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Illinois to Examine ComEd Electric Heating Supply Class, Allocation of Demand
June 24, 2011
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The Illinois Commerce Commission has initiated a Section 9-250 investigation to address issues related to supply rate design for residential customers at Commonwealth Edison, and to address the proper allocation of non-coincidental peak demand among the four residential customer classes (Docket 11-0498).
The investigation was first reported in Matters (6/23)
In its most recent rate case, ComEd had proposed to eliminate the two residential electric space heating delivery classes (single family and multi-family). The proposal was not adopted, but the ICC set issues related to space heating supply charges for further discussion.
A Staff report which precipitated the order noted that, "the design of retail supply charges is becoming more and more important as competition from alternative retail electric suppliers ('ARES') has reached the smallest commercial customers and even residential customers."
Staff has recommended that the Commission ensure that supply rates for non-space heating customers are not set too high as to induce inefficient competition. In the same vein, Staff stated that the Commission should ensure that supply rates for space heating customers are not set too low as to foreclose efficient competition.
Staff recommended that the new Section 9-250 investigation focus on answering the question of whether a separate supply charge for ComEd's space heating customers continues to be warranted.
Staff said that if the investigation reveals that there are currently existing subsidies for residential space heating customers, as ComEd claims, the investigation should allow the Commission to decide how much of these subsidies should no longer be recovered from non-space heating customers. Staff further recommended that the investigation should provide the Commission with options to gradually phase out those subsidies, if that is the desire of the Commission. Staff recommended that the Commission be aware of, and take into account, the bill impact for any affected customers before ordering any changes, gradual or not, to the design of the residential supply rates.
In addition, Staff recommended that the investigation's scope not prevent parties from exploring other ways to bring the utility's retail supply rates more in line with market-based rates.
The ComEd Purchased Electricity Charge for residential electric space heating customers is currently 5.690 cents per kWh for the summer, and 4.319 cents per kWh for all other months through May 31, 2012.
This compares to the non-electric space heating residential Purchased Electricity Charges of 7.154 cents per kWh for the summer, and 6.986 cents per kWh for the non-summer months.
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