While Ameren Illinois and Commonwealth Edison have not officially announced what their summer electricity prices will be, the Chicago Tribune has reported some estimates. The bad news is power prices will continue to be elevated, and the major reason is soaring energy demand caused by new and proposed data centers. Here’s what we know:
Ameren Illinois: Last year, the summer capacity auction price for the Midcontinent Independent System Operator (MISO) shot up, causing Ameren’s summer electricity price to spike to more than 12 cents per kilowatt-hour (kWh). After this year’s MISO capacity auction, Ameren told the Tribune that it estimates the summer power price will be around 11 cents per kWh. Ameren’s price is likely to follow the same trajectory as last year, with an increase over the summer, followed by a price drop in October.
ComEd: ComEd’s supply price spiked to more than 10 cents per kWh last June 1–in connection with a record increase in capacity prices largely caused by data center energy demand. According to the Chicago Tribune, ComEd is predicting monthly residential bills to rise again this summer, by an average of $2 or $3. There is some good news: The pain of the price spike has been alleviated somewhat by a substantial credit on ComEd bills, thanks to a consumer protection in the Climate and Equitable Jobs Act (CEJA).
A few important points for Ameren and ComEd customers to remember:
- We won’t know exactly what Ameren and ComEd electricity prices will be until closer to June 1. CUB will update you when we know.
- WARNING: Be careful about getting lured into bad alternative electricity supplier deals. Recently, CUB saw two offers in Ameren territory that both were about 13 cents per kWh. We’ve seen plenty of terrible deals in ComEd territory, too. Even during this time of elevated prices it’s likely that the utility is your best bet for energy supply. Remember, CUB’s research found that Illinois consumers have lost more than $2 billion to alternative power suppliers over the last decade.
- Regardless of utility estimates on how expensive this summer will be, don’t forget that other factors, besides price, can cause electric bills to go way up–including house guests, new electric appliances that are added to your home, and heat waves. Last year, some electricity customers reported triple-digit increases in their electricity bills because of a combination of the price spike and hot weather that hit Illinois. Visit CUBHelpCenter.com for tips on what to do about high bills.
- Ameren and ComEd don’t profit off of the supply price of electricity. They pass those costs onto customers with no markup. But CUB calls on the utilities to work with their customers to keep them safely connected through the hot summer.
- Our high electric bills are largely caused by data centers. This is why we are fighting in Springfield to pass the POWER Act, which would make data centers pay their fair share of energy-related supply and infrastructure costs. Please send a message to Springfield urging passage of the Illinois POWER Act.
