Smart Grid Bill is Smart for Minority Owned Businesses Even Smarter for Customers

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by John HookerExecutive Vice President, Legislative and External Affairs, ComEd

Look around. Our economy is sluggish. Job creation is virtually stagnant. Unemployment in the Chicago area topped 10 percent this summer. And, according to the U.S. Department of Labor, the 16 percent unemployment rate among African Americans far outpaces the national average. Clearly, our economy needs a spark that will promote investment and put people back to work.

One spark is the Energy Infrastructure Modernization Act (SB 1652). This bill, being debated in Springfield, would authorize ComEd to spend $2.6 billion over the next 10 years to upgrade the regions electric grid and install new smart grid digital technology. It also would mean considerable benefits for businesses and consumers across Illinois, such as:

putting thousands of people to work and providing a shot in the arm to the many Chicago-area minority-owned businesses that help ComEd keep the lights on;

helping ComEd make necessary improvements to the electric grid to reduce power outages and give consumers opportunities to save money;

placing a smart meter in every home and empowering customers to manage their own electricity costs; and

offering rebates to customers who choose to reduce their power usage during peak periods such as hot summer afternoons.

SB 1652 brings considerable benefits to African-American communities hardest hit by the economic recession. Namely, it will give low-income customers struggling to make ends meet the ability to save money on their electric bills.

And thats not just idle talk.

The hard evidence coming from initiatives like ComEds smart meter pilot program and real time pricing programs demonstrates that customers can realize real savings on their bills if they have access to, and information about real-time and other dynamic pricing options.

For example, 78 percent of ComEd low-income customers (those earning less than $20,000 per year) that have participated in these programs have saved money on their electric bill.

Those are real savings that can be accomplished with smart meters and new pricing options.

And grid investment also means long-needed economic opportunities and jobs for black-owned companies. Thats why many African-American lawmakers and economic development organizations support the bill.

Larry Ivory, president of the Illinois Black Chamber of Commerce, said the investment in strengthening Illinois electric grid enabled by SB 1652 would be an investment in strengthening minority-owned businesses.

Black businesses throughout the Chicago area stand to gain from a $2.6 billion investment in the electric grid. Our entrepreneurs are ready, willing and able to bring their business and technological savvy to the expansion of the new energy economy in our state, said Ivory.

ComEd has a track record and deep commitment to supporting minority-owned firms in its service territory. We would expect that commitment to continue.

Through August of this year, $120 million of ComEds contracting work to build and support its electric grid has gone to minority and woman-owned firms. Last year, ComEds spend with minority suppliers reached $160 million.

Unfortunately, Governor Quinn vetoed SB 1652 last month, putting the job creation and customer benefits that the bill would deliver into jeopardy. The bill now needs to pass with a stronger majority in the upcoming fall veto session.

We know there are no magic bullets that will turn our economy around immediately. But instead of turning our back on opportunities to help move our state and our community forward, we should be embracing them. SB 1652 is just what we need today so we can put people back to work, and help people reduce their energy costs tomorrow.

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