ComEd Customers Face Elevated Electricity Prices as Data Center Demand Drives Up Costs (Chicago, IL) — Commonwealth Edison customers will continue to face elevated electricity costs this fall and winter as rising demand from data centers and broader pressures on the regional power grid push wholesale electricity prices higher, according to the Citizens Utility Board.
ComEd’s New Electricity Rate Takes Effect October 1
ComEd’s new “price to compare” for electricity supply will be 10.103 cents per kilowatt-hour from October 2026 through May 2027. The rate includes the cost of electricity supply and a transmission charge and is the benchmark ComEd customers can use when comparing the utility’s supply price with offers from alternative electricity suppliers.
According to CUB, the October rate is approximately 53% higher than it was two years ago, raising concerns about the effect of continued electricity-price increases on residential and small-business customers.
The Citizens Utility Board, an Illinois nonprofit consumer watchdog, said Wednesday that rapidly increasing electricity demand, particularly from data centers supporting artificial intelligence and other energy-intensive computing operations, is contributing to the pressure on the power market.
Data Centers Become a Growing Concern
The rapid expansion of data centers has emerged as a major issue for electricity markets across the country. These facilities can consume enormous amounts of electricity because they operate continuously and require significant power not only for computing equipment but also for cooling and other infrastructure.
CUB argues that the costs associated with meeting this rapidly growing demand should not simply be distributed among ordinary residential and small-business electricity customers.
“We are deeply concerned that electricity prices continue to be painfully high because of skyrocketing data center-related energy demand,” CUB Communications Director Jim Chilsen said.
Chilsen acknowledged that ComEd does not profit from the higher electricity supply price but said the utility should still take steps to help customers who are struggling to pay their bills.
“Although ComEd is not profiting off this price increase, the utility still has an important role: We call on ComEd to work with customers to keep them connected this year,” Chilsen said.
CUB is also urging state lawmakers to address the issue through legislation that would place additional responsibility on large data-center operators for the electricity resources needed to serve them.
CUB Pushes POWER Act in Illinois Legislature
CUB is supporting the proposed POWER Act, identified as Senate Bill 4016 and House Bill 5513. The legislation would establish additional requirements for data centers seeking firm electric service.
One of the proposed requirements would compel data centers to bring new clean power resources to the grid if they want firm electricity service that would not be curtailed during periods of high demand.
The legislation comes amid growing concerns about whether the existing power system can keep pace with electricity demand created by artificial intelligence, data centers, manufacturing and other large industrial users.
CUB argues that major technology companies should bear a greater share of the costs associated with their electricity consumption rather than shifting those costs onto the broader customer base.
“We will continue to work for state reforms—the POWER Act—to protect customers from the impact of data center-related energy demand on power prices,” Chilsen said. “We must rein in data centers and make sure Big Tech pays its fair share of energy bills.”
Capacity Costs Are Driving the Price Increase
CUB said one of the most significant factors behind the higher electricity prices is the cost of reserve power, known as “capacity.”
Capacity payments are designed to ensure that sufficient electricity-generation resources are available to meet demand, particularly during periods when the grid is under stress.
CUB said capacity prices have increased sharply as electricity demand has grown. The organization also pointed to problems with the regional grid’s process for connecting new power plants to the transmission system.
ComEd’s service territory is part of PJM Interconnection, a regional transmission organization responsible for coordinating electricity markets and grid operations across a large portion of the eastern United States.
PJM has faced a lengthy backlog of proposed generation projects waiting to connect to the grid. The issue has become increasingly important as demand forecasts rise and policymakers seek to add generation resources quickly.
Consumers can learn more about the regional electricity market and PJM’s role in maintaining grid reliability through the PJM Interconnection website.
ComEd Does Not Profit From the Supply Price
While customers will see the higher electricity supply cost on their bills, CUB emphasized that ComEd does not earn a profit from the supply-price increase.
Under Illinois law, ComEd passes the cost of electricity supply through to customers without adding a markup.
That is different from the delivery portion of a customer’s bill, which covers the utility’s distribution system and related infrastructure. ComEd earns regulated revenue from its delivery charges.
CUB noted that ComEd received a $243 million delivery-rate increase last year.
The distinction is important because the higher supply rate is largely driven by conditions in the wholesale electricity market rather than by a decision by ComEd to increase its profit margin on electricity supply.
CUB Warns Customers About Alternative Suppliers
CUB is also cautioning customers to be careful when considering offers from alternative electricity suppliers.
Alternative suppliers operate in the same broader electricity market and are affected by many of the same market conditions driving ComEd’s supply price higher. As a result, CUB said consumers should not assume that an alternative supplier is offering a better deal simply because it advertises a different rate.
The organization said Illinois consumers have lost approximately $2.3 billion to alternative electricity suppliers since 2015.
Customers considering an alternative supplier should examine the price per kilowatt-hour, determine whether the rate is fixed or variable, check for additional monthly fees and understand when the contract expires.
CUB also cautioned customers not to assume that a community aggregation agreement automatically provides a lower rate than ComEd.
CEJA Credit Provides Some Relief
Some ComEd customers are receiving relief through a credit associated with Illinois’ Climate and Equitable Jobs Act, commonly known as CEJA.
The Carbon Free Energy Resource Adjustment, or CFERA, is connected to the state’s support for carbon-free electricity generated by Illinois nuclear power plants. The mechanism can provide a credit to customers when electricity market prices are high.
CUB said the monthly credit has varied significantly in recent months. It was approximately 1.6 cents per kilowatt-hour in September but is expected to be about 0.115 cents per kilowatt-hour in October.
That assistance is temporary. The CFERA benefit is scheduled to end by June 2027.
Customers Struggling With Bills Urged to Seek Help
CUB is urging customers who are having difficulty paying their electric bills to contact ComEd before falling further behind.
Customers can ask about payment arrangements, energy-efficiency programs and other assistance options. CUB is specifically calling on ComEd to offer payment plans that give customers struggling with accumulated debt a better opportunity to remain connected to the electric system.
Households may also qualify for assistance through the Low Income Home Energy Assistance Program, or LIHEAP.
According to CUB, some income-eligible households can begin applying Oct. 1, while applications for all income-eligible households will open Nov. 1.
Consumers can obtain information about eligibility and applications through the Help Illinois Families program.
CUB also recommends that consumers look for ways to reduce electricity consumption, including weatherizing windows and doors and improving household energy efficiency.
Data Center Growth Raises Broader Cost Questions
The electricity-price debate reflects a larger challenge facing Illinois and other states as artificial intelligence and data-center development accelerate.
Large technology companies are investing heavily in facilities that require substantial amounts of electricity, while utilities and grid operators must determine how to expand generation and transmission capacity to meet that demand.
CUB contends that residential customers and small businesses should not be left paying a disproportionate share of the cost.
The organization is calling for Illinois lawmakers to establish clearer requirements for large electricity users and ensure that data-center operators contribute to the new power resources needed to serve their facilities.
For ComEd customers, however, the immediate issue is the higher supply charge taking effect Oct. 1. Although the new 10.103-cent rate is lower than the summer price, it remains well above recent historical levels.
With electricity demand expected to remain a major issue for the regional grid, consumers could continue to feel the effects of higher wholesale power costs well into 2027.
ComEd Customers Face Elevated Electricity Prices as Data Center Demand Drives Up Costs
