Major Price
Increases coming to your Electric Bill!!
On January 24, 2006 the Illinois Commerce Commission
approved the use of a reverse auction to determine the price
of electricity. The auction will take place in September and
the new prices will take effect January 2, 2007. The general
consensus is rates will go up 25% or more depending on your
usage.
ComEd will no longer be in the power generation business.
They will only be in the power delivery business. They will
continue to own all the power lines and meters. They will earn
a “delivery fee” from customers, however, the cost of
electricity will be based on “market rates.” The cost of
electricity went down 20% and was frozen nine years ago. Since
then energy costs have increased substantially.
In the past decade the majority new power plants built use
natural gas to generate electricity. Natural gas hit an all
time high in December 2005.
What options are available?
• If you are currently with ComEd you can do nothing
and be subject to the market base rates beginning January 2,
2007.
• If you are currently with ComEd you can enter into
an agreement with an ARES (alternative retail electric
supplier) to provide power. By being with an ARES you have the
option of locking your price of power for an extended period
of time, usually 1, 2 or 3 years.
• If you are currently not with ComEd make sure that
your supplier is a licensed ARES. This can be verified by
going to ComEd's website at http://www.comedpowerpath.com/ . Depending
on your “rate class” based on how much electricity you use, it
may be possible to save money by going back to ComEd's bundled
rates for the period May through December 2006. Be sure to
analyze this before entering into any new agreements with your
present supplier.
If this sounds confusing we can help. There are ways to
mitigate this potential increase.
Lower Electric, LLC is an independent utility consulting
firm who represents multiple licensed ARES suppliers and
will provide you with clear answers, quotes and
recommendations so you can effectively manage your electric
costs. There is no cost or obligation for our services.
Call us at 847/272-0700 or fax over a copy of your current
electric bill(s) to us at 847/498-4873.
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