Small ComEd Rate Decrease Likely Only a Temporary Relief for Customers
Commonwealth Edison Co., Illinois’ largest electric utility, said a reduction in the cost of electricity supply is expected to result in a savings of about 1.5 percent for customers who buy their electricity from the utility instead of an alternative electric supplier.
According to ComEd, Chicago-area households that average $82 a month on their electric bills will see their charges drop about $1.30 per bill.
But the benefit of the rate decrease for supply may be short-lived. The supply decrease could be offset by increased rates this summer when electricity use is expected to surge.
And if as detailed here, if legislation passed by the Illinois House isn’t vetoed by Gov. Pat Quinn, the temporary supply decrease will be more than offset by increases to ComEd’s delivery rates. That price hike would increase a guaranteed minimum of 2.5 percent each year for the next two years and would affect all electric customers in the utility’s service area.
ComEd is seeking the rate increases to help compensate the utility for investing in a planned $1.5 billion modernization of its power grid, including providing for the installation of ‘smart meters’ in all homes and businesses.
‘Small Savings on ComEd Bill,’ The Herald-News, June 5, 2011.