CHICAGO — Many Chicagoland residents will see a higher utility bill this summer.

Customers of ComEd, the primary electric utility in Chicagoland and the largest in Illinois, will see an increase to the “Capacity Charge” beginning June 1, the company says on its website.

“The ‘Capacity Charge’ is included as a portion of all customers’ monthly bills,” ComEd says, “either as a separate line item for hourly pricing participants or within the electricity supply charge for default fixed-price-rate customers.”

The charge is determined by ComEd’s supplier and is “passed directly to customers by ComEd with no markup,” a spokeman said, adding that the average monthly residential customer is expected to see an increase of about $10.60.

How do I calculate my ‘Capacity Charge’?

The terms may be confusing, but the math is simple, and ComEd customers should be able calculate their specific “Capacity Charge” using numbers readily available on their monthly bill.

According to ComEd, you just multiple your “Capacity Obligation” with your “Capacity Charge Rate” to get your “Capacity Charge.”

The “Capacity Obligation” is specific to each customer and represents expected energy usage during high-demand hours on hot summer afternoons. The “Capacity Charge Rate” is based on the cost of capacity, as determined by electricity market conditions. ComEd says the new “Capacity Charge Rate” will be on your bill starting in June.

So, find that number and the “Capacity Obligation” number, multiply them, and you have your “Capacity Charge.”

What is a ‘Capacity Charge?’

According to ComEd’s website, electric utility customers pay “capacity charges,” a supply cost that goes toward power for your use both now and in the future. This, ComEd says, ensures there will be enough capacity “when you need it.”

“The ‘Capacity Charge’ is a standard item on all customers’ bills and changes every June based on your energy usage from the previous summer and the ‘Capacity Charge’ rate, which is determined by electricity market conditions,” ComEd explains on its website.

Why is this happening?

Well, in the simple sense, it’s Economics 101: Supply and demand. If demand goes up faster than supply, you get a rate increase.

“Energy prices are driven by supply and demand,” ComEd says on its website. “Large power generators sell this electricity supply to ComEd, and we pass this cost directly to you.”

In other words, what ComEd charges a customer on their monthly bill is dictated in part by these power generators. Because without them, there’d be no power to supply to customers.

The regional power grid operator for ComEd’s territory in northern Illinois is PJM Interconnection. So the summer rate increase, says a ComEd spokesperson, is “due to the annual PJM Interconnection capacity auction held last year.”

“These costs go into effect in June and will be reflected in the ‘supply’ portion of customer bills, which ComEd passes on directly to customers with no mark-up,” the spokesperson said. “ComEd does not profit from this increase, was not part of the auction, does not supply capacity, and does not retain any proceeds of the capacity charge payments.

“ComEd is responsible for the ‘delivery’ portion of bills, which pays for the work ComEd does to maintain and upgrade the system to ensure safe and reliable electric service for all customers. ”

Why such an increase?

But if this answers the question as to why rates are going up, there’s a follow-up question: Why are rates going up so much?

According to its website, ComEd reasons: “Because of factors like extreme weather, spikes from high energy users like data centers, and other factors, demand is outpacing supply, so costs are getting more expensive.”

However, Citizens Utility Board — a non-profit and non-partisan group that “fights for the rights of customers of investor-owned electric, gas and telecom utilities across Illinois,” according to its mission statement — says there’s more to it than that.

In a news release issued Monday morning, CUB said its preliminary review of ComEd tariffs filed last week shows that the utility’s summer supply rate, for June through September, would represent about a 45% increase over last June’s rate — and the price will change again in October.

According to CUB, this skyrocketing price of reserve power — called “capacity,” hence a customer’s “Capacity Charge” — “is largely because of poor policies undertaken by the regional power grid operator in ComEd territory,” meaning PJM Interconnection.

Yes, CUB confirms, ComEd does not profit from a summer rate hike, because “under law the utility is required to pass supply costs onto customers with no mark-up.” Instead, CUB says ComEd profits from “rate hikes on the delivery side of bills.”

But while ComEd won’t profit from a summer rate hike, someone sure will, according to CUB, which claims that “big energy companies that sell electricity to utilities stand to make a windfall.”

According to CUB, “These power generators recently saw their PJM capacity revenue jump six-fold to $14.7 billion.”

Can customers get help?

All this technical jargon aside, what customers really only care about is how much their utility bill will increase starting in June and if they can get any relief.

According to CUB, Illinois’ landmark energy law, the Climate and Equitable Jobs Act (CEJA), will give consumers some relief, citing ComEd filings.

CUB says it has launched CUBHelpCenter.com, which has consumer tips on how to manage spiking utility rates during the summer.

The ComEd spokesperson, meanwhile, said this: “We fully understand that rising supply costs pose a challenge for customers, which is why we continue to offer our full range of bill-assistance options that, so far this year, have connected nearly 110,000 customers to more than $31 million in financial assistance and other support options.

“We also offer a comprehensive and award-winning energy-efficiency program that helps families and businesses manage their energy use and save money on monthly bills. Customers can visit ComEd.com/BillSupport to find the programs they may qualify for.” 

All that said, much of what customers can do to save money this summer is probably what your parents hollered to you repeatedly as a kid, like “Turn the lights off when you leave a room!” or, “You don’t need to turn on the air conditioner if it’s only 75 degrees out!”

While energy consumers can’t really do anything about a summer rate hike, they sure can do something about how much energy they have to pay for.