The Illinois Commerce Commission has approved a new formula for determining electricity rates for customers of Commonwealth Edison. The landmark decision has several important aspects:

·         It encourages investment into smart grid technology and other capital improvements

·         It speeds ComEd's return on those investments

·         It requires ComEd to hit performance objectives

Also on the utility's to-do list: increase the number of customers that surpass service reliability targets by 75%, reduce the number of estimated power bills by 90% and cut back energy use from inactive meters as well as electricity theft.

We believe this new formula -- especially the performance clauses -- will be watched very carefully by other states over the next few years.

ICC says no to Ameren's smart grid plan

A news release issued by the ICC said: "The Commission determined that the cost/benefit analysis presented by the company relied on incomplete or speculative calculations and that regardless of those calculations, Ameren Illinois’ AMI plan could not be approved because it would have to rely on either including gas meters or a compliance period longer than the ten years, neither of which is allowed in the statute."

A report by Lee News Service said the utility had earlier refuted those charges in arguments before the ICC.

Commissioner John Colgan noted that while there are benefits to customers from a smart grid system, Ameren witnesses did not demonstrate any, leaving commissioners nothing to work with or modify.  “I wish we had better information,” he said.

According to WGN, ComEd has also filed a smart grid plan with the ICC, which has until June 22 to make a decision on it.