The major electric utility in the state, Commonwealth Edison (ComEd), is proposing a significant rate increase, and the Illinois Commerce Commission (ICC) is under pressure from the Citizens Utility Board (CUB) to lower it. ComEd has asked for a $678 million hike, but the utilities’ plan needs to be cut, as CUB notes.The consumer group’s position against what they perceive to be excessive and unnecessary spending is revealed in a news release issued by CUB on Tuesday.
The planned rate hike, which has been hotly debated in Docket 24-0181, is currently valued at roughly $678.1 million, according to a recent ComEd filing. However, a rise of roughly $648.6 million was imposed in order to move forward with the October recommendation by state regulatory judges. This stands in contrast to the $308.4 million increase that the ICC had previously authorized on different matters. As CUB’s General Counsel Eric DeBellis struggled through oral arguments Tuesday morning, he expressed worries about shielding customers from undue financial hardship. If compiled, this would raise ComEd’s annual rates by almost $1 billion.
After a series of intense exchanges, the tug-of-war between ComEd and CUB continues. ComEd had to amend its grid plan proposal last year after the ICC rejected it for not demonstrating affordability, and the company was penalized $38 million by the ICC on top of $200 million by federal authorities for a bribery plot. The updated power grid plan for this year still aims to implement sizable rate increases until 2027. CUB maintains that such increases are not justified under the Climate and Equitable Jobs Act (CEJA), which requires careful examination of utility rate proposals.
According to CUB’s expert opinion submitted over the summer, the ICC should reduce the projected increase by at least $89 million. They contend that it is unfair to make customers pay for ComEd’s mistakes by highlighting misaligned priorities in the company’s spending, such as $29.5 million in additional IT costs brought on by a new customer billing system disaster. It appears more like a bet with ratepayers’ money than a well-thought-out plan, as CUB notes, to burden customers with charges for speculative projects supporting hypothetical huge customers, such as data centers, that may or may not materialize.
CUB adamantly defends the idea that ComEd must provide evidence to support each investment in order for it to be deemed essential and advantageous for its clients. “Under CEJA, the days of spending customers’ money first and answering questions later are over,” Eric DeBellis said during the oral arguments. With a mixture of excitement and anxiety, ratepayers and stakeholders await the ICC’s ultimate ruling on the case, which is anticipated on December 5. The conclusion affects Illinois power consumers’ financial security, responsibility, and openness in addition to rates.
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