Key takeaway: ComEd’s winter price to compare is 10.103 cents per kWh from October 1, 2026, Peoples Gas cut its rate request to $144 million (about $6 to $8 a month) and a proposed order would allow $66.2 million, and Chicago water rates rose 1.85%.
Some good news first: Peoples Gas cut its rate request by nearly 30% in August, and Chicago’s 2026 water increase of 1.85% was less than half of last year’s 4%. ComEd’s summer price to compare did rise on June 1, to 10.399 cents per kWh from 10.028 cents in summer 2025 (Citizens Utility Board), about 3.7% (our calculation: 10.399 / 10.028, minus 1). Here’s what’s behind each change and how to keep your bills in check.
ComEd: the capacity auction effect
ComEd delivers your electricity, but the supply price on your bill follows a wholesale market run by PJM, the regional grid operator. Part of that price is capacity, a payment to power plants for being available when demand peaks.
PJM’s auction for June 2026 through May 2027 cleared at a record $329.17 per megawatt-day (Capitol Fax). That fed into ComEd’s price to compare, which rose to 10.399 cents per kWh for June 1 through September 30, 2026: 8.677 cents for supply plus 1.722 cents for transmission (MyUtilitySearch).
For the winter, the price to compare dropped to 10.103 cents per kWh from October 1, 2026 through May 31, 2027: 8.413 cents for supply plus 1.69 cents for transmission, and the transmission part changes again in January 2027 (Plug In Illinois). For more on heating season costs, see our Chicago winter cost guide.
Peoples Gas: a rate case in progress
- January 2026: Peoples Gas asked the Illinois Commerce Commission for $202.3 million more a year, which it estimated at $10 to $11 a month for a typical home (WTTW).
- July and August 2026: the company cut its request to $144 million, which CUB estimated at about $6 to $8 a month. October 2026: an Illinois Commerce Commission Proposed Order recommends $66.2 million, with a final decision expected in November (CUB) (Capitol News Illinois).
- The reason given: an ICC order to retire 1,020 miles of old gas pipe under Chicago streets by the end of 2034.
- Context: this comes about three years after the ICC approved a record increase of roughly $300 million in 2023.
Peoples Gas says it expects Chicago heating bills to stay lower than in other major U.S. cities (WTTW). Consumer advocates, including the Citizens Utility Board and the Illinois Attorney General, have pushed regulators to trim the request further. The ICC’s final decision is expected in November 2026, with new rates around December.
Water and sewer
Chicago raises water rates every June 1 based on the prior year’s inflation. The 2026 increase was 1.85%, down from 4% in 2025 (Forest Park Review). Your sewer charge equals 100% of your water charge, so it rises by the same amount (City of Chicago).
How can you lower ComEd and Peoples Gas bills?
- Compare any alternative supplier’s offer against ComEd’s price to compare. Shopping only changes the supply part of your bill. Delivery charges stay with ComEd.
- Ask ComEd about its low-income discount and bill assistance programs (ABC7).
- Share comments with the ICC on the Peoples Gas case while it’s open.
Taxes on your ComEd and Peoples Gas bills
Part of every utility bill is city and state tax. For homes, the electricity tax is charged per kilowatt-hour and the gas tax is a share of the bill.
| Tax, residential, 2026 | City of Chicago | State of Illinois | Combined |
|---|---|---|---|
| Electricity use tax, first 2,000 kWh a month | $0.0061 per kWh | $0.0033 per kWh | $0.0094 per kWh |
| Natural gas tax | 8.0% of gross receipts | lesser of $0.024 per therm or 5% | up to 13.00% |
Source: Civic Federation, What Chicagoans Pay: A Guide to Consumer Taxes in 2026, May 20, 2026, rates effective January 1, 2026, checked October 27, 2026. The city’s separate gas use tax of 6.3 cents per therm applies to gas bought from suppliers outside the utility tax.
For every 100 kWh you use, the electricity tax adds about 94 cents (our calculation: 100 x $0.0094).
Income-based discounts on both bills
ComEd’s Low-Income Discount started January 1, 2026, for households at or below 300% of the federal poverty level, which ComEd puts at $99,000 for a family of four. By March 2026, 240,000 customers had enrolled, 171,000 of them in Chicago (ComEd). Peoples Gas has its own tiered discount (Peoples Gas).
| Tier, % of poverty level | Monthly income, family of 4 | ComEd, multi-family, non-electric heat | ComEd, single-family, non-electric heat | Peoples Gas |
|---|---|---|---|---|
| 1: 0 to 50% | up to $1,375 | 67% | 80% | 83% |
| 2: 51 to 100% | $1,376 to $2,750 | 21% | 60% | 68% |
| 3: 101 to 150% | $2,751 to $4,125 | 5% | 31% | 45% |
| 4: 151 to 200% | $4,126 to $5,500 | 5% | 6% | 20% |
| 5: 201 to 300% | $5,501 to $8,250 | 5% | 5% | 5% |
Source: Citizens Utility Board, ComEd Low Income Discount Rate program (2026 billing periods), Peoples Gas, Low Income Discount Program and ComEd, March 12, 2026, checked October 27, 2026. Income is gross income for the past 30 days.
Households at or below 200% of the poverty level get these discounts by applying for LIHEAP. Tier 5 ComEd customers can sign up on their own through ComEd’s Smart Assistance Manager. The LIHEAP hotline is 1-833-711-0374 (CUB).
When can you apply for LIHEAP?
For the 2026 to 2027 season, priority households could apply starting October 1: those with someone 60 or older, a person with a disability, a child 5 or under, or a shutoff notice. Everyone else who qualifies can apply starting November 1, 2026 (NBC Chicago). In Chicago, apply through CEDA at 800-571-2332 (Peoples Gas). Bring proof of the past 30 days of income, a recent utility bill, and your lease if heat is included in rent (NBC Chicago).
Budget billing
Peoples Gas budget billing estimates your year of gas costs and bills you 1/12 of it each month, so January looks like July. The account is reviewed every six months, and your 12th bill settles any difference. Residential customers can pay a shortfall or spread it into the next year. You must be current on payments to start. Sign up online or call 866-556-6001 (Peoples Gas).
Related: water, sewer and garbage fees, winter costs and the Chicago cost index. Also see the Chicago cost of living FAQ. Also see the Chicago Winter Transit and Gas Index.
Numbers on this page last checked October 27, 2026 against the sources below.
Sources
- Capitol Fax: PJM capacity auction
- MyUtilitySearch: ComEd price to compare
- WTTW: Peoples Gas files $202M request
- Capitol News Illinois: Peoples Gas cuts $58M
- Forest Park Review: 2026 water rates
- City of Chicago: water and sewer rates
- ABC7: ComEd price increase
- Civic Federation: What Chicagoans Pay, A Guide to Consumer Taxes in 2026
- City of Chicago Department of Finance: Gas Use Tax
- Citizens Utility Board: ComEd Low Income Discount Rate (LID) Program
- ComEd via Business Wire: ComEd Reminds Income Eligible Customers to Take Advantage of Latest Program
- Peoples Gas: Low Income Discount Program
- NBC Chicago: Applications for utility assistance open in IL, IN this week
- Peoples Gas: Budget Billing frequently asked questions
- Citizens Utility Board: ComEd summer 2025 price news release