Illinois Regulators Center Affordability for Customers in Landmark Utility Decisions

(CHICAGO) Illinois energy regulators issued landmark decisions holding electric utilities’ Commonwealth Edison (ComEd) and Ameren Illinois (Ameren) to stronger performance standards that prioritize energy affordability, cut peak demand, reduce reliance on costly, polluting energy, and ensure utility incentives deliver real value for customers. The Illinois Commerce Commission’s (ICC) final orders on ComEd and Ameren Illinois’ 2028-2031 Performance Metrics Plans set a high bar for performance-based utility regulation statewide. The Commission adopted key proposals advanced by the Joint Non-Governmental Organizations (“coalition”), including Citizens Utility Board, Environmental Defense Fund, Environmental Law & Policy Center, Natural Resources Defense Council, and Vote Solar, while rejecting utility requests that would have weakened accountability to customers.

"At a time when consumers face soaring energy bills, CUB thanks the ICC for giving ComEd and Ameren a clear message: You can't be careless with your customers' money," said Sarah Moskowitz, executive director of the Citizens Utility Board. "The orders show that the Commission understands the importance of accountability and ensuring that the utilities' spending actually leads to tangible benefits for consumers, including a more reliable and affordable electricity system."   

Both ComEd and Ameren must demonstrate progress in reducing residential disconnections in the communities hit hardest by unaffordable energy bills. In both cases, the Commission adopted the coalition's two-part affordability metric, which continues to focus on twenty ZIP codes with the highest residential disconnection rates and requiring the utilities to deliver improvements in those areas before earning incentives for systemwide performance. The order places greater financial weight on reducing disconnections in low-income communities than on broader systemwide measures.

“Today’s order is a win for Illinois families struggling with high energy costs,” said Sonya Jindal, Legal Fellow at Environmental Defense Fund. “The Commission made clear that utilities must be accountable to the customers and communities they serve. By requiring real peak demand reductions and a stronger cost-benefit framework, regulators are ensuring that every ratepayer dollar delivers measurable results.”

The Commission rejected ComEd's proposed peak load reduction metric, which would have allowed incentives without meaningful demand reductions. Instead, regulators adopted the coalition’s peak load reduction target, requiring ComEd to reduce system peak load by 1-4% over the four-year period, measured against the actual system peak rather than marginal year-over-year changes. This approach cuts customers’ distribution costs and pushes ComEd to take aggressive actions that put downward pressure on the high PJM capacity prices driving up customer bills.

For Ameren, the Commission adopted Staff’s proposed peak load reduction methodology, which still requires year-over-year incremental improvements and assigns five basis points to incentivize meaningful demand reductions. 

“Addressing peak demand is the smartest short-term path to managing load growth while delivering real savings,” said Brad Klein, Managing Attorney at Environmental Law & Policy Center. “These performance metrics will improve utility performance where and when it’s needed most, and we thank the ICC for taking decisive action to prioritize customers.”

The Commission also directed ComEd and Ameren to develop a jurisdiction-specific cost-benefit analysis that reflects Illinois policy objectives for use in future performance metrics proceedings. The ICC agreed with consumer and environmental advocates that the utilities’  prior approaches failed to adequately demonstrate net benefits and that a more rigorous framework is necessary to protect ratepayers.

“A jurisdiction‑specific cost‑benefit framework is essential to ensure that utility proposals fully reflect Illinois’ policy objectives and deliver verifiable benefits to customers,” said Madeline Semanisin, Illinois Policy Director, Natural Resources Defense Council.

Looking ahead, the Commission directed ComEd to work with staff and stakeholders to develop a resource adequacy metric for future performance cycles, recognizing rising PJM capacity costs and the growing importance of demand-side solutions. The order also requires ComEd to update its demand response and load flexibility potential study – last refreshed in 2009 – by December 2026.

Additional Highlights

• Regulators preserved the utilities’ supplier diversity metric by rejecting efforts to remove its financial stakes.
• The Commission approved a new power quality tracking metric, increasing transparency around grid reliability.

The final order is available on the ICC's website. The coalition will continue advocating for performance standards that put customers, communities, and climate progress first.