Energy Professionals, an energy consulting firm that helps businesses in Illinois participate in the energy choice programme, has warned customers that the substantial price hikes by the state’s two largest electric utilities – ComEd and Ameren – which came into effect on 1 June, could be the forerunner of further increases in bills. ComEd’s rates have increased 53%, from 0.06552 to 0.10028 cents/kWh, while Ameren’s rates went up 47%, from 0.08277 to 0.12180 cents/kWh.
Beginning this summer, ComEd customers will see an increase in their bills due to the annual PJM Interconnection capacity auction held last year. These costs will be reflected in the supply portion of customer bills, which ComEd passes on directly to customers.
These price increases stem primarily from soaring capacity charges, the fees paid to ensure sufficient power is available on the grid during periods of peak electric demand.
But experts have warned that prices may continue to rise, with electricity demand projected to double in the coming years. “Over the past year, electric utilities have nearly doubled their forecasts of how much additional power they’ll need by 2028,” reported The New York Times. The rapid growth of AI data centres, the adoption of electric vehicles, and an overall shift to electrification in homes and businesses have caused a huge increase in demand. The retirements of fossil fuel power plants and delays in new renewable energy projects owing to regulatory and infrastructure issues have increased prices by widening the gap between supply and demand.
US electricity prices have risen on average by 6.8% annually since 2020, outpacing general inflation.
