Study: Com Ed summer rates highest in nation
July 5, 1988
A Citizens Utility Board study showed Northern Illinois Commonwealth Edison customers pay the highest monthly summer electric bills in the nation, but a rate restructuring recently ordered by the Illinois Commerce Commission brings new hopes for lower bills.
On June 22, CUB released the results of its study which compared electric rates charged to consumers in all major cities of the United States. Chicago-area consumers, using 750 kilowatt-hours of electricity pay the highest summer rates at $104.05 per month. Consumers of the Philadelphia Electric Company had the second highest rates at $99.10, while Seattle City Light Company customers had the lowest rates at $14.96.
CUB Research Director James Seidita said Com Ed assigned a rate decrease in 1985 to people who rented apartments, since they used less electricity. Com Ed mischarged many of these consumers, and CUB filed suit in September of 1986. On June 22, the ICC handed down a ruling that stated, “If anyone had been mischarged between January 1985 and the present, those people are entitled to a refund plus interest.”
Seidita stated that meter readers can usually read about 100 apartment and condominium meters at one time, but have to walk to each house to read their separate meters, which takes much longer. He said this is an expense which apartment renters should not have to pay. Seidita added that because apartments are considerably smaller, they use less electricity, and should not be charged the same rate as homes.
CUB Executive Director Susan Stewart said CUB recently filed a similar case against Com Ed on behalf of condominium and mobile home owners.
Seidita said that of the four major electrical utilities in Illinois, Com Ed has the highest rate per kilowatthour at 14 cents, while the other utilities charge six or seven cents.
He said Com Ed owns 12 of the 13 nuclear power plants in Illinois.
“There is a definite correlation between nuclear power plants and higher rates,” Seidita said. He added that the utilities that don’t own nuclear reactors have considerably lower rates.
Don Sibigtroth, a DeKalb Com Ed marketing supervisor, said new summer rates of 12 cents per kilowatthour were effective June 16. The rates then will be cut to 5.23 cents after the first 400 kilowatthours used after Sept. 16.
Winter rates will begin Jan. 1 at 10.32 cents, and after the first 400 kilowatthours used, the rates will be reduced to 4.858 cents.
“The average resident in DeKalb uses 800 to 1,000 kilowatthours per bill, so they should begin to see the savings after their first bill this summer,” said Sibigtroth.
He said most people will find the new rates revenue-neutral, meaning their bills will even out. Consumers might even see some savings on their bills.
“What we’re trying to do is get a five-year freeze on these lower rates,” he added.
Seidita said CUB, however, doesn’t see these rate reductions as any substantial savings to the consumer.
Seidita said that Commonwealth Edison is using this rate reduction to benefit their biggest consumers, while consumers who use less electricity will find no real savings.
“Commonwealth Edison may be lowering the rates, but this will only encourage their biggest users to use their air conditioners even more. They (Com Ed) will end up coming out even, or possibly make more money,” added Seidita.