In today’s AUSenergy News Update: ComEd proposes PEA application change, California’s Climate Credit lowers electricity bills, and FERC called in to investigate increases in charges after brutal winter.

ComEd Proposes PEA Application Change

Summary: ComEd has proposed a change to how the Purchased Electricity Adjustment (PEA) is applied. ComEd is proposing that the PEA shall be reset to zero at the end of an annual June to May delivery period, with any remaining PEA amount rolled into the base default service rates for next year. The changes have been requested to be approved for the June 1, 2014 delivery year.
AUS Comment: The purpose of the PEA is to “true up” any difference (over or under) between what ComEd previously paid to acquire electricity supply and what ComEd previously charged its customers for that electricity supply. Customers who switch to a retail electric supplier are not subject to the PEA.

California Climate Credit lowers electricity bills

Summary: In April, 1.2 million California home electricity customers will receive a $36.24 credit on their electric utility bill as a result of California’s cap-and-trade system. The “Climate Credit” is California’s approach to attempting to control pollution through economic means. It caps total greenhouse gas emissions and issues pollution permits that can be bought or sold by companies.
AUS Comment: AUS hopes California’s plans to increase renewable energy continues to see success and that it serves as a positive example for the rest of the nation. The Climate Credit will show up as a line-item reduction in electricity bills two times per year during the months of April and October. The credit is expected to continue through at least 2020.

FERC Asked to Investigate Increases in Charges After Brutal Winter

Summary: Supply charges in the Capital Region increased from 46 to 55 percent for December and January. NYISO has asked for an investigation by the Federal Energy Regulatory Commission into the price hike to determine if any market wrongdoing exists. Many customers suspect price gouging.
AUS Comment: The price increases in electricity have been a direct result of the price increases occurring in the natural gas market and customers who did not have a fixed rate component included in their electric supply contract are the ones who felt the impact the most severely. AUS predicts that the FERC investigation will not reveal any price gouging.