Electricity Archives | Citizens Utility Board

CUB Q&A: Solar and EE tax credits are being phased out–so what now?

Jim Chilsen — Sun, 20 Jul 2025 18:39:05 +0000

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Amid 50% Increase in Ameren’s Power Price, CUB Calls on Utility to Work With Customers to Keep Them Safe, Cool, Connected This Summer

Elizabeth — Wed, 04 Jun 2025 14:43:56 +0000

As Ameren Illinois customers face a 50 percent increase in the price of power, the Citizens Utility Board (CUB) on Wednesday called for the utility to work with people struggling to afford their bills this summer so they can keep their electricity on and protect themselves from dangerous heat. “This will be a difficult summer for far too many customers,” CUB Executive Director Sarah Moskowitz said. “In this expensive summer, we urge Ameren to do everything possible to work with customers so they can stay connected and keep their homes safe and cool.” She called for Ameren to offer consumer-friendly payment plans that give customers a longer time to pay off their debt. Ameren’s summer “price to compare”— the rate customers should compare with alternative supplier offers—is: 12.18 cents per kilowatt-hour (kWh) from June through September. Note: This rate includes the supply price, a transmission charge and a “supply cost adjustment.” The increase impacts the supply section, which makes up about a half to two-thirds of bills. Ameren doesn’t profit off supply—they pass those costs onto customers with no markup. The non-summer supply rate has yet to be finalized, but Ameren estimates the price will decrease to roughly 8 cents to 9 cents per kWh on Oct. 1. Ameren has estimated the increase will cost customers an average of 18 to 22 percent, or about $38 to $46 more per month over the summer. The spike is connected to an increase in the price for reserve power, also called “capacity.” CUB argues that capacity costs have skyrocketed largely because of policy problems with the power grid operator for central and southern Illinois, the Midcontinent Independent System Operator, or MISO, which runs an auction that determines the capacity price. CUB has tips to help Illinois consumers get through the expensive summer at CUBHelpCenter.com, including: Use energy efficiency to soften the blow of the price spike. Simple actions can help, such as weatherizing windows and doors and turning off unnecessary lights. Don’t take risks that keep your home too hot. Efficiency is about eliminating waste but staying safe and cool this summer. Stay in contact with your utility. Consumers who are struggling should contact Ameren to inquire about payment plans and learn about energy efficiency programs. Consider programs to help ease costs. Ameren’s Peak Time Rewards program gives customers the opportunity to earn bill credits by reducing electricity usage during high-demand periods, typically summer afternoons. Also, Illinois’ community solar program offers customers the benefits of solar power without having to install panels on their homes. All offers currently guarantee savings compared to Ameren’s supply price. CUB’s resource, SolarInTheCommunity.com, can help you carefully shop for offers. Beware of rip-offs. Since 2015, Illinois consumers have lost about $1.8 billion to alternative electricity suppliers. These suppliers are impacted by the same market conditions that are causing utility prices to increase, so it’s likely, even in this expensive market, that Ameren is your best bet. One exception: If your community has negotiated a power deal with a supplier, it’s possible the price is lower than Ameren’s supply rate. Confirm the price and find out when the […]

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News release: CUB, Chicagoland counties partner to offer “Solar Switch” program to secure rooftop solar discounts, lower power bills for participants

Jim Chilsen — Thu, 11 Jul 2024 16:43:33 +0000

The consumer watchdog Citizens Utility Board (CUB) is working with five Chicagoland counties, renewable energy advocates and solar professionals to offer a program that can help homeowners install solar panels at a significant discount and reduce their electric bills by hundreds of dollars, CUB announced Thursday. The Solar Switch program is a partnership among Cook, DuPage, Kane, Lake and Will Counties, along with the nonprofits CUB and the Midwest Renewable Energy Association (MREA). The program is managed by iChoosr, a company that administers similar solar programs around the world. Solar Switch is a “group-buy” program, which means it secures volume discounts for quality solar installations, based on how many residents of those five counties, along with residents of Kendall and McHenry counties, participate. The program selects installers through a competitive vetting process and then runs a reverse-auction to secure a low base-price. “As a consumer advocate, CUB wants to educate consumers and empower them to cut their utility bills, and the Solar Switch program does both,” said Marina Minic, CUB’s Solar Programs Coordinator. “The program gives consumers an introduction to the benefits of solar power, and it then connects interested participants to qualified, vetted and affordable solar installers.” Minic said legislation, such as Illinois’ 2021 Climate and Equitable Jobs Act (CEJA) and the federal Inflation Reduction Act of 2022, offer multiple incentives that can cover around 60 percent of installation costs. That’s on top of volume discounts the Solar Switch program offers. Once installed, solar panels have the potential to save customers hundreds of dollars a year on their electric bills. Here’s how the Solar Switch program works: Chicagoland residents are invited to register for the program at solarswitch.com/Chicagoland. There, residents can fill out a questionnaire to see if their roof is suitable for solar. (The final deadline to sign up is Sept. 10, 2024.) Registrants will also have access to free, educational webinars. In June, iChoosr organized a reverse auction–a process in which the traditional auction roles of buyer and seller are reversed. That means for each auction there is one buyer (a household or small business) and iChoosr invited qualified, pre-vetted solar providers to compete to offer the lowest bid and win the participant’s business. Registrants receive a personal recommendation, after which qualified installers will conduct remote and onsite roof assessments with those who accept an offer. Participants who review and approve their final quote will then schedule the installation. CUB, MREA and the counties have been involved in a similar group-buy program since 2019, helping more than 600 properties go solar, and educating more than 3,000 consumers about the science and benefits of solar. Residents who participate are expected to save an average of about $4,600 on a typical-sized solar installation, not counting the additional benefits of the federal and state tax credits. The Solar Switch program provides an excellent opportunity for Chicagoland residents to take advantage of these savings and make the switch to renewable energy. Register for free, educational webinars without obligation at solarswitch.com/Chicagoland. Consumers with questions should email hello@solarswitch.com.

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How to: Determine the right size of your room air conditioner

Jim Chilsen — Sat, 29 Jun 2024 10:57:24 +0000

Choosing the right size room air conditioner can significantly impact its performance and efficiency. Contrary to popular belief, a larger unit doesn’t always mean better cooling. It’s crucial to ensure that the air conditioner size matches the room’s dimensions and uses. Here’s how to determine the optimal size for your air conditioner: 1. Measure the Room’s Square Footage: Measure in feet, converting inches to fractions of a foot (e.g., 3 inches = 0.25 feet). Use these formulas for different room shapes: Square/Rectangular Rooms: Length × Width Triangular Rooms: (Length × Width) / 2 Irregular Rooms: Divide the room into squares, rectangles or triangles and use the above formulas. 2. Select the Correct Cooling Capacity: Match the room’s square footage to the corresponding cooling capacity in BTUs (British Thermal Units). See table below. 3. Make Necessary Adjustments: For shaded rooms, reduce capacity (the size of the AC, in BTUs) by 10 percent. For sunlit rooms, increase capacity by 10 percent. Add 600 BTUs per person for rooms typically occupied by more than two people. Increase capacity by 4,000 BTUs for kitchen installations. 4. Consider the Placement: Ensure the unit is installed in a location that allows unrestricted airflow. For example, don’t let a large houseplant or piece of furniture obstruct the air conditioner. Other factors affecting AC size may include ceiling height, the condition of the ductwork, nearby heat-generating appliances, home facade, insulation, occupancy, sun exposure, and windows. For example, higher ceilings or leaky ducts may require a larger/more powerful AC. The same goes for a home that faces South (more sun exposure), or has insufficient insulation. If you are unsure about your AC needs, it may be best to seek a professional opinion to determine the correct size. By selecting the right size and placing your air conditioner correctly, you’ll maximize comfort and energy efficiency, which in turn can save money on your electricity bills. Commonly asked questions and answers: Why does the size of the AC unit matter? An AC unit that is too small will struggle to cool the room, while an oversized unit will cool the room too quickly without properly dehumidifying it, leaving the space feeling clammy. What is a “BTU” and why is it important? BTU stands for British Thermal Unit, which measures the cooling capacity of an air conditioner. The higher the BTU, the greater the cooling power. Choosing the right BTU ensures efficient cooling and dehumidification. Can I use a single AC unit to cool multiple rooms? It’s not recommended. Window AC units are designed to cool single rooms. If you need to cool multiple rooms, consider separate units. What additional features should I look for in a window AC unit? Consider features like programmable thermostats, energy-saving modes, remote controls, and washable filters. These can enhance comfort and efficiency. Other helpful sources: Consumer Reports: How to Properly Size a Window Air Conditioner This Old House: What Size Air Conditioner Do I Need? (2024 Guide) Energy.Gov: Room Air Conditioners

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BREAKING: ComEd makes 4-year, $1.5 billion rate-hike request

Elizabeth — Tue, 17 Jan 2023 20:57:50 +0000

ComEd will file with state regulators to hike its delivery rates by about $1.5 billion over four years beginning in 2024, Crain’s Chicago Business reported. In a statement, CUB promised to challenge the increase: “ComEd’s four-year, $1.5 billion request is terrible news on top of the record rate-hike requests that customers are already dealing with from Nicor Gas and Peoples Gas. CUB will do a thorough review, but it’s immediately clear that the utility giant wants an excessive profit rate for shareholders. That’s why we will join with other consumer advocates to fight it. We will scrutinize ComEd’s filing to challenge every penny the company can’t justify. Making strategically smart, consumer-friendly grid improvements can help save customers money in the long-run, but that shouldn’t mean ComEd gets an excessive profit rate for shareholders.” Under the request, ComEd would raise delivery rates by $894 million in the first year alone, what would be ComEd’s highest one-year increase ever. After that, rates would increase by an average of $198 million annually from 2024 through 2027. That would increase monthly household electric bills by an average of $4.25 a month each year, for a cumulative increase of $17 a month by 2027. A major component of the rate-hike request is ComEd’s 10.5 percent return on equity (ROE, or profit rate for shareholders). The requested ROE, if approved, would rise incrementally to 10.65 percent in 2027, Crain’s reported. This rate increase will impact the delivery portion of consumers’ bills. All consumers pay delivery rates to cover the utilities’ costs of building and maintaining the grid that sends electricity to our homes (plus a profit). Customers will pay this rate hike even if they choose an alternative supplier. ComEd made this filing under a new four-year rate-setting process that replaced the unfair formula rate-setting system that was at the heart of the ComEd corruption scandal with a system that is more transparent and gives the Illinois Commerce Commission (ICC) more authority to challenge rate hikes. Investments to improve the system and make it more efficient for consumers are good, but that doesn’t mean the company should get an excessive profit rate for shareholders. That’s why CUB and other consumer advocates will be involved in these rate cases to reduce the ROE and the hikes as much as possible In related news, ComEd customers this month are seeing the beginning of a $434 million tax-related rate cut that a provision in CEJA delivered.

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Goodbye formula rates: CUB helps cut Ameren’s final “formula” hike by millions

Jim Chilsen — Tue, 06 Dec 2022 16:54:58 +0000

In the final ruling under an anti-consumer “formula” rate-setting system, the Illinois Commerce Commission (ICC) granted Ameren Illinois a $61 million electric delivery rate hike, after CUB and other consumer advocates helped knock about $22 million off the proposed increase. “While we’re glad Ameren didn’t get the $83 million rate hike it wanted, it’s still tough news for customers who have been suffering under high bills over the past year,” CUB Communications Director Jim Chilsen said. “This formula rate system was a raw deal for customers, and we’re glad to be saying goodbye to it. But our work isn’t over. Now we’re focused on implementing a new, more consumer-friendly rate-setting system that gives ICC commissioners more authority, under the Climate and Equitable Jobs Act (CEJA).” Under the outgoing formula system, Ameren proposed an $83,187,000 increase back in April, and the ICC granted an increase of about $61 million on Dec. 1. The increase, which takes effect on Jan. 1, impacts 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. The rate hike comes at a horrible time, after consumers suffered through an expensive winter and summer. Given that this winter could be even worse than last, CUB’s legal team of General Counsel Julie Soderna and Regulatory Counsel Eric DeBellis were pleased that the hours upon hours they spent on the case helped to soften the blow a bit. In the case, CUB recommended adjustments to the cost of capital structure–which has to do with the return Ameren argued for on capital projects. That cut the increase by about $16.5 million. Overall, adding adjustments from other parties, the hike was reduced by about $22 million, or 26 percent. That’s a better result than consumer advocates usually got under the controversial system that set electric delivery rates by formula and made it difficult for consumer advocates to challenge increases. This is the last formula rate hike consumers will get under the state’s “Energy Infrastructure and Modernization Act,” or the “smart-grid bill.” The legislation set rates by formula for a decade to pay for upgrades to the power grid. While CUB saw possible promise in those upgrades to make the grid more reliable and affordable for consumers, the watchdog opposed the bill saying it had too few protections against unfair rate hikes. Ameren has received hundreds of millions of dollars in rate hikes over the last decade, under the controversial system. In 2021, CUB helped pass CEJA, which called for replacing formula rates with a system that gives the ICC more authority and puts more emphasis on customer priorities like affordability and reliability. So what happens now that the old formula system is dead? State regulators recently approved a set of performance metrics to be paired with a new multi-year rate plan that will be filed next year. While there’s a lot of work to be done to implement this new system, CUB said these metrics “prioritize climate, equity and consumers.” ComEd and Ameren are expected to file their proposed plans in January, for rates effective […]

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Ameren offers $500,000 in assistance, and special payment plans have July 31 deadline

Elizabeth — Mon, 25 Jul 2022 17:40:52 +0000

In a summer of skyrocketing power prices, Ameren Illinois announced it is using $500,000 in shareholder funds to give relief to electric customers–and until July 31 it is offering certain customers friendlier plans to pay off debt. The Residential Assistance Credit is in response to the highest electricity prices CUB has ever seen in Central and Southern Illinois. Ameren electric customers saw their average monthly bills rise 55% in July. (Read CUB’s Q&A: June 1 Electricity Price Spike in Central and Southern Illinois for more information.) Ameren said the assistance is designed to assist customers who do not typically meet income qualifications for state and federal assistance programs. Ameren told CUB that the funds were allocated in the form of grants that were applied directly to customer accounts. The utility sent a letter explaining the credit to those customers. “Higher power supply prices are impacting all of our customers, regardless of their income or economic circumstance,” said Joe Solari, vice president of Customer Experience, Ameren Illinois. “We utilized Ameren shareholder funds to help reduce monthly bills for qualified moderate-income customers.” Also, qualified Ameren Illinois customers who are behind on their energy bills can establish an 18-month repayment plan with a 10% down payment through July 31. After July 31, most customers with outstanding balances will need to make a 25% down payment before they can establish a monthly payment plan. “It’s very important that Ameren customers in need take advantage of the opportunity to join a payment plan by July 31st,” said Jim Chilsen, director of communications at Citizens Utility Board. “If you’re struggling, please contact your utility company to avoid disconnection, especially with the extreme heat we’re facing this summer.” Ameren customers can explore energy assistance and bill payment options at AmerenIllinois.com/EnergyAssistance. Or, call the company’s toll-free hotline: 1-800-755-5000, 7 a.m. to 7 p.m., Monday through Friday. Additional Resources: CUBHelpCenter.com Attention Ameren customers: Prepare yourself for higher electric bills with help from these programs With energy prices skyrocketing, advocates urge power grid operator to stop delays on new generation

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CUB explainer: What are Capacity Markets?

Elizabeth — Fri, 22 Jul 2022 21:26:56 +0000

As we hold community events across the state of Illinois, people are often surprised to hear that our electric bills cover not only the power we use but the power we could use. That’s capacity. And the cost of capacity–for most customers it’s hidden in the supply charge we pay–has grown over the years to about 21 percent of the supply side of our bills, according to the Illinois Commerce Commission. Because it’s such a key part of your bill, CUB produced this explainer to give you more information about capacity costs and how the market sets those prices. In the energy sector, there’s a lot of planning to ensure that every customer who pays for electricity can expect it to work when they turn on a light switch. Your utility handles the distribution of electricity from the power lines in your neighborhood to your home. If there’s a power outage you call them. But beyond that, the high-power transmission lines and the flow of power over that network is managed by a somewhat mysterious organization that many customers don’t even know exists: a Regional Transmission Organization, or RTO. The RTO serves as a kind of “air traffic controller,” monitoring the movement of electricity from large power plants to your electric utility’s system. PJM Interconnection is the RTO that covers ComEd and all or part of 12 other states and Washington, D.C. MISO (Midcontinent Independent System Operator) is the power grid operator for Ameren Illinois and all or part of 14 states. Not only do RTOs monitor reliability in these regions, but they also manage separate auctions to determine the price of energy (the electricity that is consumed by end-users) as well as the price for capacity (the maximum amount of electricity that could be consumed by end-users). The PJM capacity auction, the largest of its kind in the country, covering 65 million customers and about 20 percent of the country’s power supply, is a forward auction selling energy capacity for three years in advance. The MISO capacity market is a prompt auction selling energy capacity over the next year. In 2022, it made headlines when capacity issues sparked a 120 percent increase in Ameren Illinois’ summer price, and MISO officials warned of the possibility–albeit remote–of rolling blackouts to handle a potential capacity gap during high-demand periods. Basically, the capacity market determines how much power is needed and where it should be located in order to prevent widespread power outages when demand for electricity is high. The market uses formulas to predict a region’s peak total energy usage for the year, plus a cushion. This cushion is controversial because it is usually provided by expensive, fossil-fueled power plants. When the cushion is inflated, electric customers often end up paying too much for dirty power they don’t need. In fact, a 2020 Sierra Club study found consumers are paying $4.4 Billion in over-procurement costs to keep 77 gas and coal plants online in PJM territory. RTOs are nonprofit entities, but they have little accountability or transparency to consumers who often don’t know they exist. That’s a big reason why CUB launched […]

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With energy prices skyrocketing, advocates urge power grid operator to stop delays on new generation

Jim Chilsen — Fri, 22 Jul 2022 17:14:56 +0000

Illinois legislative leaders and CUB are urging the power grid operator in Central and Southern Illinois to fast track renewable energy projects that could reliably power 4.5 million homes and help relieve energy problems in the region. At a news conference July 21, legislative leaders criticized the Midcontinent Independent System Operator (MISO), the multi-state entity that manages the generation and transmission of electricity across Central and Southern Illinois. The region is suffering through a price spike currently, connected to global issues and a huge jump in the price for reserve power (also called capacity costs) that MISO blamed on an increase in electricity use and a dip in power supply. (See the TV coverage of the news conference, and watch it yourself.) But there currently are 34 solar and wind projects capable of generating more than 6,000 megawatts of energy awaiting approval in MISO’s queue. That’s enough to power 4.5 million Illinois homes. MISO’s foot-dragging could keep these projects languishing for years, the leaders said. MISO has been slow to act, and has instead raised the possibility of controlled power outages if there’s not enough electricity available. Ameren Illinois, the electric utility, has responded that it’s optimistic it will be able to keep the lights on this summer. Still, fossil fuel interests and their allies have used MISO’s comments as an opening to wrongly blame these problems on the Climate and Equitable Jobs Act (CEJA) and push for re-opening the nation-leading clean energy bill. “The answer to capacity and price issues is not to reopen CEJA, but rather to move quickly to implement it and get existing renewable projects online faster. That starts with MISO ensuring we get those 34 projects capable of generating 6,000 megawatts of renewable energy on the grid. If Ameren customers ever find themselves in the dark, MISO’s inaction is to blame. They are asleep at the switch,” said State Senator Cristina Castro, the chief Senate sponsor of CEJA. “Rather than quickly bringing new energy resources on to the grid, MISO is now trying to shift blame, warning of potential power outages this summer in Central and Southern Illinois, an apocalyptic and misleading view that even Ameren disputes. Fossil fuel interests and entrenched energy lobbyists are jumping on MISO’s blame game and calling for a return to the days when coal and gas generated most of Illinois’ electricity, even as fossil fuel prices skyrocket, emissions pollute our communities, and the planet burns,” said State Representative Ann Williams, chief House sponsor of CEJA. “Going back to coal and gas is like pouring gasoline on a fire in terms of hiking energy prices and polluting our communities,” Williams added. Advocates pointed out that MISO has known the transition from dirty, expensive fossil fuels to clean, less expensive renewables has been coming since at least 2007, when Illinois passed its first Renewable Portfolio Standard (RPS) that has only been accelerated by other initiatives. “For years, MISO has known this transition was coming, through the advent of the renewable portfolio standard and multiple rounds of legislation, including the Future Energy Jobs Act in 2016 and CEJA in 2021,” said Jim Chilsen, director of communications […]

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News you can use: Power Outage Tips

Jim Chilsen — Wed, 08 Jun 2022 12:27:35 +0000

Be prepared in case of power outages. CUB compiled these tips from a number of sources, including the Red Cross and Ready.gov. What can I do to prepare for a power outage? Line up a support network. Keep a paper copy of a list of people (and their numbers) who can help you stay at home or evacuate during an extended power outage. Prepare an emergency kit that includes a first aid kit, one flashlight for each person in the home, extra batteries, food and water, a radio, extra cash and any important documents that might be helpful (a list of medications your family takes, important medical information, your support network list, etc.) Prepare a pet emergency kit to meet the needs of your companion animals. Have food and water ready. Stock up on non-perishable food and water supplies. You need about a gallon of water per person per day. Have coolers and ice ready to extend food refrigeration. Also, keep a thermometer in your fridge, freezer or cooler so you can monitor the food temperature when you need to. Determine whether your home phone will work in a power outage, and if it has a battery backup, how long that will last. Have communication devices that work without home power. (For example a crank or battery radio, chargers/batteries for your cellphones.) Talk to your doctor and medical device provider so you have a plan for how to deal with medicines that need refrigeration and medical devices powered by electricity. Find out how long medication can be stored at higher temperatures. Consider safe alternatives for lighting, cooking and elevators. Make sure you have weatherized your doors and windows to keep your home cool for as long as possible during an outage. Make sure that you have current surge protectors for household electronics. Keep your car gas tank at least half full. What do I do during a power outage? Contact your support network. Let people in your network know that you are OK. Also, monitor alerts about the outage. (See below.) Keep your freezers and refrigerators closed as much as possible. The refrigerator will keep food cold for about four hours. A full freezer will keep the temperature for about 48 hours (24 hours if it is half full). First, use perishable food from the refrigerator. Perishables should have a temperature under 40 degrees Fahrenheit to be safe to eat. (Use a food thermometer to check, and throw out the food if it’s 40 degrees or higher. When in doubt throw it out.) THEN use food from the freezer. And THEN use your non-perishable foods and staples. If it looks like the power outage will continue beyond a day, prepare a cooler with ice for your freezer items. Keep food in a dry, cool spot and keep it covered at all times. Monitor temperatures with a thermometer. Prevent power overloads and fire hazards. Unplug appliances and electronics to avoid power overloads or damage from power surges. Use flashlights, not candles. If any circuit breakers have been tripped, contact an electrician to inspect them before turning them on. Prevent carbon monoxide […]

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