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CUB Challenges ComEd's Rate Increase

The Citizens Utility Board (CUB) has taken a strong stance against Commonwealth Edison (ComEd) as it seeks to raise delivery rates by $268.5 million by the end of the year. According to CUB, this proposal is an attempt to make customers cover costs associated with ComEd's ongoing billing problems, stemming from a failed billing system launch nearly two years ago.

CUB's Executive Director, Sarah Moskowitz, voiced her discontent, stating that it is unacceptable for ComEd to penalize customers due to errors the utility caused itself. The main concern arises from approximately $49 million in spending that ComEd claims is necessary to fix its faulty billing system, along with its proposal to recover an additional $9.3 million per year from consumers to cover these expenses.

This situation has been exacerbated by a series of billing delays, overcharges, and other errors, with customers expressing dissatisfaction regarding the utility's handling of the new system. In a press statement, Moskowitz remarked, "It's ridiculous for ComEd to try to raise our rates in connection with billing problems the utility itself created. Customers shouldn't pay higher rates for ComEd's incompetence."

Performance Bonuses in Question

CUB has also raised concerns over two performance bonus payments that ComEd is vying for under the Climate and Equitable Jobs Act (CEJA). The utility is attempting to collect:

• - A $5.8 million incentive payment for reducing disconnections in low-income neighborhoods, despite CUB arguing that the utility did not earn this bonus because the reduction in disconnections was primarily due to ComEd's inability to disconnect customers due to its flawed billing system.
• - A $3.5 million bonus tied to customer service metrics. CUB contends that ComEd cannot claim this bonus either since it lost the data necessary to substantiate its assertions of improvement.

Moskowitz condemned ComEd's attempts, declaring, "Shame on ComEd. The utility shouldn't benefit from its own failures."

Regulatory History and Implications

The backdrop of this ongoing dispute is ComEd's contentious history with the Illinois Commerce Commission (ICC), particularly following a corruption scandal that took place in 2020. The scandal included a $200 million fine by federal authorities for a bribery scheme that resulted in a series of rate hikes. In response to the outrage over these practices, the ICC previously slashed ComEd's proposed rate hike by about $1 billion in December of 2023 due to its failure to prove affordability. ComEd managed to recoup $606 million in rate hikes approved in 2024, but now finds itself asking for a substantial increase once again.

CUB firmly believes that if ComEd overspends its budget, customers should not have to foot the bill for the utility's excesses. The organization has urged the ICC to reject ComEd's current reconciliation request outright. Regulatory judges have already issued a proposed order recommending a $16.4 million reduction for ComEd, reflecting the sentiments of consumer advocates who have been vocal about the utility’s billing issues.

The ICC's final ruling, set to be announced by December 20, is highly anticipated. CUB remains hopeful that it will align with the recommendations laid out in the proposed order, potentially leading to further reductions. They encourage consumers to stand against ComEd's spending by signing a petition or reaching out to the ICC directly.

CUB's Role in Consumer Advocacy

For over 40 years, CUB has acted as a pivotal utility watchdog in Illinois, dedicated to protecting the interests of residential and small-business utility customers. Thanks to their efforts, consumers have collectively saved more than $20 billion by challenging unjust rate hikes and securing refunds. For individuals looking for assistance or guidance, they can contact CUB’s Consumer Hotline at 1-800-669-5556 or visit their website at www.CitizensUtilityBoard.org.