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CUBFacts
Power bills generally used to be divided by an energy charge and a customer charge only. Both charges were regulated by the Illinois Commerce Commission (ICC). All that changed when ComEd and Ameren launched their “reverse-auction” power-pricing system in 2007. Then, costs that used to be rolled into those two charges became separate line items on bills. Making Sense of Your electric bill
Parts of your bill still are fully regulated, meaning utilities have to go before the ICC and get approval to increase them. These are the “delivery” charges, which cover the costs of getting electricity to your home. However, the cost of the actual power that ComEd and Ameren buy is left up to the market. The lone exception among Illinois’ major electric utilities is MidAmerican, which continues to be completely regulated under the old system. Electricity usage is billed by the kilowatt-hour (kWh)—roughly enough power to run a typical hair dryer for an hour or to cook a pot of rice in that time. A customer’s previous and current meter readings are listed on the bill, along with the dates those two readings were taken. The difference between the two readings is the electricity usage for the current billing period (typically a month). A utility company should go to a customer’s home and read the electric meter at least once every other month. If it doesn’t read your meter in a given month, your bill will be estimated, and “E,” “EST,” or “ESTIMATED” will appear on it. That means your usage for that month was based on last year’s usage for the same month, adjusted for weather. Check your bill to make sure that the company is reading your meter, and if it isn’t, call the utility and find out why not. Request an actual reading. Call CUB’s Consumer Hotline, 1-800-669-5556, if you have any questions. Glossary of Charges
(You may see some or all of these charges on your bill.)
Delivery Charges (about 1/3 of bill)
Customer charge (basic service charge)
This flat fee covers some of the fixed costs of doing business, such as billing, postage, building rent, and other administrative costs. The ICC must approve this charge. Distribution delivery charge (distribution facilities charge) This per-kilowatt-hour charge, set by the ICC, covers the costs of delivering power from the utility to your home and maintaining the equipment and wires that carry the electricity. This charge also covers any fixed costs not recovered through the customer charge. Meter charge (standard metering charge) This charge, set by the ICC, covers the costs of meter reading and other services such as installing, exchanging, maintaining, and testing of meter equipment. AmerenIP charges $4.73 a month, AmerenCILCO $3.54 a month, Ameren CIPS $4.02 a month, and ComEd $2.24 a month. Supply Charges (about 2/3 of bill)
Energy charge (a.k.a. electricity supply charge, purchased electricity)
This per-kWh rate is what has gone down as of June 1. The charge, which takes up about two-thirds of your bill, is for the actual power you use. The rate is multiplied by how many kilowatt-hours you use. ComEd and Ameren are supposed to pass these energy costs on to customers with no markup. However, this charge will be slightly higher than the actual market price the company secured because it is adjusted to include some other costs, such as “line loss.” That’s when power that travels over the lines is lost as it gives off heat. (Note: MidAmerican Energy has chosen not to restructure its electricity-buying system. Its energy charge is set by the ICC.) Market value adjustment (purchased electricity adjustment) Your utility is supposed to pass the price of electricity it pays on to customers with no markup. This adjustment, a credit or a debit, attempts to “true-up” any discrepancy (over or under) from month to month between what Ameren or ComEd paid for electricity and what you paid with the electric supply charge. Supply cost adjustment (supply administration charge) This small charge covers other administrative costs associated with procuring electricity. Note, ComEd does not have a separate line item for this charge, but rolls it into the energy charge. AmerenCILCO .125 cents per kWh
AmerenCIPS .126 cents per kWh
AmerenIP .120 cents per kWh Transmission service(s) charge This charge is similar to the distribution charge, which covers the delivery of power from your utility to your home. However, this charge covers the cost of carrying electricity from the major power generator to your utility. If your utility wants to increase this charge, it has to get approval from the Federal Energy Regulatory Commission (FERC). ComEd’s charge is fixed at .602 cents per kWh (lowered on June 1 from .829 cents per kWh). Ameren’s transmission charge is a fixed formula that leads to a different charge each month. Other Charges
State tax (Illinois state electricity excise tax)This tax, a third-of-a-cent per kilowatt-hour, is levied by the state. Municipal tax Municipalities are allowed to impose their own utility taxes, but the amount they can collect is capped by state law. The utility collects the money and forwards it to the municipality. This tax also is called the local government compliance charge. Environmental cost recovery This charge reflects a company’s costs for cleaning up pollution at former gas-manufacturing sites. It’s also called the environmental factor EPA charge and the electric environmental adjustment clause. Franchise cost Some towns or cities require the utility to provide a fee or other benefits to the municipality in exchange for the right to provide electric service to them. The utilities recover the costs on the electric bills from the customers in those communities. Instrument funding A charge issued by AmerenIP Power and ComEd to pay off bonds authorized in the 1997 deregulation bill. For legal reasons, the charge and a credit of equal amount are included on each bill, so that the net effect of what customers owe is zero. What Your Electric Utility Charges
AmerenIP (1-800-755-5000)
Note: The space heat rates are NOT applicable to new customers.
Monthly Customer Charge*: $8.15 Energy Charge Non-summer:
Space heat:
6.874¢/kWh for first 800 kWh, then .885¢/kWh Non-space heat: 6.874¢/kWh for first 800 kWh, then 4.856¢/kWh Energy Charge Summer:
5.516¢/kWh
Distribution Charge:
Summer:
3.951¢/kWh through Oct. 1, 2009, 4.185¢/kWh after Non-summer: 2.464¢/kWh through Oct. 1, 2009, 2.610¢/kWh after AmerenCILCO (1-888-672-5252)
Monthly Customer Charge*:
$6.23
Energy Charge Non-summer:
7.480¢/kWh for first 800 kWh, then
2.334¢/kWh
Energy Charge Summer:
5.525¢/kWh
Distribution Charge:
Summer:
3.268¢/kWh Non-summer: 2.128¢/kWh AmerenCIPS (1-888-789-2477)
Note: The space heat rates are NOT applicable to new customers.
Monthly Customer Charge*:
$7.02
Energy Charge Non-summer:
Space heat:
7.484¢/kWh for first 800 kWh, then 2.367¢/kWh Non-space heat: 7.484¢/kWh for first 800 kWh, then 5.104¢/kWh Energy Charge Summer:
5.554 ¢/kWh
Distribution Charge:
Summer:
2.934¢/kWh Non-summer: 1.652¢/kWh AmerenCIPS-Metro East (1-888-789-2477)
Note: These are former AmerenUE customers.
Monthly Customer Charge*:
$7.02
Energy Charge Non-summer:
7.386¢/kWh for first 800 kWh, then .992¢/kWh
Energy Charge Summer:
5.554¢/kWh
Distribution Charge:
Summer:
2.934¢/kWh Non-summer: 1.652¢/kWh ComEd (1-800-334-7661)
Monthly Customer Charge*:
$8.31 for single-family homes and buildings with two units
$7.32 for buildings with three or more units Energy Charge Non-summer:
Space heat:
3.978¢/kWh Non-space heat: 6.435¢/kWh Energy Charge Summer:
Space heat:
5.240¢/kWh Non-space heat: 6.589¢/kWh Distribution Charge:
Space heat:
2.023¢/kWh Non-space heat: 2.407¢/kWh MidAmerican Energy (1-888-427-5632)
Monthly Customer Charge*:
$5.65
Energy Charge Non-summer:
7.238¢/kWh for first 800 kWh
3.798¢/kWh for usage over 800 kWh Energy Charge Summer:
9.058¢/kWh for all usage
Small-use Energy Charge:
For a customer whose combined average daily usage during the two highest billing periods from June through September does not exceed 15 kWh.
Non-summer: 6.068¢/kWh Summer: 7.848¢/kWh Distribution Charge:
Not Applicable
*The customer charge listed includes a 48-cent fee for a state fund to subsidize heating costs for low-income consumers and a nickel fee for a state fund dedicated to the development of renewable energy and “clean-coal technology.” It also includes a fee (Ameren, 5 cents; ComEd, 14 cents) to recover the costs of real-time pricing programs, which allow homes to pay an hourly rate for power.
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