Anyone else seeing massive discrepancies in ComEd supply charge reconciliations this summer? I've got a client with a 500kW demand facility where the supplier is claiming $47,000 in additional capacity charges that weren't in the original contract. The PJM capacity prices allegedly jumped from $16.46/MW-day to $140.30/MW-day but I can't verify these numbers anywhere. The supplier is citing some obscure tariff addendum that wasn't disclosed during enrollment. Has anyone dealt with similar capacity charge surprises in the ComEd territory?
ComEd supply charge reconciliation nightmare
Yuri, I've seen this exact issue with several ComEd clients this year. The capacity market went absolutely crazy after the 2011/2012 planning year. What you need to do is request the actual PJM capacity obligation reports directly from ComEd - not from the supplier. The supplier should have disclosed the capacity price risk in their contract terms but many didn't. I found that about 60% of the contracts I reviewed had inadequate capacity price disclosure. You might have grounds to dispute if the supplier didn't properly explain the volatility risk.
This is exactly why I tell all my Texas clients to stay with regulated utilities when possible. Sure, we have ERCOT here and it's deregulated, but at least the capacity market mechanics are more transparent. In Illinois, you've got PJM capacity auctions that can swing wildly year to year. Greg is right about getting the PJM reports directly. Also check if your client's load profile changed significantly - sometimes suppliers try to blame capacity charges when it's really a coincident peak issue.
Had a similar case with Ameren Missouri territory last year, though we're not fully deregulated here. The key is understanding the capacity tag methodology. Yuri, you need to verify that your client's capacity obligation was calculated correctly based on their contribution to the system peak. I've seen suppliers inflate capacity obligations by using incorrect historical data. Request a detailed breakdown showing exactly how they calculated the 500kW obligation and compare it to the actual meter data during PJM peak hours.
The capacity market has been a disaster for commercial customers. We're seeing similar issues in MISO territory with Xcel Energy. What's frustrating is that most customers have no idea what they're signing up for when they switch suppliers. The marketing materials focus on the energy rate but completely gloss over transmission, capacity, and ancillary service charges. I've started requiring my clients to get a detailed pro forma bill showing all possible charges before signing any supply contract.
California avoided this mess by keeping generation planning centralized under the CAISO. Even though we have retail choice, the capacity procurement is handled systematically rather than through these volatile auction markets. Yuri, one thing to check is whether the supplier is passing through actual costs or if they're marking up the capacity charges. Some suppliers will add a 10-15% administrative fee on top of the PJM capacity costs, which should be disclosed in the contract.
Update on this issue - we filed a complaint with the Illinois Commerce Commission and the supplier agreed to cap the capacity charges at 150% of the previous year's rate. Not ideal, but better than the 750% increase they originally wanted. The key was demonstrating that their marketing materials and sales presentations never mentioned the possibility of such dramatic capacity charge increases. ICC staff was very interested in the consumer protection aspects of supplier disclosure requirements.
Vivian, that's a great outcome! I'll definitely use your approach with the ICC if we can't resolve this directly with the supplier. The lack of proper disclosure is really the core issue here. Customers think they're just switching their electricity rate but they're actually taking on complex financial risks tied to wholesale market volatility.