(AS IT GOES IN ANOTHER DEREGULATED STATE - COMPARE TO RATE HIKES HERE IN TEXAS FOR ONCOR AND CENTERPOINT)
Commonwealth Edison, a legacy utility in Illinois, faced a tough hearing recently regarding its proposal for a $326 million rate hike that would add $5 a month to an average customer's electricity bill.
"When you have the economy as it is and these unemployed people, where's the money going to come from?" said James Kimbrough, an apartment building owner and Lansing resident who attended the public hearing.
Separately, ComEd also is asking the Illinois Commerce Commission (ICC) to allow it to add a surcharge to customer's bills to pay for such programs as low-income customer assistance, electric vehicle testing and, eventually, smart grid investments. So far, the programs it proposes to include under that surcharge amount to $195 million, or about an extra 25 cents a month for average consumers.
"By itself, it doesn't sound like a lot, but when you start adding it up — that surcharge doesn't include future investments in smart grid, which could increase that surcharge for consumers," said Scott Musser, associate state director for AARP Illinois.
The surcharge is one of several workarounds ComEd has sought in recent years to recoup capital expenses faster than going through the 11-month process normally used to determine rates. Legislation that would overhaul the regulatory process and set rates by formula is making its way through Springfield.
Opponents called the request excessive, saying it unfairly burdens cash-strapped consumers to reward shareholders of Exelon Corp., ComEd's parent.
The cost of the electricity makes up about two-thirds of the average consumer's bill and is passed through without markup. The rate case, to be decided in May, applies to the amount ComEd charges for delivering power to homes. ComEd is proposing that more costs be shifted to the charges on the delivery portion of the bill that don't vary based on electricity usage.
The result, said Karen L. Lusson, senior assistant attorney general, is that when customers try to conserve electricity to save money, they'll realize less savings than they would have previously."All users will have less of an ability to control their monthly ComEd bill," Lusson said.
No comments:
Post a Comment