Released: 10/2/2007
|
ELECTRICITY customers of the state’s two largest distribution utilities began to receive rebates and bill credits in September as part of the $1 billion electric rate relief bill passed by the General Assembly and signed into law by Governor Blagojevich.
In mid-September, executives with the Ameren Illinois companies made their way around the state announcing the details of how their electric customers would receive rebates and bill credits. The minimum Ameren refund is $100.00.
The package of benefits was designed to soften the blow consumers felt from rates that spiked at the beginning of the year, following a 10-year rate freeze. The new law doesn’t change the existing rates for the company but through use of the rebates and credits it initially rolls back about half of the 2007 increases for most customers.
The Ameren Illinois utilities will also propose some restructuring of their rates between customer types and classes to the Illinois Commerce Commission. The restructuring of rates is meant to address the drastic change from previous winter all-electric rates to the current rates.
Also, beginning with their October electricity bills, customers of Commonwealth Edison Company in Chicago and Northern Illinois will see bill credits averaging approximately $60.00. As with Ameren, smaller reductions will apply to bills in 2008 and 2009 until the new rates are completely phased in.
“ComEd is distributing to our customers nearly a half a billion dollars over four years,” said J. Barry Mitchell, President of the utility.
Preparations are also under way for the purchase of approximately one-third of the electricity needed to supply customers of both companies for 2008. The utilities will soon file plans for procuring that power with the Illinois Commerce Commission.
After the 2008 procurement, power will be purchased by the utilities through the Illinois Power Agency that was created by the new law. Details of how the agency will procure power for utilities and their customers will be developed during 2008 in time for use in purchasing power for 2009. |
