Less than a year after raising its rates, Friday ComEd announced a rate cut, thanks to a procurement agreement it plans to sign by June.
Less than a year after raising its rates, Friday ComEd announced a rate cut, thanks to a procurement agreement it plans to sign by June. ComEd officials said they plan to soon file new rates with the Illinois Commerce Commission, which determines what utility companies can charge customers. Two years ago, the state legislature established the Illinois Power Agency to procure power for all utility companies in Illinois. This year, ComEd will be purchasing electricity through this new process. And unlike other industries that have seen prices climb due to the sour economy, ComEd officials said the rate reduction is also a result of a cost drop for wholesale power. “The global economic downturn has had a huge impact on the supply and demand dynamics for commodities, and as a result, prices are falling for electricity,” said Anne Pramaggiore, executive vice president for Customer Operations, Regulatory and External Affairs for ComEd. “In light of these market forces, our customers reap the timely benefit of lower prices.” ComEd estimates the average residential customer bills may decrease by about 7.5 percent − approximately $6.36 on the average residential customer’s monthly bill. And small business customers would also see lower rates. Customers should know that the decrease is based only on the reduction in the expected electricity supply costs for the period June 2009 through May 2010, said Bennie Currie, a spokesman for ComEd. Previously ComEd had suggested that if the ICC did not approve its rate hike request that the utility provider may be forced into bankruptcy. That is no longer the case. “Previous comments about the possibility of bankruptcy were related to a scenario where ComEd would not be able to recover its wholesale power costs in rates. That is no longer the case,” Currie said. “So changes in wholesale power supply costs have no financial impact on ComEd, and there is no impact on service levels.” ______ Copyright 2009 Chicago Defender. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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