ComEd energy costs to increase ‘significantly’ next year, according to watchdog group

ILLINOIS (WTVO) — ComEd customers are expected to see a price increase in electricity rates next summer, according to the Citizens Utility Board (CUB).

The watchdog group said a record price spike at an electricity capacity auction will likely increase the supply price for ComEd customers starting in June 2025.

ComEd raised its metering, administrative and distribution facilities charges on January 1st, 2024.

The utility said its supply price would increase between 1.5 – 2 cents per kilowatt hour (kWh) over the current supply rate, of just under 7 cents per kWh.

With the capacity auction price spike, CUB Communications Director Jim Chilsen told The Center Square a customer who uses 500-kilowatt hours (kWh) of electricity a month would pay $7.50 to $10 extra each month, from June 1st, 2025 to May 31st, 2026.

Capacity prices are extra payments consumers pay power plant operators to have enough reserve electricity available in the event of a sudden spike in demand.

According to CUB, capacity prices jumped 830% when power grid operator PJM Interconnection announced the results of its Base Residual Auction.

The price will be offset by the Carbon Free Energy Resource Adjustment that was included in the Climate and Equitable Jobs Act (CEJA), which was designed to subsidize Illinois nuclear power plants. The adjustment becomes a bill credit when energy prices go above a certain level because consumer advocates argue that if energy prices go up, nuclear plants earn more and do not need the subsidy.

Chilsen said ComEd will not make money off the increased cost but will pass it along to consumers.

“We are concerned that alternative electricity suppliers will go door to door and use this news to try to lure people into bad deals. We’ve talked often over the years about how going with an alternative supplier is a gamble that you’re likely to lose. There’s a lot of bad deals out there,” Chilsen said.

Chilsen said alternative energy suppliers will also be impacted by the price change.

To lessen the impact of the supply price increase, ComEd recommends practicing energy efficiency at home, considering a community solar deal to help ease costs, or installing solar panels.

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