If ComEd's rate hike gets approval, customers will see bigger bills
CHICAGO (CBS) – It's not exactly news Chicago residents want to hear, but electric bills may soon be increasing.
It's all part of a proposal by ComEd, in which the utility company is looking to hike delivery rates by more than $1.4 billion over the next four years. CBS 2's Andrew Ramos has what you need to know.
That $1.4 billion hike translates into $17 more per month on your electric bill by 2027, that's if ComEd gets its way. The company said the multi-year increase is part of much-needed investment in the power grid, but consumer advocates are crying foul.
Cutting corners has become not only a routine for consumers these days, but a survival strategy.
For Carmella Coqmard, who owns two restaurants, one in South Shore and the other in Woodlawn, inflation has already done a number on how she does business.
"Because of all these hikes, we cannot afford to buy everything all at once," she said.
An now, news of yet another hike, this one in utility costs, she said may send her over the edge.
"This is going to cause me to be in a deficit," she Coqmard said.
She'll be on of the millions feeling the pinch if a new proposal by ComEd gets the green light.
In a filing on Tuesday, the utility company asked state regulators to hike its delivery rates by $1.4 billion over the next four years as part of an effort to invest and strengthen its grid as demand is surging.
"People are electrifying more," said Louie Binswanger, ComEd's senior vice president of governmental regulation and external affairs. "They are adding more electric vehicles to our grid. They are converting their homes to electrical appliances. We have to be ready."
Under the four-year plan, the current average $93 monthly bill will see an initial monthly increase of $4.50 in 2024, bringing it to $97.50 per month or $1,167 annually.
Year after year, rates will go up. By 2027, the average monthly bill will surge to $110 or $1,320 a year.
"You can see that ComEd is asking for an excessive profit rate for shareholders, and that is not going to fly," said Jim Chilsen, of the Citizens Utility Board.
The organization is among the advocacy groups already vowing to fight the hike.
"Making improvements to your system is ultimately about reducing costs for consumers, but it's never about giving a blank check to ComEd," Chilsen said.
The multi-rate increase request happens as ComEd continues to mend its reputation months after the utility agreed to pay $200 million in fines for its role in a bribery scandal involving ComEd executives, lobbyists, and former Illinois House Speaker Michael Madigan.
This request happens as ComEd continues to mend its reputation months after the utility agreed to pay $200 million in fines for its role in a bribery scandal.
The proposal needs to be reviewed by the Illinois Commerce Commission, a decision that's expected to be made by December.
