2 Factors Play Into Upcoming Increase In Geneva Electric Bills

GENEVA, IL — Geneva residents will see a 3.5 percent increase in their electrical bills beginning in June, in addition to an increase as a result of an auction-based capacity price outside of the city's control.

The adjustment translates into the average bill rising from $92.08 to $95.30 per month, with the new energy rate being $0.11600/kWh.

The Geneva City Council approved in 2023 a five-year electric rate plan to pay for fixed costs for the city's electric utility as well as capital projects that benefit residential, commercial and industrial customers, officials said.

Another change will impact electricity bills this summer. PJM, the federally regulated body responsible for organized energy markets in all or part of 13 states, including northern Illinois, is raising prices, and an increase will be reflected in the July bill.

Combined with Geneva's rate increase, the average customer will experience a 10 percent swell beginning with the July bill, according to a news release.

PJM holds an annual electric capacity auction, which sets the rate paid to electricity generators who agree to be generally available when needed to meet demands. Geneva officials said the prices applicable in Illinois starting June 1 have "risen significantly."

The capacity charge is not set by Geneva, and the city doesn't benefit from the increase. Staff employ several strategies to help lower the impacts of the costs, one of them being Peak Power Day alerts, which notify residents when they could voluntarily lower their energy usage during summer's hottest days. Geneva operating its generation facility also helps reduce costs.

"Combined, these activities save rate payers over $3 million in capacity costs from PJM," officials wrote in a news release. "These costs are reflected in the Power Cost Adjustment Factor (PCAF), which is calculated on a monthly basis. Unfortunately, it is not possible to show the PCAF on customers’ electric bill."

In May, Geneva residents were also faced with an increase in their water rate. A resident using about 700 cubic feet per month, saw an increase of about $4 per month. A household with a larger family or one that uses more water during the summer, about 2,000 cubic feet per month, now pays about $11 more monthly.

Alderpersons approved a five-year rate plan in 2023, similar to the electric one, to pay for upcoming water main and lead service line replacements, a sanitary line crossing the Fox River, upgrades to the Wastewater Treatment Plant, and other water-related capital projects. The plan called for 7.5 percent rate adjustments during the first two years and 5 percent increases in each of the remaining three years.