ComEd: Rate hike will help keep the lights on

By Thomas V. Bona

BusinessRockford.com

ComEd bills are going up this month, but the electric utility says it will keep the power on.

Residential bills will go up about $4.50 a month in delivery charges. That will raise $270 million in additional revenue ComEd plans to use to build or maintain power lines, poles, substations and other equipment.

“Demand for power continues to grow, which means we need to often update facilities,” ComEd spokesman Paul Callighan said. “Infrastructure that was in place back in 1995 may not be what we need today.”

From 1995 to 2006, there was an 18 percent increase in electricity usage in ComEd’s coverage area, with more homes using central air conditioning, computers, big-screen televisions and other appliances, Callighan said.

Locally, ComEd has made several upgrades to account for additional electricity use in existing buildings, as well as for the construction of new buildings.

In July, it added a new $5.5 million substation that doubled electrical capacity for Loves Park, Machesney Park and Roscoe. It also recently completed a $1.1 million upgrade to a transmission line between Belvidere and Marengo and made $275,000 in improvements around Winnebago and Pecatonica.

Next year, it could add a major transmission line to bring more capacity to Belvidere and upgrade a substation in Davis Junction.

Customers won’t notice any changes in service from these projects. They’re designed to prevent power outages and other problems later on, Callighan said.

The company also got permission to study “smart grid” technology, automatically alerting the company to localized power outages, helping customers monitor electricity usage and improving billing procedures.

ComEd originally requested a rate hike 25 percent higher than what it got, including fees for the “smart grid” technology and other increased charges. The Illinois Commerce Commission, which regulates the utility, cut the rate hike down and told ComEd to study the “smart grid” options and come up with a plan before asking for a rate hike to pay for it.

Advocacy group Citizens Utility Board said it will appeal the rate hike because it believes ComEd has inflated its actual expenses and doesn’t need such a hike.

“These ... cases are all about different definitions on what a company needs to stay healthy,” CUB spokesman Jim Chilsen said. “We would argue that, especially with ComEd’s parent company — Exelon — rolling in record or near-record profits in recent years, the company does not deserve such a big rate hike.”

But he agreed with the Illinois Commerce Commission’s decision on the smart grid technology. ComEd should study the idea and get input from outside groups first, which will ultimately make it better for consumers.

The CUB appeal will be filed within the next few weeks and then be reviewed by the commission and other state officials, he said.

Reach staff writer Thomas V. Bona at 815-987-1343 or tbona@rrstar.com.