ComEd customers in Illinois will start to see higher rates on their bills this month, the utility said, as part of a “capacity charge increase.”
Beginning in June, the average monthly residential ComEd bill is expected to increase by approximately 10%, ComEd said on its website. The price hike, which applies to all ComEd customers, is due to the “results of a PJM Interconnection capacity auction held last year.”
“ComEd does not profit from this increase, was not part of the auction, does not supply capacity, and does not retain any proceeds of the capacity charge payments,” a previous statement from ComEd said.
Customers will see the increase under the “supply” portion of their bills. ComEd says its responsibility is the “delivery” portion of bills, which pays for the wok ComEd “does to maintain and upgrade the system to ensure safe and reliable electric service for all customers.”
As the rate hike begins, here’s what to know.
What is a capacity charge?
Capacity charges are power supply costs for current and future use, ComEd said, “ensuring there will be enough capacity when you need it.”
“The Capacity Charge is a standard item on all customers’ bills and changes every June based on your energy usage from the previous summer and the Capacity Charge Rate, which is determined by electricity market conditions,” a message on ComEd’s website said.
Capacity prices are paid by each residential, commercial and industrial customer as part of their electric bill. It changes every June based on energy use from the previous summer and the capacity charge rate. Those rates and prices are set through an auction for which companies that generate electricity submit bids.
Why are bills increasing?
The increase is due to rising supply costs, ComEd said, which the utility pays for on the wholesale market.
“These costs are passed directly to you with no markup,” ComEd’s message said.
ComEd says it cannot control the price increase, which were determined by a PJM Interconnection capacity auction held last year.
In March, Chicago Attorney General Kwame Raoul filed a complaint with the Federal Energy Regulatory Commission (FERC) and called the auction “flawed” and said the capacity, also known as reserve power prices that would “drastically” increase bills is unfair for consumers.
“PJM and FERC have acknowledged that the rules are flawed, and they have been changed for the next two auctions,” Raoul said. “I am asking that the most recent auction be conducted again under the revised rules, which have already been approved by FERC. These changes are critical to protect consumers from unreasonable increases to their utility bills.”
The complaint also asked the FERC to order refunds should a new auction not be held before June 1. Raoul’s office did not immediately respond to NBC Chicago’s request for comment.
A press release from advocacy group Citizens Utility Board (CUB) said the Climate and Equitable Jobs Act, which was signed into law by Illinois Gov. J.B. Pritzker in Sept. 2021, will help to offset some of the cost of the price hike. According to CUB, the price will again change in October.
“We’re glad CEJA gives customers some relief in the short term, and in the long term we will continue to work at
fixing the root causes of this price spike, mainly poor policy from PJM Interconnection, the power grid operator for northern Illinois,” CUB Executive Director Sarah Moskowitz said in a statement. “As we advocate for pro-consumer reforms at PJM and the State Capitol, we also urge ComEd to work with customers to keep them connected this summer.”
How much are ComEd bills going up and when?
According to ComEd, prices on monthly bills will increase by an average of about 10%, which amounts to approximately $10.06, ComEd said previously.
The rate hike is expected to appear on bills beginning in June, ComEd said.
