West Cook News

A report by Illinois PIRG called, "Guaranteed Profits, Broken Promises," says ComEd has record profits, considering its 37% increase in electricity delivery rates, but hasn't delivered on their promises to customers and the public.

The report evaluated the law 2011 Energy Infrastructure Modernization Act (EIMA). The EIMA is known for clearing the way for investments in "smart grid" technology and granting ComEd, and downstate utility Ameren Illinois, automatic rate hikes through "formula" rate making.

Illinois PIRG is asking legislators to end formula rate making due to the findings in the report. Illinois PIRG is also requesting legislators audit ComEd's assets, separate ComEd from its parent company Exelon and create checks on utilities' political influence.

Record profits totaling over $1 billion more in profits than had been made in previous six years of being owned by Exelon. | File Photo

“EIMA turned utility regulation, which aims to promote the public good through the opportunity for private profit, on its head,” Illinois PIRG Director and report co-author Abe Scarr said, as reported in an Illinois PIRG new release. “EIMA guaranteed ComEd and Exelon’s profits while failing to adequately ensure customer and public benefits.”

The report found that in 2019, ComEd customers paid 37 cents more than in 2011 for delivery service. Since 2012, customers have paid $4.7 billion over what they would have if the formula created by EIMA wouldn't have increased delivery rates over the level in 2012. ComEd earned over $1 billion more in profits than it made the previous six-year periods while operating under Exelon.

“ComEd did not need formula rates to improve upon its chronically poor reliability performance, or to improve service through new smart grid technology,” Jeff Orcutt of Chapman Energy Strategies and report co-author said, as reported in an Illinois PIRG new release. “Instead, ComEd used misleading promises of a customer-centered vision to win itself guaranteed profits and less accountability.”

The report also found that time-of-use rates won't be available to ComEd customers until 2024 at the soonest.

“ComEd and other utilities have held too much power in Springfield for too long,” Scarr said. “We look forward to working with Gov. Pritzker, members of the Illinois General Assembly and other stakeholders to right the wrongs of the past decade by passing an energy bill that places customers and the public interest at the center of Illinois’ transition to the 100% clean energy future.”