An analysis of a 1.8 million annual kWh client in illinois
Chicago, IL | Full Service Hotel Example
This is an ACTUAL example of one of our friends in the hotel business who was kind enough to allow us to analyze their ComEd invoices since they acquired the property 28 months ago. At the beginning of June, 2021, we conducted a weighted average rate analysis and the rates weren’t bad. Our plan was to monitor the invoices month-to-month and see if the market would take a dip.
Since then (ie: June, 2021—Current), the rate per kWh has been consistently over 5 cents with a new high of 8.5 cents per kWh that we saw on their October, 2021 invoice. We’re not too surprised because the Natural Gas (NG) Futures market has been climbing through the roof since June, 2021. It’s been one variable after another on why the market has continued to climb. Even when the market shows a small dip, it takes another big spike shortly after. The extended heat/Summer like weather we experienced combined with natural disasters like Hurricane Ida do not help the situation.
Back in June, 2021, offers to lock in at 4.6 cents per kWh were available, which would have definitely saved some money for our friends the last 4 months, but we never know if & when the market decides to come back down to where those variable 3 cent rates are possible.
Present day, offers to lock in around 5.4 cents per kWh are available. If you were the hotelier, what would you do? Do you think prices are going to go back down, where the 5.4 cents would be considered a premium? Do you think prices are going to continue to remain high and maybe increase further where the 5.4 cents would be considered a discount? We welcome to hear your thoughts on where the energy industry is going.
DISCLAIMER: The above mentioned rates are described as “All In/Fixed” rates (aka Full Requirements Rate) that are used for apples-to-apples comparisons for ComEd Commercial electric accounts on the 100 kW—400 kW Commercial Hourly Load. These rates are inclusive of Capacity, Transmission, and all the line items that add up to your TOTAL COST for Electricity Supply Services. The above mentioned rates DO NOT include Distribution costs and taxes.
