ComEd expects $3.1 billion in data center hookup costs; consumer groups say households could pay, ComEd disagrees

ComEd expects to spend about $3.1 billion connecting large new power users, which consumer advocates believe are mostly data centers, to its grid over the next several years, according to utility figures that the Citizens Utility Board and allied groups made public last week.^{1, 2} The groups say ordinary customers could end up paying much of that cost, and ComEd says protections already in place prevent it.^{1, 2}

The figures come from ComEd cost projections filed with expert testimony this summer in a case before the Illinois Commerce Commission, the Chicago Sun-Times reported.¹ The projections cover 30 large-load users that have been built in Illinois since 2021 or are expected to come online through 2031, each needing 50 megawatts or more of power, according to the Sun-Times.¹

The numbers

The projections include more than $1.4 billion in new transmission work, $189 million in upgrades to existing transmission lines and more than $1.5 billion for the distribution system, for a total of $3.1 billion, the Sun-Times reported.¹ Deposits and advance payment commitments from the projects total $720.9 million, according to both outlets.^{1, 2} The companies behind the 30 projects were redacted.¹

ComEd told Shaw Local that around $1.6 billion of the total is transmission cost regulated by the Federal Energy Regulatory Commission, and that it has obtained $1.1 billion in customer protections for that portion so far.² The remaining $1.5 billion is distribution cost regulated by the Illinois Commerce Commission, and the $720.9 million in deposits applies only to that portion, the utility said.²

What each side says

CUB Executive Director Sarah Moskowitz said data centers “haven’t paid anywhere close to their fair share of the energy costs,” according to Shaw Local.² The groups worry that if some projects never come online after ComEd spends billions to connect them, households and small businesses could be left paying for the unused equipment, the Sun-Times reported.¹ Nick Wallace, a senior associate attorney at the Environmental Law & Policy Center, told the Sun-Times that consumers’ exposure could be larger because more data centers are likely to follow the 30 in ComEd’s queue.¹

A ComEd spokesperson said the groups’ analysis “is not complete and paints an inaccurate picture,” according to the Sun-Times.¹ The utility pointed to its transmission security agreements with large users, approved by state and federal regulators, which it said “ensure that large-load customers cover the costs of serving them for the duration of the TSA, even if they go out of business or use substantially less energy than expected.”¹

ComEd said it is still estimating the distribution work and how much large users will need to deposit.¹ “Some of these projects will not come online for five years, and ComEd’s engineering work needed to estimate the deposits is not yet complete,” the spokesperson said, according to the Sun-Times.¹ ComEd also has a proposal before the commission to require larger deposits from large-load customers, Shaw Local reported.²

The policy fight

The consumer groups, which also include the Natural Resources Defense Council, Vote Solar and the Union of Concerned Scientists, are pushing lawmakers to pass the Protecting Our Water, Energy and Ratepayers Act, or POWER Act.^{1, 2} It would require data centers to cover 100% of the energy and infrastructure costs they cause, according to both outlets.^{1, 2}

ComEd’s electricity supply price is up about 50% compared with two years ago, according to CUB.^{1, 2} Gov. JB Pritzker has voiced support for data center regulations, which could come up during the fall veto session in Springfield in mid-November and early December, the Sun-Times reported.¹