* My weekly syndicated newspaper column digs a bit deeper into the governor’s latest weird move…
Gov. Pat Quinn has been trying to get rid of Illinois Power Agency director Mark Pruitt almost since the day Quinn was sworn into office. He finally did it, but the move is backfiring.
The governor is a big cheerleader for alternative power like wind and solar. But Pruitt, whose main job is negotiating contracts with electricity generators on behalf of consumers, refused to sign some alt energy contracts because they’d cost consumers too much money.
Pruitt’s IPA was created after mega utility ComEd announced that it intended to buy electricity via a weird reverse auction system that was roundly slammed by Attorney General Lisa Madigan and every other reasonable political leader in Illinois. As a result, Pruitt claims to have saved Illinois electricity consumers $1.6 billion since 2007, and he has the numbers to back him up.
The IPA was created by House Speaker Michael Madigan, who to this day lists the creation as one of his greatest accomplishments. Pruitt wasn’t initially Speaker Madigan’s guy, but the speaker grew to respect him and found himself protecting Pruitt against Quinn’s hostility, eventually passing a bill this spring that removed the Power Agency from Quinn’s direct control. Quinn, in a move he’ll likely regret, vetoed Madigan’s proposal this summer.
Pruitt is most certainly an egghead, not an administrator. He initially tried to run the IPA by himself, which resulted in an embarrassing report by the Illinois auditor general. And although the Quinn administration denies it, word from inside is that the governor has blocked Pruitt from hiring staff, and Quinn has repeatedly taken money from Pruitt’s special fund to shore up the rest of the state budget. That turmoil is mainly why Speaker Madigan finally stepped in and attempted to insulate the power agency from Quinn’s meddling.
Back in June, Quinn tried to replace Pruitt with a lawyer who works for the attorney general’s office. The Senate Democrats decided that the lawyer didn’t meet the state law’s job requirements and quietly demanded that his name be withdrawn.
Quinn’s people still insist that the man was qualified. But they also claim, in a bizarre bit of pique, that he was actually pressured into withdrawing by the attorney general. The attorney general’s office flatly denies this allegation.
The governor’s folks say they asked Speaker Madigan for names to replace Pruitt but heard nothing back. That’s not surprising since Pruitt is Madigan’s guy.
Quinn finally ousted Pruitt last week and replaced him with Arlene Juracek, a retired ComEd executive. Juracek actually testified on behalf of the much-ridiculed reverse auction and admits to owning Exelon stock, but she won’t say how much.
Exelon, ComEd’s parent company, will be on the other side of the table when Juracek negotiates power prices. The Quinn people say the job requirements are so strict that they had little choice but to name Juracek to the post. Plus, they say, the Illinois Commerce Commission can veto any unfavorable deals Juracek might negotiate with her former parent company, which is cold comfort to the attorney general.
The bottom line here is that the governor has made a move that would’ve caused a gigantic uproar if Rod Blagojevich had done the same thing. Just imagine the hostile reaction if Blagojevich had appointed a ComEd retiree who still owns shares of her former parent company’s stock as the point person for negotiating power prices with that very company.
And below that bottom line is an even bigger problem. The governor has angered both the House speaker and the attorney general just weeks before the start of the fall veto session which was already looking like a disaster for Quinn as members prepare to override or reject almost all of his vetoes.
It’s not certain yet that Juracek’s nomination is doomed, but it is sure starting to look that way. The governor spent last week flying around to various downstate media markets to gin up public support for his veto of ComEd’s “Smart Grid” bill. How he can bash ComEd on the one hand and hire a ComEd veteran to negotiate electricity prices on the other is more than a bit beyond me.
* The Belleville News Democrat is also puzzled…
Remember the dark days of 2007 when electric rates doubled and tripled because the power companies had been deregulated and they were buying high-priced power from themselves through a reverse auction? Juracek and the utilities loved the reverse auction idea. Obviously.
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The power agency was set up as an alternative to the reverse auctions, and Pruitt has done a great job for consumers, saving them an estimated $1.6 billion since 2009. We don’t understand why Quinn would replace him at all, but especially with someone who spent her career with ComEd.
Fortunately, the Senate will have to confirm Juracek. Let’s hope the senators have better sense than Quinn and say no to this appointment.
* Quinn explains…
During the news conference, Quinn praised Juracek as his appointment to head the agency, despite criticism from Attorney General Lisa Madigan — who is often a supporter of the governor’s — that Juracek’s role in the 2006 electricity auction played a part in the considerable jump in the utility rates consumers pay.
“I’ve happened to know Arlene for some time. She’s worked with the utility company. We didn’t always agree, but she was prepared and knew the subjects backwards and forwards,” Quinn said. “I think it’s very good to have someone who is well-versed in the area of power procurement to represent the people of Illinois, the governments of Illinois and to get the best deal we can.”
Quinn said Juracek’s experience played a role in her appointment. State law, Quinn said, requires someone with 15 years of utility experience to take over the IPA’s top position.
In other words, despite Quinn’s longtime challenges to the utility industry as both governor and citizens advocate (his efforts helped form the Citizens Utility Board in 1983), he had to pull from the “other” side for this one.
* Related…
* Utilities gave legislators $1.3 million in push for ‘Smart Grid’ bill
* Smart meters the future; get apps ready
* All ComEd bill provides is checkbook pain: He claims SB1652 does not guarantee utility profits. Read the bill: Page 82 clearly states that utility profits are tied to an automatic formula that is based on 30-year Treasury bonds. As bonds increase, so will ComEd and Ameren’s profits. Furthermore, Pages 84 to 86 state that year after year, ComEd and Ameren are guaranteed that their profit margins cannot fall below half a percentage point under what was reported the previous year. Mr. Romero also says that SB1652 includes consumer protections like a 2.5 percent cap. The reality, as stated in Pages 72-74 and 101-102, is that rate cap only applies for three of the bill’s 10 years, and that the so-called cap actually masks continuous increases in the delivery rates.
* Quinn looks to public to fight smart grid plan
- wordslinger - Tuesday, Oct 11, 11 @ 10:06 am:
Power politics in Illinois are just that. There’s more money at stake and intrigue then you’d find in the House of Borgia.
–Pruitt claims to have saved Illinois electricity consumers $1.6 billion since 2007, and he has the numbers to back him up.–
That’s a lot of money. The fact that ComEd just tried to grab it off the table is a big reason why no one will trust them on anything.
- BigDoggie - Tuesday, Oct 11, 11 @ 10:08 am:
Given the timing, after reading this article a tough question jumped into my head: Who is worse at their job - Pat Quinn or Jerry Angelo? The next thought I had was that at least I can tune out the Bears and root on the Fighting Illini or the Blackhawks instead. I only wish I had a similar option to deal with Pat Quinn’s impact on my life.
- Plutocrat03 - Tuesday, Oct 11, 11 @ 10:15 am:
One of the problems of alternative energy sources is that the costs are significantly higher than from conventional sources.
It seems odd that it is OK to hammer conventional energy providers on the basis of cost, but to be wiling to pay a lot more for so called alternative energy.
The consumer deserves a dependable supply of energy at reasonable prices, regardless of where the energy itself comes from.
Quinn’s behavior seems to be getting more erratic daily. I can’t seem to gsee where he is going. Populist….machine hack….. confused?
- Loop Lady - Tuesday, Oct 11, 11 @ 10:19 am:
I am confused on so many levels…if Quinn is not in charge of the IPA, how can he name a new Director? Methinks that there is alot going on behind the scenes here…the only plausible explanation I can come up with is that the overide of 1652 is going badly for ComEd and Ameren and that Quinn threw a bone to the utilities in exchange for giving up their fight for the overide…additionally, IPA does not act without the input of other governmental agencies including the ICC, so even if the Director is in the utilities pocket, she will not act unilaterally…Quinn is either really smart, or really dim…
- walkinfool - Tuesday, Oct 11, 11 @ 10:29 am:
Rich: Great column! It gives me a headache. Is it that Quinn is trying to push alternative energy sources as a long-term investment, and Pruitt wouldn’t go along? Is it a slap at the Senate who wouldn’t accept his first nominee on technical qualfications grounds? Is it push back at both Madigans — with different reasons for each? Has Quinn completely abandoned his long-established push for consumer protection with power companies?
I just happen to know Juracek as an honest, courageous and talented person away from the power industry arena. Does her previous employment automatically disqualify her from our trust? One shortcoming in the political world is that appearance usually trumps reality.
- just checking - Tuesday, Oct 11, 11 @ 10:35 am:
Will the Senate ask Juracek how much Exelon stock she owns? How much it was worth before the reverse auction? how much it’s worth now?
And does any clever person have the time to ask the google how much Exelon and ComEd execs have given to Senate members over the last four years? And does anybody think those donations will have an impact on a confirmation vote?
- JustaJoe - Tuesday, Oct 11, 11 @ 10:38 am:
Is this the kind of “fumigating” Quinn campaigned on? Is Quinn still for consumers or is he captured by the agenda to “push” alternative energy? Alternative energy WILL happen, but it will happen when market forces (not the government) make it happen.
- JBilla - Tuesday, Oct 11, 11 @ 10:42 am:
This is hard to understand.
- Rich Miller - Tuesday, Oct 11, 11 @ 10:47 am:
JBilla, yes, it’s a little difficult. Try harder.
- Kerfuffle - Tuesday, Oct 11, 11 @ 11:09 am:
Quinn’s uncanny ability to produce self inflicted wounds is nothing short of astounding. When he gets up in the morning and thinks of his list of enemies he can find the worse one staring back at him in the mirror.
- Anonymous - Tuesday, Oct 11, 11 @ 11:21 am:
==Does her previous employment automatically disqualify her from our trust?==
Yes, it does.
- dave - Tuesday, Oct 11, 11 @ 11:25 am:
**if Quinn is not in charge of the IPA, how can he name a new Director?**
Quinn vetoed the bill, so he is still in charge.
- Joe from Joliet - Tuesday, Oct 11, 11 @ 11:25 am:
== Quinn’s behavior…getting more erratic ==
Who’s next? Stooie Levine for the IL State Board of Pharmacy?
- mokenavince - Tuesday, Oct 11, 11 @ 11:37 am:
Lets hope their’s enough votes to override any thing Quinn vetos. 3 years to go and counting.
- Loop Lady - Tuesday, Oct 11, 11 @ 11:46 am:
mokenvince: Quinn is right about the veto of 1652…stay tuned everyone…
- Aldyth - Tuesday, Oct 11, 11 @ 11:51 am:
Quinn doesn’t seem able to plan more than one step ahead on the chessboard. He doesn’t see where his current move is taking him. He’s always three steps away from checkmate.
How in the world did he work his way across the political chessboard and end up as governor?
- carbaby - Tuesday, Oct 11, 11 @ 2:00 pm:
Though I do not believe that Quinn is particularly strategic or bright, he could opine that since she has the inside track and relationships with ComEd, in particular the people, that somehow that knowledge and those relationships would be key to any negotiations. However, there is too much money and influence at stake here. No matter how much I would think this may be in theory a good strategy, would I even consider implementing it for the very reasons everyone has stated over and over. This would be something one would do for a trusted friend/confidant- though given what is at stake, there is no one that I could trust that much. But that’s me- I actually take my word and reputation very seriously. Apparently many others do not. The appearance of impropriety often equates the reality of impropriety- in people’s minds.
- Anon 312 - Tuesday, Oct 11, 11 @ 3:40 pm:
“State law, Quinn said, requires someone with 15 years of utility experience to take over the IPA’s top position.”
Umm, no it doesn’t governor. Not even close. This thing is downright bizarre. If Pat Quinn believes 15 years of industry experience (see below) is the same as 15 years of utility experience, it kind of makes me wonder just what does the governor actually know about this stuff? Answer: not much.
(20 ILCS 5/5‑222)
Sec. 5‑222. Director of the Illinois Power Agency. The Director of the Illinois Power Agency must have at least 15 years of combined experience in the electric industry, electricity policy, or electricity markets and must possess: (i) general knowledge of the responsibilities of being a director, (ii) managerial experience, and (iii) an advanced degree in economics, risk management, law, business, engineering, or a related field.
(Source: P.A. 95‑481, eff. 8‑28‑07.)
- Lincoln's Penny - Tuesday, Oct 11, 11 @ 4:33 pm:
anon312, you have to keep in mind that its really up to Cullerton whether or not someone meets the requirement. If he likes them they generally do, if he doesn’t then he gets the parliamentarian to rule that they don’t.
We will see soon enough with Juracek.
- So IL Varmint - Tuesday, Oct 11, 11 @ 8:15 pm:
What’s wrong with putting a former big electric exec, who has stock in the electric company, in charge of negotiating electric rates? come on, its time we all pay more for power, those former politicians have 3rd houses to pay off