Illinois moves to blunt rate hikes tied to data centers

Illinois regulators have approved new terms for data centers seeking electricity service from Commonwealth Edison (ComEd) and launched a broader investigation into electricity costs. The steps, taken last week by the five-member Illinois Commerce Commission (ICC), follow a surge in electricity prices for customers in Chicago and northern Illinois, within the PJM Interconnection regional grid. These increased bills are partly linked to rising costs for generating capacity necessary to serve data centers in the PJM region. ICC Chair Doug Scott emphasized the challenge, stating Monday, "The current surge in data centers and other customers with exceptionally high energy requirements pose a unique challenge for how utilities and energy regulators all over the country should be planning for an affordable and effective power grid." Scott further characterized the ICC's inquiry as an initial step to examine how Illinois' largest electric utility, ComEd, can serve large load customers while preventing undue cost shifts to other consumers.