Press release
ComEd Announces New Agreements Signed to Ensure Large Load Customers Pay their Fair Share to Connect with and Use the Grid
New approach protects existing customers from unfair increases in transmission rates, while supporting responsible connection of large load projects
About this update from Exelon Corporation
[{"type":"text","content":"\nNew approach protects existing customers from unfair increases in transmission rates, while supporting responsible connection of large load projects\n\n\n CHICAGO--(BUSINESS WIRE)--\nComEd today announced the first set of new Transmission Security Agreements (TSAs) designed to protect customers and ensure fairness in the cost of connecting and providing transmission service to new large loads requesting service from the grid. These agreements help safeguard existing customers from bearing costs of serving proposed large load projects and ensure that those new projects pay their fair share even if they do not fully materialize.\n\n\nThese agreements include revenue commitments tied to the transmission services requested by eight large customers, who represent a forecasted new load greater than 6.5 GW. Together, the eight agreements will prevent existing ComEd customers from bearing responsibility for more than $2 billion in transmission charges over a 10-year period.\n\n\nUnder the TSAs, all existing customers are protected from transmission service costs that should be absorbed by new large load projects, even if those projects do not meet their expected load. Without the TSA, other customers might bear those costs, while under the TSA, the large load applicant will cover the shortfall and the TSA payments the applicant makes will reduce, on a dollar-for-dollar basis, the costs other customers would have to cover. This approach underscores ComEd’s commitment to safeguarding existing customers from unfair financial impact in northern Illinois.\n\n\n“These new transmission security agreements are a model for how utilities and the developers of large load projects – regardless of industry sector – can come together to meet growing power requests responsibly,” said Gil Quiniones, President and CEO of ComEd. “By having TSAs in place, ComEd can better ensure that the customers who impose very large demands on the system are paying their fair share.”\n\n\nAs part of the TSAs, ComEd will require a firm financial commitment from developers of projects 50MWs or above. This “take or pay” agreement requires collateral for 10 years of transmission service revenues according to the load requirements that ComEd is being asked to serve.\n\n\n“As the world’s largest data center developer, provider, and operator, we understand the challenge of ...