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ComEd rates are going up again this summer, and rising demand is largely to blame

A ComEd substation will help supply power to the Compass Datacenters facilities on the former Sears campus in Hoffman Estates. Data centers for the artificial intelligence industry are significantly adding to the demand for electricity in the region.

As demand for electricity from data centers and other customers continues rising, suburbanites should expect higher ComEd bills starting in June.

The rate at which ComEd customers are charged for energy usage is increasing. Additionally, a temporary credit to Illinois customers is disappearing.

When combined, those two changes likely will drive the average monthly residential bill from its current $107 to more than $120, ComEd spokesperson Tom Dominguez said. That’s an increase of about 12%.

Actual costs will vary based on usage and rate plan, Dominguez said.

Why rate is increasing

ComEd officials say the rate for kilowatt-hours — the energy delivered by one kilowatt of power for one hour — is being increased by PJM Interconnection, the Pennsylvania-based company that operates the electrical grid for parts or all of Illinois and 12 other states in the Midwest and on the East Coast, as well as Washington, D.C.

The rate is rising because power-generating companies increased their prices at PJM’s most recent auction. ComEd is passing that increase — about $2 or $3 per month, on average — along to consumers.

ComEd rates went up last summer because of increased PJM auction prices, too. Rates increased by about 10% that time, resulting in roughly $11 monthly increases for the average residential customer.

Vanishing credit

The soon-to-disappear credit for consumers was a benefit of Illinois’ Climate and Equitable Jobs Act, which said federal tax subsidies for nuclear power generators had to be shared with utility customers.

On the consumer side, the credit has been part of what’s listed on ComEd bills as a “Carbon Free Energy Resource Adjustment.” The credit was expected to save customers about $13 a month, on average, this year through May, depending on electricity usage.

The adjustment will be on June’s ComEd bills — but it’ll be smaller than in previous months.

Impact of data centers

The price increase reflects a growing imbalance between rising demand and available energy, ComEd said.

Data centers for the artificial intelligence industry are among the factors driving the demand. During a state House Executive Committee hearing last month, representatives from ComEd and Ameren — Illinois’ major electric supply companies — said most of their upcoming large-load projects are data centers, and that the expected demand will be significant.

“If all the projects in our pipeline come to be and they all reach their maximum, requested demand will more than double our system peak … by 2040,” ComEd’s Max Leichtman told lawmakers.

Data centers aren’t the only reason electricity rates are increasing. Rising demand for electricity across the region PJM serves is outpacing the forecast growth of supply, ComEd officials said.

Meeting that demand becomes harder as power plants retire and if new energy generators aren’t built, according to the Citizens Utility Board, a Chicago-based energy watchdog group. Unregulated expansion of the data center industry also could create problems for consumers, such as higher electric bills and rolling blackouts, Executive Director Sarah Moskowitz said.

“As we work for change in Springfield, we call on ComEd to live up to its civic responsibility and work with customers to keep them connected, cool and safe this summer,” Moskowitz said through a spokesperson.

ComEd is taking some steps to ease the increased financial burden on Illinoisans.

“We are expanding bill‑assistance programs, accelerating energy efficiency offerings and continuing our work with the state of Illinois and other stakeholders to bring more energy storage and renewable energy onto the grid,” President and CEO Gil Quinones said in a news release.