Electricity consumers in Illinois who receive their power from Commonwealth Edison, and are still on the price to compare default rate structure, are facing a steep electric rate increase as of June 1, 2014. Commonwealth Edison (ComEd) provides power to more than 3.5 million customers including the city of Chicago. The rate increase will not effect consumers who have selected an alternative supplier through the state’s energy choice laws.

As an electricity choice state, Illinois consumers have the ability to switch off of state regulated utility default prices and search for competitive prices offered by electricity companies who are licensed by the Illinois Commerce Commission. Consumers who do not shop for competitive pricing pay a default rate for the generation portion of their electricity bills. Throughout most of 2013 the default prices offered to ComEd customers were below the competitive prices offered by alternative electricity suppliers, leaving little incentive for consumers to switch off of their utility rate structure and participate in the Illinois electricity choice marketplace.

On June 1, 2014 ComEd raised their default rate substantially to over $0.075 from a prior rate that was often below 5 cents. The ComEd price to compare rate can reach as high as $0.08096 for residential customers due to a monthly rate adjustment that the ICC allows ComEd to impose on consumers. Chicago consumers can now once again find competitive ComEd electricity rates that are lower than the price to compare default rates. The rate increase is expected to cause many Chicago default rate payers to shop for lower power prices for the first time. The expected increase in sales have resulted in an increase in marketing efforts by the competitive Chicago electricity companies, all of whom must be licensed by the state in order to market their services.

{ 0 comments }

Fixed Electric Rates Provide Security in New Jersey

April 21, 2014

Ever since the New Jersey electricity choice act went into effect, people have been divided on their opinions surrounding the benefits of a free competitive power market. While customers slow to adopt to energy choice wish for a time when their local utility once again controls all aspects of the electricity process, other savvy customers […]

Read the full article →

Electricity Rate Savings in Baltimore Result in Increased Power Shopping

October 14, 2013

The Maryland electricity choice market continues to make progress as the number of shopping customers increases as a result of more active electricity suppliers and lower generation rates. With the ability to lower the price of their generation supply rates on their monthly BGE electricity bill, consumers are quickly discovering the benefits of Maryland’s decision […]

Read the full article →

Ohio Sees Increase in Number of Competitive Energy Companies

June 9, 2013

Energy choice participation has increased in Ohio as consumers are becoming more aware of legislation that allows them to purchase their power from alternative energy companies. The creation of a competitive electricity market has created an abundance of electric rate options in the majority of Ohio service utility areas. Ohio has seven main investor owned […]

Read the full article →

Understanding Pennsylvania Commercial Index Electricity Pricing

November 14, 2012

While most Pennsylvania commercial businesses, looking to get off their electric utility high default rate, will choose to lock in a fixed electric rate, another option for larger users is the index product. A growing number of alternative electricity suppliers who wish to remain competitive in the market will offer the index electric product to […]

Read the full article →

Texas Businesses Face Hidden Charges on Electricity Contracts

November 6, 2012

By Todd Yasbin The competitive commercial electricity market in Texas provides small business owners the ability to take bids from over thirty licensed electricity providers licensed by the Public Utility Commission of Texas. Businesses can elect to choose from several rate products ranging from basic fixed pricing to variable price methods tied to specific wholesale […]

Read the full article →

Pennsylvania Electric Utility Commercial Default Rates

September 11, 2012

Since the cap rates expired in 2010 for businesses serviced by Pennsylvania Power & Light, just about 50% of PPL commercial customers have switched over to a competitive commercial electric rate. Those who were early to take advantage of deregulation have enjoyed annual savings of 30% or more. The other 50% is set up on […]

Read the full article →

PECO Offers Choice To Customers

July 11, 2012

In Pennsylvania, where the electricity market has been deregulated, the majority of consumers have a choice of who they want to buy their electricity from. However, depending on what part of the state that you live in will depend on just how many choices are available. While consumers have a choice of who supplies their […]

Read the full article →

Electricity Rates on the Rise for PPL Customers

May 24, 2012

For the second straight summer, residential and business customers of the central Pennsylvania utility Pennsylvania Power & Light will see their generation electricity rates rise drastically. PP&L customers who have not looked for lower electric rates will see their default power prices rise by 15% this summer. Consumers who have searched, compared, and selected to […]

Read the full article →

Maryland Electricity Rates and Choice

May 8, 2012

The majority of Maryland electricity consumers who have not shopped for competitive electric prices will see their electric rates increase in June. Baltimore Gas & Electric (BG&E), Potamac Electric Power (PEPCO), and Delmarva Power will all increase their rates for default paying residential customers. The larges increase will be placed on Delmarva customers who will […]

Read the full article →