New ComEd Rate Changes

ComEd, electricity rates, Illinois

What ComEd Rate Changes Mean for Aggregation Programs.

Proposed tariff changes will raise rates for larger than average accounts, and reduce rates for smaller than average accounts starting in January 2015.

For aggregation communities, this means that the essential cost strutures will not be known when programs are re-priced in Spring 2014.  These unknowns may force suppliers to increase risk premiums for aggregation program pricing.

Because aggregation programs have established track records of stable and simple pricing to residents, these undefined Transmission and Capacity rate changes present new challenges to aggregation communities:

  • Need to change prices ahead of January 2015
  • Inability to guarantee savings against the ComEd Price to Compare

Best Practices for Aggregation Programs

Update Pricing Terms

  • Avoid risk premiums – Guarantees increase supplier risk
  • Update pass-through provisions in Plan of Governance and Contracts
  • Support changes to the Price to Compare by the ICC to present it as a variable rate

Protect Residents

  • Provide early notice to residents of potential changes
  • Consider alternative pricing structures like tiered pricing and pass-through costs
  • Increase education efforts to understand terms and conditions and avoid increased premium

Start by Consulting an Expert

Your community and leaders can benefit by expert advice in this changing environment.  Whatever level of assistance is needed, ICCAN is there to help by:

  • Representing the communities in the negotiations with suppliers
  • Answering questions about changes in rates, tariffs, and ICC rules
  • Reviewing your process, Plan of Governance, and contracts to make sure nothing was missed and the consumers are protected.

Contact Mark Pruitt at ICCAN today!