Because of the Energy Infrastructure Modernization Act (EIMA) or smart grid law, a 2011 statue that guarantees utilities a return each, has allow ComEd to secure more than $670 million in rate increases over the past three years.
Smart Grid investments are improving the strength and reliability of the electric system. Since 2012, there have been more than 5.8 million avoided customer interruptions due largely to grid modernizations and increased investments in distribution automation or digital “smart switches” that automatically route power around potential problem areas. Outage avoidance has saved customers an estimated $175 million.
The formula rate making process ensures the transparency required by the Commission and other parties to conduct an efficient yet thorough review of the rate request and requires that any savings be passed on to utility customers in a timely fashion. The larger rate cut was also resulted from trims the commission made in ComEd’s requests for recovery of incentive compensation, merger costs and outside services, among other things, the ICC said in a release.
“The smart grid program is delivering on its promise to generate efficiencies and we are pleased to pass-along those savings to our customers by decreasing their electric delivery costs,” said Anne Pramaggiore, president and CEO, ComEd. “The investments in the smart grid program are producing a stronger, more reliable system with fewer outages. Those results mean less operational costs and greater savings for our customers.”
Over the past three years, ComEd has secured more than $670 million in rate increases to cover its costs so far in a $2.6 billion, 10-year grid modernization program.
ComEd is advocating for legislation in Springfield to even more fully leverage the capabilities of the smart grid. This legislation – ComEd’s Future Energy Plan – would expand access to renewable energy, increase energy efficiency, enhance resiliency and security of the system and meet the growing demand among energy consumers for more choice and personalized services.
The rate changes are expected to take effect at the beginning of the year.
Sherwin L. Sucaldito, REALTOR®, GREEN, ABR, CRPM
The Institute of Luxury Home Marketing
Green REsource Council, GREEN
Accredited Buyer’s Representative , ABR
Certified Residential Property Manager, CRPM