ComEd Joins in Statewide, Three-Year $500 Million Rate Relief and Consumer Assistance Proposal
May 30 2007 - 1:42PM
PR Newswire (US)
If accepted, Illinois utilities' proposal would provide summer bill
assistance for all residential customers SPRINGFIELD, Ill., May 30
/PRNewswire/ -- ComEd today announced it would join in a statewide,
three-year $500 million rate relief and consumer assistance
proposal. If accepted, the comprehensive proposal would provide
$300 million for ComEd customers and $200 million for Ameren
customers through 2009. Both ComEd and Ameren have indicated
publicly that they would participate in such a proposal as long as
rate freeze, generation tax or other adverse legislation are not
passed. "This landmark proposal represents half a billion dollars
in relief for Illinois electric consumers over three years and
would resolve the ongoing 'rate debate' in Springfield," said Frank
M. Clark, ComEd chairman and CEO. "We are continuing ComEd's
ongoing commitment to helping our customers transition to the new
rates, building on our CARE program, our previously announced rate
relief initiative targeted at those who need it most, and providing
automatic bill credits to reduce customers' increases in the summer
months." ComEd's portion of the new, statewide proposal has two key
parts: a summer bill credit program for all residential customers
and an enhanced rate relief and consumer assistance initiative for
those who need it most. While the proposal elements have been
outlined as follows, ComEd remains open to working with the General
Assembly to further enhance or modify these programs to best serve
customers. Summer Bill Credits for All Residential Customers
ComEd's proposal includes $200 million for a summer bill credit
program for all residential customers, which would cover three
months of summer bills in both 2007 and 2008. For this year, ComEd
would distribute $100 million to consumers in the form of a
one-time $30 bill credit on July bills to cover the summer period
of June, July and August. This credit would essentially reduce the
electric rate increase for the three summer months to 5 percent on
average, and would eliminate the entire summer increase for many
customers. Individual customers' summer increases may be higher or
lower than the 5 percent average. The summer bill credit program
would continue in 2008 at the same funding level. ComEd plans to
file this proposal with the Illinois Commerce Commission. "We
recognize that most consumers' electric bills tend to be higher in
the summer months because of increased usage, and that's why we are
focusing additional dollars on providing summer relief for all
residential customers," Clark said. "A $30 bill credit pays for the
cost of running a medium-sized window air conditioner for about 600
hours during the three summer months, which is a very meaningful
benefit for our customers, especially now as the weather starts to
get warmer." Enhanced Rate Relief and Assistance Initiative for
Customers Most in Need The proposal also increases to $100 million
ComEd's previously announced rate relief and consumer assistance
initiative targeted to customers who need it most -- $36 million
above and beyond the $64 million ComEd had already committed, as
part of a $152 million package supported by utilities and
generators. In 2007, $50 million will be available to customers.
Last week, ComEd began enrolling customers in its previously
announced rate relief and assistance initiative. In the first week
of enrollment, more than 500 customers have applied. Eligible
customers include low-income customers, working families,
all-electric households, and certain apartment and condominium
building owners' common areas. In addition, non-residential
customers including religious institutions, community centers,
schools, charitable organizations and some small businesses may be
eligible for non-residential special hardship fund grants of up to
$5,000. For most of the programs, customers must apply for the
assistance dollars through the Illinois Community Action
Association and 15 of its member Community Action Agencies, which
are administering the programs. Additional information on
eligibility guidelines, the application process, and the location
of administering agencies is available in the ComEd Rate Relief and
Assistance Initiative brochure, available at
http://www.comedcare.com/ or by calling 888-806-CARE (2273). Under
the new proposal, the ComEd programs would remain largely the same
as previously announced, with a few enhancements to expand
assistance to more customers. The enhancements include a resolution
of outstanding issues on apartment and condominium building common
area customer accounts, increased funding for special hardship
funds, and increased 2008-2009 funding for programs to assist
customers most in need. This new proposal would be funded jointly
by utilities and electric generators. Exelon Generation and other
generators would contribute about $300 million. Ameren and ComEd
would each contribute $100 million. The proposal would be possible
as long as rate freeze, generation tax or other adverse legislation
is not passed by both the House and the Senate. "The $500 million
statewide proposal is a superior alternative to rate freeze
legislation because it provides immediate relief for all customers
while ensuring that ComEd can continue to provide reliable
service," said Clark. "A rate freeze or generation tax law would be
challenged in court and therefore are not likely to provide any
immediate help for our customers and would likely cost customers
more in the long run. This would leave our customers who are in
need without a penny of relief now or possibly ever." This press
release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, that are
subject to risks and uncertainties. The factors that could cause
actual results to differ materially from these forward-looking
statements include those discussed herein as well as those
discussed in (1) Exelon's and ComEd's 2006 Annual Report on Form
10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management's
Discussion and Analysis of Financial Condition and Results of
Operation and (c) ITEM 8, Financial Statements and Supplementary
Data: Note 18; (2) Exelon's First Quarter 2007 Quarterly Report on
Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors
and (b) Part I, Financial Information, ITEM 1. Financial
Statements: Note 13; and (3) other factors discussed in filings
with the SEC by Exelon and ComEd. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
apply only as of the date of this press release. Exelon and ComEd
do not undertake any obligation to publicly release any revision to
its forward-looking statements to reflect events or circumstances
after the date of this press release. Commonwealth Edison Company
(ComEd) is a unit of Chicago-based Exelon Corporation (NYSE:EXC),
one of the nation's largest electric utilities with approximately
5.4 million customers and more than $15 billion in annual revenues.
ComEd provides service to approximately 3.8 million customers
across Northern Illinois, or 70 percent of the state's population.
DATASOURCE: ComEd CONTACT: Judy Rader of ComEd Media Relations,
+1-312-394-3500 Web site: http://www.comedcare.com/
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