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ComEd plan makes no business sense

ComEd wants to get paid for saving money.

According to news reports, ComEd will save $2.8 billion over 20 years, yet wants to impose a rate increase on its customers.

Reportedly, Black & Veatch assessed the business case and said the cost of installing smart meter technology should be more than offset by the benefits. However, that doesn’t seem to hold water, unless there are intangible benefits that haven’t been reported on.

ComEd is to spend $2.6 billion to achieve these savings. The savings are — dividing $2.8 billion by 20 years — $140 million per year. According to this calculation, it would take 19 years to recover the investment, which is too long to qualify it as a good investment.

The customers themselves save very little from smart meters.

Perhaps ComEd should re-evaluate whether smart meters are a good investment?

The bill allowing the rate increase to go into effect has been vetoed. Rather than lobbyists in Springfield determining the outcome, shouldn’t ComEd go back to the drawing board and re-evaluate how best to improve the grid?

Donn Dears

Geneva