The Commonwealth Edison Company, responsible for delivering power to 3.8 million electricity customers in northern Illinois, recently raised their electricity supply rates for residential customers by 20%. The increase went into effect on October 1, 2012. The new high rate of 8.32 cents includes generation and transmission charges. The 8.32 cents does not include the “Purchase Electricity Adjustment” which is a true-up payment ComEd charges or refunds customers based on the difference between what ComEd paid to acquire power supply for the default customer class and what ComEd actually charged this class of customers. ComEd has estimated that this true-up cost will be another $0.005 from now until May 2013. If this estimated increase is accurate, it means that the true price to compare will be closer to 8.8 cents per KWH for default paying customers in the ComEd territory.
Default paying customers include all electricity customers who receive their electric bill from the Commonwealth Edison Company who have not chosen a competitive electricity supply company to provide them with competitive eletric rates. Customers can eliminate the increase, and even pay less for electricity than the default rate of 6.935 cents that was offered during the summer by participating in the Illinois electric choice market and shopping for electricity rates that are competitive. Switching off of the high ComEd price to compare rate and onto a lower electric rate offered by a competitive electric supplier will also eliminate the “Purchase Electricity Adjustment” charge on the ComEd electric bill.
With competitive rates being as low as they are (see below) the number of power shoppers in Chicago and surrounding areas is growing rapidly. People are starting to understand that electric choice can simply provide a lower ComEd electric bill without sacrificing quality. ComEd is still in charge of delivering power and responding to power emergencies for their 3.8 million customers in northern Illinois. Furthermore, ComEd continues to deliver the monthly electric bill to their customers. Switching electric suppliers simply amounts to the rate on the supply section of the ComEd electric bill to be altered.
Competitive electric companies are able to offer substantial savings versus the Commonwealth Edison default price to compare rate. While many consumers are catching on, there are still many who have not had the time to research the benefits of energy choice. For more information on competitive electric rates in ComEd, see our daily update prices from approved suppliers licensed by the Illinois Commerce Commission.