Has anyone else noticed discrepancies in delivery charges between ComEd default service and third-party suppliers? I'm reviewing a client's account who switched to Constellation Energy and the delivery portion seems inflated compared to what they paid under default service. Same rate schedule (General Service - Small), same meter, but delivery is showing $0.0347/kWh vs the published $0.0312/kWh. Client is in downtown Chicago, served under tariff GS-1. Anyone seeing similar issues with Illinois suppliers?
ComEd Default Service vs Third Party - Seeing Different Delivery Charges?
Yuri, I've seen this exact issue with FirstEnergy here in Ohio when clients switch to third parties. The delivery charges sometimes include additional fees that aren't clearly disclosed in the supply contract. Check for things like "transmission cost recovery" or "capacity charges" that get bundled into what looks like delivery. Also make sure you're comparing apples to apples - some suppliers quote all-in rates while others separate supply from delivery differently than the utility does. What's the actual dollar difference we're talking about?
Frank, good point about the bundled fees. The difference is about $380/month on a 45,000 kWh account. I'm digging into the Constellation contract now and there's mention of "additional transmission charges as approved by FERC" but no specific rate. The ComEd tariff shows transmission at $0.0089/kWh but Constellation is billing $0.0124/kWh for what they call "transmission services." Seems like they're marking up a pass-through charge.
That's a classic move by some suppliers. In Tennessee we don't have retail choice for most customers, but I've consulted on accounts in Texas and Pennsylvania where suppliers do exactly this. They'll quote a "competitive supply rate" but then add back transmission, capacity, and ancillary service charges at rates higher than what the utility would charge. The ICC should be regulating this but enforcement is spotty. Document everything and consider filing a complaint with the Illinois Commerce Commission.
We see similar games in Arizona with SRP customers who have choice options. The key is reading the fine print in the Electricity Facts Label or contract addendums. Suppliers are required to disclose all charges but they often bury the transmission markup in footnotes. Sarah from Phoenix here - I've successfully gotten refunds by proving suppliers violated disclosure requirements. Keep pushing on this one, Yuri.
Update: Found the smoking gun. Constellation's contract has a clause allowing them to charge "prevailing transmission rates plus administrative costs not to exceed 15% of such charges." So they're taking ComEd's $0.0089/kWh transmission rate and adding 15% on top, bringing it to about $0.0102/kWh. But they're billing $0.0124/kWh. That's a 39% markup, not 15%. Filing a complaint with ICC tomorrow.
Excellent detective work, Yuri! I've seen Ameren suppliers in Missouri pull similar stunts with capacity charges. The 15% administrative fee language is standard but they're clearly exceeding it. Make sure you calculate the overcharge going back to the start of the contract - with 45,000 kWh monthly that could be substantial money. Also check if they've done this to other customers. Class action potential if the pattern is widespread.
Pam, calculating 18 months of overcharges at roughly $100/month puts us around $1,800 just for this one client. I'm reaching out to other auditors in Illinois to see if they've caught Constellation doing this elsewhere. Will report back on the ICC complaint outcome. Thanks everyone for the input - this forum saves me so much time on research!