Improved resiliency, fewer outages result in customer savings
ComEd is asking for a decrease of $6 million in the amount it charges
customers for the delivery of electricity compared to the rates in
effect in January of this year. If approved, the request will decrease
the average total monthly residential bill by 38 cents, bringing the
average monthly residential bill down to about $83, which would be lower
than ComEd residential customer bills in 2008.
The filing made today with the Illinois Commerce Commission (ICC) is the
fourth decrease in nine rate requests since the Energy Infrastructure
Modernization Act (EIMA) or “Smart Grid Law” was enacted in 2011.
While lower natural gas prices generally have helped
to lower consumers' electricity bills in Illinois and throughout the
nation, the improved performance of the ComEd system is creating savings
that are passed on to customers and helping keep bills stable, according
to Joe Dominguez, CEO, ComEd.
“ComEd customers have realized $655 million in direct economic value
from avoided customer interruptions as a result of smart grid
investments,” said Dominguez. “And new energy efficiency solutions are
reducing energy consumption, which creates additional savings for
customers and contributes to a cleaner environment.”
Since 2012, ComEd has avoided more than 11 million customer
interruptions, due in part to distribution automation or digital “smart
switches” that automatically reroute power around potential problem
areas. ComEd’s average residential monthly usage was 608 kWhs in 2018,
down from 694 kWhs in 2008 when ComEd launched its energy efficiency
program, which has saved customers more than $3 billion.
ComEd’s 2019 revenue request includes costs associated with growth in
new business for commercial and industrial expansion in new data centers
and distribution centers. Also included are new energy efficiency
technologies, such as Voltage Optimization (VO), which helps the utility
deliver a more precise amount of electricity, reducing costs, energy
consumption, and carbon emissions.
The Smart Grid Law established a performance-based formula ratemaking
model. It provides Illinois utilities greater predictability over rate
recovery to make long-term investments while holding them accountable
for achieving a broad range of metrics. These include improved
reliability, reducing estimated bills, reducing customer costs
associated with unaccounted for energy consumption and theft, and
increasing support for minority- and women-owned businesses, among
others. The annual formula rate update filing considers a utility’s
costs for the current year and actual costs compared to forecast from
the previous year.
Last year, ComEd achieved an overall reliability rate of 99.97, the
highest in company history and ComEd customer satisfaction reached an
all-time high. Additionally, in 2018 customers saw record reliability in
the city of Chicago, where the frequency of outages has been reduced by
nearly 60 percent since 2012.
A cost benefit analysis of the smart grid program shows investments will
create approximately $13.6 billion in quantifiable economic value over
20 years for ComEd customers and the broader community. The $2.6 billion
investment program is largely completed. ComEd will install the last of
more than 4 million smart meters this year while digital upgrades to
ComEd substations will continue into 2021. Later this month, ComEd will
submit its annual Supplier Diversity report to the Illinois Commerce
Commission. It will show the company has injected almost $14 billion of
supply chain spend into the Illinois economy, including $4 billion in
Illinois diverse supply chain investments.
ComEd is a unit of Chicago-based Exelon Corporation (NYSE: EXC), a
Fortune 100 energy company with approximately 10 million electricity and
natural gas customers – the largest number of customers in the U.S.
ComEd powers the lives of more than 4 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.
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