Illinois Commerce Commission finds ComEd imprudent in CFRA reconciliation, disallows costs

The Illinois Commerce Commission on Sept. 4, 2025, adopted substantive edits to Commonwealth Edison Co.'s annual reconciliation of its carbon-free resource adjustment (CFRA) in docket 24-0087, finding that portions of the reconciliation as filed were not supported by the record and that some non-contract costs were imprudently incurred.

The commission's order, as read at the open meeting, identified three cost categories in the reconciliation and distinguished contract costs—statutorily deemed prudently incurred—from non-contract administrative and implementation costs that are subject to separate annual review. The commission determined ComEd "did not meet its burden to show the reasonableness of its decision not to pursue a better match of costs and recovery" and on that basis concluded "it was imprudent for the company not to take action to correct ... or mitigate continued under recovery" occurring between September 2022 and the end of the reconciliation period in May 2023. The commission adjusted ComEd's reconciliation amount as reflected in an attached appendix and noted that parties may seek rehearing to provide more granular figures and cost breakdowns.

Commissioners approved edits and the amended order at the meeting after the presiding speaker moved the edits and a second was offered. The commission noted that while ComEd and staff argued there is no legal basis for a penalty in a reconciliation proceeding, the adjustment is a disallowance of imprudently incurred costs rather than a penalty, because a utility is entitled only to recovery of "reasonable and prudently incurred costs from ratepayers." The order will be issued in public and confidential versions; the confidential order will be served to parties and a redacted public order will be posted on the e-docket.

The commission's findings reference a record showing that ComEd contemplated revising the CFRA as early as September 2022 and that the company in October 2022 affirmed its decision not to address the under-recovery. ComEd did not file a revision until Dec. 21, 2022, which did not take effect until the October 2023 billing cycle.

The commission's action is procedural and corrective within the reconciliation docket; the order invites rehearing and provides parties an opportunity to submit more detailed cost breakdowns if they wish to challenge the adjustments.

The commission approved the edits and the amended order with no recorded roll-call vote count in the public transcript; the meeting record notes a second was offered and there were no objections when the edits and the attached appendix were approved.