FERC Archives | Citizens Utility Board https://www.citizensutilityboard.org/blog/category/ferc/ Fight utility rate hikes, promote clean energy, and advocate for consumer protections in Illinois. Sat, 26 Jul 2025 15:58:42 +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 FERC Archives | Citizens Utility Board https://www.citizensutilityboard.org/blog/category/ferc/ 32 32 CUB statement on FERC ordering PJM to make interconnection improvements https://www.citizensutilityboard.org/blog/2025/07/26/cub-statement-on-ferc-ordering-pjm-to-make-interconnection-improvements/ Sat, 26 Jul 2025 15:58:42 +0000 https://www.citizensutilityboard.org/?p=43386 The following is a statement from Clara Summers, manager of the Citizens Utility Board’s Consumers for a Better Grid Campaign. (Read CUB’s full statement here.) We thank the Federal Energy Regulatory Commission (FERC) for ordering PJM to take specific steps to finally update its interconnection queue rules to meet national standards. PJM is now required to plan for battery storage and Grid Enhancing Technologies (GETs) in commonsense ways. In light of two straight years of record-high prices in PJM’s capacity auction–and demands from multiple states to clean up its act and better protect customers from price spikes–it is high time for the power grid operator to get back on track. Sixty-seven million customers in the nation’s largest power grid have been subjected to unreasonably high power bills because of PJM’s inaction. We hope that these changes, combined with PJM’s recent plans to use AI to more quickly complete studies, will speed up the woefully beleaguered interconnection queue. We urge the grid operator to make the ordered changes and work with PJM states and environmental and consumer advocates to process the interconnection queue faster and reduce prices. Background: On Thursday, July 24, the Federal Energy Regulatory Commission (FERC) issued a ruling on PJM Interconnection’s request (filed in May of 2024) for exceptions to comply with Order 2023. FERC… For the third time sent the issue back to PJM to come up with a new plan for compliance around how it studies battery storage and Grid Enhancing Technologies (GETs). PJM will finally be required to make realistic assumptions and plan for the grid of the future. However, FERC also approved PJM’s longer interconnection queue study timeline. FERC Order 2023 is a set of reforms the Commission issued in July of 2023. It is designed to help power grid operators across the nation modernize their grids and streamline the interconnection process to reduce the wait time for new power plants to come online. PJM has the nation’s longest wait times in its “interconnection queue,” the line of new energy resources waiting to connect to the grid and come online. The wait time for those resources–mostly wind, solar and battery projects–is more than five years. The resources stuck in PJM’s queue could provide abundant and low-cost energy for the region and bring down the record-high prices in PJM’s capacity market, but the wait times are so long that some of them don’t even get built. In June of 2024, seven organizations — including CUB, the Sierra Club, the Natural Resources Defense Council, and the Union of Concerned Scientists, represented by Earthjustice — filed a protest to PJM’s request for exceptions. Among other things, CUB argues… If PJM has publicly stated that the grid is in a crisis caused by supply constraints and rising demand, then why is it slow-walking interconnection reforms? PJM, for example, requested that FERC allow it 540 days to complete two studies required for the interconnection process–significantly longer than the time called for in the federal reforms. PJM takes an illogical and problematic stance on batteries, assuming that energy storage will sap electricity from the grid during peak-demand times, when it […]

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CUB’s Consumer Agenda for 2021 https://www.citizensutilityboard.org/blog/2021/01/04/the-biggest-consumer-battles-of-2021/ Mon, 04 Jan 2021 21:47:16 +0000 https://www.citizensutilityboard.org/?p=30350 Report from David Kolata, CUB executive director Happy New Year, everyone. I thank you for your support of CUB and your interest in working for lower utility bills and cleaner energy. As we look ahead to 2021, I want to give you a report on the major challenges facing Illinois consumers. The issues below—in no particular order—are important to our bottom lines and our planet. Together, we will need to stand up for clean, affordable energy and consumer protections in 2021.   A terrible FERC ruling: Over the last few years this has been a major concern for CUB. Certain members of the Federal Energy Regulatory Commission (FERC) voted in 2019 to revamp electricity market rules and bail out fossil fuel power plants. The move threatens to cost most Illinois consumers up to $1.7 billion in higher power bills over the next decade—and it would make climate change worse.  How to fight it: CUB is working for the Clean Energy Jobs Act (CEJA), comprehensive energy legislation proposed in Springfield that would, among other things, protect Illinois consumers from the damaging FERC ruling.  ComEd corruption: ComEd has been fined $200 million by federal prosecutors, accused of using bribery to pass favorable legislation in Springfield. Yet, while the company has paid the federal government for its wrongdoing, consumers hurt by the company’s actions haven’t gotten one cent. How to fight it: CUB has partnered with former Gov. Pat Quinn and the consumer-rights law firm Edelson PC to sue ComEd in federal court, accusing it of bribery and racketeering activities. Our goal is to fight before anybody (the courts, the Illinois Commerce Commission and General Assembly) to win the most restitution possible for ComEd customers. The Clean Energy Jobs Act (CEJA) also has a provision that would require ComEd to pay restitution. In addition, CEJA contains provisions that would hold all utilities more accountable, by creating an ethics monitor, and replacing the legislation that allowed ComEd and Ameren to set rates by a formula. That formula rate legislation, which CUB has opposed multiple times and is at the center of the scandal, contained too few consumer protections against unfair rate hikes. CEJA would replace formula rates with a more fair and transparent system that would require ComEd and Ameren to prove how investments would make utility bills more affordable.  Rate hikes: As the year begins, two of the state’s natural gas providers are threatening consumers with more than $100 million in combined rate hikes. How to fight it: CUB is currently before the Illinois Commerce Commission challenging Ameren Illinois’ natural gas rate-hike request of about $97 million (down from the original $102 million request) and North Shore Gas’ request of about $10 million. CUB is ready to mount similar challenges against any rate-hike request by Illinois utilities.  Rising natural gas bills: A natural gas surcharge approved by the General Assembly years ago helps major utilities sidestep the regulatory process and raise heating bills, forcing many customers into financial crisis to cover billions of dollars in mismanaged utility spending. How to fight it: CUB, as part of a coalition of consumer advocates, has been working […]

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As solar funding dries up, Illinois renewables need CEJA https://www.citizensutilityboard.org/blog/2020/06/29/what-is-a-solar-cliff-as-solar-funding-dries-up-illinois-renewables-need-ceja/ Mon, 29 Jun 2020 20:32:48 +0000 https://www.citizensutilityboard.org/?p=25904 Despite rapid solar adoption after Illinois passed strong energy legislation in 2016, the state is fast-approaching a solar cliff–the funding that helps propel the state’s solar industry is running out. But the Clean Energy Jobs Act (CEJA) could prevent the state’s clean energy progress from toppling over the edge. Specifically, the state is running out of funding for solar renewable energy credits (SRECs). SRECs represent the environmental benefits of solar energy and are separate from the electricity generated by the panels. SRECs can be bought and sold, and whoever owns the SREC has the legal right to say they are using solar power. Illinois’ renewable portfolio standard requires the state to produce 25 percent of its electricity from renewable energy by 2025. To help the state meet the solar requirement, solar panel system owners can sell the SRECs that their panels deliver. Essentially, the state pays solar system owners to include the solar output of their system towards the state’s overall 25 percent renewable energy goal. But the pool of money available for these SRECs is drying up. Funding is already gone for community solar projects and large distributed generation systems (over 10 kW). All that remains of the SREC funding is for small solar systems (this includes most residential systems). While there isn’t an exact date for when the small system funding runs out, most estimates expect it will be used up by the end of 2020. Without these SRECs–and other incentives, such as federal tax credits–going solar becomes more expensive and less attractive. This spells trouble for the state’s renewable goals. “There are two urgent reasons to pass CEJA: To avoid a huge increase to our electric bills and to prevent the state from falling off the solar cliff,” said Christina Uzzo, CUB’s Environmental Outreach Coordinator. “We have become a renewable energy leader in the nation thanks to strong energy policy, but all that progress is threatened if we don’t pass the Clean Energy Jobs Act.” In March this year, Illinois generated a little over 1,650,000 kilowatt-hours (kWh) from non-hydroelectric renewables, about 13 percent of the state’s total generation. With little funding left and no new funding on the horizon, Illinois could badly miss the mark–unless immediate action is taken. The passage of the Future Energy Jobs Act (FEJA) moved Illinois in the right direction. The 2016 legislation helped clear the path for more than 2,000 megawatts of solar development (when the policy went into effect in 2018, fewer than 100 megawatts were operating in Illinois).  FEJA also made a critical edit to Illinois’ renewable energy laws to streamline and sustain the process by which the Illinois Power Agency–the state office tasked with managing utilities’ power purchases–acquires funding for renewable energy purchases.  This legislation effectively gave Illinois a solar makeover, boosting the state from a reluctant renewable investor to one of the nation’s top solar markets. But the act does not, on its own, accomplish the level of renewable energy deployment needed to meet the state’s 25 percent by 2025 mandate. Enter the Clean Energy Jobs Act (CEJA). This clean energy legislation promises to prevent the state from tumbling […]

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Consumer advocates race against the clock to stop a big bill hike https://www.citizensutilityboard.org/blog/2020/05/08/consumer-advocates-race-against-the-clock-to-stop-a-big-bill-hike/ Sat, 09 May 2020 02:40:17 +0000 https://www.citizensutilityboard.org/?p=25435 As you know, CUB has been working to fend off a federal regulatory ruling that threatens to hit most Illinois consumers with a huge electric bill increase (up to $864 million a year). But we’re facing a roadblock and that’s why we need your help to fight an important and urgent battle.   The pandemic has delayed Illinois General Assembly action, but federal regulators have given us a fast-approaching June 1 deadline to fend off the increase with state legislation. (We’re fighting for the Clean Energy Jobs Act, or CEJA.)  Still, there’s hope, if we can push federal regulators to allow states more time to protect themselves from the higher bills.   Please sign our petition urging the Illinois Commerce Commission (ICC) and the power grid operator to request that  federal regulators extend the deadline—so we can have more time to pass CEJA.   

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CUB’s legal team tackles Coronavirus consumer protections, rate cases, alternative suppliers https://www.citizensutilityboard.org/blog/2020/04/27/cubs-legal-team-tackles-coronavirus-consumer-protections-rate-cases-alternative-suppliers/ Mon, 27 Apr 2020 17:22:23 +0000 https://www.citizensutilityboard.org/?p=25191 In spite of the novel Coronavirus putting our lives on hold, CUB’s legal team is continuing the fight for utility customer rights and lower rates. General Counsel Julie Soderna and new Senior Attorney Eric DeBellis are currently working on about 15 cases. Here are a few highlights. Coronavirus Response In March, the Illinois Commerce Commission (ICC) issued a moratorium on disconnections and waiver of late fees until May 1, 2020, or, until the end of the COVID-19 state of emergency, if it goes beyond May 1. The ICC action also requires utilities to implement temporary flexible credit and payment procedures. CUB’s legal team, in partnership with the Illinois Attorney General’s office, the City of Chicago, and the social justice advocacy group COFI, is working to bolster some of the ICC’s COVID-19 consumer protections. We’re aiming to extend the freeze on disconnections and late fees for 60 days beyond the state of emergency expiration. We’re also pushing for additional measures to be in place for 6 months after the expiration of the state of emergency, such as a freeze on deposits, other fees and reporting to credit agencies, and an extension of deferred payment arrangement lengths. (Even after the state of emergency ends, we know consumers will still feel the impact of this public health and financial crisis.)  We want utilities to continue working on more flexible payment plans, and we’re also pushing for more utility outreach about those new payment plans and low-income assistance programs, such as the Low Income Home Energy Assistance Program, or LIHEAP. Help the legal team fight for consumer protections in this case: Sign CUB’s petition. Rate Cases Julie and Eric are also working on multiple rate cases. Ameren Illinois Gas Ameren filed for a $102.031 million natural gas rate increase before the ICC. Wrapped into that increase is Ameren’s ask for a 10.5 percent profit rate for its shareholders—up from its current Return on Equity of 9.87 percent. A rate hike is always bad for consumers, but especially amid the record-setting unemployment caused by the Coronavirus. The ICC is considering this rate-hike proposal over an 11-month case, meaning any increase would hit in the middle of next winter, while we’re still dealing with the economic aftermath of the public health emergency. As they alway do, CUB’s legal team will fight every penny the company can’t justify. Ameren Electric Ameren Gas may be requesting higher rates to pad its investors’ pockets, but Ameren Electric is asking for a $45 million rate decrease. We’re glad they’re asking for a decrease, but we’ll investigate to determine if the cut should be more substantial. ComEd ComEd is also asking for a $11.5 million rate decrease, its third rate decrease in a row and fifth in 10 years. This decrease would make the average total monthly residential bill $82 beginning in January of next year, according to ComEd. This is good news for ComEd customers. But just like with Ameren, our legal team will be pushing for an even bigger rate cut. Odds and Ends CUB’s legal team is also working on multiple alternative supplier citation cases—like this—and Eric is working on […]

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Federal ruling “direct attack” on Illinois, CUB’s leader testifies https://www.citizensutilityboard.org/blog/2020/02/21/ferc-ruling-direct-attack-on-illinois-cubs-leader-testifies/ Sat, 22 Feb 2020 04:02:59 +0000 https://www.citizensutilityboard.org/?p=24443 A federal regulatory ruling that threatens to raise electric bills by up to $864 million a year “punishes Illinois for our successful clean energy policies” and is a “direct attack” on the state’s authority to protect its residents, CUB Executive Director David Kolata told a legislative committee today. The recent ruling by the Federal Energy Regulatory Commission (FERC) “poses a serious threat to our electricity bills,” Kolata testified at a House Public Utilities Committee hearing.  “But we can prevent that threat from materializing if we pass the Clean Energy Jobs Act and take the power back for planning our energy future.” (Tell Springfield to pass the Clean Energy Jobs Act.) It was the first of several subject matter hearings on energy legislation during the General Assembly’s spring session. The FERC ruling and its threat of higher bills has ramped up the urgency to pass clean energy legislation that would protect customers from the higher rates. In his state of the state address, Gov. Pritzker called for Illinois to pass strong energy legislation: “It’s time to put consumers and climate first,” he said. Last December, FERC  voted 2-1 for a proposal favored by out-of-state  power generators. The decision overhauls “capacity market” rules that impact the price we pay for electricity. The rules change will inflate market prices to prop up fossil fuel power plants and, in effect, force ComEd customers to pay higher power bills for dirty power they don’t need. Kolata, head of Illinois’ top utility watchdog, testified that clean energy has been good for Illinois. Since the 1990s, the Land of Lincoln  has gone from the highest to the lowest average residential electric bills in the Midwest and now has the seventh lowest power bills in the country. “Of course, more needs to be done. We need to improve affordability and protect our pocketbooks as well as the planet,” Kolata said, but the FERC decision threatens to reverse the progress that’s been made. The ruling not only means an increase to our power bills, but it also kicks “new renewables out of the market” and guarantees a “bailout bonanza” for dirty, fossil fuels, testified Christie Hicks, a former CUB lawyer  who is now a senior attorney at Environmental Defense Fund. “But it doesn’t have to be this way,” Hicks said. Illinois is the only state with pending legislation that would address the FERC order today. The Clean Energy Jobs Act (CEJA) is an opportunity to do what’s best for Illinois and stop supporting out-of-state energy producers, she said. If passed, CEJA would: Cut carbon pollution from the state’s power sector. Move Illinois to 100% renewable energy. Electrify the transportation sector. Ensure that the entire state enjoys the benefits (including jobs and training) of a clean energy economy. “We have a clear choice here in Illinois,” Kolata said. “We can take the power back and invest in clean energy and communities, or we can be bullied and pay more for dirty power we don’t need.” “To us, the choice is simple. We’ve come too far and accomplished too much to stop now. It’s time to pass the Clean Energy Jobs Act […]

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Bill pending in IL General Assembly would quash the threat of $864M increase on Northern IL customers https://www.citizensutilityboard.org/blog/2020/01/21/bill-pending-in-illinois-general-assembly-would-quash-the-threat-of-an-864-million-increase-on-northern-il-customers/ Tue, 21 Jan 2020 23:11:42 +0000 https://www.citizensutilityboard.org/?p=24126 Clean energy legislation pending before the General Assembly stands as the only viable alternative to an explosive increase in electricity costs—believed to be the largest in state history—for millions of Illinois consumers, following a recent regulatory ruling by appointees of President Trump, the Illinois Clean Jobs Coalition said Tuesday. The coalition of consumer, business, environmental, and faith-based organizations joined with state Rep. Ann Williams, state Sen. Cristina Castro and numerous other lawmakers to urge Gov. Pritzker and state legislators to pass the Clean Energy Jobs Act (CEJA). The bill contains a provision that would negate an estimated $864 million increase in power bills that threatens to hit northern Illinois  consumers in the wake of the Dec. 19 Federal Energy Regulatory Commission (FERC) ruling. In fact, CEJA contains consumer protections that would not only prevent the Trump administration’s cost increase from taking effect, but would also lower northern Illinois power bills below their current levels. The controversial FERC ruling, adopted by a 2-1 majority comprised of Trump-appointed regulators, would force Illinois consumers to pay extra for electricity generated by coal and other dirty sources of power that aren’t needed to serve local demand. Consumer advocates said it reflects two recurring themes of the Trump Presidency—his distaste for clean energy and a mission to bail out the coal industry—that should signal to Illinois lawmakers that the White House could be using the state’s energy policy as a political weapon. The ruling impacts a dozen states, but northern Illinois faces one of the most damaging increases, according to an analysis by the consulting firm Grid Strategies, which estimated that power bills here could skyrocket by $864 million a year. “The Federal Energy Regulatory Commission (FERC) policy doesn’t make sense for our economy or our environment,” U.S. Senator Dick Durbin (D-IL) said. “Working families will see increased energy bills and jobs will be lost in the growing clean energy industry. States like Illinois have been leading the way in taking advantage of clean energy sources such as wind and solar power and the FERC should not be stunting such growth for the benefit of energy company executives.” “This is a clear example of the Trump administration interfering with Illinois’ energy policy to make us pay more for ​expensive and dirty power,” said state Rep. Ann Williams, CEJA’s House sponsor. “The General Assembly has an excellent opportunity to pass the Clean Energy Jobs Act and protect northern Illinois residents from nearly a billion dollars in higher electric bills ​every year. But we must act now, before these higher bills are locked in.” “The Clean Energy Jobs Act will make the state a national leader in securing clean, affordable energy for all consumers in the state,” said state Sen. Cristina Castro, CEJA’s Senate sponsor. “Climate change is an emergency we can’t ignore, and the Trump administration is doing everything it can to bail out fossil fuel power plants and force Illinois to take a giant step backwards from achieving 100 percent renewable energy.  Illinois has to act immediately—our power bills and our planet demand it.” “The FERC ruling was structured specifically to penalize states such as Illinois that […]

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The “largest electric increase in state history”—unless Illinois passes CEJA https://www.citizensutilityboard.org/blog/2019/12/19/the-largest-electric-increase-in-state-history-unless-illinois-passes-ceja/ Thu, 19 Dec 2019 21:57:57 +0000 https://www.citizensutilityboard.org/?p=23874 A Federal Energy Regulatory Commission (FERC) ruling could increase power bills for most Illinois consumers by up to $1.7 billion over the next decade—what could be the largest electric increase in state history—unless the General Assembly passes the Clean Energy Jobs Act (CEJA) in 2020. (Read CUB’s statement.)  Here’s what you need to know about the controversial ruling and how you can help protect your power bills. What happened at FERC? On Dec. 19, FERC voted 2-1 for a proposal favored by out-of-state power generators that is expected to raise our electric bills. It will also raise the cost of solar and wind power and hamper Illinois’ efforts to achieve clean, affordable electricity. The FERC decision overhauls “capacity market” rules that impact the price we pay for electricity. The rule change will inflate market prices to prop up fossil fuel power plants and, in effect, force ComEd customers to pay higher power bills for dirty power they don’t need. The vote in favor of this plan was led by two commissioners appointed by President Donald Trump. The Trump administration has been on a campaign to support coal-fired power plants struggling to compete in the electricity market. Fossil fuel generators have been pushing for such a change for more than a year, as it becomes more difficult for their outdated plants to compete in the face of more modern technology, like solar and wind farms, and state policies, like Illinois’ Future Energy Jobs Act, that promote cleaner energy.  How much would this cost consumers? A recent analysis, “Consumer Impacts of FERC Interference with State Policies,” by the consulting firm Grid Strategies, estimates that FERC’s decision could raise costs for consumers across the power grid by up to $5.7 billion a year. Northern Illinois would be one of the hardest hit areas—electric customers there could pay up to $1.7 billion over the next decade. What is capacity? Not only do you pay for the power you use now, but you also pay for additional electricity “capacity” in case it is needed in the future. Utility companies are required to pay power plant operators to have enough electricity generating “capacity” available for times when demand suddenly spikes. (Think of a hot summer afternoon, when everyone blasts the air conditioning.) ComEd and Ameren, Illinois’ two biggest electric utilities, pass these costs through to their customers as part of the electricity supply charges on monthly bills. The price for capacity for ComEd customers is determined through auctions run by PJM Interconnection, the power grid operator for Northern Illinois and all or part of 12 other states and Washington, D.C. (Ameren’s market in Central and Southern Illinois is run by a different power grid operator.) During these auctions, power generators bid against each other for the right to cover a certain amount of future power, if needed, and win those capacity payments. The plan that FERC voted on changes the rules that govern these auctions in a way that rewards polluters that generate power from coal- and gas-fired plants, giving them the license to charge inflated prices and then impose the added costs on customers. Important: The next […]

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Special message: Your next rate hike https://www.citizensutilityboard.org/blog/2019/08/19/special-message-your-next-rate-hike/ Mon, 19 Aug 2019 17:18:53 +0000 https://www.citizensutilityboard.org/?p=22699 An issue we’ve been talking about for more than a year is about to erupt into one of the biggest battles we’ve ever had to protect our electric bills—and we wanted to warn you about it. Here’s the summary: At the end of this month, Cheryl LaFleur is retiring from the Federal Energy Regulatory Commission (FERC), breaking a 2-2 deadlock. That opens the door for FERC to pass an absolutely horrible proposal favored by out-of-state power generators that would be devastating to our electric bills—and to Illinois’ leadership in securing clean, affordable electricity for consumers. The proposal before FERC might seem technical, but it deals with drastically changing the rules for a special electricity market called the “capacity market.” That would inflate market prices to prop up struggling fossil fuel power plants and, in effect, make ComEd customers pay higher power bills for dirty power that they don’t need. How bad would our bills go up? ComEd customers would see future rate hikes that would increase bills by up to $500 million a year—and that’s a conservative estimate. Knowing that this is a huge problem looming for our pocketbooks, CUB has been pushing for a legislative solution, the Clean Energy Jobs Act, all this year. But it has to pass before the end of 2019. If we don’t make that deadline, we will be locked into a fossil fuel bailout that will be devastating for Illinois consumers. Let’s be clear: This is a real threat. It’s an urgent issue that stretches from Washington to Springfield to every kitchen table in Northern Illinois where people are trying to figure out how to make ends meet. And it impacts everyone who wants clean, affordable energy for Illinois. I’m sending you this special message for three reasons: Please educate yourself about this issue by reading our blog. This will prepare you for the battles ahead. Please watch for future email alerts, when we will ask you to take action—sign a petition, send a message, call your legislators. (The big, out-of-state power generators will be in Springfield this fall trying to block us.) Please consider supporting CUB’s Rate Hike Defense Fund, as we gear up for one of our biggest battles ever. Thanks for listening, and thanks for your support.

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Q&A on the Capacity Battle https://www.citizensutilityboard.org/blog/2018/11/06/qa-on-the-capacity-battle/ Tue, 06 Nov 2018 23:01:07 +0000 https://citizensutilityboard.org/?p=15716 On Tuesday, Nov. 6, CUB filed comments before the Federal Energy Regulatory Commission (FERC), protesting a proposal favored by out-of-state fossil-fuel generators that could undermine Illinois energy policy and send ComEd bills skyrocketing. Specifically, the generators want to change the rules governing a special electricity market—called a “capacity market”—that covers ComEd territory. CUB Executive Director David Kolata has said the proposal “would have devastating consequences for Illinois consumers.” Former Illinois Commerce Commission member Ann McCabe and John Moore of the Natural Resources Defense Council add that the proposal is “akin to a billion-dollar giveaway at consumers’ expense to a few lucky fossil fuel generators.” So what is capacity? It refers to extra payments consumers have to pay to generators to make sure their power plants have enough “capacity” (electricity available) during those hours when demand is highest. (Think of a very hot summer afternoon, when everyone is blasting the AC and factories are humming.) PJM Interconnection, the power grid operator for northern Illinois and all or part of 12 other states and Washington, D.C., manages separate auctions for the selling of energy and capacity. These auctions are the largest of their kind in the country, covering 65 million customers and about 20 percent of the country’s power supply. In energy auctions, electricity is sold to be used immediately. However, PJM holds capacity auctions three years in advance to make sure there will be enough power available to serve periods of high demand for the corresponding year. How does it affect my bill? Capacity charges are embedded in the electricity supply charge on your power bill. While actual electricity prices have been low, capacity has become a bigger and bigger part of your bill in recent years, and is now about 21 percent of the supply charge, according to the Illinois Commerce Commission. (By the way, alternative energy suppliers as well as ComEd buy electricity on this market. So you won’t escape capacity charges by changing suppliers.) CUB has long said that capacity market rules are stacked against consumers, causing us to pay higher bills. Now, this new proposal before FERC would make it even worse. Why do generators want to change the rules? Big out-of-state corporations that own fossil-fuel generators—companies like FirstEnergy, Vistra, Calpine, and NRG—want PJM to change the capacity auction rules to offset state legislation, like Illinois’ historic Future Energy Jobs Act. The act expands energy efficiency and gives financial support to clean energy generators, helping to depress prices in the capacity market. That makes it difficult for coal-fired plants to compete, cutting into their profits and forcing some plants to close. How do the fossil-fuel generators want to change the market? It’s complex, but basically those generators want to artificially inflate the capacity price. That means we would pay more on our electricity bills to prop up power generators—including coal-fired power plants— that normally wouldn’t be able to compete in the capacity market. CUB Executive David Kolata told Crain’s Chicago Business that the proposed changes would punish Illinois for making clean energy improvements like the Future Energy Jobs Act. How much would this cost consumers? A new […]

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