) unit - Commonwealth Edison Company (ComEd) - plans to lower the
electricity rates for its residential customers. The company has
already filed its new supply rate request to the Illinois
Commerce Commission. ComEd's effort toward rate reduction is part
of the "Prices To Compare". If approved by the concerned
authority, the residential consumers will be getting electricity
by paying a lesser amount applicable Jun 2013.
BROOKFIELD INFR (BIP): Free Stock Analysis
EXELON CORP (EXC): Free Stock Analysis Report
OTTER TAIL CORP (OTTR): Free Stock Analysis
PIKE ELECTRIC (PIKE): Free Stock Analysis
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Per the rate revision appeal, the electricity distribution rate
is expected to decline in the range of 5 to 7 cents per
Kilowatt-hour (kWh). The decrease in electricity distribution
rate was primarily driven by a drop in energy prices.
As per the Illinois Commerce Commission's policy, the consumers
of the territory can choose electricity providers through Price
to Compare. Consumers can avail of electricity from their
preferred companies at a cheaper rate and also assess rate-offers
from alternative retail electricity suppliers.
The electricity rates under Price to Compare is ascertained by
using anticipated electricity supply and transmission costs,
which contribute nearly two-third of the average residential
customer bill. The remaining one-third of the bill is calculated
from delivery charges.
Drop in residential electricity rate is a positive step for ComEd
to stop customer attrition. This aggressive attempt will enable
the company to compete with its peers in a better way. Not only
will it enable the company to regain consumers' interest in terms
of their electricity bills, it may also help in regaining its old
customers apart from gaining new ones.
In the service territory of ComEd, more than 40 alternative
suppliers are certified to provide electricity to residential
customers. Approximately 75% of ComEd customers have already
switched to an alternative supplier.
It is evident from Exelon's current activities that it is
focusing on utility rate reduction and continues to strengthen
and modernize its utility assets. A couple of days ago, the
company completed the digital improvement of its first substation
called Wallace, based in Chicago. The implementation of latest
technologies enables the company to provide uninterrupted
services to its customers as well as strengthen system competence
by reducing malfunctions.
To strengthen and modernize Exelon's utility generation and
distribution assets, the company plans to invest $5.5 billion in
2013 under its capital spending program. We appreciate the
company's efforts toward providing uninterrupted reliable utility
at a lower price.
Chicago, IL.-based Exelon Corporation currently has a Zacks Rank
#3 (Hold). Other stocks from the industry that are presently
performing better include
Brookfield Infrastructure Partners L.P.
Otter Tail Corporation
Pike Electric Corporation
). All the three stocks carry a Zacks Rank #1 (Strong Buy).