In the new year Chicago area residents can expect to pay about $1 more per month on average to have ComEd deliver electricity to their homes.
The new rates, approved Wednesday by the Illinois Commerce Commission, affect all 3.7 million residential electricity customers in ComEd's service territory, including those who have switched to other suppliers. ComEd, which owns the wires that flow into homes, delivers electricity and is responsible for fixing outages regardless of which company supplies the power.
The rate "update" is the second under a law enacted in 2011 that changed the way electricity delivery rates are determined. Rather than intensely debated court-like proceedings, electric rates are now set according to a fill-in-the blank formula. The formula devised by the ICC in May, however, has been controversial. ComEd has taken the regulators to court over 12 items that amount to $100 million per year for the utility.
For now, ComEd must use the formula.
Consumers saw lower bills through 2012 with thhe first electricity rates set under the law. Despite Wednesday's hike, customer bills remain lower than they were before the Energy Infrastructure and Modernization Act was passed. That law allows ComEd to charge customers to modernize the electric grid and recover those costs each year.
ComEd will file for another rate update in May to take effect in January 2014.
Separately, the ICC approved an electricity procurement plan by the Illinois Power Agency -- the government agency that procures electricity on behalf of ComEd and Ameren for customers who continue to have their electricity both supplied and delivered by their legacy utility -- that has it not purchasing additional power in the New Year. The agency said that with about 1.5 million residential electricity customers recently fleeing for alternative electricity suppliers, it has enough power on hand to serve the customers who remain.
At the same time, the plan helps a so-called clean coal plant slated for Morgan County, Ill. clear a major financial hurdle by requiring the state's electric utilities to purchase electricity from the power plant for 20 years. The federally-backed FutureGen project, long stalled, would mean retrofitting a coal plant in Merdosia in order to largely prevent carbon dioxide and other pollutants from entering the atmosphere. The plant is not expected to generate electricity until 2017 but its backers needed to prove the plant would have customers ready to purchase the electricity in order to receive government approval to move forward with preliminary design, pre-construction and engineering work.
jwernau@tribune.com
Chicago electric bills set to rise $1 a month next year
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Chicago electric bills set to rise $1 a month next year
