“The City That Works,” as former Mayor Richard J. Daley used to call Chicago, is getting its population back to work and its power infrastructure in better working order.

On January 4, current Chicago Mayor Rahm Emanuel and Anne Pramaggiore, the new president and COO of the area’s electric utility, Commonwealth Edison, announced key elements of a $1.1 billion electric system infrastructure investment plan that will create a smart grid throughout the city—and, in doing so, generate more than 2,400 jobs. Under this plan, the portion of ComEd’s electric system that serves Chicago will be modernized, starting in 2012.

Commonwealth Edison is a unit of Chicago-based Exelon Corporation, one of the largest electric utilities in the United States, with about 5.4 million customers. ComEd provides service to 3.8 million customers across northern Illinois, or 70 percent of the state’s population.

ComEd will directly create nearly 1,000 construction jobs that benefit Chicago associated with this investment over the next five years, including 350-400 jobs for contractors, manufacturers, and suppliers within the next 12 months.

“We’re modernizing Chicago’s electric infrastructure and building a smart grid that will bring significant economic opportunity for the City, adding jobs and creating new facilities that will train Chicagoans to contribute to Chicago’s growing green economy and help Chicago families save money on electricity,” remarked Mayor Emanuel.

ComEd’s planned system enhancements in Chicago are being undertaken as a result of the Energy Infrastructure Modernization Act (EIMA) , which was enacted by the Illinois General Assembly last October 27—setting in motion a $2.6 billion investment by ComEd. Specifically, ComEd’s infrastructure modernization program will devote $1.3 billion to upgrade its electric system by replacing thousands of miles of cable and thousands of poles, and upgrading substations and other equipment; another $1.3 billion to digitize the system, including installation of distribution automation devices that will re-route power around problem areas, smart meters for residential customers; and other smart grid technologies to improve service and provide customers with more tools to manage their electricity usage.

ComEd has contracted with the smart grid solutions provider, Redwood City, California-based Silver Spring Networks, to design and deploy the new smart-grid platform. The company will submit its plan for review by a regulator, the Illinois Commerce Commission, in April. Subject to that review, the Silicon Valley-based company will establish an operations center in Chicago that will employ workers in sales, marketing, project management, and field engineering. It will be Silver Spring's first U.S. office outside of Silicon Valley. The office initially would employ 30 to 50 workers.

ComEd also will select a manufacturer to provide the smart meters it will begin installing in the fourth quarter of this year. The manufacturing contract could create as many as 50 jobs for the winning bidder.

In addition, Detroit-based Choctaw-Kaul Distribution Company, a Native-American-owned distributor and manufacturer, will provide ComEd with power tools, and safety and protective equipment. It will establish a distribution center in Chicago, where it will employ 20 people by the end of the first quarter.

New opportunities for statewide renewable energy projects and conservation programs are also included in the Energy Infrastructure Modernization Act. According to Mayor Emanuel, the new policies are expected to boost rooftop solar and wind projects, and to help residential and small business customers save money by saving energy.

Environmentalists were quick to give their approval. “The smart grid means new opportunities for clean energy companies and new tools for residents to take control of their power consumption,” said Jack Darin, director of the Sierra Club, Illinois Chapter. “Mayor Emanuel is leading Chicago away from the dirty energy sources of the past to a brighter future, and the smart grid will help Chicagoans breathe cleaner air and provide new job opportunities in the new energy economy.”

Among the new projects are the following:

• To ensure a robust pool of skilled workers as its program moves forward, ComEd plans to locate a new training center on Chicago’s southwest side. The training facility will comprise classrooms, office space, new technology exhibits, conference rooms, and student break areas. It also will feature 20 indoor underground cable-splicing bays, a weather-protected pole yard, overhead conductors, distribution automation equipment, manholes and substation equipment for use by trainees.
• To encourage community involvement even further, ComEd will conduct a competition among Chicago architecture students, who will have the opportunity to design the training facility. Winners will be eligible for internships at a Chicago-based architecture firm, selected to manage the construction of the facility. Participating schools include the Illinois Institute of Technology (IIT), the University of Illinois-Chicago, and the School of the Art Institute of Chicago. The training center will be built to meet Leadership in Energy and Environmental Design (LEED) specifications.
• To broaden its impact on job creation and economic development, the EIMA includes the creation of a first-of-its-kind, utility-funded Science and Energy Innovation Trust that will support entrepreneurs by providing early stage investment to advance energy innovation. The initial $22.5 million investment—which will be funded by ComEd and the St. Louis-based electric utility Ameren—will be used to provide financial and technical support to public and private entities in Illinois for projects that support, encourage, or employ innovative technologies to modernize the grid. Eligible participants include state and local governments, educational institutions, corporations, and community organizations.
• Finally, the legislation will create the ComEd Smart Youth Ambassador Program, through which more than 70 students will work part-time over the next several years on community outreach efforts relative to smart meter and energy efficiency issues. ComEd will work with many community groups, including the Chicago Urban League, the United Neighborhood Organization (UNO), and the Chinese American Service League, to identify students for the program.

After the smart grid is operational, residential ComEd customers, whose bills now average $82 a month, will see their monthly bills rise by about $3—but the utility promises that they will have more reliable service, among other benefits.

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