Illinois Citizens Utility Board Tells Customers: ComEd Price "Set to Drop" in June

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March 10, 2011  

The Illinois Citizens Utility Board yesterday, in a widely distributed press release, informed customers considering choosing an alternative retail electric supplier that, "ComEd's price, however, is set to drop in June."

The use of the term "set" appears overly definitive given that the Illinois Power Agency has not conducted its procurement for the remaining slice of supplies for the delivery year starting June 1, 2011. While, based on current market prices, the procurement would be expected to produce rates lower than those obtained in the three-year old contract due to roll off, nothing will be set until the final bids are accepted, and there is no guarantee what market conditions will be at such time. Market shocks are, by definition, not expected, and while there is not a strong link between oil and electric prices, it is not unfathomable that continued political turmoil in the Middle East, particularly some flashpoint which may have repercussions for the U.S., could potentially lead to spikes in several commodity prices.

CUB did not return a call seeking comment.

In any event, one can only imagine CUB's reaction if the situation were reversed, and an electric supplier was throwing around terms such as "set." For example, if today's market prices were twice as high as the ComEd contract due to roll off, rather than lower, and an electric supplier, prior to any actual procurement of ComEd contracts being executed, informed customers that ComEd's rates were "set to" increase in June, it's not hard to imagine CUB taking issue with such an unjustified statement.

Indeed, in the same news release, CUB stressed the need for customers to receive "objective" information.

CUB's news release announced a new apples to apples page on its website comparing residential electric offers at ComEd. CUB lists rates from BlueStar Energy Services (5/6), Champion Energy (1/5), Constellation Energy (2/22), Direct Energy (3/1), Energy Plus Holdings, LLC (2/17), and Spark Energy (1/25). CUB did not list a rate for Nordic Energy Services which is ramping up residential service (3/1).

CUB's apples to apples page uses a much more appropriate description of ComEd's rates, stating that ComEd's prices "are expected to drop" in June.

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