Sears Tower and QST challenge Com Ed seeking on-site electrical cogeneration and $2 million annual electric savings

Business Wire, April 28, 1997

CHICAGO--(BUSINESS WIRE)--April 28, 1997--Energy savings of $2 million per year are at stake for the Sears Tower and its tenants as Commonwealth Edison refuses to allow the installation of an on-site electric cogeneration system, according to a complaint filed today with the Illinois Commerce Commission. If the ICC agrees with Sears Tower, individual tenants could see annual savings as large as $190,000. The complaint is a joint filing of Tower Leasing, Inc., the operator of Sears Tower, and QST, a subsidiary of the Peoria-based energy company, CILCORP.

Tower Leasing's property management company, The John Buck Company, is working with QST to install a cogeneration system utilizing engine-driven generator sets to supply electricity during peak use periods. Producing power on-site during primary business hours is far less expensive than purchasing electricity from Commonwealth Edison, because Edison has some of the highest utility rates in the Midwest and properties like Sears Tower pay a substantial premium for electricity during peak periods.

"Our energy management programs have reduced energy consumption in JBC-managed properties by 5 percent in each of the past two years; yet the rates we pay for that consumption remain much too high. We are convinced that installation of the proposed on-site cogeneration facility will bring substantial electricity cost savings to Sears Tower tenants and at the same time give the tenants more reliable electricity service," said Paul A. Mertz, chief operating officer of The John Buck Company's Management Division.

The complaint alleges that Edison's refusal to permit an interconnect constitutes a violation of the Illinois Public Utilities Act. The complaint notes that the Public Utilities Act encourages the economical utilization of cogeneration and that the Act prohibits public utilities from impeding the policy by refusing to cooperate and interconnect with entities which desire to install cogeneration facilities. Natural gas fed peak-shaving facilities and system interconnections, currently in use by other customers, are routinely found in industrial plants throughout the United States, and are a proven method to achieve significant savings and increased efficiency of energy use.

The complaint asks the Commission, among other actions, to order Edison to allow interconnection with its facilities to enable the Sears Tower cogeneration facility to operate in parallel with Edison's system.

"The Sears Tower project demonstrates both the enormous savings and innovative options the Sears Tower and its tenants can receive from consumer choice," stated Robert O. Viets, CILCORP president and CEO. "Multiply this by millions of consumers nationwide and you begin to see the beneficial impact that consumer choice will have on everyone. Every business and homeowner uses electricity. Every consumer wants to save money. Every consumer should have the power to choose an electric provider. Consumer choice is a multi-billion-dollar opportunity whose time has come."

JBC manages roughly 16.5 million square feet of office, multi-family and retail properties within the Commonwealth Edison service area. As part of its energy initiatives to benefit these properties, JBC is working closely with the Building Owners and Managers Association of Chicago, an organization representing 104 million square feet of space (also within Commonwealth Edison's service area) to bring about Illinois legislative changes promoted by the Consumers Alliance for Electric Choice in `98.

CILCORP and QST are aggressively developing new opportunities in energy and related markets. CILCORP's utility subsidiary, Central Illinois Light Company (CILCO), has opened a portion of its service territory to competition through a pilot program, and results have documented that all segments of customers - industrial, commercial and residential - can enjoy lower bills through choice. CILCO is also a member of the Consumers Alliance for Electric Choice `98.

CONTACT: QST

Christine Wood, 309/655-1362

or

Edelman Public Relations

Julie Ketay, 312/240-2711