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Reality check on electric rates

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Illinois

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Published on October 11, 2006

Gov. Rod Blagojevich and Treasurer Judy Baar Topinka didn’t agree on much when they visited the Tribune (editorial board). But they were of one mind on this: They’re more than willing to pander to voters by extending a freeze on electricity rates, even though they know that could jeopardize the financial health of utilities in Illinois.

Topinka and Blagojevich were asked: How would extending the freeze lead to a competitive market in electricity? Neither could answer.

In fact, extending the freeze would make it less likely that a competitive market would continue to develop for consumers in Illinois. But that’s not the worst consequence of this idea.

Rep. George Scully (D-Flossmoor), chairman of the House committee, said he wouldn’t mind seeing the utility under the supervision of a bankruptcy court.

Now think about that. Scully is suggesting he would prefer to push into bankruptcy the company that keeps the lights on in northern Illinois.

This is a critical economic issue for the state–potentially dangerous for the Illinois economy–and it just can’t be handled as a pre-election political stunt.

If it does come to bankruptcy and blackouts, the politicians will have a hard time explaining why they aren’t entirely to blame.

posted by Capitol Fax Blog Advertising Department
Wednesday, Oct 11, 06 @ 9:27 am

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