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* ComEd has been saying for weeks that they will have enough votes to override Gov. Pat Quinn’s veto of their bill. But this is still somewhat of a surprising admission…
In the midst of the company’s ongoing mea culpa tour of the suburbs over summer power outages, representatives from ComEd met with Des Plaines residents to “clear some of the myths and misconceptions” about the legislation to increase electric rates that Gov. Pat Quinn vetoed last week.
To that end, Mike McMahan, ComEd vice president of smart grid and technology, explained the breakdown of what he described as a $2.6 billion, 10-year plan that designates about $1 billion for infrastructure and about $1.6 billion for the smart grid.
The legislation would cost ComEd customers on average an additional $3 per month, McMahan said Saturday. […]
State Rep. Rosemary Mulligan, who held the community meeting at the Des Plaines Library at which ComEd representatives spoke, said legislators may vote to override the governor’s veto during next month’s veto session.
“More than likely it will pass,” said Mulligan, who voted against the legislation last time in part because of lobbying by her senior constituents, but who said she may vote for the override. “I don’t think this bill was explained well,” said Mulligan, adding that she thought it could benefit the area.
The idea is to override the bill then pass a trailer bill which can be signed into law. But what if that is vetoed as well? Then legislators will have to suck it up and approve the trailer on their own. That’s a whole lot of unpopular votes, man. A whole lot.
* And the company will have to avoid stupid mistakes like this one…
ComEd, of course, put out a statement expressing disappointment in the veto. The company also issued the names and contact numbers of “potential spokespeople who can speak to the benefits” of the bill.
For example, one name on the list was Rep. Kevin McCarthy, D-Orland Park. That’s a logical choice since McCarthy was the House sponsor of the legislation.
Then there was Sen. Don Harmon, D-Oak Park. That was truly a curious choice since Harmon voted against the bill. In fact, he’s been designated as the guy who’s supposed to come up with modifications to the original bill that may make it more palatable to its critics. And he’s made it clear he’s not going to coddle utility interests.
Word was Harmon was none too pleased to learn ComEd listed him as someone available to extol the virtues of a bill he voted against.
Oops.
* An interesting take from a Downstate mayor…
While I understand the importance of efficient energy production and distribution, this bill would make it virtually impossible for municipalities to ask local citizens to contribute to a municipal utility tax, making a difficult fiscal environment even worse.
* And here’s my weekly syndicated newspaper column…
Gov. Pat Quinn recently vetoed a “smart grid” bill that was pushed through the General Assembly this spring by ComEd and Ameren, the two biggest electric utilities in the state.
Politically, this veto was a no-brainer for the populist Quinn. The governor never tires of recounting how he helped start the Citizens Utility Board, and that dovetails nicely with his repeated claims that the utility proposal “locks in” corporate profits.
ComEd’s severe, weather-related outage problems in the Chicago area this summer have seriously hurt the company’s already-damaged image, both in its territory and at the Illinois Statehouse. Add those outages to the possibility of legislative-approved rate hikes and then mix that in with an electorate already inflamed by the income tax hike and the seeming inability of the state government to get its act together, and it’s obvious why this thing never had a chance with Quinn.
That’s not to say there wasn’t an effort to come to an agreement. ComEd did bow to a Quinn demand to insert language allocating $50 million to help seniors and the poor. However, that money was included in the company’s original plan and was only pulled at the last moment during the spring legislative session.
Quinn’s administration and others, including AARP and the attorney general, never really believed that the company was negotiating in good faith this summer. For example, ComEd wants to use a form from the Federal Energy Regulatory Commission to report costs and expenditures instead of continuing to use the Illinois Commerce Commission’s form.
There are only minor differences between the two forms, but the governor’s office and its allies are convinced that ComEd wants the change for nefarious purposes. The company reportedly wants the change because it fears the ICC, which opposes the smart grid bill, will exact its revenge by changing the form.
The company’s opponents say the smart grid stuff is just a ploy to increase profits on other aspects of the company’s business. A statement earlier this year by the chief executive of Exelon, ComEd’s parent corporation, seemed to disparage the smart grid by consigning it to pilot project status. Company officials now say that a recent pilot project was so encouraging that it is firmly behind the technology.
Despite all the political problems, ComEd executives firmly believe they can override the governor’s veto. They have a list of companies that will expand in Illinois if the smart grid program moves ahead and have offered to spend $150 million to prevent outages.
The company claims that it’s close to a three-fifths majority in both the House and Senate. After the veto is overridden, ComEd wants to pass a “trailer bill” to address what it considers to be legitimate concerns by legislators, including Senate President John Cullerton (D-Chicago).
Quinn reportedly will use his bully pulpit and meetings with legislators to prevent an override, in much the same way he blocked passage of the concealed-carry bill earlier this year.
Senate President Pro Tem Don Harmon (D-Oak Park) is in charge of crafting the trailer bill and said he wants a legislative solution, not necessarily a ComEd solution. That’s encouraging. The bill’s two legislative sponsors last spring were far too close to the utility for comfort’s sake. One has a father who lobbies for ComEd, and the other is widely rumored to be planning a career as a lobbyist.
I have supported the smart grid for a very long time. Upgrading our infrastructure gives our businesses a competitive advantage over other states and other countries, and the electric grid is a hugely integral component of our infrastructure.
But I totally understand why people don’t trust ComEd. There’s a good reason why it has to hire a battalion of lobbyists every time it tries to pass a bill. Yet opposition shouldn’t be totally knee-jerk. Denying the company a decent return on its legitimate investments won’t help us move forward.
Harmon needs to wrest control of this process away from both ComEd and grandstanders like Quinn to come up with a bill that’s good for all of Illinois. Everybody should have input, but nobody should dictate the outcome. We need to accept the hard fact that infrastructure improvements aren’t free, but we shouldn’t just be padding corporate bottom lines without specific, hard guarantees that our state will be moved significantly forward.
* Related…
* Bill to raise electric rates may override Gov. Quinn veto: [Rep. Robert Pritchard (R-Hinckley)] said the rate increases are warranted because ComEd is putting $3 billion of its own money into the bill.
* Press Release: New Poll Reveals Illinois Residents Support Strong Lighting and Appliance Efficiency Standards: Voters strongly support the federal government setting minimum energy efficiency standards for various household products with 68 percent in favor for appliances to only 22 percent opposed; and 69 percent in favor for light bulbs to only 25 percent against.
* GridWeek: Reactions to Smart Grid Veto in Illinois
* Editorial: Share cost of smart grid: Instead of seeking to round up four more votes in the Illinois House and five more in the Senate to override Quinn’s veto, the utilities should work to come up with a plan that calls for them to accept a fairer share of the risk inherent in such a large project. It also should reflect the reality that improved infrastructure should be part of any multibillion-dollar upgrade to the system.
* ComEd reps seek to clarify vetoed rate-hike plan
* ComEd officials get an earful at forum: “You’re treating us like Cubs fans,” said James Toler, a resident of the village’s northeast side, analogizing ComEd service to Cubs management: promising to do better each year, but coming up short.
* Elmhurst Aldermen Consider Hiring Outside Expert to Assess Power Grid - Task force, legislators ask for more direction.
* Problem Solver: ComEd bill, service both register zero - South suburban resident says electric company ignored pleas to fix her broken meter
* Power out for several hours after driver hits Aurora pole
* A Marshall Plan to Build a Smart Grid — in China
posted by Rich Miller
Tuesday, Sep 20, 11 @ 2:16 am
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Living up north this hot and stormy summer, the one thing that everyone of every race, creed, color, gender, political persuasion and economic status you met could agree upon is the lousy performance of ComEd.
Folks got knocked out for days at a time, multiple times, with little or no information as to when they’d be back on.
Do you know how angry the owner of a $2 million home in River Forest or Highland Park, who pays tens of thousands a year in property taxes, gets when they can’t turn on the A/C or the lights on a 90 degree night?
A favorable override vote is an invitation to a primary challenger up here.
Comment by wordslinger Tuesday, Sep 20, 11 @ 8:24 am
You gotta be kidding me. One comment?
Comment by Rich Miller Tuesday, Sep 20, 11 @ 10:31 am
What do you expect, Rich? It’s just big money and high-stakes politics that impacts everyone who flips a light on. Can’t compete with a Joe Walsh sideshow or coloring books.
Comment by wordslinger Tuesday, Sep 20, 11 @ 10:33 am
The only way to significantly improve reliability is to bury the power lines, esp. in vulnerable areas. Neither ComEd nor ratepayers want to foot that bill, however. Towns can do it themselves as Schaumburg & a few others have done.
Comment by reformer Tuesday, Sep 20, 11 @ 10:41 am
I just saw Gov Quinn ride by on his horse, Rocinante. I asked him where he was going and he mumbled something about the CUBs. I told him they were playing the Brewers tonite but he kept mumbling something about the Volts. I told Gov Quinn I don’t know that team. Gov Quinn told me he was using GPS (Governor Positioning System) to find his way but that the grid wasn’t smart enough to tell him where to go.
Sad
Comment by dupage dan Tuesday, Sep 20, 11 @ 11:49 am
DuPage Dan: you gotta lay off the sauce at lunchtime…say what?
Rich, I agree with you that this post should have many more comments, but unfortuntely ratepayers realize how this will play out with the GA…it’s hard to go against a monopolistic utility that has deep pockets and the best legal and lobbying talent money can buy…not an excuse for the legislators to cave in to the utilities…I hope Words scenario actually happens for every utility tool in the legislature…why not make it a
re-lection issue in ComEd territory…
Comment by Loop Lady Tuesday, Sep 20, 11 @ 12:48 pm
I’ve got to say after all that has happened and no real significant changes offered by Com Ed that anyone can feasibly explain a change from no to yes. Here is an exercise legislators should try to test the waters on this vote: Find a senior living on social security and explain to them why Com Ed should get an automated rate increase after seniors have had to stomach two years of no increases in their social security cost of living. This is a ridiculous vote and with no other changes and more frustration from voters one has to wonder what could be moving legislators now. Yes I know about the trailer bill but the reductions are minimal and from what I know Com Ed hasn’t even committed to them.
Comment by Dave V Tuesday, Sep 20, 11 @ 8:51 pm
Also I love the Ad Com Ed, who better to propose a regulatory structure than the regulated. Why not get the the incarcerated to build their own prison? They’re smart, they know how they intend to break out, they are the perfect ones to build it to stop break outs. Look, the ICC proposal doesn’t add up on consumer electric bills and yes 1652 does. And yes you can commit to quality measures; you’ve had more predictable revenue than your customers have power.
Comment by Dave V Tuesday, Sep 20, 11 @ 8:58 pm