Business
ComEd CEO on Rate Increase, Data Centers and Bouncing Back From Scandal
Data centers and warmer temperatures are driving up energy costs in Chicago.
Commonwealth Edison, Chicago’s primary electricity distributor, announced in May that its customers should expect monthly bills to increase by $2 to $3 beginning June 1.
The utility cited new electricity prices set by the nation’s largest grid operator, PJM Interconnection, growing demand from datacenters and the arrival of summer weather as factors driving the increase.
ComEd has announced a series of customer assistance programs to help offset the higher costs. Meanwhile, state and local energy advocates are pushing for legislation that would limit the ability of technology and energy companies to pass data center-related costs on to consumers.
ComEd’s CEO since 2021, Gil Quiniones, joined “Chicago Tonight” to discuss how his company plans to navigate a new energy industry dominated by data centers and rising costs.
On how much more customers should expect to pay this summer:
“About $2 to $3 (more) per month, and it’s really because of the PJM interconnection supply costs. This is the grid operator that controls our power markets, and we pass that supply cost through our customers, without any markup.”
On ComEd’s new small business affordability initiative:
“This morning, we were at the Chicago Urban League, and we announced our small and medium-sized business customer relief fund. This is really to help customers who are late in paying their electric bills to ease the burden, especially now in the summertime when air conditioning use is much more than in other normal times… Last year, we did a program for residential customers. So we had a $10 million customer relief fund for residential customers last year, and then we instituted the low-income discount rate. This is an income-based discount rate for families up to 300% of the federal poverty level. So this year, we thought it would be wise to add a customer relief fund for small and medium-sized businesses. They are the anchors of our community.”
On how ComEd is handling the rise of data centers:
“We’re making sure that data centers are paying their fair share. We introduced a tariff. It was approved by the Illinois Commerce Commission to make sure that the cost imposed by data centers on our transmission and distribution system is paid for by those data centers, to make sure that those extra costs are not passed through the rest of our customers.”
On whether ComEd supports the POWER Act:
“We support the responsible development of data centers. First, we want to make sure that there is no cost-shifting. We also support that it should have a limited impact on the environment, water use, noise, etc., I think you’ll see a lot more initiatives, whether it’s legislation or through executive action, to make sure that data centers are developing in a responsible way.”
On whether ComEd plans to negotiate a new franchise agreement with Chicago:
“The existing agreement is in place. I don’t think we need an agreement to transition Chicago to clean energy. We’re already doing that. But if and when the city is ready to look at that, a renewal of that agreement, we would be happy to engage with them.”
On the Michael Madigan lobbying scandal:
“We really have been instituting a lot of reforms over the last 5-6 years. And we operate at the highest level of standards of integrity and ethics. Those are things that are on the rearview mirror at this point for us.”
