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USE ELECTRICITY? In Chicago, Suburbs, Expect to Pay More for it - Effective June 1!

COM ED CITES HIGHER POWER PRICES CULPRIT IN AVERAGE $2 INCREASE IN AVERAGE BILL!

Back in 2006, a ten-year rate freeze on electric rates in and around Chicago expired, leading to major increases in residential electric bills beginning that January, 2007.  At that time, rates began to float with the auction prices of energy purchased from independent electric generation companies by Chicago-area electrical provider Commonwealth Edison.  Many residential bills increased by 22%, or more.

In June, roughly 20% of the original auction contracts expire,   To meet the expected demand this summer, Com Ed solicited sealed bids for electrical power beginning this summer.  The higher auction rates will be passed on to our area's electicity consumers.

An estimated two-thirds of the average electric bill comes from the cost of the electricity itself.  The balance comes in the form of delivery charges and taxes.  These delivery charges will remain unchanged for the June increase.

However, the electric utility is expected to seek another increase, of approximately eight percent, this September, to cover infrastructure improvements as well as new lines in growing subdivisions and suburbs.

An independent state agency, the Illinois Power Authority, will begin to procure electricity for State of Illinois residents in 2009.  Until the agency is running, Commonwealth Edison is responsible for all electrical procurement in the Chicago area.

Before the old ten-year rate freeze expired the beginning of last year, the average electric bill for residential customers in the Com Ed service area or Metro Chicago was $60.  With the June, 2008 increase, average bills will jump to $77 - and will increase further with any September rate change.

Planned increases will also impact small businesses that buy energy from Com Ed.  However, many businesses now buy electicity from other suppliers, and will be shielded, for now, from any increase.

Please see Robert Manor's article in today's Chicago Tribune for more details.

DEAN MOSS & DEAN'S TEAM CHICAGO 

Posted: Thursday, March 13, 2008 6:13 PM by Dean's Team

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