Federal regulators recently ordered changes to a yearly electricity auction that last summer sparked a 30 percent increase in power prices in Central and Southern Illinois. Now, it’s time to for the egregious prices!
Every year, the power grid operator in Central and Southern Illinois and 14 other states holds a yearly auction to determine “capacity” costs (fees that are wrapped up in your electricity price) for the next 12 months. In last spring’s auction, Illinois’ capacity cost was more than 40 times higher than the other 14 states. At the time, experts said the spike threatened customers with $130 in higher costs!
It made no sense—Illinois has ample electricity, so why were its costs so much higher than neighboring states?
The Illinois Attorney General, CUB and thousands of concerned CUB Action Network members urged the Federal Energy Regulatory Commission (FERC) to investigate and reform the market. In a positive development, FERC recently ordered key changes to auction rules to prevent dangerous price spikes in the future.
. FERC is still investigating the spike, and the question over whether Central and Southern Illinois consumers should get refunds.
“I am pleased with FERC’s decision to fix the auction rules, but FERC still needs to order refunds to consumers for the outrageously high prices,” Attorney General Lisa Madigan says.
We think you deserve a refund, too..