Hear ye, hear ye! We’ve some really great news for all of you ComEd electricity customers! ComEd has cut its electric rate for the summer! Woo hoo!
AMAZING news, right?? Thanks to ComEd, you’ll soon be rolling in the money, and dreaming of the many ways you can spend all those bills!
[Bucket of ice-cold water is hurtled into face of reader.]
Hey sleepyhead. Yeah you. It’s time to WAKE UP! It is just a dream. (You didn’t really fall for that, did you?) Now pick up all that money and stuff it into an envelope. Seal it up and make sure to write “Electricity Expenses” clearly on the front. And don’t forget the stamp!
ComEd Giveth, and Then Taketh Away
So, here’s the real lowdown on this pseudo rate cut: As reported by Crain’s Chicago, ComEd’s electricity rates are falling this summer, by about 10%. To be exact, ComEd’s summer supply/transmission rate for (non-space heat) consumers is now 7.03¢, down slightly from the most recent electricity rate of 7.73¢.
Sounds like a good deal, right? Not so fast. Starting in October of this year and continuing until June of 2013, the rates will jump up by 11% — clearly offsetting any savings you may have seen over the summer. Then, the rates may drop again next summer.
If I may quote:
“Summer supply rates go down because of lower capacity prices,” the utility said. “Non-summer rates increase because of lower expected volume. The net effect on customers is neutral.”
Let’s do the math together: 10% decrease – 11% increase = 1% increase in rates overall. Well then. Perhaps we should more clearly define how we measure increases and decreases in electricity rates? My feeling is that if the net change in electricity prices over a year’s time is positive (which it is, in this case), then no claim of a rate cut can be made. Makes sense to me. What do you all think?
It would seem that these rate fluctuations occur simply to confuse you about what your real rate is, thereby prohibiting you from understanding how much you can potentially save on your electricity by switching from ComEd to an alternative energy supplier. (The fact is, you CAN. You can switch. And you can save. So now you know.) And, you are welcome to email us directly (firstname.lastname@example.org) if you have questions about how to read your ComEd bill and determine what you can save. Or, you can read more about it in this post: Switching Electricity Suppliers: Where are the Savings?
Stay tuned for a future post on deregulation and municipal aggregation in Illinois. I think I’ll title it something along the lines of: How to deconstruct an energy monopoly and then build it right back up! Oh joy!
Please, be so kind as to leave a comment with your thoughts. (We bloggers covet those, did I mention?) Go on… tell us how much you love your Utility Provider (or not), how the term “electric bill” makes you feel, or propose another topic you would like me to address in a future post.
And, when you’re done with that:
Check out our electricity supplier reviews page to see others who have switched from ComEd and what kind of savings they are basking in.
Alexa Hughes is blogger extraordinaire for Power2Switch, a comparison-shopping site for consumers seeking lower electric rates, based out of Chicago. You can find Alexa on Twitter.