ComEd Reduces Delivery Rates by $50 Million

ComEd today filed its annual delivery service formula rate request for distribution or “delivery” of electricity, reflecting a decrease of approximately $50 million compared to 2015 and resulting in a decrease of about $1 on the average monthly residential bill starting in January 2016. In addition, new energy supply rates established by the Illinois Power Agency (IPA) will result in an additional reduction of $2 for customers who choose to receive their energy supply from ComEd, lowering their total customer bill by about $3.

“The delivery service rate reduction is the result of a number of factors, including continued focus on strong cost management throughout the company, as well as operational efficiencies that are being realized from having a stronger, more reliable grid with fewer outages,” said Anne Pramaggiore, president and CEO, ComEd. “We are delivering on the promises of the Smart Grid law, improving reliability and, as established by the law, passing overall savings to our customers in a timely fashion.”

Today’s filing complies with the annual rate-setting process established by the Energy Infrastructure Modernization Act (EIMA) or Smart Grid law. In submitting their annual rate requests, utilities must submit their previous year’s actual expenses and the current year’s projected capital investments. The Illinois Commerce Commission (ICC) then has eight months to fully review and make a determination on the rate request.

The lower energy supply rates, which take effect June 1, reflect the procurement event conducted earlier this month by the IPA, which buys electricity on behalf of Illinois utilities. ComEd also filed today with the Federal Energy Regulatory Commission (FERC) for its annual adjustment in transmission rates. This filing reflects investments in high-voltage lines to improve system reliability, partly as the result of coal plant retirements, and new investments being made to ensure the continued efficient flow of low-cost electricity in the region. The bill impact of this filing for the average residential customer is negligible.

Smart Grid investments are improving the strength and reliability of the electric system. Since 2012, there have been more than 3.3 million avoided customer interruptions, including 1.2 million in 2014 due largely to increased investments in distribution automation or digital “smart switches” that automatically route power around potential problem areas. Outage avoidance has saved customers an estimated $175 million.

In 2014, ComEd’s reliability performance was in the top 10 percent of comparable U.S. utilities, the company’s second best performance on record; performance in 2013 was the best on record. Storm hardening work and storm restoration improvements have resulted in 30 percent faster restoration times.

Through the end of 2014, ComEd installed 739,000 digital smart meters that allow for two-way communication between the utility and customers, providing information that enables customers to better manage energy consumption and costs.

An upgraded, stronger electric system, fewer power interruptions and greater operational efficiencies will result in savings of approximately $2 billion over 20 years. These savings are in addition to savings that customers can realize with digital smart meters, which make it easier to access new pricing programs that reward shifting energy usage to lower-demand times of day.

With smart grid implementation underway and producing customer benefits and savings, ComEd is now advocating for legislation in Springfield to even more fully leverage the capabilities of the smart grid. This legislation – ComEd’s Future Energy Plan, Senate Bill 1879 – would expand access to renewable energy, increase energy efficiency, enhance resiliency and security of the system and meet the growing demand among energy consumers for more choice and personalized services.

“We’re focused on helping customers realize the benefits and savings of smart grid technology today, while leveraging this new foundation to deliver new services and value streams tomorrow,” said Pramaggiore. “We’re committed to enabling our customers to take full advantage of the new technologies transforming the way electricity is distributed and used by our customers.”

Commonwealth Edison Company (ComEd) is a unit of Chicago-based Exelon Corporation (NYSE: EXC), the nation’s leading competitive energy provider, with approximately 7.8 million customers. ComEd provides service to approximately 3.8 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.