CHICAGO May 1 /PRNewswire/ -- ComEd customers are expected to see lower bills beginning in June - a reflection of a dramatic drop in the cost of electricity, which is to be purchased through a competitive procurement process.
ComEd will file new rates with the Illinois Commerce Commission (ICC) that reflect the recent drop in the cost of wholesale power. The filing will include an estimate of the impact on customers' bills resulting from the new electricity prices, which were approved by the ICC.
In 2007, the Illinois legislature established the Illinois Power Agency to procure power on behalf of Illinois utilities. For 2009, ComEd is purchasing electricity for its customers through this new process, which is overseen by the ICC.
The resulting electricity prices and winning bidders were made public today by the ICC.
ComEd must replace approximately 30 percent of its power needs for the next year through the new process. ComEd passes through power costs to its customers without any mark up.
Because power prices have fallen due to global market forces, ComEd estimates average residential customer bills may decrease by about 7.5 percent approximately $6.36 on the average residential customer's monthly bill beginning in June, when the new power contracts take effect. This increase reflects the change in the customer's total bill, including costs of delivery.
"The global economic downturn has had a huge impact on the supply and demand dynamics for commodities and as a result prices are falling for electricity," said Anne Pramaggiore, executive vice president, Customer Operations, Regulatory and External Affairs, ComEd. "In light of these market forces, our customers reap the timely benefit of lower prices."
The cost of electricity itself represents about two-thirds of the average residential customer bill. The remaining one-third of the bill is related to ComEd's costs to deliver the electricity to the customer's home or business.
The new power prices affect ComEd residential customers as well as small business customers that still take electricity supply from ComEd. More than 85 percent of energy sales to large commercial and industrial customers are now served by a supplier other than ComEd.
Recognizing that its customers continue to grapple with the economic downturn, ComEd is making more than $15 million in assistance available this year to help customers most in need of help to pay their energy bills. The assistance is part of an array of resources to help customers in different ways.
Customers can apply for energy assistance through one of the Low Income Home Energy Assistance Program (LIHEAP) administering agencies. In Chicago and Cook County, customers can call 1-800-571-2332.
ComEd CARE is a portfolio of multi-million dollar initiatives that provide assistance and information to help customers in need or in special circumstances manage their electric bills. Small Business and Nonprofit Energy Assistance Program provides a one-time variable grant up to $2,500 for non-residential customers who use less than 400 KW and demonstrate a special circumstance or hardship. Customers can visit http://www.comed.com/ or call 888-806-CARE (2273) for more information. More information is available through ComEd CARE at http://www.comedcare.com/ or 888-806-CARE (2273).
As summer approaches, ComEd is reminding customers about the impact of increased demand for electricity, which contributes to global climate change, which results in part from greenhouse gases generated by power plants. That's why ComEd launched a "12 Ways to Green" campaign to encourage customers to take one new step each month to conserve energy, save money and help the environment. The 12 Ways to Green program is part of a comprehensive environmental strategy to reduce greenhouse gas emissions and lower the carbon footprint of Exelon, its subsidiaries and customers.
"While market conditions determine the cost of electricity, we can control how much electricity we use," Pramaggiore said. "ComEd encourages customers to take steps to reduce their electricity usage, which will further lower their bills and help the environment."
ComEd's Smart Ideas(SM) program helps residential and business customers reduce their energy costs and help the environment. Residential customers can purchase compact fluorescent light (CFL) bulbs at a discount, receive bill credits in exchange for allowing their central air conditioner's compressor to be cycled on-and-off during times of peak energy use, and receive a $25 cash rebate to recycle their working second refrigerator, freezer or window air conditioner. Commercial and industrial customers can apply for numerous energy efficiency measures, including environmentally friendly lighting, motors, HVAC equipment and chillers. While funding for Program Year 1 is reserved, applications for Program Year 2 will be accepted beginning June 1, 2009.
Commonwealth Edison Company (ComEd) is a unit of Chicago-based Exelon Corporation , one of the nation's largest electric utilities with approximately 5.4 million customers. ComEd provides service to approximately 3.8 million customers across northern Illinois, or 70 percent of the state's population.
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Web Site: http://www.exeloncorp.com/
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