Aug.

31, 2021
Energy Legislation Rate Impact Analysis
The following maximum-cost analysis represents a worst-case scenario that does not include
savings from investment and programs (energy efficiency, low-cost solar energy, lower capacity
and energy prices, etc.) made possible by this legislation. Assuming the various component parts
are implemented correctly—as we expect—the bill should lead to consumer savings over time
and reflects a consumer-friendly approach to solving for climate change.

Summary
The average customer bill impact is $3.51/month for the average residential customer.

Detail
costs in $millions
  2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2025-2027
Increase to the RPS lines charge $364 $362 $359 $358 $357 $357
Carbon Mitigation Credits   $175 $199 $165 $107 $51
Energy Transition Assistance Charge $180 $180 $180 $180 $180 $180
Coal to Solar       $47 $47 $47
Increase to Energy Efficiency $0 $0 $3 $6 $9.50 $12.50
Intervenor Compensation $1.1 $1.1 $1.1 $1.1 $1.1 $1.1
Accelerated Tax Credit Refund (ADIT)     ($81) ($81) ($81) ($81)

Total ($ millions) $545 $718 $ 662 $676 $620 $567

121,018,9 120,164,0 119,411,1 118,972,8 118,653,7 118,653,7
Total MWh
05 07 10 02 72 73
$/MWh $4.51 $5.97 $5.54 $5.68 $5.23 $4.78

Residential Rate Impact

Statewide residential average
kWh/month
665 kWh

Average $/Month/Residential
Customer $3.00 $3.97 $3.68 $3.78 $3.48 $3.18

5-year Average $/Month

$3.51 $/Month/Residential Customer

Description (on back)

DESCRIPTION

Increase to the RPS lines charge. The budget for renewable energy procurement is increased
by increasing the customers’ line charge for renewables. This charge is calculated by capping the
cost increase for the charge at 4.25% of the rates paid by retail customers in 2009, up from
2.15% of the rates paid by retail customers in 2007. This increase amounts to $365 million/yr,
slightly decreasing over time.
Carbon Mitigation Credits. A new program to procure Carbon Mitigation credits is created to
provide financial support to at-risk nuclear plants. The credits are funded by a charge on
customer bills that covers the difference between a baseline price and an index of wholesale
energy and capacity prices. A forward price curve from the analysis provided in the Synapse
report released in April 2021 was used to calculate the year-by-year differences in the costs
between the price curve and the legislated baseline prices.

Energy Transition Assistance Charge. The Energy Transition Assistance Charge is a new
charge on customer bills to fund equity and just transition program investments, including
workforce training, support for new BIPOC businesses, and support for communities that are
experience a closure of a fossil fuel plant. The charge is established similar to the RPS charge,
capping the cost increase at 1.3% of the rates paid by retail customers in 2009.

Coal to Solar. Coal to Solar is a new program the funds solar and battery projects on or adjacent
to closed Vistra and NRG coal facilities. The costs of the program are recovered through a
volumetric charge on customer bills.
Increase to Energy Efficiency. The expenditure cap for energy efficiency is increased to
account for a Carbon Free Schools Assessment Program. The costs are recovered through the
existing energy efficiency tariff, which amortizes the costs over a period of time, typically 10-13
years. While spending increases by around $25 million/year, those costs are spread out over
time, with minimal increases appearing starting in 2023.

Intervenor Compensation. New provision require utilities to deposit money into a fund to
support community voices and advocates that intervene in Illinois Commerce Commission
proceedings. This annual deposit is around $1.1 million per year.
Accelerated Tax Credit Refund. As a result of federal tax changes, the utilities' tax liabilities
have changed. Accelerating the timeframe by which those tax liabilities are reduced will result in
a refund over a five-year period of $405 million between ComEd and Ameren customers.