ELECTRIC RATES LOWEST IN STATE

City of Geneva Public Works Department
Electric Division
1800 South Street
Geneva, IL 60134
(630) 232-1503

Mike Buffington, Superintendent of Electric
mbuffington@geneva.il.us

DOE REPORT REVEALS ILLINOIS MUNICIPAL ELECTRIC RATES LOWEST IN STATE
From the Illinois Municipal Utilities Association Newsletter January/February 2001

According to information released by the Energy Information Administration of the U.S. Department of Energy, consumers of Illinois municipal electric systems pay significantly less for electricity than Illinois residents served by investor owned companies or electric cooperatives. Illinois municipal residential and commercial electric rates are also lower than the national averages for other municipal electric systems. The data was taken from information supplied by each utility annually to DOE and the most recent comparison is based upon 1999 data.

On the residential side, the average rate for the forty-one Illinois municipal electric utilities is 7% lower than the national average for municipal electric systems. However, the average residential rate for Illinois' nine investor-owned utilities was 30% higher than their Illinois municipal counterparts, while the average residential rate for Illinois' 26 electric cooperatives was 49% higher than the average Illinois municipal electric system's rates. Based upon these figures, an average residential consumer served by an Illinois municipal electric system would pay $252 less than an investor-owned consumer and $396 less than a member of an Illinois electric cooperative, annually.

Data obtained regarding commercial use followed a similar pattern. Illinois municipal electric systems commercial rates were lower than the national average for municipal systems as well as Illinois investor owned utilities and cooperatives. Average commercial, electric rates for Illinois municipal systems were 11 % lower than the national average for municipal electric systems. Illinois investor-owned systems were 19% higher and Illinois electric cooperatives were 48% higher than the average commercial rate of Illinois municipal electric systems. Average annual savings for commercial municipal electric consumers in Illinois were $120 compared to investor-owned consumers and $360 when compared to Illinois electric cooperative consumers.

Average industrial rates for Illinois municipal electric systems were about 10% higher than the national average, but compared very favorably with Illinois investor-owned and cooperative rates. Average industrial rates for Illinois municipal electric utilities were 4% higher than investor-owned rates and 1.9% higher than cooperatives.

Among Illinois systems, municipals dominated the top of the list for lowest rates. Honors for the lowest residential rate reported went to Geneva, whose rate was 4.4 cents/kwhr. Springfield came in at 5.9 cents/kwhr, followed by Red Bud at 5.9 cents/kwhr. Peru had the lowest commercial rate at 3.1 cents/kwhr, followed by Batavia at 3.3 cents/kwhr and Geneva at 4.4 cents/kwhr. Union Electric Company reported the lowest industrial rate at 2.8 cents/kwhr, followed by Naperville at 3.8 cents/kwhr, and CILCO at 3.9 cents/kwhr.

"Analysis of this data reveals the benefits enjoyed by the consumers of municipal electric systems and the emphasis given to delivering an affordably priced commodity by those who operate our systems," stated Dale Kuhn, executive director of the IMUA. Kuhn added, "Municipal utility systems are well-positioned for the future and the advantages of public power delivery are certainly becoming evident as our nation's energy industry makes the transition to a competitive environment."

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