Deregulation And How It Will Affect The Customer



If you live in northern Illinois you more than likely purchase your electricity through Commonwealth Edison. I would like to tell you a little bit about Commonwealth Edison and their future in regards to deregulation -- and how it will affect you, the customer, and the changes we will all encounter during the next four years. I will also include a survey that was sent to our customers that will list the most frequently asked questions.
Commonwealth Edison (now known as ComEd) is principally engaged in the production, transmission, and distribution and sale of electricity. It is one of the nation’s largest investor-owned electric utilities, serving more than 3.4 million customers ...

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ComEd has been a monopoly for over 110 years and is currently facing deregulation. This would mean freedom of choice for the customers. The choice to have another electric supplier (one of many competitive forces) other than ComEd.
I will begin by explaining what deregulation means, and try to give you an idea of the major milestones and what choices you will be faced with along with the changes that will affect ComEd. I will discuss a little bit about competitive forces, and how they have affected the market as a result of recent regulatory and statutory changes and activities in other states.
Long-standing regulations needed to be altered to accommodate the competition that could fundamentally alter the structure of the electrical service market. During 1997, the “Electrical Service and Rate Relief Law” was drafted to provide at a minimum: safe, reliable, and affordable service. While, at the same time providing a Fair Playing Field by assuring that existing utilities are ...

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international generation company will see Illinois as a high-potential growth area and decide to purchase ComEd’s already high-performing coal-fired units. ComEd is hoping to complete the sale after the end of summer of 1999.
By this August, all of ComEd’s residential customers will see a large, tangible sign of change: A 15% reduction in their base electric rates. This price cut and the additional 5% customers will receive in May 2002 -- comes as a result of the December legislation. While the price cut is a great benefit to consumers, it presents a challenge to ComEd: Find revenue sources to make up for the $375 million in lost annual revenue.
For the first time, during October ...

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PAPER DETAILS
Added: 3/22/2006 12:27:44 PM
Category: Economics
Type: Premium Paper
Words: 1718
Pages: 7

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