Illinois Commercial Electricity 2026: The ComEd Delivery Squeeze
Illinois remains one of the most mature deregulated energy markets in the country, allowing businesses to shop aggressively for electricity generation. However, the total cost of power in 2026 for northern Illinois (Chicagoland) is increasingly dominated by the non-shoppable components: ComEd\'s delivery tariffs and PJM wholesale capacity charges. Driven by the mandates of the Climate and Equitable Jobs Act (CEJA) and necessary grid hardening, ComEd's distribution rates have steadily climbed, compressing the savings margins traditionally achieved through retail supply procurement.
Executive Impact
- →Formula Delivery Rates: Under Illinois law, ComEd adjusts its delivery rates annually based on an ICC formula designed to guarantee returns on approved infrastructure investments. This predictable upward staircase makes budgeting total cost-per-kWh challenging.
- →The Nuclear Advantage: While other PJM states face severe capacity shortages, Illinois benefits immensely from Exelon\'s massive fleet of subsidized nuclear plants. This baseload generation provides a stabilizing anchor against extreme wholesale spot-market volatility.
- →PJM Capacity Tag Limits: Like Ohio, ComEd territory sits within the PJM Interconnection. Your facility's Peak Load Contribution (PLC) tag—determined by usage during summer peaks—will heavily dictate your fixed 2026 capacity costs regardless of which retail supplier you choose.
Navigating the Retail Supplier Landscape
Because ComEd's delivery rates are rising, the only lever facility managers have left is ruthless optimization of the supply contract via an Alternative Retail Electric Supplier (ARES). In 2026, standard fixed-rate contracts are giving way to more nuanced structures to counter rising PJM costs:
- Capacity Pass-Through Products: For facilities actively participating in Coincident Peak (CP) management, opting to "pass-through" capacity charges rather than locking them into a fixed rate allows the business to realize the financial rewards of shutting down during PJM peaks.
- Block & Index: Large industrial users in Illinois frequently purchase a fixed "block" of baseload power to cover standard operations, while exposing volatile seasonal/peaking usage to the hourly wholesale index, maximizing the benefit of Illinois's cheap overnight wind and nuclear generation.
The Impact of CEJA Subsidies
The Climate and Equitable Jobs Act (CEJA) introduced complex subsidies to keep Illinois nuclear plants open while simultaneously funding vast new renewable deployments. These "Carbon Mitigation Credits" appear as specific line-item adjustments on commercial utility bills. While they ostensibly prevent massive rate shocks, they add a layer of regulatory opacity to budget forecasting.