ComEd wants another rate hike
by Julie Johnsson, Chicago Tribune
Feb. 25, 2010—Electric bills will soon be headed higher for many Chicago area residents, to the dismay of consumer advocates.

ComEd, the state's largest electricity provider, plans to ask state regulators to let it hike electricity rates later this year, William Von Hoene Jr., executive vice-president for regulatory and legal for ComEd parent Exelon Co., told analysts at a Credit Suisse investor conference on Feb. 3. A ComEd spokesman confirmed the potential rate increase, which was first reported by Crain's Chicago Business. But he wouldn't say how much the utility will seek from the Illinois Commerce Commission, which must approve any rate change.

The Citizens Utility Board blasted ComEd for seeking another rate hike while an appellate court is still reviewing its last increase. The consumer group is seeking to reduce or overturn the $274 million hike that took effect in 2008, with any savings refunded to Illinois consumers.

"It's terrible timing with the economy the way it is," said Jim Chilsen, spokesman for CUB, a consumer advocacy group founded by the Illinois General Assembly in 1983.

Illinois consumers will also see electrical bills rise this spring as a result of a 2009 law designed to help people struggling financially to make utility payments.

Payments for lower-income families are based on a sliding scale that's related to their income, one of several provisions in the 2009 law.

In return, ComEd is allowed to pass $70 million of its cost of uncollected bills from 2008 and 2009, when delinquencies rose because of the economic crisis.

The special charge will be included in ComEd's charges starting in April and will last through June 2011, according to ICC spokesman Randy Nehrt.

It will cost ComEd's 3.8 million customers in Illinois a total of about $18.40 each, or around $1.20 per month, according to Tribune figures.

CUB's Chilsen noted that utilities have long turned to paying customers to help recover losses from unpaid bills. "It is extremely frustrating to us that profitable utilities constantly dump this burden on the shoulders of consumers," he added.