* Steve Daniels at Crain’s takes a look at ComEd’s highly controversial proposal to charge consumers based on high-demand usage…
ComEd and parent Exelon are hoping for passage next month of wide-ranging energy legislation that would include ComEd’s new delivery-rate system, as well as subsidies for two Exelon-owned nuclear plants that it otherwise will close, and a host of environmental provisions.
That measure has been the subject of behind-the-scenes talks between the power industry, consumer groups, environmental groups and renewable-energy developers. A compromise bill hasn’t yet surfaced.
“The burden will be even greater if you live paycheck to paycheck or on a fixed income,” the letter said. “A single hour’s careless electricity use can cause an unexpected bill spike that puts energy or other essential expenditures out of reach.”
In an interview, ComEd Senior Vice President Val Jensen said the utility is negotiating with consumer groups and others on changes that should prevent many consumers from seeing unanticipated monthly spikes in their electric bills. As proposed, the measure would set delivery charges based on a household’s usage during the highest-demand day of the previous month. ComEd has agreed to set rates based on a household’s average usage during the highest-demand hours of business days over the previous month, he said.
The new system should result in lower rates for nearly 80 percent of low-income customers in ComEd’s territory, even if they do nothing at all, Jensen said. That, of course, leaves more than 20 percent who would see higher rates—not a small percentage.
And therein lies the political problem. Such a dramatic change by definition creates winners and losers, and lawmakers (along with the utility) will be the ones whom the losers blame for their higher bills. […]
So how can consumers keep their bills low if their rates aren’t set based on how much juice they consume in a month?
They must take greater care to use fewer appliances and devices that run on electricity when the weather is really hot or really cold during the day, he said. For example, it would be wise not to wash clothes or run dishwashers or leave lights on while air conditioners are running in the middle of the day.
I gotta figure that people will really hate this idea.
* Related…
* Nuclear Power: What it means in Illinois: NPRE and the American Federation of Labor and Congress of Industrial Organizations, North America’s Building Trades Unions, are co-sponsoring the informational forum, Nuclear Power: What it means in Illinois, to be held Tuesday, October 18, 2016, in Chicago’s Bilandic Building. A host of national policy leaders will outline the sustainability and economic impacts of nuclear energy in the state, particularly in light of recent proposed closures of Illinois-based nuclear generation plants. Viewing of the event as it takes place will be made possible through a live webcast. The forum is partially suppported by the NSF PIRE: “Nuclear Energy Systems and Materials under Extreme Conditions.”
- VanillaMan - Tuesday, Oct 18, 16 @ 10:54 am:
OK!
This is how it works…
When your newborn is in the NICU relying on medical life support during peak use time, you’ll be charged more, but when they’re using their life support during off peak time, you’ll pay less!
So- it’s in your best interest to only use life support during off times! Right before peak time, TAKE A DEEP BREATH AND HOLD IT!
- A guy - Tuesday, Oct 18, 16 @ 10:56 am:
They’ll hate it alright. For a while. They’ll likely adjust. They’ve been doing this in AZ for a while in addition to not changing the clocks so as not to add another hour of sunlight. This was passed as an Energy Conservation policy there years ago. People did adjust. Here? We’ll see.
- Henry - Tuesday, Oct 18, 16 @ 10:57 am:
Sorry stay-at-home moms (or dads).
- DuPage - Tuesday, Oct 18, 16 @ 10:59 am:
So the REAL reason they wanted “smart meters” becomes apparent. They had this planned all along.
- Stop the Clock - Tuesday, Oct 18, 16 @ 11:00 am:
As a compromise from the consumer, let’s adopt the Arizona model for not changing the clocks twice a year. Winter is bad enough without coming home in the dark every night.
- Last Bull Moose - Tuesday, Oct 18, 16 @ 11:05 am:
Anybody who has adjusted a trip to avoid congestion understands peak load pricing.
You might limit the pricing change to those using more than some fixed amount. This could exempt the low volume users.
- Jaded - Tuesday, Oct 18, 16 @ 11:06 am:
You mean price could be driven by demand? Wow what a novel concept.
- downstate commissioner - Tuesday, Oct 18, 16 @ 11:07 am:
my wife doesn’t know how to turn lights off…
Saw this coming when they started bragging about how smart meters were going to be better for us…
- cdog - Tuesday, Oct 18, 16 @ 11:11 am:
“ComEd has agreed to set rates based on a household’s average usage during the highest-demand hours of business days over the previous month, he said.”
So that magic rate number, necessary for diligent planning, is going to land in my mailbox (I’m old school and prefer to employee human postal workers) probably 15 days into the billing cycle.
Niiice.
I would put that transparent fairy dust right up there with trying to figure out how much a medical procedure or test will cost prior to going in for it. (I highly recommend trying this exercise; it will give you a new appreciation for government protection of consumers.)
- Northsider - Tuesday, Oct 18, 16 @ 11:29 am:
“As proposed, the measure would set delivery charges based on a household’s usage during the highest-demand day of the previous month.”
(Emphasis added.)
At face value, this sounds like nothing more than a way to shaft consumers with an utterly arbitrary measure. What’s the rationale behind this?
- Touré's Latte - Tuesday, Oct 18, 16 @ 11:30 am:
All set in motion by the Smart Grid Bill from a couple years ago. The Smart Meters allow almost instant rate adjustment.
- Huh? - Tuesday, Oct 18, 16 @ 11:38 am:
Demand pricing used to be a common billing method for commercial and industrial customers.
Turn the lights and AC on in the morning, that was the highest usage of the day and could be calculated ahead of time and was used to set the billing rates.
- Earnest - Tuesday, Oct 18, 16 @ 11:42 am:
What’s in a name? Would a rate increase by any other name taste as sour?
- Springfield Since '77 - Tuesday, Oct 18, 16 @ 11:50 am:
Not good for those of us who work nights…
- Illinois Bob - Tuesday, Oct 18, 16 @ 11:52 am:
Back when the vote for funding “smart meters” was being passed, I identified the “premium billing” approach by the utilities was really behind it, NOT becoming “more efficient”. Not only will these “smart meters” be used to raise consumer bills in incomprehensible ways, the consumers had to pay through the nose to fund the utilities to buy the rope with which they’re hanging us. Where was CUB in opposing the smart meter program for this risk? Just collecting their public paychecks, as usual…
- Six Degrees of Separation - Tuesday, Oct 18, 16 @ 11:55 am:
There will be people who complain about this, but then shrug their shoulders, do what they always did, and pay the difference.
There will be others who will adjust their habits to minimize their exposure to the peak usage price.
There will be still others that figure out a way to have their cake and eat it too. If the price of rooftop solar continues to decline there will come a point where it is cost effective for some users to augment or replace what they are now buying in the regulated marketplace.
- BEST Dave - Tuesday, Oct 18, 16 @ 12:06 pm:
Demand use is not in use throughout Arizona - it’s only used for solar customers. In fact, it’s been rejected around the country.
And yes, Demand rates are common for commercial and industrial customers who employ people, consultants and technology to manage the process. Regular consumers do not have that luxury.
Think about a single mom with two jobs who has to do laundry in the middle of the day. She is going to get royally screwed - think bills that will be multiples of how they are under the old system.
This is only one of the HORRENDOUSLY BAD IDEAS contained in the so-called “Next Generation Energy Plan” that are designed to benefit ComEd/Exelon and only ComEd/Exelon.
- JS Mill - Tuesday, Oct 18, 16 @ 12:10 pm:
Convenient Capitalism- when the “market” model does not work, look for a subsidy/governmental bailout.
- NoGifts - Tuesday, Oct 18, 16 @ 12:23 pm:
” As proposed, the measure would set delivery charges based on a household’s usage during the highest-demand day of the previous month. ComEd has agreed to set rates based on a household’s average usage during the highest-demand hours of business days over the previous month, he said.” it doesn’t sound like they’re just charging us based on demand at the time we are using electricity. And is it about the delivery charge and not the power charge? Aren’t those two different things on the bill? Isn’t the delivery charge paying for the infrastructure, and how does that change by time of day?
- Going nuclear - Tuesday, Oct 18, 16 @ 12:27 pm:
Welcome to the “smart grid” world with new technologies like load controllers, smart thermostats and battery energy storage. As mentioned earlier, demand charges for commercial and industrial customers have long been a part of the electric industry. Keep in mind that utilities need to build infrastructure to meet both peak demand and long-term requirements. Demand charges should provide fairer cost allocation among ratepayers and motivate consumers to reduce strain on the system. However, it will be important for the power companies, regulators and NGOs to agree on a demand charge program that helps consumers understand their utility bills, provides accessible, real-time energy data and identifies energy efficiency strategies that can smooth load usage.
- Madigan's Lapdog - Tuesday, Oct 18, 16 @ 12:49 pm:
We are spoiled by cheap energy prices. I voluntarily went with a smart meter at our place (Ameren is my provider) years ago and have not regretted it. We get a call the day before any peak energy time so can then avoid paying the increase cost if we so choose. It ain’t hard folks.
- Clark - Tuesday, Oct 18, 16 @ 1:12 pm:
I guess this might force people to be more energy efficient but I’m not a fan of them setting rates based on usage during peak times. I can see paying more, even if I use less kWh since me and my roommates are basically only home during these peak hours.
- Just Observing - Tuesday, Oct 18, 16 @ 1:13 pm:
Another thing for spouses to fight about. “Honey, how many times do I have to tell you to do the wash at 2:00 a.m.?!”
- Ivory-billed Woodpecker - Tuesday, Oct 18, 16 @ 1:26 pm:
How about the utility provides each customer a green/yellow/red light real-time pricing doohickey to stick on the washing machine. Is that feasible?
- Blue dog dem - Tuesday, Oct 18, 16 @ 1:28 pm:
As we become more reliant on renewables, we will also become more used to these concepts. Get used to it.
- Anonymous - Tuesday, Oct 18, 16 @ 1:46 pm:
A Guy,
Changing the clocks doesn’t add an hour of sunlight. It just changes when that hour of sunlight happens.
I run my dishwasher once a week, and I turn it on as I am leaving the house for work.
- 47th Ward - Tuesday, Oct 18, 16 @ 1:55 pm:
===As we become more reliant on renewables, we will also become more used to these concepts.===
Why is that? My TV doesn’t know or care if the electricity running it comes from renewables, coal, nuclear or the hot air from your comments.
- Threepwood - Tuesday, Oct 18, 16 @ 1:57 pm:
Going Nuclear hit the nail on the head. This is not merely a question of capitalistic supply and demand, but of energy infrastructure and the real-word problems with power generation and delivery. If you think this is outrageous, you ain’t seen nothin’ yet, kids. This should have been done decades ago.
We absolutely do need consumer protection watchdogs paying careful attention to these sorts of measures. But we need them to be looking intelligently, screening out ways for companies to sneak in unfair pricing schemes while preserving the metering reforms. And no matter what, get ready to pay a lot more for water and power, likely in that order. We’re reaping half a century’s shortsightedness.
- A guy - Tuesday, Oct 18, 16 @ 2:32 pm:
==Changing the clocks doesn’t add an hour of sunlight.==
Oh man, Daylight Savings Time is just another big ruse. Darn.
- A guy - Tuesday, Oct 18, 16 @ 2:34 pm:
==My TV doesn’t know or care if the electricity running it comes from renewables, coal, nuclear===
The meter will know. And will…vote accordingly.
- walker - Tuesday, Oct 18, 16 @ 2:42 pm:
An expected national trend.
- 47th Ward - Tuesday, Oct 18, 16 @ 2:50 pm:
===The meter will know===
The meter knows when the electricity coming to my home is generated by natural gas or wind? Really?
- Nobody Sent - Tuesday, Oct 18, 16 @ 2:54 pm:
A demand charge isn’t really the same thing as price based on demand. A true price based on demand would be a real-time or hourly price rate. ComEd’s method picks your highest demand and sticks it to you for an entire month. An hourly price would allow you to respond to tight energy demand periods through appropriate price signals, which would also benefit ComEd’s distribution system by reducing the load during peak periods. But that wouldn’t make ComEd as much money, so we know why that idea isn’t being pushed. But don’t worry, I’m sure the superstar Rauner has in charge of the ICC will take care of everything. You’ll see….
- A guy - Tuesday, Oct 18, 16 @ 2:57 pm:
===The meter knows when the electricity coming to my home is generated by natural gas or wind? Really?===
Yep. An accountant will tell it. You won’t be part of the conversation, nor will your TV. But the accountant will correspond with you monthly to interpret what the meter was telling you.
- blue dog dem - Tuesday, Oct 18, 16 @ 3:05 pm:
47th. Whenever I start rambling incoherently, I take a couple of tablespoons of Geritol.
- Hieronymus - Tuesday, Oct 18, 16 @ 3:50 pm:
@2:54 pm. Yup, that, exactly.
While the overall concept of managing peak usage will become more important over time, ComEd’s scheme penalizes _future_ consumption for a _past_ peak usage. If these meters were so “smart”, the ratepayer would only be charged a premium for that specific period(s) of peak usage. But I guess ConEd doesn’t want those meters to be quite that smart.
- BEST Dave - Tuesday, Oct 18, 16 @ 4:11 pm:
“We absolutely do need consumer protection watchdogs paying careful attention to these sorts of measures.”
Yes we do. Fortunately, the AG and Illinois PIRG have been looking at this thoroughly and they don’t like what they’ve seen.
A lot of people are going to get hit hard, particularly in lower income communities. Even CUB, which has been supportive of this proposal, acknowledges that 30% of low income consumers will be losers on an annual basis. Far more will be hurt on a month to month basis because their electric bill may double if they do something like run a room air conditioner at the wrong time.
Why ComEd is gambling with all of our electric bills when they have so little knowledge of who will be seriously hurt by this proposal is a question more folks should be asking before any vote is taken on this horrific anti-consumer proposal.
- Anonymous - Tuesday, Oct 18, 16 @ 4:15 pm:
“The meter knows when the electricity coming to my home is generated by natural gas or wind? Really?”
Once on the grid, all electrons look the same. Nobody (meter, utility, source) has any idea which electrons serve which customer. But there is available info about which plants generate when, and that can be lined up with usage.
- BEST Dave - Tuesday, Oct 18, 16 @ 4:22 pm:
A Guy,
If ComEd was providing the info in real time, you might have a point here. But it will be provided after the fact based on your worst 30 minute M-F window. So if you’re gone for a couple of weeks during the summer and use far less electricity, but come back, crank the AC and run the washer with the lights on, you are sooooooo screwed. So if you would previously have had a $200 bill, you might have a $600-700 bill that month. That is not hyperbole.
- Arthur Andersen - Tuesday, Oct 18, 16 @ 4:54 pm:
My approach has nothing to do with smart meters or any of that fancy-schmancy stuff. Since I became a “house manager” a couple years ago (and am about ready to downsize, if anyone wants to move on up to the west side) I noticed that doing laundry and dishes in the middle of the day made the center of the main level of the house noticeably warmer. Duh.
I now do laundry at night and set the time delay on the dishwasher to run the load around 2am.
- Jibba - Tuesday, Oct 18, 16 @ 5:37 pm:
If anyone believes this will be revenue neutral for Com Ed, I think you’re dreaming. I’m sure they have modeled this thoroughly…
- Hieronymus - Tuesday, Oct 18, 16 @ 6:02 pm:
If ComEd were truly serious about providing meaningful, realtime usage and demand pricing information to ratepayers, then it could be a real boon to the home battery products makers like Tesla.
https://en.m.wikipedia.org/wiki/Tesla_Powerwall
If ratepayers feel aggrieved at any ComEd billing shenanigans, it could happen even faster. Earlier this year I read that a utility in Oklahoma was so incensed at increasing rooftop solar installations that they lobbied the state govt to allow them to restructure their fees to reduce the actual kW-hr charge and increase the flat meter charge, as well as to reduce the consumer benefit of net metering. I guess they’re turning the old saying on it’s head, “Electricity is too profitable to meter”.
https://en.m.wikipedia.org/wiki/Tesla_Powerwall
- pluotocrat03 - Tuesday, Oct 18, 16 @ 7:11 pm:
duhhhhhh
Electricity supplier figures out out how to fleece the ratepayers with the cooperation of or clueless legislators.
Hoodathunkit
- jibba - Tuesday, Oct 18, 16 @ 7:43 pm:
And regarding nuclear plants, if the benefits (base load, carbon free) accrue to people outside the state as well, why are IL ratepayers alone subsidizing them? Reminds me of Blue states subsidizing Red states again…
- foster brooks - Tuesday, Oct 18, 16 @ 8:16 pm:
why does com ed keep pushing LED lighting and more efficient appliances ?
- JPEZ - Tuesday, Oct 18, 16 @ 9:01 pm:
In 2008 or so California passed legislation to help consumers purchase energy and water saving products called PACE or Property Assessed Clean Energy. It allows loans to be made that are attached to the property not the individual owner. This allows high value retrofits to be made with little fear if one sells the property they may not be able to recoup the investment. The loan is attached to the property and paid off in up to 20 years with payments made to county tax collector along with your property taxes with the funds forwarded to the program administrator. This is not the best way to finance improvement but if one has equity and poor credit one can get 100% financing with built in consumer protections. PACE was passed in Illinois in 2010, I believe, but the law has yet to be implemented. PACE programs are in operation several states for residential and commercial properties. HUD and the VA formally endorsed the concept this past summer. Time Illinois to give it’s consumers more options to combat high energy costs, promote employment, and reduce out carbon footprint.
- Blue dog dem - Wednesday, Oct 19, 16 @ 6:53 am:
I woke up this morning at 3 am. I hand washed the dishes….actually just burned the paper plates we used last night.