Lee County hears options as regional capacity charges push electricity rates higher

The Lee County Finance Committee on March 13 heard that regional capacity charges tied to PJMInterconnection auctions have jumped sharply, pushing projected electricity supplier rates up beginning in June and prompting county officials to weigh multiple options for the countyelectrical aggregation program.

Mike Mudge, who briefs the county periodically on aggregation bids, told the committee that recent capacity auction results are driving what he described as an eightfold increase in the auction price for the upcoming planning year. "We're at $287 per megawatt per day," Mudge said, explaining that the increase translates to roughly a three-cent-per-kilowatt-hour upward pressure on retail rates once the capacity charge is included. He said the rise is driven by increased demand, retirements or required upgrades at some generators, and faster growth in large loads such as data centers and electric vehicles.

The nut of the committeediscussion was whether to accept supplier bids that would keep the county program active or to drop aggregation customers back to ComEd and let residents choose. Options on the table included a shorter-term supplier price that would have a county program rate slightly above ComEd in some months, a price-match guarantee offered by MC Squared (which would match ComEd monthly and pay a small civic grant to the county), and longer fixed-term offers from other suppliers. Mudge described MC Squaredas offering a price-match program that would give enrolled customers the ComEd monthly rate and provide a grant to the county; he did not specify the grant amount, saying it would likely be in the low five figures annually if any.

Committee members voiced concerns about locking residents into a materially higher rate during market turbulence. Bob Boleson said he would "hate to try to lock that in for the residents" given a roughly 20277 percent increase reflected in some bids. Other members noted that a multi-year fixed offer could be prudent if the county prefers price certainty, while some favored returning customers to ComEd temporarily and monitoring market developments after Juneauction results are finalized.

Mudge told the committee that the county is not obligated to adopt any particular supplier immediately and that a decision could be delayed until the executive committee or the full board considers a recommendation. He said he would be available to brief the executive committee if requested.

The committee did not take a formal vote on an aggregation contract at the March 13 finance meeting; members discussed options and indicated the matter would likely be elevated to the executive committee for recommendation to the full board.

Ending: The county will carry the discussion to the executive committee with options on the table: accept a short-term supplier bid, adopt MC Squaredprice-match with a civic grant, pursue a multi-year fixed contract, or return enrolled residents to ComEd while monitoring PJM auction developments.