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Customers Will Soon See Significant Credits on Their Bills
By Alec Laird, MHA Illinois Lobbyist and Vice President, Government Relations for the Illinois Retail Merchants Association

Public Act 102-0662 (the “Climate and Equitable Jobs Act”) was signed into law and became effective on September 15, 2021. This legislation calls for the procurement of Carbon Mitigation Credits (“CMCs”) from carbon-free energy resources; specifically, from the three financially challenged nuclear plants in the ComEd territory. Beginning June 2022, a Carbon-Free Energy Resource Adjustment (Rider CFRA) will begin appearing on ComEd bills. Adjustments, which can either be a charge or a credit depending on energy and capacity prices, will be reset each year and will be included on customers’ bills for the next five years. Please note, CFR Adjustments do not apply to customers in downstate Ameren Illinois territories.

Carbon-Free Energy Resource Adjustment (CFRA) Results in Significant Utility Credits for all ComEd Customers in Year-1 YEAR 1:  June 2022 - May 2023

In a filing with the Illinois Commerce Commission (ICC), ComEd announced adjustments customers will see in the first year. The same rate will be applied to all customers regardless of size including the bills of customers that do not buy energy supply from ComEd.

  • a credit of 4.306 /kWh for each summer month (Jun, Jul, Aug, Sept)
  • a credit of 3.573 /kWh for each non-summer month (Oct, Nov, Dec, Jan, Feb, Mar, Apr, May)

Year-1 credits for smaller commercial customers who are currently buying supply from ComEd on Rate BES (Basic Electric Service), the utility’s fixed-price rate, will likely more than offset the recent supply charge increase for the June 2022 through May 2023 period.

What can Illinois retailers who operate stores in the ComEd territory expect to see in dollars-and-cents as a result of Year-1 CFR-Adjustments?

Read the full article here.

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