ComEd's rate hike is reduced
A ComEd rate increase on the delivery of power that went into effect in January is now being reduced.
Consumers paying an average of $2 a month more likely now will pay $1.66, starting April 1 and continuing through the end of the year. The reduction was approved by the Illinois Commerce Commission on Wednesday.
"This is a small but welcome relief for consumers," said Jim Chilsen, a spokesman for the Citizens Utility Board, a Chicago-based consumer watchdog group.
Late last year, ComEd requested the rate decrease to reflect a change in its safety metrics and reporting, ComEd spokeswoman Annette Martinez said.
"Thanks to the Smart Grid Law's annual formula rate process, these cost reductions can be directly passed on to customers," Martinez said. "The ICC's approval of our request means customers will pay, on average, 34 cents less per month for the remainder of 2017."
As a result of the ICC's decision, ComEd will receive $110 million in overall revenue, instead of $127.5 million. The case dates back to April 2016, when ComEd originally requested the ICC increase its rates for the transmission of power.
The power utility, which has offices in Oak Brook, filed its annual report at the time with the ICC and originally requested about $138 million in additional revenue to cover its costs for modernizing the network with the smart grid.
The request is associated with the Smart Grid law, a 10-year grid modernization effort that ComEd is doing around the city and suburbs. The state law allows utilities that agree to make specific investments in electric reliability and smart grid projects to recover or adjust costs annually. The law ensures that ComEd recovers its investment in improving the reliability of its electric grid in a timely manner.
The transmission rate increase is due to the utility's investment in increasing its network capacity, improving the reliability of the system, and boosting its cyber security to avoid attacks, ComEd had said.