CHICAGO (WLS) — Your monthly ComEd bill could soon be going up as much as $10 a month.
Starting June 1, prices are expected to rise significantly, according to the utility company.
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There will be about a 10-15% increase in your electric bill, and it will stay that way for the next year.
The Citizens Utility Board estimates the increase could cost customers an extra $10.60 a month.
ComEd says because of factors like extreme weather and spikes from high energy users – like data centers – demand is outpacing supply and costs are getting more expensive. Capacity charge will now increase for all ComEd customers.
“ComEd does not profit from this increase. ComEd is responsible for the ‘delivery’ portion of bills,” ComEd said.
That’s the extra payment customers pay power plant operators so they have enough reserve electricity available.
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“Customers could easily end up paying well over $100 extra on their power bills over the next 12 months,” CUB communications director Jim Chilsen said. “And the infuriating fact is that this was a completely preventable situation.”
The non-profit watchdog group says this price spike is because of years of bad policy at the regional power grid operator: PJM Interconnection.
CUB is calling on ComEd to work with customers who will struggle to stay connected.
“Many consumers have never heard of PJM, but this little known power grid operator has a significant impact on our bills,” said Clara Sumers, manager of CUB’s Consumers For a Better Grid campaign. “And unfortunately, PJM policy often favors dirty outdated power plants, and leaves the higher power bills for consumers.”
On their website, ComEd has energy-saving tips and bill assistance options as well as a low-income discount program to help manage these new higher costs.
Retiree George Rounds hopes for some cool breezes this summer, as his ComEd rates are going up.
“That’s the problem: Every is going up, why do they have to go up so high?” Rounds said.
Rounds says he would like to see the utility rely more on renewable energy, like wind.
“This is bad news. There’s no way of getting around it; this is bad news,” Chilsen said.
In a statement, PJM said:
“PJM is a revenue-neutral organization with no profit motive. We are fully regulated by the Federal Energy Regulatory Commission (FERC). Our primary purpose is to keep the lights on and provide value to consumers.
“Part of how we maintain reliable electric service is by competitively procuring power across our footprint to meet a forecast demand for electricity. This is getting more expensive, and the reason is very simple: Supply is decreasing on the system and demand is increasing. This is happening not just in PJM but all over the country.
“Supply is decreasing due primarily to state and federal decarbonization policies and some economics. Demand is increasing due to the proliferation of data centers and the race for AI advancement, along with electrification and the onshoring of U.S. manufacturing. An increase in demand is a very good thing for the U.S. economy. But existing supply is being pushed off of the system before replacement resources are in operation and this is creating a spike in pricing and long term could compromise grid reliability, resulting in possible service interruption for families and businesses.
“The record will reflect that PJM has been warning of this impending supply/demand imbalance for years now, even prior to the AI race.
“In order to shift blame for these price spikes, PJM is being accused of an unwillingness or inability to connect new renewable resources to the grid. PJM reformed its processes in 2022 so that we could safely and more efficiently connect these many smaller renewable resources to the grid. We have a decision from the Federal Energy Regulatory Commission to prove it. Organizations “informing” politicians about this issue are knowingly propagating a fallacy, producing studies funded by unknown entities with outlandish assumptions and conclusions to push blame to our organization.
“The fact is that PJM has been processing hundreds of these projects through our study processes and will continue to do so. These resources are welcome additions to the grid but are currently having their own challenges in constructing like supply chain, state permitting and financing. We should be helping these developers to solve these issues so that they can put steel in the ground more expeditiously.
“The power grid is a machine governed by the principles of engineering, mathematics and economics. Policy, even well-intended, has to be grounded in these principles. Shifting blame to a profit neutral grid operator who cares deeply about its mission to keep the lights on is one way to approach this issue. But consumers deserve better.
“At PJM, we will continue to do everything in our power to work with all our states, including Illinois, to help address what has become a national issue to keep the lights on and to try and do it cost-effectively for families and businesses.”
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