Go Ahead, Get Your Power Somewhere Else, We Dare You

By Matt Wood in News on Nov 10, 2006 1:12PM

So far, ComEd's answer to those complaining about about their impending 22 percent rate hike next year has been something like the classic child's retort, "If you like them so much, why don't you marry them?" When challenged about how such ridiculous increases are fair when customers have no other options for getting their power, ComEd has repeatedly taunted us by asserting we're more than welcome to switch to a different supplier if we want to so badly — as soon as we can find one.

ComEd isn't stupid, though. Rather, they know we know we're stuck with them, and they almost seem to delight in taunting us about it. Remember those TV commecials in which CEO Frank Clark dared you to send him hate mail? Well, they offered a similar finger in the eye earlier this week by saying consumers "may soon have a choice of electricity suppliers."

Good luck with that. Of the three competing companies capable of offering residential electricity in Illinois, only one — Blue Star — is certified by the state to do so. The others, WPS Energy Services from Wisconsin and Direct Energy from Texas, say they face significant regulatory hurdles to get there.

The problem is entering a monopoly market. Such new competitors can undercut ComEd's prices, but they can't deal with the economies of scale that ComEd has developed with their billing and debt collection systems. Plus, ComEd still gets to charge a fee for delivering power, whether a competitor actually supplies it or not. To truly break into this market, they need some regulatory help forcing ComEd to assist with billing and collections. But if ComEd's success in bullying the Illinois Commerce Commission is any indicator, don't hold your breath.