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How The June 1 Electric Rate Cut
June 1, 2009—ComEd and Ameren customers are getting some much-needed relief just in time to beat the summer heat: Electric rates will drop by up to 9 percent, on average, starting in June.
Affects Your Power Bills That means ComEd customers will see their electric bills decrease by about $96 a year, while Ameren customers will see about $100 a year in savings.
That’s good news for consumers and for CUB, which helped in the fight to abolish the state’s unfair “reverse auction” power-pricing system that sent electric rates skyrocketing in 2007. But as soon as CUB got the good news about the drop in electric rates it began preparing for a new fight against ComEd and Ameren rate-hike proposals, expected later this year, that could wipe out any consumer benefits from the decrease. “We can’t let Ameren and ComEd spoil Illinois’ efforts to reform the electric industry by slapping consumers with another round of unfair rate hikes,” CUB Executive Director David Kolata said. The rate hikes that both companies have hinted about would hit the part of electric bills that covers the cost of delivering power to homes. Utilities must get state regulatory approval to raise those rates. CUB already is appealing some $400 million in delivery increases granted just last year. The rate decrease affects the energy charge, the per kilowatt-hour fee for the actual electricity used. Unlike delivery charges, the energy charge is determined by an electricity-buying process managed by the new Illinois Power Agency (IPA), which was created as part of the 2007 state law that eliminated the utilities’ reverse auction and gave Illinois consumers $1 billion in refunds. CUB, which supported the law, argued that the reverse auction was rigged to funnel money to the parent companies of ComEd and Ameren. On the other hand, the IPA’s mission is to find the lowest prices possible for consumers. That showed when its first power purchase this spring led to the June decrease in electric rates. While a weak economy has lowered wholesale power prices, that didn’t help in New Jersey, a state using an auction similar to the one Illinois abolished. Electric rates are staying about the same there. “We’ve got more work to do to create a fair power-pricing system in Illinois, but the IPA has given consumers a fighting chance,” Kolata said. See CUB’s fact sheet to learn more about the IPA, and read what needs to be done to ensure fair prices in the future. Consult the following chart to see how your utility’s rates will change in June. Rate cut!
As of June 1, electric rates are dropping by up to 9 percent, on average, under a new electricity-pricing system run by the Illinois Power Agency. See how your electricity rates are affected. Your old rates are red and in parentheses.
Company
Energy Charge
Non-Summer (Previous Energy Charge Non-Summer) Energy Charge Summer
(Previous Energy Charge Summer) ComEd
Space heat: 3.978¢/kWh (4.571¢/kWh)
Non-space heat: 6.435¢/kWh (7.395¢/kWh) Space heat: 5.240¢/kWh (6.022¢/kWh)
Non-space heat: 6.589¢/kWh (7.572¢/kWh) AmerenIP
Note: The space heat rates are NOT applicable to new customers. Space heat: 6.874¢/kWh (7.957¢/kWh) for first 800 kWh, then .885¢/kWh (1.024¢/kWh)
Non-space heat: 6.874¢/kWh (7.957¢/kWh) for first 800 kWh, then 4.856¢/kWh (5.621¢/kWh) 5.516¢/kWh (6.385¢/kWh)
AmerenCILCO
7.480¢/kWh (8.658¢/kWh) for first 800 kWh, then 2.334¢/kWh (2.702¢/kWh)
5.525¢/kWh (6.395¢/kWh)
AmerenCIPS
Note: The space heat rates are NOT applicable to new customers. Space heat: 7.484¢/kWh (8.663¢/kWh) for first 800 kWh, then 2.367¢/kWh (2.740¢/kWh)
Non-space heat: 7.484¢/kWh (8.663¢/kWh) for first 800 kWh, then 5.104¢/kWh (2.740¢/kWh) 5.554¢/kWh (6.429¢/kWh)
AmerenCIPS
-Metro East Note: These are former AmerenUE customers. 7.386¢/kWh (8.549¢/kWh) for first 800 kWh, then .992¢/kWh (1.148¢/kWh)
5.554¢/kWh (6.429¢/kWh)
ComEd “transmission services” charge is now .602¢/kWh (.829¢/kWh) Ameren’s “supply cost adjustment” charges are: AmerenCILCO: .125¢/kWh (.152¢/kWh) AmerenCIPS: .126¢/kWh (.153¢/kWh) AmerenIP: .120¢/kWh (.145¢/kWh) |