Many end-users (especially in Illinois) will experience higher electric costs in 2023 compared to previous years. There are several factors that are impacting this and more information on what you can do to combat it.
Higher electric supply costs
The wholesale cost of electricity more than quadrupled in July 2022 compared to April 2020. The market had stayed below $50 per Mwh for at least 6 years prior to October 2021. End-users that locked in a renewal contract during the price spikes over the last two years will likely experience higher costs in 2023 simply due to market conditions. End users with contracts coming up for renewal were left with little choice between high wholesale costs passed through by suppliers OR utility pricing which was also at records highs.
ComEd’s carbon mitigation credit lowered/ending
Public Act 102-0662, commonly referred to as the Climate and Equitable Jobs Act or CEJA, created a Carbon Mitigation Credit program that preserves existing carbon-free, nuclear generation facilities. The Carbon Mitigation Program also provides protection to Illinois customers against high wholesale and energy prices. This credit began in June 2022 and provided substantial relief to both customers receiving supply from ComEd and those supplied by a third-party supplier. Bills decreased substantially and 2023 budgets created in 2022 may have been generated assuming this would continue.
For a 100,000 kWh electric bill, the credit value went from $4,306 in June22 to $33 in May23.
Budget relief can come in two forms:
Blend and Extend – If you locked in a shorter-term contact, your supplier may offer the option to extend your contract our further and lock in a lower rate to start now – taking advantage of current low wholesale pricing
Community Solar Credits – Community solar is a program also put into action by CEJA which allows consumers to take advantage of a reduced electric bill and clean energy without having to install or own a solar array on their property.
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