ComEd delivery rate expected to drop in January
ComEd customers around the suburbs could see their delivery rate cut by more than 2 percent starting in January.
That means the average monthly residential bill of $85 could see a reduction of $1.
The consumer watchdog Citizens Utility Board sees the reduction as a positive start and plans to ask the ICC in the next 30 days to reduce the amount even further, said CUB spokesman Jim Chilsen.
"We hope this decrease is a sign that ComEd has taken a step forward in building a more efficient and reliable power grid that gives consumers the opportunity to save money. Illinois has a long way to go to build a power grid that maximizes consumer benefits. So our message to the state's biggest electric utility is: Don't stop now. We are paying for these power grid upgrades, so we deserve the benefits."
ComEd filed its request for the reduction in April. The initial proposal was for $50.4 million. But the Illinois Commerce Commission on Wednesday made further adjustments to the company's proposal and approved a reduction of $66.5 million, or 2.58 percent.
"The smart grid program is delivering on its promise to generate efficiencies and we are pleased to pass along those savings to our customers by decreasing their electric delivery costs," ComEd President and CEO Anne Pramaggiore said in a statement. "The investments in the smart grid program are producing a stronger, more reliable system with fewer outages. Those results mean less operational costs and greater savings for our customers."
The state law, called the 2011 Energy Infrastructure Modernization Act, allows utilities that agree to make specified investments in electric reliability and smart grid projects to recover or adjust costs annually using a formula. The law ensures that ComEd recovers its investment in improving the reliability of its electric grid in a timely manner, the ICC said.
Last year at this time, delivery rates went up. ComEd was given the green light to collect about $245 million in additional revenue involving the delivery of its electricity during 2015. ComEd had said at that time it needed the extra revenue to upgrade its network and pay for its ongoing installation of smart-grid meters for its 3.8 million customers.
ComEd's delivery charges make up about one-third to one-half of the bill. The rest of the bill is the cost of the electricity itself. That supply rate is determined through a power-buying process managed by the Illinois Power Agency, a state agency, or by an alternative supplier when customers use one.