Chicago electric bills to rise up to 18% in June
Municipalization will not lower prices for consumers.
We have posted numerous articles about how municipalities are offering their residents electricity or natural gas collectively to energy marketers. The idea is that “aggregation” of the residents will provide the marketer the ability to deliver a lower price. If that were the case, no one could beat the utility because the question is who would be a bigger aggregator than a utility? The utility AGGREGATES everyone in the state. Yet, Realgy beats ComEd and Ameren consistently. So why can’t municipalities come in lower?
The difference is cost of service and overhead.
Municipalities require energy marketers to deliver savings compared to the utility, take on billing and collections, and pay the municipality a portion of the margin. The simple fact remains; the cost municipalities want to collect makes them higher than the utility.
So Chicago’s latest deal is a fixed 5.3 cents (however, the ComEd rate hasn’t been posted yet) and the terms won’t include the cost during the highest-demand periods of the year nor the cost of transporting the juice over high-voltage lines from the power plants to ComEd’s local distribution grid. These costs are variable and will add considerably to the fixed price.
The potential upside is $34 per household per year. Homeowners will be looking closely at this offer.
Energy purchasers will start to focus not just on the price but also on the terms. When they do, they will move to be more transparent.
Realgy has a history of offering its MangedPriceTM (which includes variable and fixed prices) that beat ComEd with all costs included.
Find the whole Crain’s Chicago Business article “Chicago electric bills to rise up to 18% in June under new Integrys deal”
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?”
In response to “ComEd rates are set to surge”
Written by Michael Vrtis, President of Realgy Energy Services in response to the Crain’s article “ComEd rates are set to surge”
The headline is clear, the timing is a year away…so what to do?
Short-term power planning normally means a 10 year span because power infrastructure (such as pipelines, power plants, distribution lines, etc) have useful lives of 25 years.
So, while the talk about a year-to-year rate hike is not unique, it is certainly unnecessary.
This is the result of Illinois legislators giving ComEd approval for expenditures (which result in rate or cost increases) that the regulators (think of them as the technical advisors) can’t review, modify, or reject. The result is political involvement and rate shock.
Perhaps the 23% rate increase will provide benefit; that is usually how the regulators hold the utility accountable. However, when the politicians approved this increase, guess who will, in turn, hold the utility accountable? That’s right, not a soul.
What to do? Sign up with Realgy Energy Services. Realgy has delivered costs below ComEd for over 5 years. We will continue to provide a fixed price that will reduce this unnecessary rate shock.
Check out Realgy Energy Services ComEd rates for May 2013 and see how much you could be saving www.realgyenergyservices.com Or Call one of our Energy Brokers today 877-300-6747.
Read the whole Crain’s article: “ComEd rates are set to surge”
No buyer’s remorse with Realgy Energy Services, We are and remain below ComEd’s pricing
According to the Illinois Commerce Commission, ComEd’s energy price is projected to drop to around 5.55 cents per kilowatt-hour, from the current 8.3 cents per kilowatt-hour, that is a 2.75 cent decrease. The ComEd energy price includes the costs of transmitting electricity from power plants over high-voltage lines to the local distribution system.
Contracts municipal politicians and officials in 15 towns negotiated with power suppliers more than a year ago, to lower residents’ electricity bills, will soon exceed the costs ComEd customers pay starting in June.
The price being paid by most residents in Oak Park, which has an energy-supply contract with Integrys Energy Services Inc. until December 2013, is 5.79 cents per kilowatt-hour, 4 percent higher than the projected ComEd charge.
However this is not the case with Realgy Energy Services, they have been and remain below ComEd’s Pricing.
In northern Illinois, all customers pay ComEd to deliver their electricity but are free to choose a supplier to provide the electricity itself. The cost of electricity typically accounts for about two-thirds of an electric bill while delivery charges make up the rest.
Read the whole story Some suburban electricity deals to be costlier than ComEd
Shedd Aquarium in Chicago is planning to create an energy saving road map that other cultural institutes can follow
However this task won’t be easy. Keeping 32,500 animals healthy, happy and well-lit takes a lot of energy. Part zoo, part art space, the building is a life-support system for 1,500 species operating under the parameters of just about every time zone on the planet.
John G. Shedd Aquarium in Chicago, Illinois
“What we’re talking about is bigger than the Shedd,” said Mark Harris, president and CEO of the Illinois Science and Technology Coalition, which led the consortium that developed Shedd’s energy saving plan.
Following a plan developed pro bono by a public-private consortium, Shedd plans to swap out light bulbs, buy solar panels and sell “negawatts” (getting paid to power down). The aquarium plans to participate in a program that pays big energy users to power down on days when the electric grid is strained by demand from air conditioners. But first that means finding out what in the aquarium can be safely powered down.
“The Shedd’s in a unique position. It’s been there for 100 years and it’s going to be there for another 100 more; so, when you look at a 15-year return on investment, that’s not too bad,” Hulsebosch said.
Read the whole story: Citizens Utility Board, “Shedd Aquarium looks to slice energy bill”
Three ComEd smart Meters have caught fire
The Illinois Utility Commonwealth Edison (ComEd) announced Thursday that three of their new digital smart meters overheated causing fires in customer’s homes. The fires damaged metering equipment and the “immediate area around the meter,” ComEd said, adding that tests showed the smart meter design was not the cause of the problem.
“The cause was related to fitting and connection issues with an older-model socket that had a poor connection at the point where the customer’s wires and ComEd’s wires meet,” ComEd said in a statement.
Smart meters allow for communication between utility and meter. They can record and send temperature data, and alert the utility when outages occur.
Smart meters were installed by ComEd in 130,000 homes in Chicago’s Humboldt Park neighborhood and 10 western suburbs as part of a pilot program approved by the Illinois Commerce Commission in 2009.
To Learn more about smart meters check out the ComEd website
Find the whole story here
Sources:
Chicago Sun-Times, Comed says three smart meters have caught fire