Carbon credits and tax refunds: What savings can you expect on your ComEd bills?

Carbon credits began lowering bills in June, and tax refunds will start in January.

Photo by maxym/Depositphotos.com

(CHICAGO) It's unusual to see credits on your utility bills. But that is what northern Illinois customers began seeing, in June, on their ComEd electric bills.

The first credit: Carbon mitigation credit

The carbon mitigation credit appeared as a new line item on ComEd bills this June and will appear monthly until May 2023. The average customer should save close to $20 per month ($237 over the year,) according to the Illinois Commerce Commission.

Thanks to the Climate and Equitable Jobs Act (CEJA)

The clean energy bill, signed by Gov. J.B. Pritzker, requires Illinois utility companies to get 40% of their power from solar, wind, or other renewable sources by 2030. Due to a provision in the bill, ComEd is giving customers a rebate of 3.5 cents to 4.3 cents per kilowatt-hour.

“For clean energy to be impactful it must also be accessible, and I’m pleased that our Climate and Equitable Jobs Act will bring an average of $237 in annual savings to families using ComEd utility services,” said Gov. Pritzker in a statement. “I’m proud that our commitment to hit carbon-free power by 2045 is already bringing consumers savings just months after becoming law. I’ll continue to fight for the smoothest and most affordable transition possible for Illinois residents as we move toward a clean energy economy as a state.”

Where can I find my carbon credit savings amount?

To see what you have saved on your June ComEd bill, look for the line item, "Carbon-Free Energy Resource Adjustment" under the "Taxes and Fees" section.

The second credit: Tax refunds

Beginning in January, customers will see monthly refunds from ComEd. The refunds are from excess taxes charged to customers. The Tax Cuts and Jobs Act of 2017 reduced the corporate tax rate from 35% to 21%. However, ComEd had collected at the higher rate, resulting in a surplus.

ComEd agreed to pay customers back, but they wanted to take 39 years to do it. Because of the Climate and Equitable Jobs Act, the utility will be forced to refund the tax money ($434 million) over the next three years.

How much will you save on tax refunds?

Customers should expect to see a line item on their bills for about $3 per month starting in 2023. Unfortunately, these savings may be offset by ComEd's proposed utility rate hikes.

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