Customers of ComEd will experience a hike in electricity bills as the hot months of sizzling summer roll in.The Illinois Commerce Commission stated that this is because the charge for electricity has gone up 38% for the customers of ComEd.
Illinois Commerce Commission regulates the utilities, and the officials of ComEdmentioned officially in writing that it means average of the residential customers who are using 655 kw-hours every month will have to pay $13 more now. David O’Dowd, a ComEd spokesman stated that there would be an overall increase of 20 percent in an average bill for customers, starting from the month of June. He said that in a ComEd bill, sixty percent of the bill is made up of cost for the energy. The charges for delivering electricity make up to the rest of the bill mostly.
And, that’s not it for the customers of ComEd – come into effect in the month of January, the utility will also be experiencing $275mn rate hike. If it will get approval by the commission, according to ComEd, the delivery service charges would also increase by $3 per month for average residential customers. The increase in rate, which comes into effect next month normally, comes as a result of an auction by the Illinois Power Agency for powergenerator that was held last month.
Beth Bosch, the commission spokeswoman stated that ComEd for the very first time had to produce bids for electricity. In a statement,ComEd said that the increase in bills is due to rising capacity charges, which ComEd with other suppliers of retail energy pay power generators for ensuring that during the “peak” demand hours enough power is produced.
On Friday, prices were revealed, and Bosch said that ComEd, on Tuesday, officially filed numbers with commission. He stated that the cost of electricity is going to rise from 5.5 cents per kw-hour to 7.5 cents per kw-hour starting from 1st June. Ameren Illinois saw slight decrease in the price, the electricity utility for southern 2/3rds of state.
According to the commission, there will be a drop in that company’s rate from 4.86 cents/kw-hour to nearly 4.60 cents/kw-hour. This figure may change as later this month the transmission service charge will be accounted for. The rate of ComEd may change later when an additional electric supply is procured in September 2014.
ComEd doesn’t generate electricity and the role of the company is to deliver electricity in Northern Illinoisto each and every home and business. The company is in favor of supporting competitions among several energy suppliers so that customers get more and more choice and also get opportunities for saving money.