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House Bill 14: Setting the Record Straight
Wednesday, Mar 23, 2011 - Posted by Advertising Department [The following is a paid advertisement.] Myth: HB14 allows Illinois utilities to automatically raise rates every year. Fact: That is not the case. Under HB14, utilities are required to submit to more frequent oversight (annual) and still are subject to stakeholder challenge and ICC prudence reviews over 8 ½ months. Myth: HB14 eliminates much of the oversight currently provided by the ICC. Fact: HB14 actually strengthens oversight because it makes the regulatory process a more frequent annual process that is transparent, allows discovery, holds utilities accountable for every dollar they invest and jobs they create. The ICC retains responsibility for reviewing utilities’ costs and setting rates. Myth: HB14 provides utilities with higher-than-needed profits. Fact: Under the Public Utilities Act, utilities are allowed to earn a reasonable rate of return. This is done through determining a return on the equity invested (ROE) for the utility. This rate has varied from rate case to rate case. This proposal only changes the way the ROE is set and is consistent with past ICC approved ROEs. Utilities still must establish that they managed work prudently at reasonable cost and stakeholder challenge and ICC prudence reviews remain.
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Say NO to Automatic Electric and Natural Gas Rate Increases!
Thursday, Mar 17, 2011 - Posted by Advertising Department [The following is a paid advertisement.] Illinois utility companies are pushing for radical changes that put automatic utility rate hikes into state law. Here’s the TRUTH about the legislation: TRUTH – The bill would eviscerate consumer protection by eliminating traditional rate case reviews and mandating an automatic annual rate increase for all utility expenditures. TRUTH – It would allow ComEd, Ameren, Peoples/North Shore Gas, and Nicor Gas to decide what “modernization” means - allowing utility companies to raise rates to pay for technology investments without regulatory or public review of costs or benefits. TRUTH – It would put Illinois in the unique position of eliminating the ICC’s obligation and duty to balance the interests of consumers with that of utility companies. TRUTH – Their promised investments are not significant over a 5-10 year period, are not clearly identified, have no enforceable performance standards, and no penalties for noncompliance. AARP strongly opposes HB 14 the “Automatic Electric and Natural Gas Rate Increase” bill. Illinois consumers and businesses simply cannot afford guaranteed profits for utility companies and the elimination of long standing and proven regulatory policies! HB14 - The wrong bill at the worst time.
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Building a 21st Century Electric Grid Requires a 21st Century Regulatory System
Thursday, Mar 17, 2011 - Posted by Advertising Department [The following is a paid advertisement.] Most agree that Illinois needs to modernize its electric grid to meet the demands of the digital age. Forty-four states ─ and even Guam ─ have some type of Smart Grid investment program in process. But Illinois is stalled. To stay economically competitive, we must catch up. But grid modernization in Illinois is stalled by an outmoded regulatory process that discourages exactly the kind of long-term, comprehensive planning that’s needed to get modernization done. The Energy Infrastructure Modernization Act (HB 14) proposes a better system for setting utility rates. It provides even more transparency and accountability than current regulation with more frequent regulatory review and new performance metrics to keep utilities accountable. Some have suggested that modifying regulatory oversight is synonymous with reducing regulatory oversight. That’s simply not true. HB14 is not about less regulation it’s about smarter regulation. Every resident and business in Illinois will benefit if lawmakers, regulators, utilities and consumer groups can come together over the next few weeks to develop a policy path that drives modernization of our grid, while protecting consumers as strongly as ever.
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