Over the summer, there were many headlines surrounding the upcoming capacity cost increase that will hit in June of 2025. This increase will surely impact your budget. Understanding this change can help you be prepared.

What Is Capacity?

Capacity is a charge imposed by the transmission company covering the ComEd region. This charge helps ensure that adequate power is available at peak demand during very hot summer days and very cold winter days.

The Capacity Cost Increase

Capacity costs are scheduled to increase for ComEd customers 800% starting in June 2025.

This will mean an average increase of $.01 to $.015/kWh on all consumer bills, about $80K to $120K/year for the typical commercial building.

Why Is This Increase Happening?

The market is unprepared for the increased electricity demand caused by the growing AI industry. You’ve undoubtedly seen news related to artificial intelligence and all the data centers that are being built—2-3 data centers a week!

What can you do about this as a customer?

  • Review your current electric agreement – Fixed All-In vs. Pass Through.
  • Demand Response—With the steep increase in Capacity costs, participating in a Demand Response Program is more lucrative than ever.
  • Efficiency & Solar – The best savings are the kWh never used.

Key Takeaways

Capacity costs will increase for all PJM customers starting in June 2025, adding about $80K to $120K to the utility budgets of most commercial buildings.

Participation in demand response programs can help offset some of these cost increases. These programs will likely be fully subscribed to earlier than usual, so you should act soon.

Solar energy may be a viable option for reducing electricity costs. We can complete a feasibility study to help you quantify any savings opportunities.

If you have any questions, please feel free to reach out to us.