Consumer Advocacy Archives | Citizens Utility Board https://www.citizensutilityboard.org/blog/category/consumer-advocacy/ Fight utility rate hikes, promote clean energy, and advocate for consumer protections in Illinois. Tue, 29 Jul 2025 15:38:32 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://www.citizensutilityboard.org/wp-content/uploads/2020/09/cropped-CUB_LogoBadgeAlt-32x32.png Consumer Advocacy Archives | Citizens Utility Board https://www.citizensutilityboard.org/blog/category/consumer-advocacy/ 32 32 Illinois Community Solar: CUB’s evaluation of their community solar offer https://www.citizensutilityboard.org/blog/2025/07/25/illinois-community-solar/ Fri, 25 Jul 2025 19:48:09 +0000 https://www.citizensutilityboard.org/?p=43373 This is an evaluation of Illinois Community Solar’s community solar offering. If you are not already familiar with community solar, please read  CUB’s Introduction to Community Solar first. Also, learn more about an income-qualified program called Illinois Solar for All. How will signing up for the Illinois Community Solar offer affect my electric bill? With a community solar subscription, customers join a solar farm through the state’s Net Energy Billing program. The solar farm earns energy credits for the power it produces and shares those credits with its subscribers. These credits lower the subscribers’ electric bills. Subscribers then pay the solar farm for the credits—but at a discount (usually 10–20%), so they always save money. This also supports local clean energy. Illinois Community Solar will look at your energy usage history to determine your subscription size, measured in kilowatts (kW). Each month your subscription will produce solar energy, measured in kilowatt-hours (kWh). With Illinois Community Solar, you will have an option of receiving one bill (consolidated) or two bills (dual billing). With the consolidated, or one bill option your community solar company will bill you once a month and they will take care of billing the utility company. With the two-billing option, you will be billed by your solar company for the electricity you produced. You will then get a separate bill from your usual utility company minus the solar credits you received from the community solar company Illinois Community Solar will bill you for the energy generated by your subscription, with a 10%-20% discount applied. That’s where the savings come in. The total amount you save monthly will vary as the solar production of your subscription varies. What about alternative suppliers? Almost all consumers, regardless of their alternative electricity supplier, can now receive solar bill credits as part of a community solar program. Although, if you receive a bill from your alternate supplier that is separate from your utility bill, solar credits can only be applied to your utility bill. If the alternative electricity provider charges appear in a consolidated bill, your credits will be used on that bill. Learn more about alternative suppliers for consumers in ComEd territory and Ameren territory. What does CUB think about this offer? Community solar allows more Illinois consumers to enjoy the benefits of renewable energy, and CUB is pleased to see these offers hit the market. Illinois Community Solar promises 10%-20% savings over your utility’s energy supply price. Visit Solar in the Community to see CUB’s analysis of other offers available in Illinois. This chart summarizes key points about the Illinois Community Solar deal: What utility territory does the company serve? Ameren and ComEd Does the company offer savings? Yes, Illinois Community Solar offers 10%-20% off the utility default supply rate for the community solar bill credits you receive. Is there a credit check when I sign up? There is a soft check What is the contract term? Up to 20 years Is there an “exit fee” for leaving the contract early? No What are my billing options? Dual Billing, Consolidated Billing When will my subscription go live? When will I start […]

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Statement: CUB Joins Other Consumer Advocates in Challenging Federally Mandated Rate Hike to Keep ‘Zombie Power Plant’ Open https://www.citizensutilityboard.org/blog/2025/06/30/statement-cub-joins-other-consumer-advocates-in-challenging-federally-mandated-rate-hike-to-keep-zombie-power-plant-open/ Mon, 30 Jun 2025 21:24:20 +0000 https://www.citizensutilityboard.org/?p=43225 The following is a statement by Clara Summers, manager of the Citizens Utility Board’s Consumers for a Better Grid campaign, on a federal order to keep the Eddystone Generating Station, a power plant in Pennsylvania, open. The move could needlessly cost customers across the country, including Commonwealth Edison (ComEd) customers in Illinois, millions of dollars in higher electric bills. In a summer when Illinois electricity customers are already paying higher power bills, a new Department of Energy (DOE) order will unnecessarily add to our pain, and that’s why we are challenging it. The DOE’s maneuver is not about reliability–this is a handout to the fossil fuel industry, paid for by consumers across the region, including Illinois. PJM has already concluded that there are adequate resources for this summer, but the DOE has manufactured an emergency to prop up an outdated power plant that should already be shuttered. The DOE just made a bad situation even worse, and Illinois consumers will pay the price. In challenging the DOE order, CUB and other consumer advocates argue that keeping this “zombie power plant” open is not only costly for consumers, but it’s also illegal, a violation of the Federal Power Act. Background: Consumer advocates, including the Citizens Utility Board (CUB) of Illinois and Illinois Attorney General Kwame Raoul’s office, are challenging a U.S. Department of Energy 202(c) order that has kept an aging oil and gas plant in Eddystone, Pennsylvania open this summer past its close date–at extra cost to consumers. Consumer advocates initially estimate that keeping the Eddystone Generating Station open 90 days past its expected close date will cost consumers across the PJM region around $5.1 million. If the 90-day order is extended–as expected–it will cost more. The operating units at Eddystone run on oil or gas and were built around 50 years ago (1974 and 1976). They were slated to be closed on May 31, before the DOE issued its order mandating PJM Interconnection, the power grid operator, and Constellation, the owner of the plant, to keep them open for another 90 days. The DOE vaguely cited an “emergency situation” regarding reliability. However, the challenge, filed on June 27 by the Maryland Office of People’s Counsel (OPC) and a coalition of consumer advocates, argues that no emergency justified the Department’s order and requests a rehearing on the matter. The DOE has 30 days to respond to the request, after which parties can challenge the order in court. Joining in support of the OPC filing were CUB, Illinois Attorney General Kwame Raoul’s office, the Delaware Division of the Public Advocate and the New Jersey Division of Rate Counsel. The DOE’s May 30 order on Eddystone followed a similar order a week earlier to the Midcontinent Independent System Operator (MISO) mandating that the coal-fired J.H. Campbell Power Plant in West Olive, Michigan remain open for 90-days at an estimated cost of $100 million. Consumer and environmental advocates, including CUB, are also challenging that order.

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Green Energy Justice Cooperative (GEJC): CUB’s evaluation of GEJC’s community solar offer https://www.citizensutilityboard.org/blog/2025/05/27/green-energy-justice-cooperative-gejc-cubs-evaluation-of-gejcs-community-solar-offer/ Tue, 27 May 2025 16:12:11 +0000 https://www.citizensutilityboard.org/?p=42974 Green Energy Justice Cooperative (GEJC) offers both market rate and income-eligible community solar deals in Will and DuPage counties. If you are not already familiar with community solar, please read  CUB’s Introduction to Community Solar first. Also, learn more about an income-qualified program called Illinois Solar for All. Community-Driven Community Solar (‘CDCS’) Green Energy Justice Cooperative includes projects, up to 5 megawatts (MW), that are meant to provide direct clean energy benefits  to the communities in Will and DuPage counties where they operate. Read how CDCS works, how it will affect your electric bills, and how you can save money. How will signing up for the GEJC solar offer affect my electric bill? The subscription process starts by becoming a member: You fill out the membership form and show proof you live in the service area and have a ComEd utility account. Then, choose your one-time fee membership tier: $5 for Lower-Income (with income proof), $25 for Standard, and $750 for supporters/organizations. Once confirmed, you can subscribe to the solar farm. GEJC will help you determine the right subscription size,  measured in kilowatts (kW), based on your average electricity usage and what capacity from the solar farm is available.  Next, you will review and sign the solar agreement and provide your utility information. You’ll get confirmation of your enrollment, and GEJC will connect your account with ComEd. Once activated, your subscription will produce solar energy, measured in kilowatt-hours (kWh), each month. The supply section of your electric utility bill will be credited for what your subscription produced that month. Then, GEJC will charge you for those credits through a consolidated billing system, but with a discount of up to 20 percent.  Example: Say you are currently paying your electric utility 10 cents/kWh. Through GEJC community solar, you will be paying 8 cents/kWh (20% discount on the supply) for any electricity produced by the farm. As a member, you’ll get monthly credits and take part in profit-sharing. You’ll also be able to track your savings online, take part in decisions about the cooperative and attend meetings and educational events. Note: Your subscription size is designed to provide credits for your full electricity usage for the year, though there will be changes in your subscription’s energy production from month to month. For example, your subscription will produce less in winter, but more in summer, and your credits from the summer will rollover to help cover your electricity usage in winter. What about alternative suppliers? All customers, regardless of their electricity supplier, can now receive solar bill credits as part of a community solar program. Be careful about bad alternative supplier deals. Read CUB’s fact sheet.  What does CUB think about this offer? Community solar allows more Illinois consumers to enjoy the benefits of renewable energy, and CUB is pleased to see these offers in the market. This is Illinois’s first community-owned solar cooperative, providing more tangible benefits to community members. Members of the cooperative will be able to vote on decisions, attend member meetings, receive profit-sharing distributions, and gain access to educational resources. GEJC does require an online ComEd account to enroll in […]

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Kudos! A Spotlight on the CUB Team https://www.citizensutilityboard.org/blog/2025/04/09/kudos-a-spotlight-on-the-cub-team/ Wed, 09 Apr 2025 18:00:31 +0000 https://www.citizensutilityboard.org/?p=42669 At CUB, we take seriously our mission of advocating for utility customers, and we work hard to live up to the generosity of our supporters. We’d like to share a few special notes we’ve received lately from people thankful for our free services.  Kudos to Annie Warnock, Consumer Rights Specialist-Bilingual “Your intervention meant that someone finally took ownership for solving my problem. Something as simple as one person following the issue from beginning to end is all it took to allow the problem to be resolved in one day. Thank you for having an organization I could call after running into one brick wall after another.” -Ms. C., whose AT&T bill ballooned by $720 before CUB helped fix the problem by filing a complaint with the telecom giant.  Kudos to Marina Minic, Solar Programs Coordinator “We had 8 attendees who all praised Marina’s knowledge, presentation style, and her ability to connect with our audience. There were many questions which Marina answered patiently, and she was able to talk expertly about customers hooked up to ComEd or customers hooked up to our city of Geneva’s electrical grid. Thank you to CUB and Marina!”  -Christine, Library Associate at Geneva Public Library District, where CUB held a “A Consumer’s Guide to Going Solar” on March 26. “I attended a presentation last night on solar power, and I want to write to say how impressed I was with the presentation and staff member who presented. Marina Minic was highly competent and professional. There were many specific questions throughout the presentation from different individuals about the technicalities of different aspects of solar power from many angles, including ones specific to the city of Geneva, and Ms. Minic was clearly well-informed and skilled in answering every one and highlighting the salient/meaningful factors in the questions. She is clearly up to date and had thoroughly prepared, and she presented and answered in an accessible, clear, easy-to-understand manner. I was continually impressed with her competence.” -Emily, who attended the same solar event in Geneva. Kudos to Zoe Hupsen, Carbon Free Buildings Coordinator “Excellent program with useful info and knowledgeable speaker.” -Attendee survey quote from an Internet Privacy and Reducing Robocalls presentation at Mount Prospect Public Library in February. Kudos to Matt Harvey, Program Manager “Matt was outstanding and very informative.  We appreciated his time and the information he shared with our board and our residents.  I think everyone present learned a lot! Thank you to the CUB organization for your efforts and representation of us, the citizens.  Your work is appreciated.”-Laura, who attended a Home Energy Savings with CUB presentation in Glen Ellyn. When you donate to CUB, your donation goes directly towards consumer advocacy programs like educational events, informational materials and our Consumer Hotline, 1-800-669-5556. Please consider supporting our free programming by donating to CUB’s Consumer Education and Research Fund. Have a story about how CUB’s helped you? Please share it with us at questions@citizensutilityboard.org!

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Making a Difference: CUB Consumer Advocacy team’s good work saves people money https://www.citizensutilityboard.org/blog/2025/01/17/making-a-difference-cub-consumer-advocacy-teams-good-work-saves-people-money/ Fri, 17 Jan 2025 12:51:45 +0000 https://www.citizensutilityboard.org/?p=42188 CUB’s Consumer Advocacy team spends most of their days answering people’s calls and emails about utility bills and service. In 2024, this team (Annie, Danielle, Sandra) handled more than 1,600 consumer inquiries, saving individual utility customers a total of $48,054. Below are examples of people whom we’ve advocated for in their complaints against electric, gas, water or telecom/cable companies: Dave of Homer Glen: Illinois American Water bill cut by $3,059. Rakesh of Round Lake: ComEd bill cut by $2,346. Lesley of Chicago: Peoples Gas bill cut by $1,199. Francis of Chicago: ComEd bill cut by $823. Chelsea of Tolono: Clearview Electric bill cut by $739. Amy of Chicago: AT&T bill cut by $705. Cristobalina of Niles: Indra Energy bill cut by $700. Brian and Marci of Freeport: ComEd bill cut by $545. Ashley of Chicago: Peoples Gas bill cut by $466. Mary of Carol Stream: ComEd bill cut by $463. Steven of Belleville: Illinois American Water bill cut by $111. Matthew of Frankfort: Comcast/Xfinity bill cut by $100. Rose of Chicago: Verizon Wireless bill cut by $51. Paula of Benton: Frontier/Citizens Communications bill cut by $50. If you ever have a question or complaint about your utility bills, and contacting your utility hasn’t helped… Consider calling CUB’s Consumer Hotline, at 1-800-669-5556; or Fill out CUB’s online complaint form at CitizensUtilityBoard.org.

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CUB to utility exec: Stop downplaying rate hike! https://www.citizensutilityboard.org/blog/2024/10/13/cub-to-utility-exec-stop-downplaying-rate-hike/ Sun, 13 Oct 2024 13:58:49 +0000 https://www.citizensutilityboard.org/?p=41306 Addressing a packed public forum about a proposed rate hike that could average up to $27-$29 per month, a utility executive downplayed the increase by saying it “will be less than a dollar-a-day….” CUB Executive Director Sarah Moskowitz sparked applause at the forum when she said: “A ‘dollar a day’ doesn’t make it sound any better. You should stop using that talking point. I’ve worked as a consumer advocate for over 24 years, and that level of increase is unprecedented.” CUB’s comments at the public forum on Illinois American Water’s proposed rate hike–and three other forums on water rate hikes–was part of CUB’s work challenging utility increases in 2024. Summaries of cases CUB is working on before the Illinois Commerce Commission (ICC). Illinois American Rate Hike (ICC Docket # 24-0097) Illinois American Water announced on Jan. 25 that it was pushing for a $152 million rate hike. Illinois American said the hike would increase water service bills by an average of about $24 per month, while the average residential wastewater bill would increase by about $5 per month, depending on the customer’s service area. CUB has challenged the rate hike, and its testimony has uncovered nearly $50 million in overcharges in the company’s request. The ICC will rule on the case in December. Take action:  Sign CUB’s petition File a comment with the ICC. Call the ICC to oppose the rate hike at 1-800-524-0795. Aqua Illinois Rate Hike (ICC Docket # 24-0044) Aqua Illinois on Jan. 17 filed for a $19.2 million rate hike before the Illinois Commerce Commission (ICC). For the average residential wastewater and water bill (4,000 gallons), Aqua said this would increase rates by $29.91 per month, or about $1 a day. CUB is challenging the rate hike, and in its testimony it has uncovered about $8 million in overcharges in the company’s request. The ICC will rule on the case in November/December. Take action:  Sign CUB’s petition File a comment with the ICC Call the ICC to oppose the rate hike at 1-800-524-0795   ComEd Rate Hike/Grid Plan (ICC Docket # 23-0055, ICC Docket # 24-0181) Last December the Illinois Commerce Commission (ICC) rejected the utility’s grid plan and slashed its $1.47 billion rate-hike request by about 65 percent (ICC Docket # 23-0055). However, the company filed a petition for rehearing challenging some issues in that December ruling that were separate from the grid plan. This spring the utility settled with the staff of the ICC and state regulators unfortunately approved an additional $186.4 million in higher rates. ComEd has refiled its multi-year grid and rate plans and is asking for an increase of about $1.1 billion (ICC Docket No. 24-0181) in future rates. So far, CUB has found nearly $90 million in overcharges in that proposal. The ICC is set to rule on the case Dec. 5, with the new rates taking effect around January 2025. Take Action: Sign CUB’s ComEd and Ameren grid plan petitions File a public comment with the ICC about the new ComEd grid plan. Call the ICC at 1-800-524-0795. Ameren Illinois Hike/Grid Plan (ICC Docket No. 23-0082, ICC Docket No. 24-0238) The ICC […]

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The good, the bad, and the ugly at the nation’s largest power grid operator https://www.citizensutilityboard.org/blog/2024/07/29/the-good-the-bad-and-the-ugly-at-the-nations-largest-power-grid-operator/ Mon, 29 Jul 2024 14:42:07 +0000 https://www.citizensutilityboard.org/?p=40976 By Clara Summers, Campaign Manager Consumers for a Better Grid (a project of CUB) It’s been a busy summer advocating for electric customers at PJM, a power grid operator that controls the flow of electricity over big transmission lines that stretch across northern Illinois and all or parts of a dozen other states. CUB started the Consumers for a Better Grid project because decisions by PJM–the nation’s largest grid operator–affect how clean, reliable and affordable power is for ComEd customers.  So here’s a breakdown of some major developments concerning PJM this summer–the good, the bad, and the ugly. The good: The Federal Energy Regulatory Commission (FERC) recently came out with a new regulation, Order 1920, for how to plan transmission. (If you need an overview of what transmission is, check out our previous blog). The rule is timely and necessary, since building transmission haphazardly is more expensive and less beneficial, and transmission lines are critical to move cheap renewable energy to where it is consumed. Recently, the Illinois Commerce Commission weighed in on Order 1920, adopting a resolution that called it “a historic order that addresses the need for long term transmission planning.”  The FERC rule does a couple of things:  It requires that transmission operators, like PJM, take into account a number of key factors when planning for the future. These factors include state laws, utility integrated resource plans, where we expect power generation to retire, where we expect power generation to connect to the grid, and trends in fuel costs. One of the big questions and frequent fights is: Who pays for transmission? As consumer advocates, this is something we really care about! Fortunately, FERC’s Order doesn’t change anything fundamental about how payment, or “cost allocation,” gets assigned. If you benefit from the transmission, you will contribute to the bill. If you don’t benefit, you won’t pay. FERC included a list of benefits to consider when assigning payment, which are all related to reliability and reducing costs.  The bad: If implemented properly, the FERC rule could be a big step forward. But unfortunately, PJM would rather stay in place. They have gone back to FERC requesting a rehearing, or basically, a do-over of some of their decisions. (If the FERC rule is a homework assignment, PJM is going back to the teacher to ask if they can change the assignment. We hope the “teacher”–FERC–just tells them to do the homework.) One of the changes PJM is asking for is the requirement to consider state policy in planning. PJM would rather close its eyes to strong energy laws–like Illinois’ Climate and Equitable Jobs Act– that have been passed by state legislatures across the region and assume that they don’t exist. That would mean building a transmission system that can’t meet our future needs. The ugly: As if that weren’t enough, PJM is also trying to get approval from FERC for a deal it secretly negotiated with transmission owners, called the Consolidated Transmission Owners Agreement, or CTOA. Transmission owners are the  wealthy and powerful energy companies–like Exelon, the parent of utility ComEd–that own the big, high voltage lines that crisscross […]

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Five questions every gas and electric customer should ask when reading their bills https://www.citizensutilityboard.org/blog/2024/01/19/five-questions-every-gas-and-electric-customer-should-ask-when-reading-their-bills/ Fri, 19 Jan 2024 21:09:40 +0000 https://www.citizensutilityboard.org/?p=39181 CUB holds hundreds of events across Illinois to analyze consumer utility bills, but we also want to make sure people know to read it themselves if needed. “If you get a high bill, it’s important to ask a few questions,” said CUB Communications Director Jim Chilsen. Here are five questions to consider when reading your gas and electric bills: Am I paying for an alternative gas or electric supplier? Your bill is divided into two parts: supply and delivery. On the supply side, the biggest fee is the per-kilowatt-hour (electric) or per-therm (gas) supply charge, which covers the actual gas or electricity you use. If your supply costs skyrocket, it might be because you’re paying a high rate with an alternative supplier. Scan the supply section to see if you spot the name of another company. Am I using more energy? Did your energy usage spike last month because of weather or extra house guests? Most bills have a bar graph that displays your energy consumption and how it compares to past months. Did my electric or gas utility get a rate hike? If the Illinois Commerce Commission (ICC) granted your utility a rate hike, the increase will be reflected in higher rates on the delivery side of the bill. The two biggest delivery charges are the monthly customer charge and a per-kilowatt-hour or per-therm distribution charge. Is my meter being read? Some utilities may skip meter readings and estimate your usage. When they get the real reading, you may get an adjustment and that could lead to an uptick in your bill. In your bill’s meter section, look for the words “Actual” or “Estimated” (or the letter “A” or “E”). If a utility estimates your usage two months in a row, find out why. The good news is more modern meters can be read remotely, so estimated bills are less common. Is there something unusual? Is there a security deposit, installment plan, or budget billing adjustment adding dollars to your bill? Is there a new or different meter number? Call the utility for a full explanation, and request an on-site investigation if necessary. Read our newly updated Gas and Electric guide, and visit our Gas and Electric pages for more in-depth tips and information.

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Making A Difference: She said “no one at the utility company was listening”— but CUB did https://www.citizensutilityboard.org/blog/2023/06/26/making-a-difference-she-said-no-one-at-the-utility-company-was-listening-but-cub-did/ Mon, 26 Jun 2023 14:40:21 +0000 https://www.citizensutilityboard.org/?p=37619 CUB has helped save Illinois consumers more than $20 billion over the last four decades, but sometimes the most important consumer victory is just listening. Take Eleanor’s case. For two years, her October and November bills were around $285 and Nicor kept saying that’s what the meter read. They even replaced the meter in 2021—but the high bills persisted. Getting nowhere with the utility, she contacted CUB. CUB helped get a technician to check out Eleanor’s meter. Eleanor says Nicor found a leak and fixed it–but claimed this didn’t have an impact on her previous bills. The next few months her bill was back to normal (about $135) and Eleanor was grateful. “No one at the utility company was listening. I’m just happy my bills are lower. THANK YOU CUB!” she wrote in a letter accompanied by a donation. In 2022 alone, the Consumer Advocacy Department–including Director Sandra Marcelin-Remé, Danielle Holmes and Annie Warnock–handled more than 3,000 consumer inquiries/complaints and saved individual consumers a total of more than $31,600. Since 1984, the group has saved individual consumers more than $1.2 million–in addition to the $20 billion in savings through CUB’s work in cases against utilities before the Illinois Commerce Commission (ICC). That’s a nice track record, but the team knows consumer advocacy is more than just saving people money. “Cases that result in modest savings or even just peace of mind make up the bulk of what we do here at CUB, but they’re just as important as the very big savings cases,” said Sandra Marcelin-Remé, CUB’s Staff, Operations & Consumer Advocacy Director. “Our job is to help consumers feel heard and arm them with the information they need to face the utilities. Giving someone the knowledge to take on the big utility companies and knowing that someone is advocating on their behalf makes such a difference.” If you contact your utility and get nowhere, you can call CUB’s Consumer Hotline at 1-800-669-5556.

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CUB explainer: What are Capacity Markets? https://www.citizensutilityboard.org/blog/2022/07/22/cub-explainer-what-are-capacity-markets/ Fri, 22 Jul 2022 21:26:56 +0000 https://www.citizensutilityboard.org/?p=34682 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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