MidAmerican Energy seeks rate increase in Illinois
Twenty-two years without a raise—think about it. That would be very hard. However, utilities do not operate at a fixed cost; they operate as a regulated monopoly (like the game) and receive a fixed rate of return. That is, utilities get to spend what is necessary to provide service and seek approval for those costs. Utilities like MidAmerican earn a regulated rate of return (in business that’s called margin) on everything they spend (subject to approval).
So, although MidAmerican-Illinois (MEC) has not increased energy costs during this time, they have spent $289 million on improvements to the electric grid and their generators. If this were all spent as required to provide service, then MEC which earns about 9% rate of return, would earn about $26 million a year in profit.
So after 22 years, an increase of 21% for residential and 13% for business might not seem like a lot, but remember MEC has no competition and earns profit on spending money to provide service.
Can you avoid the rate increase? The short answer is yes.
Illinois customers of MidAmerican Energy can now participate in the Illinois Electric Choice Program. The idea is simple; provide customers the right to buy their electricity directly from suppliers without any additional cost from the local utility. The result has been savings for Illinois consumers—an estimated $37 billion dollars due to electric competition.
Realgy Energy Service is the first energy marketer registered with MidAmerican Energy-Illinois enrolling customers in the Illinois Electric Choice Program. Additional information is available at Service Plans for MidAmerican.
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