Deciphering Your Commercial Electricity Bill: Identifying Generation, Transmission, and Delivery Costs Amidst Price Increases

Opening a commercial electricity bill in Illinois has become a source of "bill shock" for many business owners in 2026. While the total amount due is clear, the maze of line items—from electricity generation and transmission charges to non-bypassable riders—can feel intentionally confusing. As Illinois commercial electricity rates continue their upward climb, simply paying the bill is no longer enough. To survive in this high-cost environment, you must understand your commercial electric bill at a granular level.

In this guide, we perform a deep-dive "autopsy" of a typical Illinois commercial bill. We unmask the generation charges you can actually control, decode the utility fees that often seem set in stone, and explain the historic 900% capacity price jump that is currently redefining Illinois energy price increases. By the end of this article, you will have the knowledge to lower business electricity costs in Illinois by identifying exactly where your money is going and which levers you can pull to get it back.

Beyond the Bottom Line: What's Really Driving Your Illinois Commercial Electric Bill Spike?

A standard ComEd commercial bill is broadly divided into three major sections: Supply, Delivery, and Taxes/Fees. While the bottom line is what you pay, the "real" drivers of your recent price spike are hidden within the first two categories.

The 2026 Capacity Crisis

The single biggest factor driving Illinois energy price increases in 2026 is the "Capacity" charge. This isn't a fee for the electricity you use; it's a fee to ensure that enough power plants exist to meet the grid's absolute peak needs. In the most recent PJM capacity auction (which includes northern Illinois), the price for the 2025/2026 delivery year skyrocketed from $29/MW-day to nearly $270/MW-day—a 900% increase. You can read the full PJM news release here for the technical details, but the result for your business is clear: your "Capacity" line item could soon account for 25-30% of your entire bill.

The Delivery Rate Escalator

While the market dictates supply costs, the state regulator (the Illinois Commerce Commission) dictates delivery costs. To fund the massive grid modernization required by the Climate and Equitable Jobs Act (CEJA), utilities have been granted multi-year delivery rate hikes. This means even if you reduce your consumption, the "cost to deliver" that power is increasing by 3-5% every year. For a ComEd commercial bill explained simply: the "highway" to your building is becoming more expensive to maintain, and you are paying the toll.

Generation Charges Unmasked: The #1 Cost You Can Actually Control on Your Bill

The "Supply" or "Generation" section of your bill is the only part that is fully deregulated in Illinois. This is where you have the power to shop, compare, and save.

Kilowatt-Hours (kWh) vs. Price

The most recognizable part of your bill is the "Energy Charge." This is a simple multiplication of how many kWh you used by the rate you agreed to with your supplier. If you are still on the utility's default "Rate to Compare," you are likely overpaying. In the 2026 market, switching to a Retail Electric Supplier (RES) can often lower this specific line item by 10-15%. This is the primary way to lower business electricity costs in Illinois.

The "Peak Load Contribution" (PLC) Tag

While the *unit price* of capacity is set by the PJM auction, the *quantity* of capacity you pay for is determined by you. This is called your PLC Tag. It is calculated based on your average usage during the five highest-demand hours of the entire PJM grid during the previous summer (the "5 Coincident Peaks"). If you can reduce your usage during those five specific hours, your PLC Tag drops, and your capacity charges for the *entire following year* will be lower. This is a "manageable" cost that most business owners ignore.

Decoding Utility Fees: Are Transmission & Delivery Charges Negotiable in Illinois?

The "Delivery" section of your bill often feels like a collection of non-negotiable taxes. While you cannot negotiate the *rates*, you can certainly negotiate the *impact*.

Transmission Service (NITS)

Transmission (NITS) is the cost of moving power over high-voltage lines. Similar to Capacity, your NITS charge is based on a "Tag"—specifically your usage during the single highest-demand hour of the ComEd zone in the previous year (the "1 Coincident Peak"). By identifying this hour and "peak shaving," you can lower your NITS costs for the following year. This is a technical strategy that we detail on our commercial energy savings page.

Distribution Facilities Charge

This is the fee for the "last mile" of wires and transformers. For most commercial customers, this is based on your **Monthly Peak Demand (kW)**—not your total energy use. If you turn on all your equipment at 8 AM and create a 15-minute spike, you pay for that spike for the rest of the month. Staggering your equipment startup is the fastest way to lower this delivery charge without spending a dime.

Non-Bypassable Riders

Illinois bills include several "Riders" that fund state policy goals. These include:

• ZEC (Zero Emission Standard): Supports Illinois nuclear plants.
• Renewable Energy Budget: Funds the transition to wind and solar.
• Energy Efficiency Programs: A fee everyone pays to fund the rebates that you should be using!

From Bill Shock to Savings: 3 Proven Strategies to Reduce Your Commercial Energy Spend Now

Once you understand your commercial electric bill, you can stop guessing and start saving. Here are three strategies that work in the high-price environment of 2026.

1. Audit Your Rate Class

Utilities have different "Rate Classes" based on how much power you use (e.g., Small, Medium, or Large Commercial). If your business has grown or shrunk significantly in the last 24 months, you may be on the wrong rate class, which could be costing you thousands in "fixed" delivery fees. A professional audit can determine if you are eligible for a more favorable classification.

2. Implement PLC and NITS "Tag Management"

In 2026, you cannot afford to have high capacity and transmission tags. Partner with a consultant who provides "Peak Alerts." When the grid is predicted to hit a 1CP or 5CP hour, you'll receive a notification to shed load. This proactive management is the only way to shield your budget from the 900% capacity price jump.

3. Lock in an "All-In" Fixed Rate Contract

Many suppliers offer "fixed" rates that actually only fix the energy price, leaving you exposed to transmission and capacity volatility. Ensure your next contract is an "All-In" fixed price that locks in every component of the supply section. This provides absolute budget certainty and is the gold standard for commercial energy procurement.