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”
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 “How ComEd’s rate design benefits suburbs over the city”
Written by Michael Vrtis, President of Realgy Energy Services in response to Crain’s article “How ComEd’s rate design benefits suburbs over the city”
ComEd is one member of a larger group of utilities called PJM. Each utility that makes up the power pool of PJM sets how its own method of collecting the costs of running the power plants and transmission lines. This makes the PJM pool a low-cost producer with great reliability.
PJM has notified its members (who voted for it years ago) about his change.
ComEd can allocate capacity costs in any manner it wishes; however, ComEd chooses not to change its collection approach which has stayed the same for more than 20 years.
ComEd doesn’t need smart meters to make this change, it needs smarter policy.
Allocating capacity based on aggregate demand of the load center serving a municipality is possible as well as more equitable than the broad and out-dated policy of ComEd.
Realgy already operates under PJM capacity allocation rules and we will continue to be the residential and business choice where energy is all about price, information, and service.
Check out Crain’s article: “How ComEd’s rate design benefits suburbs over the city”
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”
In response to “Quinn vetoes ComEd rate hike bill”
Written by Michael Vrtis, President of Realgy Energy Services in response to the Crain’s article “Quinn vetoes ComEd rate hike bill”
Governor Quinn is sending a political message that should not pass through more thoughtful consideration of legislators. ComEd has already received approval from the legislators to bypass the ICC in their review and approval of their rates. ComEd has politicized the rate setting process instead of relying on the experienced technical and financial input of regulators.
While they may be successful in the short term, eventually the regulators will have to review their rates and then the balance will likely be restored. Allowing politicians to approve utility plans is not good policy and is even worse for rate payers.
Check out the Crain’s article: “Quinn vetoes ComEd rate hike bill”
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
Realgy Energy Services Now Offering Electricity Services to All Illinois Customers
PRESS RELEASE 21 SEPTEMBER 2012 | By: Realgy, LLC
At their customers’ request Realgy Energy Services is now serving all Illinois electricity markets.
The president of Realgy, Michael Vrtis announced that the Illinois Commerce Commission has given authorization to extend service to residential customers in the Commonwealth Edison service territory. Realgy has also been approved to start serving all customers in the Ameren Illinois, MidAmerican Energy, and Mt. Carmel Public Utility. Realgy was previously authorized to service only retail commercial accounts.
“Our expansion in the ComEd residential electric market as well our entry into the Ameren, MidAmerican Energy, and Mt. Carmel Public Utility markets is the next logical step in Realgy’s plans to expand service to our customers in the Illinois market,” said Vrtis. “It’s the perfect complement to our existing Illinois gas services in the Nicor, Peoples, and North Shore markets. This expansion will give our customers a chance to save money on both their natural gas and electric. In addition, we will be expanding our Solar and Green Energy division, already established in Indiana, into the state of Illinois.”
Realgy Energy Services is an energy marketer serving retail and residential customers in Indiana, Illinois, and Michigan. They have been serving Illinois customers beginning in 2004; since that time they have had a perfect record (certified A+) with the Better Business Bureau; and have been recognized as an Inc 500 company in 2011 and 2012.
Contact:
Realgy, LLC
Michael Vrtis
675 Oakwood Avenue
West Hartford, CT
860-233-2270
www.realgyenergyservices.com
Realgy Energy Services has been approved to serve Illinois electric and natural gas commercial and residential markets
At the request of our current Electric and Natural Gas customers Realgy has sought and received approval from the Illinois Commerce Commission to expand our services in the Illinois energy markets.
“This is the next logical step in Realgy’s plan to expand in the Illinois energy market and is the perfect complement to our existing gas services in the Nicor, Peoples, and North Shore markets,” stated Michael Vrtis, President of Realgy.
The Realgy Energy Services Illinois electric service area now includes both commercial and residential customers in Commonwealth Edison, Ameren Illinois, MidAmerican Energy and Mt. Carmel Public Utility. Realgy was previously only approved to serve commercial Commonwealth Edison customers.
The Illinois natural gas service area now includes both commercial and residential customers in Nicor, Peoples Gas, and North Shore. Realgy was previously only approved to serve commercial Nicor, Peoples Gas, and North Shore customers.
If you would like to enroll a residential or commercial account in any of these service areas, contact a Realgy Energy Services Energy Broker, at (877)-300 -6747 X 32 and have your bills ready.
For the full press release please visit the Realgy Energy Services Blog Press Release: Realgy Energy Services Now Offering Electricity Services to all Illinois Customers and Press Release: Realgy Energy Services Now Offering Natural Gas Services to all Illinois Customers
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
ComEd Outage Alert Map and Mobile App
ComEd has announced two new ways it is utilizing technology to improve communication with their customers. The first is an interactive online outage map and the second is a mobile application for smartphones.
“These new features are just two of many improvements ComEd has made in recent months as part of our focus on delivering greater value to our customers through enhanced customer service,” said Terence R. Donnelly, executive vice president and chief operations officer of ComEd.
ComEd’s interactive outage map allows customers to report and view current outages. The color-coded triangle icons illustrate how many customers are affected by each incident, as well as pinpointing the outage location.
Zooming in on a specific area gives more details such as Customers Affected, Estimated Restoration and Crew Status. The map is updated every half hour, and a mobile version is in the works as well.
When you zoom in on the ComEd Outage map more details are shown
The interactive outage map can be found on the ComEd website www.comed.com under the Customer Service tab, along with other useful outage information or by clicking here www.comed.com/map.
The new ComEd Mobile App like the outage map will allow customers to report power outages and check restoration status. ComEd residential customers will also be able to use the app to view account information such as:
- Account balance
- Account history
- Manage payments, including budget billing, automatic and one-time payments
- Report meter readings
The ComEd mobile app is free and available for download on iPhone and Android devices on the ComEd website www.comed.com/app or by searching for “COMED” in the application store on your smartphone.
Have you tried the ComEd Outage Map or Mobile App let us know what you think?