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*** UPDATE 1 *** HB3036, the “Smart Grid” trailer bill just passed the House 91-24 without debate. The bill now goes to the governor.
*** UPDATE 2 *** Apparently, some House members didn’t realize what they were voting on because several have risen in the past few minutes to ask that the journal be changed to reflect a “No” vote.
Sheesh.
*** UPDATE 3 *** From Nicole Wilson…
Senator Jacobs holds off on calling Smart Grid Bill for override despite the fact that he says he has the votes to restore.
* The Sun-Times editorialized against the “Smart Grid” trailer bill today…
Quinn, Illinois Attorney General Lisa Madigan, the Illinois Commerce Commission, the Citizens Utility Board, AARP and other critics say the bill would set ComEd profits at about 10 percent and could go higher.
But there is no comparable guarantee for ratepayers. A provision that their total bills won’t go up more than 2.5 percent lasts only two years.
ComEd and its Downstate counterpart, Ameren, have been fighting hard for this bill. ComEd argues that the new system outlined in the legislation would encourage the utility to invest in a better electrical system instead of just trying to keep its existing system running. And ComEd officials emphasize that they will be required to meet performance measures to get their full profits, though critics say the measures will be so easy to meet they are virtually worthless.
* The Tribune editorialized for it…
We viewed this legislation with skepticism, and only now embrace it. We thought the formula for return on equity was too rich in favor of the utilities. With Tuesday’s trailer bill, it’s whittled down to a more reasonable level. We thought the requirements for hardening the grid against future storm outages were inadequate. The trailer bill addresses that too. ComEd even revived a good idea for a fund to cushion the impact of higher rates on the elderly and poor. As the legislation underwent a rigorous review, it got better. That’s how the legislative process is supposed to work.
If ComEd and Ameren do manage to pass this legislation, they take on a very significant commitment. The bill requires them to bring the state’s power system into the 21st century. But like all bills, it provides only a framework. The success or failure of the new law will come down to how the utilities implement it. They need to maximize the benefit to their customers. They need to deliver on the many important promises they’ve made. All of us will need to hold them accountable.
* My own opinion is the governor should’ve been far more involved in the process and tried to cut the best deal possible for consumers, without all the demagoguery…
The Illinois Senate torpedoed what had been the governor’s No. 1 priority in the fall veto session, voting 37-10 to approve legislation sought by Commonwealth Edison that was part of a $2.6 billion rate-increase package.
The margin signals that senators have the votes to override Quinn’s veto of the main package.Shortly before Tuesday’s vote, the governor appeared before reporters, churning out sound bite after sound bite in a furious tirade against the utility company and rank-and-file legislators who pocketed its campaign contributions.
“There’s no way to put perfume on this skunk, and that’s what it is,” the governor said, referring to the legislation sponsored by Sen. Don Harmon (D-Oak Park) that won Senate backing a short time later.
The governor derided ComEd’s so-called “smart-grid” legislation as a “smart-greed” bill and condemned “legislators with three loaves of bread under each arm, all the campaign donations they’ve gotten from the utility companies.”
“It’s harmful to the public and the public interest,” the governor said.
* More…
The governor said Illinois utility companies including ComEd are trying to ram the so-called Smart Grid Bill down the throats of rate payers. He accused the companies of using lobbyists and money to convince a majority of state lawmakers to vote yes.
“We have some legislators who have three loaves of bread under each arm, all the campaign donations they’ve got the public interest,” Gov. Quinn said.
* The House sponsor of the original ComEd bill was not amused…
State Rep. Kevin McCarthy, D-Orlando Park, who is shepherding SmartGrid through the House, said Quinn is coming close to insulting lawmakers with his talk of loaves and campaign donations.
“Trying to imply that because a person got a contribution that that’s going to stop and make them (change their vote), that shouldn’t be in the discourse,” said McCarthy.
* Neither was the trailer bill’s Senate sponsor…
“There is nothing in this trailer bill that is controversial or bad for consumers,” countered Sen. Don Harmon, D-Oak Park, who sponsored the measure.
* Gov. Quinn’s presser…
* Related…
* VIDEO: AARP rally
* VIDEO: AFL-CIO to lawmakers: Grid Modernization all about jobs
* Lawmakers look for ways around Quinn’s opposition
* Marin: ‘99 percent’ out of luck in Springfield
* Illinois State Senate Approves New Smart Grid Bill
posted by Rich Miller
Wednesday, Oct 26, 11 @ 11:20 am
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Harmon clearly isn’t concerned with the back lash that consumers will inflict upon him with votes at the poles. This action is clearly misguided considering his newly redrawn distric.
Comment by palatine Wednesday, Oct 26, 11 @ 11:28 am
–“Trying to imply that because a person got a contribution that that’s going to stop and make them (change their vote), that shouldn’t be in the discourse,” said McCarthy.–
I’m sure ComEd has been tossing around those benjamins in the interest of good government.
Comment by wordslinger Wednesday, Oct 26, 11 @ 11:30 am
Maybe Quinn could use the same tactics he used to raise taxes buy off some Reps and senators with the promise of a state appointment that pays far more. I see we had another of those come to light today.
Comment by fed uo Wednesday, Oct 26, 11 @ 11:35 am
Interesting that the Tribune wound up in favor. Perhaps the business community wants a more reliable grid?
Have the utilities established a timeline for when modernization will be completed? If an outage like the one last summer happens again, it will be a big issue.
Comment by Boone Logan Square Wednesday, Oct 26, 11 @ 11:36 am
So will Quinn now veto the trailer bill? When does the ga get to override that veto? What is the process here?
Comment by Anon Wednesday, Oct 26, 11 @ 11:49 am
==“We have legislators with three loaves of bread under each arm, all the campaign donations they’ve gotten from the utility companies,” Quinn declared. “It’s harmful to the public and the public interest.”
While many of us happen to agree with the governor on that, it’s also impossible not to remember all the loaves of bread under the governor’s arm from big labor unions in the last election.== …Carol Marin 10/25/11
She also called it a “press conference to condemn moneychangers.” Demagoguery by the governor, indeed. Thank you Carol for pointing it out.
Comment by Responsa Wednesday, Oct 26, 11 @ 11:50 am
“Shouldn’t be in the discourse”
Are you farkin kidding me? To say that campaign contributions and their impact don’t need to be discussed is just revolting. No wonder the Tea Party and Occupiers are going berzerk about the state of politics and corporate control.
Comment by Senator Clay Davis Wednesday, Oct 26, 11 @ 11:52 am
–Apparently, some House members didn’t realize what they were voting on because several have risen in the past few minutes to ask that the journal be changed to reflect a “No” vote.–
You can’t make that stuff up. What did they think they were voting on, lunch?
For the record, I’ve always been in favor of lunch.
Comment by wordslinger Wednesday, Oct 26, 11 @ 11:56 am
Don’t agree with Quinn on much, but the vote to override is bad for Illinois and consumers.
Comment by Louie Wednesday, Oct 26, 11 @ 12:00 pm
Worrisome that legislators did not know what they were voting on. Very worrisome.
Comment by Lil' Enchilada Wednesday, Oct 26, 11 @ 12:02 pm
==Worrisome that legislators did not know what they were voting on==
Heh. Maybe the legislature needs to institute a version of that “human microphone” thing the Occupiers are using.
Comment by Responsa Wednesday, Oct 26, 11 @ 12:15 pm
Honest question:
How can we tell the difference between when Quinn is serious and when he’s just spouting BS for political reasons? I can’t tell if he *actually* believes the bill is bad for consumers, or if he’s just holding out for some little thing (perhaps some ComEd contributions for *him*?).
Comment by Chris Wednesday, Oct 26, 11 @ 12:33 pm
Priceless, Word.
On another thought, can you make loaves of bread with Soy?
Comment by Cincinnatus Wednesday, Oct 26, 11 @ 12:57 pm
Those that think it is guaranteed profits for ComEd and Ameren simply don’t understand the unusual nature of the relationship between a PUC (ICC) and an IOU (Ameren and ComEd). Unfortunately the ICC prevents Ameren and ComEd from making the improvements that other states have been making for years. The ROE in this bill is more than reasonable (less than most all state PUC’s grant IOU’s for the last 5 years), the performance metrics are fantastic for consumers (less outages and shorter outages), the jobs are great for those I know that need work, the $60 million in customer assistance programs is great for the ederly, armed forces, and low-income, and the end result is my power cost likely comes down through a Smart Grid - albeit it will go up by about 28 cents a month for a few years while the infrastructure is put in place. Quinn thinks he can just push us around and the more we let him think it the more he will keep trying to do it. If you are really thinking he cares about your 28 cents per month, ask yourself how much the 66% increase in your state income tax is costing you - and you get no increased electric service or increased jobs for that.
Comment by Suz Wednesday, Oct 26, 11 @ 12:57 pm
Lol. “The icc stops them from making investments like other states.” You don’t know much, do you Suz? Their capital never get thrown out. N
Comment by sad Wednesday, Oct 26, 11 @ 1:20 pm
Don’t be “sad”, be happy if we can move into the 21st century with our quality of service. True,I don’t know much about Blagojevich and Quinn Chicago behind the scenes politics, but I do know that the ICC has held a contentious position against Ameren and grid improvements for some time and, yes, absolutely does prevent Illinois residents from enjoying improved service outside of “least cost to repair” when it comes to broken equipment. i.e. fallen light poles. Those are just the facts, I expect Quinn’s buddies to continue to back him. It’s everybody outside of that select, protected crowd that has to work hard to not be played by his slanted statements and understand if you live here, you want the jobs, the better service, and leaders that can look beyond 28 cents per month towards the future.
Comment by Suz Wednesday, Oct 26, 11 @ 1:44 pm
Kevin lecturing Quinn on appropriate discourse is awfully funny.
I bet Rod would really get a kick out of that.
Comment by Bill Wednesday, Oct 26, 11 @ 1:55 pm
The floor was half empty when the vote was called on the trailer bill. A lot of members had their switches voted yes when they wanted to vote no — that’s why they had the record changed.
Comment by Anonymous Wednesday, Oct 26, 11 @ 2:00 pm
Looks like we’ve got some ComEd trolls here. 28 cents per month? umm, no. Try $3/month the first year, $6/month the second, $9/month the third and no rate caps after that. At least those are the numbers from the bill. The numbers from Suz? No clue.
Comment by Anonymous Wednesday, Oct 26, 11 @ 2:02 pm
==A lot of members had their switches voted yes==
Maybe. Or maybe they were told to pass the bill and then some targets were allowed to pull off for their own protection. Whatever. If the voting public figures out that the GA voted to raise their electric bills at the same time they were voting to throw money at billionaire corporations some of those newly drawn districts might not seem so safe anymore.
Comment by Bill Wednesday, Oct 26, 11 @ 2:43 pm
I have always considered it scandalous that these legislators often are not present on the floor, and they have someone else push the voting button for them. The one thing we elect them to do, they can’t be bothered to be present and do themselves. I would roll call every such vote and more to censure any legislator who was too lazy to show up and do their own work. it would be nice if the TV stations covering these votes ever showed the shenanigans that happen on the floor at voting time, obviously, if they ever do, that’s the last time they’ll be permitted in the gallery.
Comment by Newsclown Wednesday, Oct 26, 11 @ 3:10 pm
No ComEd troll here. My bill gets paid to Ameren….just one of those simple minded down state folks that the Governor is trying to bully, while he rips money out of our pockets and misleads the public on his anti-jobs and anti-infrastructure improvement tour. $3.40 per year (what avg Ameren residential elect bill will go up) is about $.28333 per month. I rounded to 28 cents. The $3.40 is a number already proven and agreed based on the factual avg of the residential bills. I certainly wasn’t trying to mislead anyone. I don’t think rounding up to 29 cents would have materially changed the point.
Newsclown - I totally agree with you on the roll call point. We are talking about the bare minimum level of performance for getting elected - being there to cast a vote.
Comment by Suz Wednesday, Oct 26, 11 @ 3:30 pm
Has anyone asked legislators who voted “yes” on the ComEd bill (the trailor or the override) if they have stock in Exelon? Seems like a conflict of interest if you ask me.
Comment by Just askin' Wednesday, Oct 26, 11 @ 4:21 pm
Oh. So you are an Ameren troll.
Comment by sad Wednesday, Oct 26, 11 @ 4:33 pm
Still “sad”, I’ve never really viewed “troll” and “customer” as synonomous, but if you do, that is up to you. I don’t work for Ameren, not related to anyone that works for Ameren and don’t look forward to writing checks to them every month either. However, I really don’t like Blagojevich and Quinn’s Chicago style politics misleading and bullying everyone and expecting them to believe what they say. The truth is we can use jobs, we sure can use more reliable service, and many folks can use the customer assistance programs and all these are 100% guaranteed to happen with this bill, along with the future ability to lower our cost with the Smart Grid. The Smart Grid, despite what Quinn misleads and says, is very proven in many other states where their respective PUC (also establishes an ROE - as do all even though Quinn would have you believe this is a crazy, unique feature of 1652) is supportive of infrastructure and distribution level improvements.
Comment by Suz Wednesday, Oct 26, 11 @ 4:49 pm
Yes, since she disagrees with you it’s obvious she must be a troll….
How dare anyone disagree with Pat,
like the several of those unions who are in favor.
trolls, the lot of you, trolls…
Pat Quinn has changed a lot in 20 years but that anti-utility populist still lives…..
Comment by OneMan Wednesday, Oct 26, 11 @ 4:54 pm
the fight goes on…
Comment by Lincoln's Penny Wednesday, Oct 26, 11 @ 6:58 pm
What? Aren’t businesses supposed to take THEIR profits to reinvest in themselves without relying on taxpayers. Help me please if I am misguided here.
Comment by Anonymous Wednesday, Oct 26, 11 @ 11:43 pm
Let’s remember that the $3.40 per year is a utility estimate. No one knows for sure the rate impact
Comment by Smart greed Thursday, Oct 27, 11 @ 12:00 am
It is a capital intensive service business with a very unique business model. For example, if Dell were to put together a state of the art performing PC that costs an extra $30 to make, the customers receiving that PC would pay for that investment and improvement. Dell can raise the rate of that PC with no question. Ameren and ComEd must ask permission from the PUC (ICC) in order to have their customers pay for their new and improved investment. In many states, this model works fine and to a reasonable 10-10.5% ROE avg over the last 5 years….that ROE dictated by the PUC in those respective states and in those cases the states’ residents receive better service and improved infrastructure. This bill current ROE is very reasonable around 9%. Furthermore, this isn’t a crazy and unique concept. The Transmission side of the business has long enjoyed improved infrastructure and better technology, and a lower overall cost basis because the proposed 1652 formula rate base model is used there, with FERC as the oversight agency, and has been successfully for many years. Unfortunately, in Illinois, the PUC (ICC) has a very anti-service improvement view as it pertains to Ameren, so those customers and residents continue to suffer, year over year. Nothing can be done by the utility outside of “least cost to repair”, which means if something breaks fix it but don’t make it better. Also, unfortunately, the ICC’s anti-service improvement attitude cannot be adjusted because the Governor protects their appointed positions…sort of like the fox guarding the hen house. This is why he is so against it… he knows he doesn’t need any downstate votes - all he needs is his Chicago buddies to vote for him - so he has no problem watching the service infrastructure deteriorate in the down state. We all know that it is a joke that he acts as though he cares about our money, as he clearly showed in trying his best to drive out major employers by increasing the state income tax 66% and ripping food off of every day folks tables. At the end of the day, we can’t be played for the fools he has us out to be. We need jobs, we need better service, and we need the leaders to help get that done. We understand that our vote doesn’t matter to Quinn, but it doesn’t mean our vote doesn’t matter to our representatives that need to look after our level of service, our jobs, and our future well being.
“Smart” - you are correct that is the Ameren, not ComEd, avg residential utility bill. So those are Ameren’s fact based numbers, not ComEd’s.
Comment by Suz Thursday, Oct 27, 11 @ 9:23 am