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AUTOMATIC PAYMENTS: CONVENIENT, BUT COSTLY
Most Associations pay ComEd, Peoples Gas, Nicor, or North Shore Gas through automatic withdrawal payments. While this prevents late fees, it also means the actual bills go unseen. Without regular review, expensive issues slip by unnoticed.
• Supply rates that quietly increase
• Expired supplier contracts that default to high month-to- month “Market Rates”
• Recurring charges that no one verifies because the bill is never opened and reviewed
ELECTRICITY: WHY STAYING WITH COMED AS THE SUPPLIER OFTEN COSTS MORE
It is a common misconception that ComEd should always remain as the electricity supplier. In reality:
• ComEd does not generate electricity. They only deliver it. The Delivery Charges are the only part of the bill ComEd keeps.
• Supply Charges are passed through to either the Illinois Power Agency (if ComEd is the supplier) or to whichever supplier the Association has chosen.
The cost difference can be significant. ComEd’s Supply Charge increased from 6.6 cents/kWh in 2024 to 10.4 cents/ kWh in May 2026 – a jump of 37%
Meanwhile, many condo Associations often qualify for fixed rate supply contracts that beat ComEd’s rate because:
• Association common areas operate 24/7/365, meaning significant usage occurs during “off peak” hours
• Higher “Off Peak” consumption allows suppliers to offer lower fixed rate than typical commercial accounts.
• Larger Condo Associations that remain with ComEd are actually subsidizing smaller commercial ComEd accounts that use the bulk of their electricity during daytime hours.
It always pays to get quotes. Many Associations save thousands annually simply by comparing supplier rates to ComEd’s posted monthly rate (listed on page 2 of the ComEd bill under “Updates”).
NATURAL GAS: THE SAME OPPORTUNITY TO REDUCE COSTS
Peoples Gas, Nicor and North Shore Gas operate just like ComEd:
• They earn revenue from Delivery Charges, not supply.
• Their gas Supply Charges are simply what they pay for natural gas – no markup
Associations can often secure lower fixed rates from gas suppliers, especially during periods of market volatility.
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THE SILENT BUDGET KILLER: EXPIRED SUPPLIER CONTRACTS
One of the most common – and most expensive – mistakes
An Association signs a favorable supplier contract… The contract ends… No one notices… The account rolls to a month-to-month “Market Rate”, which is frequently higher than the Utilities rate.
This can continue for many months if bills aren’t reviewed.
THE SOLUTION: REGULAR UTILITY BILL AUDITS
To avoid unnecessary overpayments: • Review bills monthly (at least quarterly)
• Compare supply rates to current ComEd or gas utility rates
• Track contract end dates to avoid costly market-based rollover rates
• Request competitive quotes from suppliers annually.
A small amount of oversight can prevent large, recurring losses.
e heard i
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We partner with our clients to provide creative solutions, thought leadership, and industry knowledge based on more than 50 years of experience in the field.
HOWARD DAKOFF
hdakoff@lplegal.com
LAURA MARINELLI
lmarinelli@lplegal.com
cai-illinois.org • 847.301.7505 | 25
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