ICC: EXELON’S CHICAGO UTILITY WINS JAN. 1 POWER RATE INCREASE
(The following is a reformatted version of a press release issued by the Illinois Commerce Commission and received via electronic mail. The release was confirmed by the sender.)
December 19, 2012
ICC Issues Order in ComEd Formula Rate Update Case
The Illinois Commerce Commission today issued an order approving an increase in electricity delivery rates for ComEd customers beginning January 1, 2013. The updated rates are expected to generate approximately $89.3 million in additional annual revenue for the company, which serves approximately 3.7 million customers in 24 counties in northern Illinois.
A typical bill for a single family residential customer would increase $1.01 per month as a result of the ICC’s order today. The average residential space heating customer would see an increase of $1.96 a month.
The new rates, approved today, are the first annual updates under the formula rate mechanism established by the Energy Infrastructure and Modernization Act (EIMA). EIMA allowed participating utilities including ComEd, that agree to make specific investments in electric reliability projects and smart grid to recover costs associated with the projects annually under the formula rate.
The formula rate was designed to provide the utilities with certainty and more timely recovery of their investment in upgrades to the electric grid, as well as a prescribed profit margin on the investments it makes. The Commission is required by the law to set new rates for the participating utilities each year.
ComEd filed its initial petition under the new formula rate law (Docket 11-0721) in November, 2011, seeking approval for new electricity delivery rates, which reflected a $43.7 million reduction in revenue. The Commission issued an order in May reducing delivery rates through the end of 2012. The Commission amended that order in October, after rehearing several issues bringing the net adjustment to a $133 million reduction in revenue.
The net effect of the today’s Commission decision is that ComEd’s delivery rates are approximately $44 million lower now than they were before the law was passed.
Contact: Beth Bosch 217-782-5793