ComEd customers in Illinois can now apply for financial relief from their electric bills through a newly established $10 million ComEd Customer Relief Fund designed to mitigate the impact of soaring summer costs.
This initiative comes as recent increases in electric rates have begun appearing on ComEd bills since June, attributed to a ‘capacity charge increase’ resulting from a prior capacity auction conducted by PJM Interconnection.
ComEd estimates that average monthly residential bills will rise by approximately $10 due to this change.
According to ComEd, the utility does not profit from this increase and was not involved in the auction, nor does it supply capacity.
In a statement on their website, ComEd acknowledged the financial strain on customers, emphasizing their commitment to advocate for customers and collaborate with stakeholders to explore solutions.
Applications for the relief fund opened Monday, however, eligibility for the discounts varies among customers.
Who qualifies for assistance with their ComEd bills?
Residential customers who are experiencing past-due balances and fall at or below 300 percent of the Federal Poverty Level may be eligible for grants of up to $500.
Additionally, nonprofit organizations with similar financial challenges may qualify for grants up to $1,000.
The specific increase on monthly bills will be visible under the ‘supply’ section.
ComEd clarifies that its role involves the ‘delivery’ portion of the bills, which covers expenses related to maintaining and upgrading the electric service infrastructure.
Eligible customers can submit their applications online or seek assistance in-person through local agencies such as The Salvation Army and Neighborhood Housing Services.
Understanding Capacity Charges
But what exactly is a capacity charge?
According to ComEd, capacity charges reflect power supply costs that ensure sufficient capacity is available for current and future use.
This charge shows up consistently on customer bills and adjusts every June based on the energy consumption from the prior summer, in conjunction with the capacity charge rate set by electricity market conditions.
All residential, commercial, and industrial customers bear these capacity costs as part of their electric bills.
The capacity charge rates fluctuate annually, dictated by bids in an auction where electricity-generating companies participate.
Reasons for the Increase
The recent hike in charges is attributed to soaring supply costs that ComEd incurs in the wholesale market.
ComEd has made it clear that these escalating costs are passed directly to customers without any markups involved.
Due to a previous capacity auction held by PJM Interconnection, the utility has no control over the price increases.
In March, Chicago Attorney General Kwame Raoul criticized the auction structure, labeling it as ‘flawed’ and arguing that the capacity prices, which greatly raise bills, are unjust for consumers.
Raoul noted that both PJM and FERC have recognized the need for changes to these auction rules, which he believes are essential for protecting consumers from unreasonable utility bill increases.
Furthermore, Raoul’s office filed a complaint requesting that FERC mandate a re-examination of the most recent auction under revised rules before the next pricing adjustments take effect in June.
The cost structure changes as a result of a law signed by Illinois Governor J.B. Pritzker in September 2021, known as the Climate and Equitable Jobs Act, are expected to provide some short-term financial relief on these increases.
However, advocates like Citizens Utility Board (CUB) stress the importance of ongoing reforms to address the root causes of the heightened prices, primarily stemming from policies set by PJM Interconnection.
CUB Executive Director Sarah Moskowitz expressed gratitude that the new legislation offers some immediate relief, while also indicating that their efforts will continue towards achieving long-term solutions.
The organization urges ComEd to remain proactive in assisting customers, especially during periods of rising costs this summer.
As for how much ComEd bills are increasing, the utility has indicated a general rise of about 10%, translating to approximately $10.06 per month, with the rate adjustments having already manifested in bills since June.
image source from：nbcchicago
