ComEd Files for $23 Million Decrease in Customer Electric Rates
April 16 2018 - 12:30PM
Business Wire
Customer Reliability Improves by 50 Percent and
the Average Residential Bill Remains Stable
ComEd’s annual formula rate update request for distribution or
“delivery” of electricity calls for a decrease of $23 million
compared to the approved rates in effect in January of this
year.
The filing made today with the Illinois Commerce Commission
(ICC) marks the eighth formula rate request since the Energy
Infrastructure Modernization Act (EIMA) or “Smart Grid Law” was
enacted by the Illinois General Assembly in 2011. It authorized
investments of $2.6 billion to upgrade and modernize Illinois
energy infrastructure, improve system reliability and empower
customers to control energy consumption and costs.
Since 2012, ComEd customers have experienced a significant
improvement in electric reliability as the frequency and duration
of outages has been reduced by nearly 50 percent. From 2012 through
2017, there were more than 7.7 million avoided customer
interruptions, including 1.5 million in 2017 due to investments in
digital “smart switches” that automatically reroute power around
potential problem areas. These avoided outages have resulted in
$1.5 billion in societal savings.
While the smart grid investments and other major initiatives
have created a total supply chain spend of almost $12 billion since
2011, and significantly improved performance, total ComEd customer
bills remain stable. Ten years ago, as new rates took effect in
September of 2008, the average residential customer bill was
approximately $85; in January of this year it was approximately
$86. Today’s filing would decrease the average residential
electricity delivery bill by about $0.50, effective in January of
next year. ComEd’s per kWh residential rates trend below the
average price across the entire U.S., including nearly 14 percent
below the top 20 U.S. cities and 19 percent below the top 10 U.S.
cities by population as of June 2017.
“Today, we’re filing for a rate decrease – the third since the
Smart Grid Law was passed in 2011,” said Anne Pramaggiore,
president and CEO, ComEd. “This historic legislation, passed by the
Illinois General Assembly, and overseen by the ICC, has been a
success since its passage.
“Reliability has improved by nearly 50 percent and more than
4,000 full-time equivalent jobs were created,” she continued.
“We’ve pumped nearly $12 billion of supply chain spend into the
Illinois economy since 2012 and the average ComEd bill today is
roughly equivalent to what it was 10 years ago.”
ComEd’s distribution rate request for 2019 covers actual costs
for 2017 when the company completed major grid modernization
upgrades focused on reliability improvement. It also includes
investments for the current year. The installation of a total of 4
million smart meters is scheduled for completion in October, three
years ahead of the original schedule. Also reflected in the filing
are expansions for new customer data and distribution centers,
continued system reliability programs and new technologies, such as
Voltage Optimization, which enables more precise and efficient
energy usage while improving power quality.
ComEd also submitted today its 2017 Performance Metrics report,
a requirement established by the Smart Grid Law that holds ComEd
accountable for meeting key outcomes, or face financial penalties
for failure to do so. The report shows ComEd met goals in 10 of 10
categories, including improving system reliability, reducing
estimated bills, reducing customer costs associated with
unaccounted for energy consumption and theft, and increasing
support for minority- and women-owned businesses. In 2017, ComEd’s
diversity-certified supplier spend reached $711 million, an
increase from 33 to 36 percent of its total supply chain spend.
From Smart Grid to Green Grid
ComEd is building upon the strength of its stronger, more
reliable digital grid to move Illinois toward a clean, lean and
resilient energy future, providing customers greater access to
renewables and more energy efficiency programs and control over
their energy costs. The Future Energy Jobs Act (FEJA) enacted in
2016 jumpstarts renewables in Illinois, setting the stage to grow
enough solar and wind energy to power one million homes. It
increases energy efficiency programs, creating more than $7 billion
in consumer savings and reducing the CO2 equivalent of removing 18
million cars from the road.
ComEd is proceeding with the construction of a microgrid
demonstration project in the South Side neighborhood of
Bronzeville. The project, which was approved in February by the
ICC, has received more than $5 million in grant funding from the
U.S. Department of Energy (DOE). It will enable the study of how
microgrids support the integration of clean energy onto the grid
and increase grid security to keep power flowing even during
extreme weather or a catastrophic event. As the electric grid
becomes increasingly digital and the demand for renewable power,
security and reliability grows, microgrids are expected to serve as
a core piece of the electric system’s infrastructure.
Commonwealth Edison Company (ComEd) is a unit of Chicago-based
Exelon Corporation (NYSE: EXC), the nation’s leading competitive
energy provider, with approximately 10 million customers. ComEd
provides service to approximately four million customers across
northern Illinois, or 70 percent of the state’s population. For
more information visit ComEd.com, and connect with the company on
Facebook, Twitter and YouTube.
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