CUB Statement on $199 Million ComEd Rate-Hike Request

CHICAGO, April 15, 2022 /PRNewswire/ -- This is bad news for Illinois consumers who are coming off the most expensive winter heating season in more than decade, and it's why we're working to build a more consumer-friendly rate-setting system in Illinois. CUB will review ComEd's rate-hike request and fight every dollar that can't be justified. 

The "formula rate" system, at the heart of ComEd's corruption scandal, has led to hundreds of millions of dollars in rate hikes over the years. But thanks to the Climate & Equitable Jobs Act (CEJA), CUB and other consumer advocates are working to build a system that gives the Illinois Commerce Commission (ICC) more authority and maximizes consumer benefits. CEJA also supports a process before the ICC to investigate a ComEd refund in connection with the company's scandal. CUB calls on ComEd to do the right thing and give its customers a fair refund—much more than the $21 million it has proposed.

BACKGROUND

• On Friday, April 15, ComEd announced it was requesting that the Illinois Commerce Commission (ICC) increase the utility's delivery rates by $199 million. The ICC will rule on the case in December. 
• This rate hike is reportedly the largest by ComEd in eight years, and it would increase the average residential customer's monthly bill by about $2.20 beginning Jan. 1, 2023. 
• The increase affects delivery charges—what all customers pay to have the electricity delivered to their homes. Those charges take up about a third to a half of the bill. 
• This is the last time delivery rates will be set according to the state's 2011 "Energy Infrastructure and Modernization Act," or the "smart-grid bill." That law uses a formula to determine ComEd rates annually to cover electric system upgrades. 
• CUB did not support the smart-grid legislation, citing too few consumer protections. In 2021, the group helped pass the Climate & Equitable Jobs Act, or CEJA. The new Illinois law aims to replace formula rates with a system that gives the ICC more authority and puts more emphasis on customer priorities like affordability and reliability.
• CEJA also called for a state regulatory investigation into ComEd giving consumers a refund in connection with the company's corruption scandal. CUB has fought for a refund on multiple fronts, including before the ICC, where the watchdog is pushing for ComEd to give its customers a refund that is more than double the $21 million the company has proposed.  

CUB is Illinois' leading nonprofit utility watchdog. Created by the Illinois Legislature, CUB opened its doors in 1984 to represent the interests of residential and small-business utility customers. Since then, it has saved consumers more than $20 billion by helping block rate hikes, secure refunds and fight for clean, low-cost energy. For more information, call CUB's Consumer Hotline, 1-800-669-5556, or visit its website, www.CitizensUtilityBoard.org.

SOURCE Citizens Utility Board