Rising Electricity Prices

Illinois, Municipal aggregation, ComEd, electricty

What Capacity Rate Increases Mean for Aggregation Programs.

Increasing capacity charges will raise electricity prices for all ComEd consumers starting in June 2014.  These unavoidable rate increases will be followed by additional (though smaller) increase in June 2015.

For some aggregation communities, prices could rise by over 40 percent.  Changes in commodity prices and transmission rates could force additional increases.

Because aggregation programs have been so successful in delivering savings, the rising price environment has real implications for aggregation communities as they seek pricing for their next program cycles:

  • Negative responses from residents and the press
  • Inability to guarantee savings against the ComEd Price to Compare

Best Practices for Aggregation Programs

Maintain Credibility

  • Prepare for some rate shock by informing the community with public meetings and through the press
  • Take transparency measures by showing due diligence in the bidding and pricing processes
  • Highlight non-pricing benefits such as consumer protection, ease, and green energy

Protect Residents

  • Consider alternative pricing options such as Fixed, Seasonal, and Time-of-use
  • Avoid minimum stay requirements that lock consumers into a mandatory 12 month billing cycle
  • Increase education efforts to provide early notice of upcoming changes

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:

  • Providing an estimate on your community’s upcoming increase
  • 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!