Why your 2023 electric budget may be higher than expected
Mar 16, 2023

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.

Related Posts

Contango in the Electric Markets: What It Means for Consumers

Contango in the Electric Markets: What It Means for Consumers

Electricity is one of the most important commodities in the world today. It powers homes, offices, and factories, and is an essential component of our daily lives. But electricity pricing can be unpredictable, and it is not always easy to understand why prices are...

The Difference Between Broker and Supplier – when not to shop

The Difference Between Broker and Supplier – when not to shop

Energy brokers are service providers that help businesses find the most competitive prices for their energy needs. In a highly competitive market, they act as intermediaries between electricity and natural gas suppliers, helping customers get the best possible deals...


Copyright © 2021 Alternative Utility Services, Inc.

Privacy Policy    Terms of Use