We’re proud to be your low-cost municipal power provider! As electricity costs spike across Illinois, we want to show how CWLP continues to deliver value to our customers with our ownership of reliable generation and explain what is driving up costs on Ameren Illinois bills recently.
CWLP’s electric rates remain affordable in 2025 with
local ownership and control of generation, especially with Dallman Unit 4 and its peaking units. This reduces Springfield's need to buy as much power from external sources, shielding CWLP customers from higher market prices. We’ve also been protected from the recent surge in capacity auction prices being driven by tightening energy reserve margins and the early retirement of many U.S. power plants.
In our recent analysis we looked at residential customer components of the Ameren bill across its three rate zones versus CWLP to show the difference in fixed costs and variable costs including those for rate riders and transmission and delivery fees as examples.
We found a CWLP residential customer using 1,072 kWh (average usage of CWLP customer in July 2024) will pay a total bill of $148 while customers in Ameren’s service areas are paying around $400 for the same usage, roughly 170% more.
Ameren customers have seen rising electricity costs in recent years. However, the recent increase that began for June 2025 usage and is reflected on July bills, goes beyond typical summer bill spikes; it’s driven by increased costs for what must be purchased for energy capacity. Energy capacity is what is required to ensure there is enough electricity supply to meet consumer demand at all times, including during “peak” or what are considered high energy usage periods.
Ameren, due to state rules for “deregulation,” is a delivery-only utility and can’t own generation. It must rely on power purchased by the Illinois Power Agency through grid auctions managed by MISO. The results of MISO’s April capacity auction led to a 20-fold increase in prices due to a tighter energy supply versus demand balance. MISO has no control over the pricing results in the auction and the costs for this part of the bill due to the auction are passed directly to Ameren’s customers without any markup.
MORE ON CWLP ENERGY RESOURCES
In addition to CWLP’s total owned generation, Dallman Unit 4, three peaking units and one solar installation, CWLP holds a number of long-term power purchase agreements to fulfill energy and capacity requirements that include a 15-year wind capacity contract and two newly signed solar agreements for new projects to be developed: 25 MW solar capacity and energy contract for 25 years from Sangamon Solar from a project to be located in south Sangamon County near Chatham and a 125 MW solar capacity and 20MW of energy contract for 20 years from from Lincoln Capital Land for a project being developed in north Sangamon County near Abraham Lincoln Capital Airport . These agreements reduce CWLP customer exposure to higher prices that can occur in capacity auctions and energy markets while diversifying the energy mix.
