The Illinois Commerce Commission (ICC) decided last week itlacked authority to rule on whether Commonwealth Edison (ComEd)could be required to lease or sell its wiring inside Chicago’sSears Tower to the building’s owner. Tower Leasing is seekingcontrol of the building’s internal wiring so it can installgas-fired cogeneration to meet a portion of the building’selectricity needs.

“They’re [the ICC] claiming that it’s an extraordinary anddrastic remedy to order the sale or lease of the distributionlines,” said Patrick Giordano, attorney for Tower Leasing andcogeneration provider QST Energy. “We believe it’s not anextraordinary and drastic remedy because it’s the only remedy forEdison’s discrimination.” Tower and QST maintain ComEd has allowedsimilar arrangements at 42 other sites.

The cogeneration system proposed by Tower and QST is promised tosave tenants about $2 million a year in energy costs (see NGI May5, 1997). ComEd has maintained allowing the Sears Tower to selfgenerate would be detrimental to its system. Tower and QST haveuntil June 19 to petition the ICC for rehearing.

“What we believe the significance of this case is is that weneed to reaffirm the right of customers to self-generate their ownpower,” said Paul Colgan, director of public affairs for theChicago chapter of the Building Owners and Managers Association(BOMA), which is watching the case closely. “From the BOMAstandpoint, the ability to interconnect without obstacles from theutility is very important. The utility uses arcane, technicalissues to prevent people from installing their own self-generation.The customer loses because they don’t get the benefit of thoselower costs of self-generation.”

Colgan said he’s aware of other buildings consideringself-generation whose managements are watching the case. “Where itmakes economic sense, I think you will see buildings do it. But theeconomics could be skewed by utility maneuvering.” Colgan saidIllinois’ deregulation law, which took effect in January, sayscustomers may self generate on site for their exclusive use and notbe subject to paying the utility competitive transition charges.However, defining exactly what constitutes self-generation stillneeds to be worked out, he said.

Giordano said his party’s chances may be improved at rehearingas two of the five ICC commissioners’ terms have expired, and theywon’t be on the commission if a rehearing comes up. Only four ofthe five voted last week, but the four voted against Tower/QST.

“We think it negatively impacts all energy consumers who arelooking to protect themselves against high energy costs and ways toback themselves up against outages,” said QST spokesman JeffMcCombs.

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