ComEd seeks rate increase, saying it needs money for upgrades

In the wake of storm-related outages where thousands of customers waited days without power, ComEd has filed for a rate increase seeking about $396 million in additional revenue, the utility said Wednesday.

The requested increase would raise the average $86 residential monthly bill by about 7 percent, or around $6 per month, ComEd said in a statement.

"ComEd is making key investments to ensure that our region has a modern and reliable electric system, which is critical to economic development in this state," Anne Pramaggiore, ComEd president and chief operating officer, said in a statement. "This rate filing is a necessary step to continue our ongoing work to provide reliability that is in the top quartile nationally, while keeping rates for our customers comparable to other major metropolitan utilities."

ComEd said in early February that it intended to seek a rate increase this year, just as the economy continues to spin from the recession. The requests go before the Illinois Commerce Commission, which regulates utilities.

The company seeks to use the money to modernize its aging network and recover the cost of investments made since 2007. That's when the company received about $273 million in rate hikes.

Citizens Utility Board, a Chicago-based watchdog group, said it would challenge the request and scrutinize details of the filing, since utilities often ask for much more than they could justify, said CUB spokesman Jim Chilsen.

"Consumers have reason to be skeptical," Chilsen said.

The ICC reviews the requests and the process often takes about 11 months. If approved, the new rate would go into effect next June.

In early May, ComEd offered to give the state about $500 million to ease its budget woes in exchange for a rate increase, then later rescinded the offer.