In today’s AUSenergy News Update: A new capacity mandate could raise Texas’ retail electricity prices, the ICC approves new electric delivery rates for ComEd, and the 2014-15 IPA Electricity Procurement Plan is approved by the ICC.

New Electric Delivery Rates for ComEd Approved by ICC

Summary:The Illinois Commerce Commission (ICC) has approved a 17% increase to ComEd’s distribution revenues. This increase is in compliance with the Energy Infrastructure and Modernization Act (EIMA), which allows ComEd to receive reimbursement for investments made that improve grid reliability and build a smart grid. Overall this increase will result in approximately $340 million in new revenues for ComEd.
AUS Comment: All electric customers in ComEd, even those with an alternative supplier, will be impacted by this increase in distribution rates. On average this will cost each customer an additional $5.50 per month, though customers should expect further proliferation of smart grid technology, such as smart meters.

IPA Electricity Procurement Plan for 2014-15 Approved by ICC

Summary: The Illinois Commerce Commission (ICC) has approved the Illinois Power Agency’s (IPA) plan to purchase electricity for the 2014-2015 plan year. The IPA will now be allowed to hold two energy procurements during the year to secure electricity for those supplied by ComEd and Ameren. The first procurement will be held in April 2014, and the second, if needed, in September 2014, which should allow the IPA to more accurately match energy purchases with actual demand for power supply.
AUS Comment: : Illinois electric customers should expect rates from ComEd and Ameren to be more competitive with those offered by alternative suppliers because of their new flexibility in procuring electricity and may even make it cost effective for some customers to return to the utility. AUS can help you asses your energy situation and determine the most advantageous source for your energy, whether it be through an alternative supplier or with the utility.

New Capacity Mandate Could Raise Texas’ Below National Average Retail Electricity Prices

Summary: The Texas Coalition for Affordable Power has reported that the average price for electricity in the deregulated parts of Texas is now below the national average. This is the first time in 10 years that this has occurred. The Coalition though has cautioned that this could be short lived if Texas adopts a capacity market which would begin compensating generators for their reliability.
AUS Comment: AUS is excited to see deregulation benefiting Texas electricity consumers in the form of lower prices. AUS agrees with the Texas Coalition for Affordable Power that a capacity market may raise electricity prices, but Texas power consumers should also know that the adoption of a capacity market may improve the reliability of the grid and reduce the potential for blackouts.