In Response to “After six-year dispute, court orders $37 million ComEd refund”
Written by Michael Vrtis President of Realgy Energy Services in response to the Crain’s article After six-year dispute, court orders $37 million ComEd refund
So how do all the various entities work in overseeing a regulated utility or why does it take 6 years to refund overcharges?
This Crain’s article provides a great example, let’s look at the 3 steps:
STEP 1
The utility; ComEd has a monopoly to delivery electricity in its area and is overseen (regulated) by the Illinois Commerce Commission (ICC). ComEd wants to be paid more for providing service and goes to the ICC requesting an increase in fees from customers in exchange for providing better and more useful service.
The regulator; ICC approves a rate increase (and the improved service) for which ComEd begins charging customer
STEP 2
The Consumer Advocate; Citizens Utility Board (CUB) is an agency that seeks to ensure ComEd treats its customers (mainly residential) fairly. Remember ComEd is a monopoly and can only charge what the ICC (in some cases politicians) approve. The CUB sees that the ICC approval of the rate increase unfairly treated the consumer to the benefit of ComEd. So, CUB sues ComEd and wins.
The Court; orders the ICC to review the matter. Again, the court won’t get into the technical review (that’s why they sent it to the ICC for re-review).
STEP 3
This step is about appealing (delaying) the previous decisions….. in this case the ICC agrees with CUB and removes those funds from the rate base which means ComEd (having already collected them) has to return them. They don’t have to return them as they were received but by some form of distribution of the funds.
Of course, ComEd appeals to the appellate court (they review lower court decisions) and lost. The appellate court would have to overturn the ICC on technical issues to agree with ComEd.
So let’s see if the money is returned. This example illustrates that a regulated utility has many people who watch them and those who watch and act to hold all sides accountable really do serve the public interest.
How does this affect Realgy’s customers; they will receive a refund (depending on how ComEd disperses them) as this was a charge related to distribution of the wholesale supplied energy in part provided by Realgy.
Check out the Crain’s article: “After six-year dispute, court orders $37 million ComEd refund”
Realgy Proposes $2.6 Million in Savings for Indianapolis Public Schools
PRESS RELEASE October 16, 2013 | By: Realgy, LLC
INDIANAPOLIS, Indiana, October 16, 2013 – Indianapolis Public Schools (IPS) has issued a request for proposals for natural gas to serve its 90 schools. Realgy Energy Service, a wholesaler or third party supplier in the Citizens Gas Energy Select program responded with a proposal that would have saved the school district over $2,588,000 for the last 3 years.
“We are thrilled to be able to offer IPS nearly 3 million dollars in savings,” said Michael Vrtis, President of Realgy Energy Service. “We submitted our proposal and even if we are not selected, the savings IPS can expect to receive from purchasing their natural gas directly from a supplier, without any Citizens Gas markup, will provide significant cost reductions.”
The Energy Select program was initiated by Citizens Gas to “reduce the energy cost of Citizens Gas customers.” This was in keeping with their charter which states; “We maintain the lowest possible rates with sound financial management.”
The Citizens Gas Energy Choice program is not well known but it provides all municipal, commercial, and industrial customers a choice between purchasing their natural gas from Citizens Gas or directly from a registered third party supplier of natural gas such as Realgy Energy Services.
In April 2009, Realgy Energy Services received approval as a third party supplier in Citizens Gas. Unlike other suppliers, Realgy Energy Services extends customer choice to commercial and small businesses.
“The benefits from receiving your gas service with Realgy Energy Services as your wholesale supplier instead of Citizens Gas has been demonstrated every month over the last 3 years,” said Michael Vrtis, President of Realgy Energy Services. “From November 2010 through to October 2013, Realgy Energy Services has delivered nearly 16.79% savings compared to purchasing from Citizens Gas. For the average commercial customer that is an annual savings of $7,120.86.”
The bidding for natural gas service was opened October 16, 2013 with service expected to begin January 1, 2014. Additional information on the bid and the bid results can be obtained by contacting the IPS Purchasing Agent at 120 E. Walnut Street, Rm. 117 Indianapolis, Indiana 46204.
Realgy Energy Services is an energy marketer serving retail customers in Indiana, Illinois, and Michigan. They began serving Indiana customers in April 2003; since that time they have a perfect record (certified A+) with the Better Business Bureau; http://ct.bbb.org and no complaints before the IURC http://www.in.gov/iurc or OUCC http://www.in.gov/oucc/
Contacts:
Michael Vrtis
President
Realgy Energy Services
860-233-2270
www.realgyenergyservices.com
Nicole Werner
Media Contact
Realgy Energy Services
860-233-2270
www.realgyenergyservices.com
In Response to “Analysis: Arctic chill exposes weakness of U.S. natural gas system”
Written by Michael Vrtis President of Realgy Energy Services in response to the Reuters article Analysis: Arctic chill exposes weakness of U.S. natural gas system
As Berkshire Hathaway CEO Warren Buffet said about the financial crisis; “You don’t know who’s naked until the tide goes out.”
Same goes for any extreme event; with this current arctic blast the need for heat has exposed how market forces and planning work in the natural gas market.
Nobody did without gas, but some had to pay more. The alternative is to build pipelines and storage to provide for gas to accommodate such very extreme weather (last time was over 20 years ago) and incur the cost of that infrastructure in higher transportation and delivery rates.
Realgy provides fixed pricing and our ManagedPriceTM and PriceWatchTM services to shield our customers from the sudden price risk of such events.
Supply and demand worked and the price is already moderating with the temperatures and everyone stayed warm that had gas; doesn’t sound like a very weak system to me; but certainly improvements are warranted in places.
Stay warm
Check out The Reuters article: Analysis: Arctic chill exposes weakness of U.S. natural gas system
In Response to Chicago can’t beat ComEd price. So raise it?
Written by Michael Vrtis President of Realgy Energy Services in response to Chicago can’t beat ComEd price. So raise it?
Realgy DOES NOT support changing how the Illinois Power Agency buys power, so that our prices can be more competitive.
We already are:
- Realgy has been below ComEd monthly pricing since January 2012, Twenty-one straight months in a row!
- Our average commercial customer has saved $3,741.41
- Our average residential customer has saved $90.02
We compete in serving our customers, not just with lower priced energy but smarter buying strategies.
This price question is a result of municipal aggregation, where cities like Chicago want to be able to raise money by adding a surcharge onto the electric rate customers pay, and still show savings compared to the utility!
Municipalities select an energy marketer as their preferred vendor and require they add a surcharge to their cost which they pay to the city. The surcharge provides no value to the customer or the energy marketer.
Perhaps instead of looking to raise everyone’s price of power they should just get out of the aggregation business or look to actually add value for their surcharge.
Check out Crain’s article: “Chicago can’t beat ComEd price. So raise it?”
Indiana Natural Gas Services
If you live or work in Indiana, your local gas utility offers a CHOICE program supported by the Indiana Utility Regulatory Commission, in which you may voluntarily elect to have your natural gas provided by a supplier other than your local utility!
Realgy Energy Services serves natural gas customers in the Nipsco and Citizens Energy service areas of Indiana.
INDIANA NATURAL GAS CHOICE PROGRAMS:
- Nipsco: Choice
- Citizens Energy: Energy Select
Call today to find out how Realgy can save you money on your natural gas bill!
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Illinois Natural Gas Services
If you live or work in Illinois, your local utility offers a CHOICE program supported by the Illinois Commerce Commission, in which you may voluntarily elect to have your natural gas or electricity provided by a supplier other than your local utility!
Realgy Energy Services serves natural gas and electric customers in the following utility markets of Illinois.
ILLINOIS NATURAL GAS CHOICE PROGRAMS:
- Nicor Gas: Customer Select
- North Shore Gas: Choices For You
- Peoples Gas: Choices For You
ILLINOIS ELECTRIC CHOICE PROGRAMS:
- Ameren: Electric Choice
- ComEd: Customer Choice
- MidAmerican: Customer Choice
Call today to find out how Realgy can save you money on your natural gas and electricity bills!
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