CUB fights back
Wednesday, Dec 7, 2005 - Posted by Rich Miller
The Citizens Utility Board fights back against ComEd’s media blitz in a Daily Southtown column penned by Cub director Dave Kolata.
It’s no coincidence that former Citizens Utility Board head Martin Cohen, the first consumer advocate ever to be appointed chairman of the Illinois Commerce Commission (ICC), also became the first ICC nominee of any kind ever rejected in our state’s history. ComEd lobbied for his ouster because it wants to rig the game at the ICC in favor of its controversial proposal to buy power through an auction system beginning in 2007.
ComEd’s proposal would lead to higher bills almost immediately while eliminating the power of state regulators to prevent unlimited rate hikes in the future. Rather than talk turkey and confess to these facts, ComEd prefers to play Chicken Little and tell tall tales. ComEd claims that without an auction system, Illinois will sink into a California-like energy quagmire with widespread power outages and a bankrupt utility. These scare tactics are being administered through a multimillion dollar ad campaign financed by ComEd under the name of a front-group known as “CORE.”
The truth is that the state has plenty of power to keep the lights on, and all that talk of ComEd bankruptcy ignores the fact that Exelon’s profits have soared to record highs under the current regulatory system. Moreover, analysts predict that the company will make more money in the future even if ComEd power rates stay frozen through 2010. And, of course, Exelon recently agreed to cut rates by $120 million in Pennsylvania and freeze those rates through the end of the decade.
Consumer groups have said all along that ComEd can have its auction, or any other power-buying system it wants, as long as Illinois regulators retain the authority needed to assure fair rates. Unfortunately, ComEd’s auction is just another way to lift reasonable regulations that have allowed it to earn a healthy profit while protecting consumers.
SEIU and CUB have also teamed up to begin running TV ads.
(Hat tip: Yellow Dog Democrat at Illinoize)
- VanillaMan - Wednesday, Dec 7, 05 @ 9:58 am:
You can only kick businesses for so long before voters start to feel sorry for them. Now that we have a situation where we really should be kicking them, this method is no longer effective.
The public is now open to giving Illinois businesses a break. ComEd/Exelon is going to take advantage of it.
When you have an amateur governor who doesn’t know when to fight a battle and when to keep his shot dry, you end up with a governor who is unable to serve the public since he already shot his wad too often to be effective.
This guy has failed miserably as governor and he can no longer be effective even to his constituents at times like these. Get rid of him.
- Anon - Wednesday, Dec 7, 05 @ 11:05 am:
CUB has never had the interests of the public in general in their agenda. This group is nothing more than power-seeking green wackos (think Ralph Nader) who only exist to foist themselves upon unsuspecting pols and clueless media types.
Their agenda would drive Illinois into a situation very much like what California finds itself in. Is that REALLY what you want, to be “little California”?
While I certainly wouldn’t open the checkbook to outfits like ComEd and Ameren, I’m not surprised that they want a rate increase, considering how long it’s been since one was granted, and how much burden the enviro whackos have placed on making power.
You want to get pissed at someone for making your electricity rates go up, point your finger at Bill Clinton’s EPA. His &@^$ing legacy live on.
- Bill - Wednesday, Dec 7, 05 @ 12:42 pm:
Thanks for your input Obie, we all now you are vanilla man!
- Bill - Wednesday, Dec 7, 05 @ 12:42 pm:
Thanks for your input Obie, we all know you are vanilla man!
- Anon - Wednesday, Dec 7, 05 @ 2:44 pm:
Anon 11:05: What are you talking about? The cost to generate electricity in IL hasn’t moved one bit because of federal EPA standards. Costs have gone up because more natural gas is more scarce today than it was 5 years ago. Why is it more scarce? Because instead of becoming more efficient and using renewable energy, we built a ton of gas fired plants between 1999 and 2002. Now, instead of using gas in the winter for heating and replenishing reserves in the summer, we use it year round. Now it costs more. The “genius of the free market” manifests itself again. Of course, we could have become more energy efficient and built some wind farms but no, ComEd and Ameren (and IP) didn’t want that so here we are in 2005 with high power prices and no recourse. Clinton doesn’t have anything to do with it.
- Sane Jane - Thursday, Dec 8, 05 @ 1:01 am:
Who in their right mind could criticize CUB as “power seeking green wackos”? Anon is apparently a shill for Com Ed or another “public-minded” utility. CUB has ALWAYS had consumers as its first and only interest. The group has saved Illinois ratepayers over $20 billion dollars in its 21-year history. It is the biggest and most successful consumer advocacy group in the State and widely-respected across the country. Their work is beyond repute. Com Ed and Exelon will be just fine without a rate increase from hard-pressed ratepayers. Cop a clue and visit www.citizensutilityboard.org for the real stories on utilities in Illinois. And follow the money for the real scoop on the winners and losers in the power debate.
- Buddy - Thursday, Dec 8, 05 @ 10:45 am:
Don’t be naive. This is Goliath v. Goliath. Any effort backed by AARP and SEIU ceases to be a typical CUB ma ‘n pa operation. Plus, under Kolata (who looks like the twin of Polish boxer Andrew Golata) CUB will say anything. At least Marty Cohen told the truth. Threats of a 37 percent rate increase are a total lie and they know it. I have lost all respect for CUB … and AARP for that matter.