Just got word from the ICC that ComEd's rate case ICC Docket 12-0321 is moving forward with some major changes to industrial tariffs. They're proposing to eliminate the energy efficiency rider discount for customers over 10MW and restructure the whole delivery class system. This could mean $50K+ annual increases for our larger manufacturing clients. Anyone else seeing similar moves in their territories? The new rates are supposed to take effect January 1st if approved.
ComEd Rate Case Update - Huge Industrial Changes Coming
Georgia Power tried something similar last year with their Schedule PL tariff restructure. We fought it hard and got about 40% of the increase rolled back through intervention. The key was showing how it would impact economic development in rural counties. You might want to coordinate with other auditors and file a joint intervention if the deadline hasn't passed yet.
FirstEnergy is doing the same thing here in Ohio. They're calling it "rate modernization" but it's really just shifting costs to industrial customers. The problem is these utilities know most businesses won't understand the impact until the bills start coming in January. We need to be proactive and educate our clients now about what's coming.
LG&E just filed their case last month and they're proposing similar changes. The scary part is they want to add a $200/month "grid modernization fee" for all customers over 500kW. That's pure BS - they should be recovering grid investments through normal depreciation, not special fees. I've already started preparing intervention testimony for three of my larger clients.
The intervention deadline for ComEd is September 5th, so we're running out of time. I've been working with the Illinois Industrial Energy Consumers group to coordinate our response. The utility is claiming these changes will only affect about 200 customers statewide, but our analysis shows over 800 accounts will see increases above 15%.
Xcel Energy in Colorado went through this exact same process two years ago. The final approved rates ended up being about 60% of what they originally requested, but it took 14 months of hearings and cost our client group over $300K in legal and consulting fees. Start building your war chest now because this is going to be a long fight.
Duke Energy did something similar in the Carolinas but they were smarter about it - they phased the increases in over 3 years and offered optional time-of-use rates as alternatives. ComEd is being too aggressive with the immediate implementation. That's probably their biggest weakness in this case.
Update: ICC staff just released their recommendation and they're supporting about 75% of ComEd's proposal. The good news is they're recommending the grid modernization charges be spread over 5 years instead of immediate implementation. Still not great, but better than the original filing. Final hearings are scheduled for October 15-18.