Remember back when you had only one choice for your
telephone company? Today, you have many choices as a result of
deregulation. The same situation currently exists in the
electric industry. In December 1997, Governor Jim Edgar signed
into law, THE CUSTOMER CHOICE AND RATE RELIEF LAW OF 1997, to
restructure the state's electric industry. This 300 page law
is responsible for giving consumers freedom to choose the
generation portion of their electric bill. Illinois became the
first midwest state to enact electric deregulation
legislation. A portion of Illinois' non-residential consumers
began choosing their electrical suppliers in October, 1999.
All Illinois manufacturers with standard industrial codes of
2000-3999 began choosing their electric suppliers on June 1,
2000. The remaining Illinois nonresidential consumers became
eligible to choose their electric supplier on January 1, 2001.
Nine years ago Com Ed agreed to freeze electric rates in
anticipation of going to market based rates. In September
there will be an auction to determine the price of
electricity. The new rates will take effect January 2, 2007.
Rates are expected to increase by between 25% to 50%.
New Jersey held their auction in the beginning of
February 2006 and their rates increased 55% over last
year! Maryland's rates went up 24% in 2005 and another
39% in 2006.
ComEd will no longer be in the power generation business.
They will only be in the power delivery business. They will
continue to own all the power lines and meters. They will earn
a “delivery fee” from customers, however, the cost of
electricity will be based on “market rates.” In exchange for
being able to go to market base pricing ComEd agreed to freeze
their rates for the past nine years. Since then energy costs
have increased substantially.
In the past decade the majority new power plants built
use natural gas to generate electricity. Natural gas hit an
all time high in December 2005.
What options are available?
- If you are currently with ComEd you can do nothing and
be subject to the market base rates beginning January 2,
2007.
- If you are currently with ComEd you can enter into an
agreement with an ARES (alternative retail electric
supplier) to provide power. By being with an ARES you have
the option of locking your price of power for an extended
period of time, usually 1, 2 or 3 years.
- If you are currently not with ComEd make sure that your
supplier is a licensed ARES. This can be verified by going
to ComEd’s website at http://www.comedpowerpath.com/. Depending
on your “rate class” based on how much electricity you use,
it may be possible to save money by going back to ComEd’s
bundled rates for the period May through December 2006. Be
sure to analyze this before entering into any new agreements
with your present supplier.
If this sounds confusing we can help. There are ways to
mitigate this potential increase.
Lower Electric, LLC is an independent utility consulting
firm who represents multiple licensed ARES suppliers and
will provide you with clear answers, quotes and
recommendations so you can effectively manage your electric
costs. There is no cost or obligation for our
services.
Call us at 847/272-0700 or fax over a copy of your
current electric bill(s) to us at 847/498-4873. | 
