Electric Bills To Spike Come Summer; City Says It Could Be Worse

By Chuck Sudo in News on Mar 11, 2014 2:45PM

Don’t be shocked to see an increase in your electric bills before you even fit your air conditioners in your windows this summer. The Emanuel administration announced late Sunday another bulk purchase of electricity with power supplier Integrys Energy Solutions that will, in Mayor’s Press Office-speak, save Chicago residents a combined $24 million.

But the savings the Emanuel administration is touting is not what it could be. ComEd bills already increased in January thanks to higher delivery charges and another hike is expected in June as part of the Energy Infrastructure Modernization Act that grants ComEd rate hikes over the next decade in exchange for a $2.6 billion plan to modernize its grid and install smart meters. The average ComEd bill will be reduced by $34 annually under the bulk energy purchase plan. It was originally supposed to be $135 to $165. Michael Negron, Emanuel’s policy director, said the regulation of coal-burning power plants and other market fluctuations contributed to the lower savings.

Starting in May the new plan locks in electric rates at 5.299 cents per kilowatt-hour and a monthly customer charge of $22.36 for single-family customers and $9.06 for multi-family customers. ComEd still delivers the electricity and handles the billing. That means electricity bills will actually increase between 14 and 18 percent. Negron insisted it could be worse if ComEd were still the only supplier of electricity.

“People who are with ComEd will see a bigger increase,” said Negron, who added that the city’s goal in negotiations was, “Let’s make sure we’re getting people a better price than they would under ComEd.”