ComEd announced this month that hundreds of millions of dollars in “credits” will be issued to customers in the new year.
The energy company said the credits come from Illinois’ Climate and Equitable Jobs Act, which “requires nuclear plants to pay customers when prices are high.” The act took effect in 2021 and continues through 2027.
ComEd said funds from the act known as “carbon mitigation credits” will be issued to both residential and commercial customers in the form of credits on their bills.
In total, the $803 million in credits will amount to approximately $13 a month for the average residential user, but the exact number will depend on household usage. The credits will be issued for the first five months of the year.
ComEd said the law and its subsequent credit program were created “to support carbon-free nuclear generation facilities and in return, provide an adjustment to ComEd customers if energy prices exceed the agreed-upon price.”
“ComEd will always advocate on behalf of our customers, and we are encouraged to see significant savings being passed through to them as a result of Illinois’ leadership in clean energy policy,” Gil Quiniones, president and CEO of ComEd, said in a statement.
The credits are expected to be automatically applied to customers’ bills and no action is required to receive it, the company said.
“While future prices cannot be forecast with certainty, the CMC program is expected to continue providing credits, based on market prices, for at least another year, helping to offset supply cost increases and support families during periods of economic uncertainty,” ComEd said in a release.
The Citizen Utility Board has warned of rising energy costs, but praised the increased credits in store.
“We’ve got a lot of work to do to bring down energy bills for consumers, but it’s good news that at a time of elevated power prices, Illinois’ strong energy policy is once again giving some relief to consumers. CEJA provides some protection as we work for long-term energy affordability solutions,” the group said in a statement.
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