NEWS as of 24 May 2022: the ComEd Rate jumps to double digits
The effective ComEd residential and small commercial retail supply rate for the month of June 2022 has jumped to 11.234¢ per kWh! This is comprised of the new summer rate of 11.041¢ plus a Purchased Electricity Adjustment (PEA)* charge of 0.193¢. (That’s a 44% jump over the May 2022 effective rate of 7.809¢ and a 64% increase over June 2021 effective rate of 6.848¢.)
Announcement for Energy Year 2022 to 2023—Significant Price Increases are Here: The ComEd Price to Compare (PTC) was announced on 24 May for the upcoming Energy Year starting June 1. It is 11.041¢ for the four summer months (June to September) and 9.122¢ for the eight non-summer months (October 2022 to May 2023). That equates to a new annualized rate of 9.763¢, a 31% increase over the previous year’s annualized rate of 7.457¢.**
Why is the final rate release higher? The initial April announcement was for a rate of 8.914¢, but at that time IPA also announced the need to conduct an unusual second round of purchasing for electric power for the coming year because initial bids were insufficient to meet expected requirements. The final rate came in nearly a cent higher than initially reported.
Why the massive price increase? Essentially, low reserves from reduced production during the pandemic followed by the invasion of Ukraine created the perfect storm to severely disrupt natural gas reserves, supply, and pricing worldwide. Natural gas is a large component of electric generation.
How to save on your power costs? In addition to setting your thermostat higher for what is forecast to be a warmer-than-usual summer, discover energy savings tips here.
How does the rate appear on your ComEd bill? Observe the second page under “Supply” where the rate is broken down into three charges (note the first two charges equal 11.041¢):
Electricity Supply Charge - $0.09697
Transmission Services Charge - $0.01344
Purchased Electricity Adjustment - not listed in rate format, but a dollar amount which is determined by kWh volume x the PEA. For example, if your consumption is 700 kWh and the PEA is a debit of 0.193¢ for that month, your PEA charge will be $1.35.
*In addition to the PTC (the “default” ComEd base rate), a monthly variable portion is included: the PEA is a additional credit or charge that is the difference between the revenues from the monthly ComEd PTC and the actual cost of electricity supplied to ComEd customers. This charge or credit, which ensures overall ComEd customers pay no more or less than ComEd’s actual cost of purchased electricity, is capped at a maximum of one-half cent per kWh each month. The Illinois Commerce Commission website created to educate consumers about power prices states, “The future PEA values would be expected to average near zero for the planning year…”
**The four-month 2021 summer rate of 6.776¢ plus the Oct - Dec 2021 rate of 7.777¢ plus the Jan - May 2022 rate of 7.809¢ had equated to an annualized rate of 7.457¢ per kWh.