(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
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
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
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