As of Jan. 1, ComEd and Ameren are charging new electricity rates. Here’s our breakdown:
What are delivery rates?
Electric bills have two parts: delivery and supply. All of us pay delivery rates to cover the utilities’ costs of sending electricity over their wires to our homes–plus a profit for the companies. Those charges take up about a third to a half of the electric bill.
Over the past decade, Illinois has set electric delivery rates for ComEd and Ameren according to the state’s 2011 “Energy Infrastructure and Modernization Act.” The law, which CUB opposed, used a formula to determine delivery rates, and it opened the door to multiple rate hikes, including ComEd’s $199 million increase and Ameren’s $61 million hike that both took effect Jan. 1.
In 2023, the state is launching a new system to set rates for the next four years. The new system–created by the landmark state energy law, the Climate and Equitable Jobs Act–is designed to give state regulators more authority in rate cases. While this doesn’t mean the end of rate hikes, CUB and other consumer advocates will be involved in this new process, working to protect and maximize benefits for consumers.
So what are we paying for delivery rates in 2023?
CUB dived into the tariffs and here’s what we found. These rates reflect the delivery rate hikes that Ameren and ComEd received on Jan. 1.