Illinois Customers May Face Higher Electricity Bills Starting June 1, 2025, Warns CUB
As summer approaches, residents in Illinois brace themselves for a significant hike in electricity bills, starting June 1, 2025. According to the Citizens Utility Board (CUB), Commonwealth Edison (ComEd) is set to increase its summer electricity pricing dramatically, leading to a rise in costs for consumers. The CUB has been vocal about the implications of this price spike, attributing it not only to a surge in demand but also to systemic issues within the regional power grid operations.
CUB representatives held a news conference to highlight how this price increase will affect everyday customers. Preliminary reports reveal that ComEd's summer supply rate, covering the months of June through September, is expected to rise to approximately 10 cents per kilowatt-hour (kWh). This adjustment marks a staggering 45% increase compared to last year’s rates, which were recorded at 6.9¢ per kWh. The board estimates that this surge will ultimately result in an additional average cost of $10.60 per month for consumers over the year.
Fortunately, some relief is on the horizon, as Illinois' Climate and Equitable Jobs Act (CEJA) provides partial offsets for this spike. Part of the law includes the Carbon Free Energy Resource Adjustment (CFERA), which is meant to subsidize energy produced by state nuclear power plants. With the impending price spikes, advocates pushed for a provision that would transform this charge into a credit under certain conditions. Based on CUB's analysis, this credit is projected to reduce the ComEd price by approximately 1.7 cents per kWh or about 17% in June. While adjustments on a month-to-month basis are anticipated, a credit is expected to remain relevant for at least the next 12 months.
"We see CEJA as a means of providing some temporary relief for consumers amidst these rising costs," shared CUB Executive Director Sarah Moskowitz. "However, it’s crucial to address the root causes of these price surges, particularly the ongoing inadequacies in the policies from PJM Interconnection, which manages the power grid for northern Illinois. Our mission is to ensure sustainable and consumer-friendly energy reform in both the PJM and state policy levels."
In response to these developments, CUB has also introduced an online platform, CUBHelpCenter.com, aimed at equipping consumers with valuable tips and resources for navigating this challenging financial terrain.
The surge in electricity pricing has its roots in various factors, but a primary concern involves skyrocketing costs related to reserve power, known as "capacity." A plethora of factors contribute to these rising costs, including the increasing demand from expansive operations such as power-hungry data centers. However, the predominant issue lies with policy shortcomings implemented by the PJM operators, particularly their sluggish approach to addressing a backlog of power plants—primarily renewable sources like wind and solar—that are waiting to integrate into the grid.
CUB's report clarifies which segments of the bill will be affected by these alterations, indicating that supply and transmission charges will compose about half to two-thirds of consumer bills. Notably, ComEd is required by law to pass these supply costs to customers without any markup, meaning the company itself is not profiting from these price increases; rather, the gains are skewed toward larger energy companies. Recent data shows that these producers of electricity have witnessed their capacity revenue soar six-fold to an astonishing $14.7 billion.
In light of these developments, CUB has shared several essential tips for consumers seeking to mitigate costs this summer:
1. Energy Efficiency Practices: Simple actions such as sealing windows and doors to retain cool air and reduce heat from outside can significantly lessen the financial strain posed by rising prices. However, CUB stresses the importance of ensuring health is not compromised in the quest for efficiency.
2. Maintain Communication with Utilities: Consumers facing difficulties should engage their utilities to explore payment plans and efficiency programs that might be available.
3. Explore Assistance Programs: Low-income families should consider checking their eligibility for the Low Income Home Energy Assistance Program (LIHEAP) for potential financial relief during this period.
4. Beware of Alternative Suppliers: With market conditions causing an escalation in utility prices, consumers should be cautious of switching to alternative electricity suppliers, as many could end up with less favorable terms.
5. Consider Community Solar Options: Community solar arrangements might provide savings compared to the current utility supply rates. Individuals can find more details on potential opportunities through SolarInTheCommunity.com.
6. Solar Panel Installation: Interested homeowners can learn more about solar panel installation and available income-qualified solar programs through CUB’s initiatives.
7. Support Each Other in the Community: Beyond individual actions, CUB encourages consumers to look out for friends and neighbors to ensure everyone remains safe and cool throughout the summer months.
For over four decades, the Citizens Utility Board has championed the rights of residential and small business utility consumers in Illinois, saving customers over $20 billion by blocking rate hikes and obtaining refunds. For additional support, individuals can contact CUB’s Consumer Hotline at 1-800-669-5556 or visit the CUB website at www.CitizensUtilityBoard.org.
CUB representatives held a news conference to highlight how this price increase will affect everyday customers. Preliminary reports reveal that ComEd's summer supply rate, covering the months of June through September, is expected to rise to approximately 10 cents per kilowatt-hour (kWh). This adjustment marks a staggering 45% increase compared to last year’s rates, which were recorded at 6.9¢ per kWh. The board estimates that this surge will ultimately result in an additional average cost of $10.60 per month for consumers over the year.
Fortunately, some relief is on the horizon, as Illinois' Climate and Equitable Jobs Act (CEJA) provides partial offsets for this spike. Part of the law includes the Carbon Free Energy Resource Adjustment (CFERA), which is meant to subsidize energy produced by state nuclear power plants. With the impending price spikes, advocates pushed for a provision that would transform this charge into a credit under certain conditions. Based on CUB's analysis, this credit is projected to reduce the ComEd price by approximately 1.7 cents per kWh or about 17% in June. While adjustments on a month-to-month basis are anticipated, a credit is expected to remain relevant for at least the next 12 months.
"We see CEJA as a means of providing some temporary relief for consumers amidst these rising costs," shared CUB Executive Director Sarah Moskowitz. "However, it’s crucial to address the root causes of these price surges, particularly the ongoing inadequacies in the policies from PJM Interconnection, which manages the power grid for northern Illinois. Our mission is to ensure sustainable and consumer-friendly energy reform in both the PJM and state policy levels."
In response to these developments, CUB has also introduced an online platform, CUBHelpCenter.com, aimed at equipping consumers with valuable tips and resources for navigating this challenging financial terrain.
The surge in electricity pricing has its roots in various factors, but a primary concern involves skyrocketing costs related to reserve power, known as "capacity." A plethora of factors contribute to these rising costs, including the increasing demand from expansive operations such as power-hungry data centers. However, the predominant issue lies with policy shortcomings implemented by the PJM operators, particularly their sluggish approach to addressing a backlog of power plants—primarily renewable sources like wind and solar—that are waiting to integrate into the grid.
CUB's report clarifies which segments of the bill will be affected by these alterations, indicating that supply and transmission charges will compose about half to two-thirds of consumer bills. Notably, ComEd is required by law to pass these supply costs to customers without any markup, meaning the company itself is not profiting from these price increases; rather, the gains are skewed toward larger energy companies. Recent data shows that these producers of electricity have witnessed their capacity revenue soar six-fold to an astonishing $14.7 billion.
In light of these developments, CUB has shared several essential tips for consumers seeking to mitigate costs this summer:
1. Energy Efficiency Practices: Simple actions such as sealing windows and doors to retain cool air and reduce heat from outside can significantly lessen the financial strain posed by rising prices. However, CUB stresses the importance of ensuring health is not compromised in the quest for efficiency.
2. Maintain Communication with Utilities: Consumers facing difficulties should engage their utilities to explore payment plans and efficiency programs that might be available.
3. Explore Assistance Programs: Low-income families should consider checking their eligibility for the Low Income Home Energy Assistance Program (LIHEAP) for potential financial relief during this period.
4. Beware of Alternative Suppliers: With market conditions causing an escalation in utility prices, consumers should be cautious of switching to alternative electricity suppliers, as many could end up with less favorable terms.
5. Consider Community Solar Options: Community solar arrangements might provide savings compared to the current utility supply rates. Individuals can find more details on potential opportunities through SolarInTheCommunity.com.
6. Solar Panel Installation: Interested homeowners can learn more about solar panel installation and available income-qualified solar programs through CUB’s initiatives.
7. Support Each Other in the Community: Beyond individual actions, CUB encourages consumers to look out for friends and neighbors to ensure everyone remains safe and cool throughout the summer months.
For over four decades, the Citizens Utility Board has championed the rights of residential and small business utility consumers in Illinois, saving customers over $20 billion by blocking rate hikes and obtaining refunds. For additional support, individuals can contact CUB’s Consumer Hotline at 1-800-669-5556 or visit the CUB website at www.CitizensUtilityBoard.org.
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