capacity Archives | Citizens Utility Board

ComEd’s Hourly Pricing: How to calculate your capacity charge

Celeste — Fri, 13 Jun 2025 17:27:11 +0000

Want to estimate your capacity charge before signing up for ComEd’s Hourly Pricing program? Here’s how to calculate it: 1. Go to this page: https://secure.comed.com/MyAccount/MyService/Pages/UsageDataTool.aspx, choose “View Summary Data Online,” and “Add” your ComEd account number. 2. Click “View Usage Data” and it’ll take you to a results screen showing vital stats. The “Capacity PLC” at the top is a calculation that is unique to each customer. (PLC stands for “Peak Load Contribution,” and according to ComEd it represents your expected energy usage during high-demand hours on hot summer afternoons. The PLC is your households electricity usage averaged over 10 system peak periods the previous summer. ) 3. Once you find your “Capacity PLC,” you multiply the following four figures: The “Capacity PLC” (unique to your account) The “scaling factor” (1.00712) The “forecast pool requirement” (0.9380) The monthly capacity charge rate ($8.331 per Kilowatt-Month) 4. The product of those four numbers is your capacity charge. For more information, check out CUB’s Hourly Pricing fact sheet.

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CUB Q&A: Why did Ameren’s electricity price spike this past summer?

Jim Chilsen — Fri, 23 May 2025 20:28:30 +0000

A spike in an electricity “capacity auction” meant that the supply price for Ameren Illinois increased significantly on June 1. Ameren estimated that this increased the average monthly bills of a typical residential customer by 18 percent to 22 percent, or roughly $38 to $46 per month, over the summer. Thankfully, Ameren’s price did go down significantly, as of Oct. 1. Read CUB’s Q&A and visit CUBHelpCenter.com for more information. What happened? In April, the power grid operator known as the Midcontinent Independent System Operator (MISO) announced the results of its latest capacity auction (technically called the “Planning Resource Auction”), covering the 12-month period from June 2025 through May 2026. The auction is how the grid operator secures reserve power in its region, which includes all or parts of 15 states from the upper Midwest through Ameren Illinois’ territory in central and southern Illinois and down to Louisiana. (MISO territory also includes the Canadian province of Manitoba.) In the latest auction, the summer capacity price skyrocketed from $30 per Megawatt-day in 2024 to $666.50 per MW-day this year–a 22-fold increase. MISO’s capacity prices are seasonal, and while they are still elevated compared with the year before for the fall, winter and spring seasons, they do drop significantly after the summer. Below are the seasonal prices from the latest auction (Ameren Illinois is located in MISO’s Zone 4): What exactly are capacity costs? Not only do you pay for the power you use now, but you also pay for power you could use in the future. Capacity refers to extra payments consumers give power plant operators for the commitment to have enough reserve electricity available if demand suddenly spikes. (Think of a hot summer afternoon, when everyone blasts the air conditioning.) Where does a capacity price increase appear on my bill? An increase in capacity prices will affect the supply section of your Ameren bill. For most customers, the capacity cost is one component of Ameren’s per-kilowatt-hour (kWh) supply price. On average, capacity takes up roughly 20 percent of the supply price. (While most customers don’t see capacity costs as a separate line item, participants in Ameren’s Power Smart Pricing program–which charges you a supply price that can change hourly–do see a capacity line item on their bills.) How much will an increase in capacity costs increase Ameren bills? Ameren’s electricity supply rate, also known as the “price to compare,” increased by about 50 percent, to 12.18 cents per kilowatt-hour (kWh), from June through September 2025. Ameren estimated that this higher rate, which includes the supply price, a transmission charge and a “supply cost adjustment,” increased summer power bills by an average of 18 percent to 22 percent, or $37.62 to $45.98 per month for the typical customer (10,000 kWh a year). In October, capacity prices came down from their summer high, and Ameren’s new supply price, for October 2025 through May 2026, was significantly lower: 8.402¢ per kilowatt-hour (kWh) for up to 800 kWh of usage. 7.483¢ per kWh for all electricity usage beyond 800 kWh. The summer price spike had a significant impact on Ameren customers. Unlike with PJM’s capacity […]

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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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The clock is ticking: pass CEJA and save our power bills

Hannah — Thu, 20 Aug 2020 15:43:42 +0000

When the Federal Energy Regulatory Commission voted 2-1 in favor of a proposal pushed by out-of-state power generators, the clock started ticking. The commission’s December 2019 decision overhauls the rules that govern the price we pay for electricity — it would ultimately prop up fossil fuel companies and force consumers to pay higher power bills for dirty energy we don’t need. As a result, the cost of renewables will go up, hampering Illinois’ efforts to achieve clean, affordable energy. The state can prevent this ruling from going into effect, but we’re running out of time. To put a stop to FERC’s irresponsible ruling, Illinois needs to pass the Clean Energy Jobs Act (CEJA) now. Since Trump appointees voted to prop up fossil fuels, the comprehensive clean energy legislation has undergone a few updates. In the wake of a bribery scandal in which ComEd paid a $200 million fine to resolve a federal lobbying probe, the bill would also help hold utilities accountable to their customers. “Profits, rather than people, have dictated energy policy in Illinois for too long, at the expense of residents and small businesses. Energy policy should put people and communities first,” said state Rep. Ann Williams, a sponsor of CEJA along with Sen. Cristina Castro. “The new version of CEJA will make Illinois a national model for addressing climate change and restoring the public’s trust by requiring significant accountability, transparency and ethics requirements for utilities.” Unfortunately, the COVID-19 pandemic has slowed efforts in Springfield — and rightfully so. Illinois’ response to the pandemic should be a priority. But CEJA can play a critical role in the state’s economic recovery. The bill would attract more than $30 billion in private investment in clean energy and spark thousands of jobs. “Clean Jobs Workforce Hubs” would also be created — a network of frontline organizations providing workforce training across Illinois for economically disadvantaged communities and former fossil fuel workers. CEJA would also prevent the disastrous FERC ruling from taking effect in Illinois, but time is running out to protect our planet and our power bills. The FERC ruling revamps the “capacity market.” Not only do you pay for the power you use now, but you also pay for power you could use in the future. Capacity refers to extra payments consumers give power plant operators for the commitment to have enough electricity available if demand suddenly spikes. (Think of a hot summer afternoon, when everyone blasts the air conditioning.) The price for capacity for ComEd customers is not a line item on power bills–it’s buried in the price we pay for electricity. The capacity price is set 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 is run by a different power grid operator.) In these auctions, power generators bid against each other for the right to cover a certain amount of potential power demand in the next three years. The plan that FERC approved in December skews the market in favor of fossil fuels and could result in $1.7 billion in higher […]

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Update: CEJA must pass this session, despite COVID-19

Hannah — Fri, 17 Apr 2020 19:34:38 +0000

CUB’s consumer advocacy work during the Coronavirus emergency includes fighting rate hikes–and that’s why we’re continuing to push for passage of the Clean Energy Jobs Act during this spring legislative session. It just can’t wait. CEJA not only puts Illinois on a path to 100 percent renewable energy by 2050, but it will also make the state 100 percent carbon-free by 2030. Most urgently, the act would prevent a federal ruling that threatens most Illinois consumers with up to $864 million in higher power bills. Issued by the Federal Energy Regulatory Commission (FERC) in late 2019, the ruling restructures the “capacity market,” a special electricity market that affects what consumers pay on their power bills for long-term power supply. The price for capacity for ComEd customers is determined through auctions run by PJM Interconnection, the out-of-state power grid operator for northern Illinois and all or part of 12 other states and Washington, D.C. During these auctions, power generators bid against each other for the right to cover a certain amount of future power demand, and win those capacity payments. This process is not very consumer-friendly, and it has needlessly inflated Illinois electric bills in recent years by over-procuring electricity from dirty fossil fuels. The FERC ruling would deal a crippling blow to Illinois’ clean energy future by raising auction bidding prices for resources that receive state subsidies, such as renewables, effectively rewarding fossil fuel polluters. NOTE: On Thursday, FERC voted to uphold its decision. The commission also denied requests to rehear its 2019 order approving PJM’s capacity demand curve, which critics say is too high and therefore leads to inflated market pricing. Commissioner Richard Glick was the only dissenting vote, calling the ruling “just plain garbage.” To prevent this ruling from hitting Illinois, we have to act now. We don’t have time to wait until next session. The next PJM auction to determine capacity prices is scheduled for the end of this year. The General Assembly must pass CEJA as soon as possible to save customers from higher electric bills. “There will be devastating consequences for Illinois consumers if we don’t pass the Clean Energy Jobs Act on May 31,” said David Kolata, Executive Director of the Citizens Utility Board. “The FERC decision was designed to raise our bills and punish the clean energy progress we’ve made in Illinois. If we don’t counteract the ruling, it’s bad news for our bills and the environment.” To negate the FERC ruling, CEJA puts the Illinois Power Agency (IPA)—a state agency that manages energy purchases for ComEd and Ameren—in charge of the capacity market, instead of PJM. Putting the state fully in charge of its own clean energy policy could save consumers money while greatly expanding renewable energy investment in the state. “If we don’t pass CEJA now and put the IPA in charge of the capacity market, Illinois will lose all the progress we’ve made to secure clean, affordable energy,” Kolata said.

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Action can’t wait

Megan — Thu, 26 Sep 2019 20:08:44 +0000

A long-awaited ruling by the Federal Energy Regulatory Commission to reward dirty power generators and raise consumers’ power bills has been delayed until at least Nov. 29, and possibly 2020. But while the ruling may be delayed, the need to protect Illinois consumers from bloated bills is not. The General Assembly must pass the Clean Energy Jobs Act (CEJA) in the fall veto session to have capacity reform protections in place before next year’s capacity auction. CUB expected the Federal Energy Regulatory Commission in September to revamp PJM capacity market rules in a way that would privilege dirty power generators at the expense of northern Illinois consumers. But an ethics ruling forced the one FERC Commissioner who may have sided with consumers to recuse himself, leaving FERC without a quorum to make the ruling official. Commissioner Richard Glick expected to avoid FERC cases involving his former employer Iberdrola USA (now Avangrid) for two years after his last day of employment at Avangrid, ending his recusal period in February 2018. However, this month, the Designated Agency Ethics Official (DAEO) said the recusal is actually effective two years after beginning work as a federal employee. That means he has to recuse himself from the PJM capacity case until Nov. 29, 2019. Consumer advocates pushed to protect consumers from the consequences of the FERC decision (an estimated $864 million a year in higher power bills) by passing capacity market reforms as part of the Clean Energy Jobs Act. It is likely that PJM will want to hold a capacity auction early next year (as early as May 2020). We need adequate time to implement capacity reform in Illinois—so it is vital we pass CEJA in the fall veto session in October and November of this year.

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At the Supreme Court: A victory for clean energy

Jim Chilsen — Mon, 29 Apr 2019 17:22:35 +0000

This month, Illinois consumers got good news: The U.S. Supreme Court rejected a request to review appellate court decisions that upheld the right for states to advance clean energy goals through “zero-emission credit” (ZEC) programs in Illinois and New York. On Twitter, CUB called it an “important victory for cost-effective clean energy.” The request to take up the case was filed by the Electric Power Supply Association (EPSA), a trade group for independent electric power producers and marketers. Big out-of-state corporations that own fossil fuel power plants—companies like Vistra, Calpine, and NRG—hate Illinois’ ZEC program, which is part of the groundbreaking clean-energy legislation, the Future Energy Jobs Act. The act, passed in 2016, expands energy efficiency and gives financial support to clean energy generators, helping to depress prices in a key electric market, called the capacity market. (Read about the capacity market and why it’s so important for your electric bills.) CUB Executive Director David Kolata has said before that the “harm” alleged by fossil fuel generators suing the state over the ZEC program was $600 million to $900 million in LOWER annual power prices. (Lower power prices isn’t a bad thing!) The capacity market has not treated customers well in recent years, increasing their power bills. So the Supreme Court’s decision not to take up the case and leave in place clean energy programs that can help lower power bills was a big victory for Illinois consumers. But this battle isn’t over. The big fossil-fuel generators are fighting the ZEC on multiple fronts. They’re also before the Federal Energy Regulatory Commission (FERC) to revamp electricity market rules to protect their profits from the price-lowering impact of Illinois’ clean energy policy. So it’s urgent that we pass the Clean Energy Jobs Act (CEJA). The act includes capacity market reform that guarantees savings for consumers, greatly expands renewable energy in Illinois, and secures a 100% decarbonized electric system by 2030. Please, don’t let big fossil-fuel generators win: Urge the General Assembly to pass the Clean Energy Jobs Act.

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A thing called capacity—and why it could be devastating to our power bills

Jennifer — Mon, 04 Mar 2019 22:31:50 +0000

When CUB threw its support behind the Clean Energy Jobs Act, the watchdog said one of the biggest reasons is an ongoing battle with fossil fuel generators in a special electricity market called the capacity market. If we don’t do something, this could cost most electric customers in the state up to $500 million a year in higher electric bills. You may not know it, but EVERYONE pays for “capacity” on their electric bills. Here’s what you need to know—and why you should support the Clean Energy Jobs Act. What is capacity? Not only do you pay for the power you use now, but you also pay for power you could use in the future. Capacity refers to extra payments consumers give power plant operators for the commitment to have enough electricity available if demand suddenly spikes. (Think of a hot summer afternoon, when everyone blasts the AC.) 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 is run by a different power grid operator.) How does capacity affect my bill? For most customers, capacity charges are embedded in the electricity supply charge on your power bill. While actual electricity prices have been relatively low in recent years, capacity has become a bigger and bigger part of your bill, and is now roughly 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 for more capacity than we actually need. But a new plan pushed by PJM and fossil fuel generators could make it even worse. Why do generators want to change the rules? Big out-of-state corporations that own fossil fuel power plants—companies like Vistra, Calpine, and NRG—and their allies want to change the capacity auction rules to offset state legislation, like Illinois’ historic Future Energy Jobs Act. The act, passed in 2016, expands energy efficiency and gives financial support to clean energy generators, helping to depress prices in the capacity market. That’s good for our power bills, but it makes it difficult for coal-fired plants to compete, cutting into their profits. How do the fossil-fuel generators want to change the market? 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. So we would be paying more for power we don’t need. CUB Executive David Kolata told Crain’s Chicago Business that the proposed changes would have “devastating consequences for Illinois consumers” and punish the state for making clean energy improvements like the Future Energy Jobs Act. How much would this cost consumers? An analysis by an independent market monitor estimates the proposal could increase power bills by up to $8 […]

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The fight before FERC, explained

Megan — Mon, 06 Aug 2018 22:18:17 +0000

What is capacity, and what does it mean for your ComEd bills? An unusual battle is shaping up before the Federal Energy Regulatory Commission (FERC), one that could undermine Illinois’ energy policy and send ComEd bills skyrocketing if out-of-state fossil-fuel generators get their way. Specifically, they want to change the rules governing how utilities buy energy “capacity” on the electricity market that includes ComEd territory—and they need permission from FERC to do it. We’ll try to break down this technical issue and explain what it means for your electric bills. First, what is capacity? Not only do you pay for the power you use now, but you also pay for power you could use in the future. Capacity refers to extra payments consumers give power plant operators for the commitment to have enough electricity available if demand suddenly spikes. (Think of a hot summer afternoon, when everyone blasts the AC.) How does it affect my bill? In Illinois, utilities distribute power, but they do not make it themselves; utilities are not allowed to own power plants. Instead, Illinois is a deregulated state where independent generators compete to provide utilities with electricity at the lowest cost. Capacity, a generator’s commitment to be available when demand is high, is sold separately through an auction, in a different market. Capacity costs are embedded in the supply charges on your bill and account for roughly 21 percent of supply, according to the Illinois Commerce Commission (ICC). Why does this particular battle only affect ComEd customers? The power grid in northern Illinois is overseen by a different regional authority than the one used by central and southern Illinois. PJM Interconnection, a private, not-for-profit, regional transmission organization, manages a grid that stretches from northern Illinois across 13 states to the East Coast and includes Washington, D.C. The area served by PJM is the largest electricity market in the United States, and accounts for about 20 percent of the U.S. power supply. Ameren customers, in central and southern Illinois, are served by a different capacity market, managed by the Midwest Independent System Operator, and for now do not face the same issues. What are the current rules? PJM has complicated systems for auctioning power and capacity, so this explanation is oversimplified for ease of understanding. What you need to know is that PJM sets the rules for selling power and capacity in ComEd territory, and those rules need FERC approval. According to Crain’s Chicago Business, the cost of capacity has risen substantially in recent years and become a crucial source of revenue for power plant owners. (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.) But Illinois and other PJM states have supported the development of energy efficiency and renewable energy like solar and wind. In Illinois, the Future Energy Jobs Act (FEJA), passed in 2016, incentivizes energy efficiency, demand response and renewable energy, which helps lower consumer costs. However, fossil fuel generators don’t like FEJA because it cuts into profits for their aging power plants. How do generators want to change […]

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Ameren: Big drop in electricity price expected June 1

Jim Chilsen — Thu, 03 May 2018 17:11:33 +0000

Three years after Ameren Illinois customers were hit with a steep increase in the price for electricity, the utility told the Belleville News-Democrat that customers can now expect a big drop in the supply price on June 1. It’s a victory for Illinois Attorney General Lisa Madigan, CUB and all consumer advocates who pushed for reforms in the market. In April, Ameren said customers who pay the utility’s supply rate—meaning they are NOT with an alternative supplier—could see savings of $8 per month on the supply part of their bill beginning in June. (That’s for a customer who uses 10,000 kilowatt-hours a year.) We don’t yet know what the exact price for electricity will be, but CUB will make sure to alert you as soon as we do. The development is a reversal of the bad news customers received in 2015, when supply rates for Ameren customers jumped 30 percent across Central and Southern Illinois. Back then, consumer advocates declared the increase unjust and unreasonable. The hike was connected to a yearly auction held by the Midcontinent Independent System Operator (MISO), the power grid operator for all or parts of 15 states, including Central and Southern Illinois. The auction determines “capacity” costs for the next year (June 1-May 31). These costs are fees wrapped in electricity prices that ensure power plants produce enough energy when demand is high. In the April 2015 auction, Illinois’ capacity cost increased nine-fold to $150/megawatt-day, leading to the jump in Ameren bills. Illinois was the only state that suffered a huge increase, even though it has a surplus of power. Attorney General Madigan led the charge, calling for an investigation into the price spike, which had sparked a windfall for power generators, and CUB held news conferences across the state to raise awareness on the issue. “Our power market needs a revamp,” CUB Executive Director David Kolata said at the time. “These auction results are a huge red flag that the capacity market, and the rules that govern it, are not working for consumers. (Just to be clear, Ameren, the regulated utility, isn’t to blame–and actually supported market reforms also. It doesn’t profit off supply rates, because it’s not a power generator.) Thankfully, the Federal Energy Regulatory Commission did eventually rule that MISO had to make key changes to auction rules, and that has led to lower rates over the last few years, including the drop this June. On top of that decrease, Ameren customers are also enjoying lower rates on the delivery part of the bill because of the corporate tax cut OK’d by Congress last year. That has lowered Ameren electric bills by $50 million, and gas bills by $15.8 million. Unfortunately, that good news is dampened by two proposed increases to the delivery part of the bill pending before the Illinois Commerce Commission (ICC): a $46.6 million gas hike, and a $71.75 million electric hike. We’re fighting them!

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