Its worth keeping an eye on the Illinois Senate Energy Committee in the coming weeks.  Last month, we noted how Chairman Mike Jacobs (D-Moline) shelved key "green" legislation on the eve of a critical legislative deadline while unexpectedly giving a pass to some legislation benefiting the energy industry.   At the time, State Sen. Don Harmon (D-Oak Park) -- whose wind-related bill remained stalled -- attributed the incident to a "miscommunication."

Now Crain's is reporting (subscription required) that energy industry lobbyists were indeed engaged in a behind-the-scenes effort to thwart Harmon's measure (SB 3686), objecting to one provision which would require that utilities fulfilling their obligations under the state's Renewable Energy Portfolio Standard procure renewable energy from Illinois sources before turning to neighboring states.

Wind advocates have launched a counter-campaign, arguing that the bill is key to launching some shovel-ready Illinois wind farms over the next year. "[I]f Exelon is successful," Illinois Wind Energy Association's Kevin Borgia wrote yesterday, "the Illinois projects remain in limbo, and the new jobs, tax revenue, and other economic development likely go to Texas, the Dakotas, and even Manitoba."

Why is Exelon lobbying against the legislation while marketing itself as a renewable energy leader? Publicly, the company is claiming the measure will drive up consumers' electric bills. But Crain's suggests that there could be another underlying reason:

But a continued influx of homegrown wind power could hit Exelon where it hurts the most, reducing wholesale power prices in Illinois. That's because wind tends to blow hardest at night, when power demand is lowest. In recent years, real-time prices at night have turned negative at times, requiring generators to actually pay to unload their juice, because supply has outstripped demand. More local wind power likely would exacerbate that effect. Exelon's nukes run around the clock, making them more vulnerable to these price swings, while natural gas- and coal-fired plants can shut down when demand is weak [...]

Joseph Dominguez, Exelon's senior vice-president for state governmental affairs, acknowledges more wind power in the market could hurt prices the nuclear plants could charge, but he said it could hurt higher-cost coal-fired plants more.

As far as Borgia is concerned, claims that electric rates would skyrocket under the new local requirement don't add up. That's because the Renewable Standards Portfolio imposes a rate-impact limit, which holds the line on renewable-related hikes. By Borgia's count, the resulting rate increases would amount to about $0.40 on average per month for the typical residential consumer.  He sees that as "a small price to pay" for the thousands of jobs, increased property tax revenue, and other economic activity generated across the state by the new wind farms.

Crain's reports that legislation is on shaky ground, particularly because "Exelon has powerful allies" on the Energy Committee. As regular readers may recall from our initial reporting, the energy industry has showered long-time member Sen. James Clayborne Jr. (D-East St. Louis) with campaign cash in recent years. And in addition to receiving a substantial amount of cash from Clayborne's PAC last year, Chairman Jacobs' father -- retired state senator Denny Jacobs -- is a registered lobbyist for ComEd, whose parent company is none other that Exelon.

As of now, Harmon's bill must receive a committee by April 15. With lawmakers out on spring recesses until April 13, they'll be under a tight timeline to act. But as Borgia points out, "deadlines can always be extended."