efforts to expand residential EV charging access as well as solar, and new vehicle-to-grid (V2G) charging solutions that enable excess vehicle battery energy to support other power loads within the community.

“The investment that the GRIP grant and ComEd are delivering to Rockford will help launch our community into the clean energy economy,” said Region 1 Planning Council Executive Director Michael Dunn. “We are proud to partner with ComEd on this endeavor and support this critical investment that will pave the way for advanced grid technology that will power the transportation and mobility of the 21^st century.”

Together with local community partners, ComEd will be launching a variety of STEM, workforce development and small business resource programs. Each of these programs will be built through community collaboration to ensure they reach members of the community who would most benefit from this support. By increasing early access to STEM education for children and offering hands-on workforce readiness programs, ComEd will be cultivating a well-rounded, and diverse clean energy workforce to support the ongoing energy transition for years to come.

“Shoring up Illinois’ power infrastructure is critical for building out the carbon-free electric grid envisioned in the Climate and Equitable Jobs Act. This funding from the Grid Resiliency and Innovation Partnerships Program will go a long way toward improving our state’s aging electric system and ensuring Illinoisans have affordable, equitable access to clean energy,” said Illinois Commerce Commission Chairman Doug Scott.

“As a meteorologist, I know that building a sustainable future for our kids and grandkids means investing in technology that will protect us from the threat of extreme weather. The $50 million Grid Resiliency and Innovation Partnership Grant coming from the Department of Energy to my neighbors in Rockford will do just that by making sure our power system can weather any storm. I will always work to bring home federal investments that lowers costs for families, keeps my neighbors safe and safeguards our environment,” said Illinois State Representative Eric Sorensen (IL-17).

October 2024 marks the start of a twelve-month collaborative planning process with key Rockford partners including R1 who will help identify target areas that would most benefit from the incorporation of clean energy and grid investments, finalize equipment deployment plans and help launch various customer programs. Installation of advanced grid equipment and the start of various workforce development programs are expected to begin in Q3 of 2025.

These new investments build on a longstanding collaboration between ComEd and Rockford, including advancements made as part of the Community of the Future (CoF) program, aimed at developing advanced energy technologies to enhance sustainability and resiliency across Rockford and the region. As a Community of the Future, Rockford has emerged as a clean energy hub, attracting numerous solar developments, including a ComEd Give-A-Ray solar subscription program and launching various STEM and workforce training programs to help residents prepare for a growing number of clean energy careers, with programming based at ComEd’s state of the art Rockford Training Center.

ComEd is one of two Exelon utility companies to be awarded this competitive funding, with PECO also receiving $100 million to support reliability and resiliency in the greater Philadelphia region.

ComEd is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), a Fortune 200 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/20241024378280/en/

ComEd

Media Relations

312-394-3500

Source: ComEd

FAQ

What is the value of ComEd's GRIP federal grant for Rockford grid modernization?

ComEd secured a $50 million federal grant from the U.S. Department of Energy's GRIP program, with total project investment reaching $116 million including matching funds.

When will ComEd's Rockford grid modernization project begin and end?

The project planning will begin in October 2024, with equipment installation starting in Q3 2025, and the total project spanning from 2024 to 2029.

What are the main components of ComEd's Rockford grid modernization project?

The project includes advanced grid technologies deployment, clean energy resource expansion, EV charging solutions, and workforce development programs.

How does this grant affect Exelon (EXC) and its subsidiaries?

This represents the largest federal Smart Grid Grant for ComEd, an Exelon subsidiary, while another Exelon utility, PECO, received $100 million for Philadelphia region improvements.