Setting the Record Straight on Energy Costs and Utility Customer Value
Rising energy costs are affecting families and businesses across the country, and it’s easy to look for someone to blame. We understand the frustration. However, the recent RealClearEnergy opinion piece, “Utility Monopolies Are Driving Up Your Electric Bill,” misrepresents the facts, while overlooking the actual work utilities such as those in the Exelon family of companies are doing to support customers.
Our six regulated utilities serve 10.7 million customers across five states and D.C., maintaining a safe and reliable grid under state oversight. While Exelon doesn’t generate electricity or profit from supply costs, we’re committed to standing with customers and serving as a connected partner in solving consumer affordability challenges. Supply costs, driven by global fuel trends, weather, and demand, have increased 64% this year, according to the PJM Independent Market Monitor. Although we don’t control these costs, that doesn’t mean we cannot act.
This summer, Exelon launched a $50 million shareholder-funded Customer Relief Fund, providing residential customers with one-time grants of $300 to $750. This is supplemental to expanding energy efficiency programs, offering flexible payment plans, and continuing to connect customers to additional assistance.
We are also undertaking an extensive grid modernization effort to replace aging equipment. According to the U.S. Department of Energy’s Grid Deployment Office, aging grid infrastructure is struggling to meet modern electricity needs, with 70% of transmission lines approaching the end of their typical 50 to 80-year lifecycle. Exelon is completing critical transmission upgrades that boost reliability and connect directly into the investments we’re making in storm-hardening the grid, resulting in decreased outages and the length of outages in the face of increasing storm activity. We’re also continuing to modernize cyber assets, protecting networks and infrastructure from tomorrow’s digital threats.
All our upgrades directly benefit the customers of today and help prepare the grid for the future needs of our communities.
We’re proud to provide our customers with service that rivals any in the country, as all of our operating companies have delivered solid reliability performance, achieving top decile and top quartile results. BGE, referenced in the article and in the top quartile, has a plan for projects that will continue to match the pace of the energy demands of its 1.3 million customers in central Maryland. However, the project mentioned in the article is not yet in service and not reflected in customer rates.
The author’s views do not acknowledge the reality of how regulated utilities operate. Our rates are publicly reviewed and debated, our investments thoroughly scrutinized, and our performance regularly measured. We are accountable to regulators, lawmakers, and most importantly, our customers.
Local, state, and federal officials function as both our strongest allies and toughest critics, because collaboration is critical to delivering the energy security and relief our customers deserve. We’re pursuing regulated generation and solutions like Distributed Energy Resources in our communities to ensure customers have the certainty, control, and benefits they deserve from their energy supply. As the current system is not delivering sufficient energy supply, we’re offering to help build one that works for all customers.
Inflammatory and misleading rhetoric shifts focus from the critical matter at hand. Affordability is an issue facing everyone and something we should partner on together. While ready and willing to work with everyone, Exelon will continue to keep our customers and communities at the forefront of everything we do.
Mike Innocenzo is Executive Vice President and COO at Exelon.