ComEd is preparing for a major change in the way it buys electricity. An article written by MARY WISNIEWSKI, Business Reporter -Chicago Sun-Times – USA – April 6, 2006.
Under the 1997 Illinois Restructuring Act, intended to move the state to a deregulated market for electricity next year, electric utilities sold most of their power plants, so ComEd and Ameren have to buy electricity they deliver to customers. As part of the transition to a deregulated market, ComEd power costs were cut by 20 percent and frozen through 2006. ComEd will start buying electricity through a reverse auction in September. In a reverse auction, the bidders offer gradually lower prices to supply electricity until a utility’s need is met. Electricity will be purchased in one- and three-year contracts.