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No imminent power shut-offs

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* Yesterday’s story about water service being shut off at an IDOT office led me to call CWLP in Springfield to see if the Statehouse and the area’s myriad other state offices were in danger of having their power or water service disconnected by the municipally owned utility.

“We’re not at a critical mass,” said Amber Sabin at the utility. “We’re used to the state paying on a 60-day schedule,” she said. The state’s Capitol Complex has a bill due later this month for $2.3 million, by the way.

Sabin said the utility would “rather have their revenue,” so “Disconnects are going to be a last resort.”

She also joked that it’s “not like they’re leaving the state, they’re not fleeing us.”

Hey, maybe the governor could move the capitol to Florida and get out from under the electric bill. The winters would be nicer, but I’d have to come back north during the summer.

* And along those lines, here’s an October 1 e-mail sent by Donald C. Barnes, who is the Energy Manager for CMS…

Fiscal Emergency Issues

We have communicated the details surrounding the current fiscal state of emergency relative to our lack of disbursement authority to the various utilities throughout the state and requested that they defer any automatic service termination actions which would be triggered by the non-payment of bills within the legally-defined time frames.

To date, most utilities have responded that they will not be terminating services on State of Illinois accounts though some made those pledges more conditionally than others. Specific responses obtained thus far are as follows:

• Ameren – states it will follow applicable tariff and legal requirements; does not specifically guarantee it will not terminate services for non-payment.

• Illinois American Water – states that it will freeze all termination actions through March 2016 and will re-visit the policy then if the crisis continues.

• Nicor – indicates that all accounts coded as governmental service will not face actual termination (see attached).

• Peoples Gas/North Shore Gas – official communication being developed but Account Executive gave unofficial sense that they will work with State through crisis and let us know in advance of any change in position.

• ComEd – no official response yet.

• Mid-American Energy – no official response yet

• City of Chicago (water and sewer services) – no official response yet but has inquired as to whom the central point of contact with the State will be on this issue. Was informed to keep CMS Utility Management in the loop and we will either respond or forward to the accountable agency for response.

• City of Beardstown - States that it will not initiate any shutoff actions.

• City of Springfield - City Water Light and Power reportedly indicated it will not initiate termination actions at this time but made assurance conditional on the duration of the non-payment status.

posted by Rich Miller
Friday, Oct 2, 15 @ 12:40 pm

Comments

Entities that have the reserves to carry the IOUs will certainly earn a big chunk of interest. The small folks will take it on the chin as do all little people who suffer when the big boys fight.

Comment by Norseman Friday, Oct 2, 15 @ 12:47 pm
Glad to know we will still get water. Now, whom do we talk to about toilet paper?

Comment by Anonymous Friday, Oct 2, 15 @ 12:50 pm
To piggy back on what Norseman is saying it’s easy fir cwlp or city of Chicago to hold out when they have additional customers. What happens when you’re a smaller community with a large consumer? As an example when I worked in a doc facility our population was just under 2k while the community was about 6k. It’s one thing to defer a small portion of total billings it’s another when it’s a third or more of usage. The prison I was told consumed roughly half of all water produced. So double the treatment cost pergallon with no increase in income.

Comment by Mason born Friday, Oct 2, 15 @ 12:55 pm
Nuts, just lost a lever to force budget talks.

Comment by Huh? Friday, Oct 2, 15 @ 12:57 pm
The farce continues. You cant make this nonsense up.

The state raided the LIHEAP fund to the tune of $165 million, but it gets a pass on its gas bill through winter by NICOR?

Will NICOR extend that empathy and understanding to those who won’t be getting that LIHEAP assistance? Or should they just bundle up?

Comment by Wordslinger Friday, Oct 2, 15 @ 12:57 pm
Thanks Rich for following up on the issue. Because of the big boy status of the state, it’s not a surprise that it can leverage large vendors to cover the debt. Yesterday’s water cutoff was more of a man bites dog amusing story than a real problem. We need to continue thinking about the small non-profits who won’t get this benefit of a doubt from vendors. Local governmental units will also be struggling to deal with the shortage. These are the stories that need to be told.

Comment by Norseman Friday, Oct 2, 15 @ 12:58 pm
CWLP could do everyone a favor by starting the shut-off procedures. That would send a serious message and force some action if the entire state shut down because of the CMS computer system, Comptroller’s office, Treasurer’s office not having power to operate their computer systems.

They are the one vendor the state cannot bully. It’s not like they can take their future business elsewhere.

Comment by LincolnLounger Friday, Oct 2, 15 @ 1:07 pm
Any pending rate increase measures ComEd can use this as leverage on?

Comment by Concerned Observer Friday, Oct 2, 15 @ 1:24 pm
1) I wonder what smaller municipalities and private water/sewer/power companies will do as the bills mount?

2) There are some restrictions on residential turn-offs: http://www.illinoislegalaid.org/index.cfm?fuseaction=home.dsp_content&contentID=2306

Comment by CrookCounty60827 Friday, Oct 2, 15 @ 1:31 pm
=== Nuts, just lost a lever to force budget talks. ===

Yes. When some public administration professor, if there are any left in the state, writes about this impasse the loss of pressure points will listed as a major factor in it’s longevity.

Comment by Norseman Friday, Oct 2, 15 @ 1:41 pm
If I were a business owner in Springfield who had their utilities disconnected due to lack of payment, I’d be demanding equal treatment for the state. Some customers shouldn’t be “more equal” than others.

Comment by AC Friday, Oct 2, 15 @ 2:00 pm
The State does not pay late fees or interest on utility bills. Period. Cities have to write those off.

Further, cities were cautioned by a utility association to consider political concerns before shutting off utilities. In other words, be careful as you may face retribution.

So we shut off our own citizens, but are expected to let the State be a deadbeat… again.

Comment by Shemp Friday, Oct 2, 15 @ 2:19 pm
I’m slightly more concerned about this now after learning CMS is in charge of processing the power bills. That’s a bit scary, budget or no budget.

Comment by Arthur Andersen Friday, Oct 2, 15 @ 2:40 pm
===Sabin said the utility would “rather have their revenue,” so “Disconnects are going to be a last resort.” ===

Rather have their revenue than…what?

Unlike every other utility ever, they don’t use disconnect notices to spur collections?

What nonsense.

Comment by crazybleedingheart Friday, Oct 2, 15 @ 2:46 pm
Utilities, who greatly depend on state government for their profitability, will be the last to bite the hand that feeds them.

Large diversified companies can handle the cash shortfall, for some months to come.

Smaller entities are in trouble now.

Comment by walker Friday, Oct 2, 15 @ 2:47 pm
== That would send a serious message and force some action if the entire state shut down because of the CMS computer system, Comptroller’s office, Treasurer’s office not having power to operate their computer systems. ==

Can’t speak for the other agencies but CMS has a UPS system that can keep the computers on as long as the State can get diesel for the motor generators … and they normally have a pretty big supply on hand.

Comment by RNUG Friday, Oct 2, 15 @ 2:51 pm
ComEd- “Give us the $300 mil for Papa Exelon, then we’ll talk.”

Comment by Anon221 Friday, Oct 2, 15 @ 3:40 pm
RNUG, unfortunately the Telecom building isn’t as well backed up as the CCF, so even if the mainframes can run for awhile, most State phone service won’t be as fortunate.

Comment by Arthur Andersen Friday, Oct 2, 15 @ 3:51 pm
==ComEd – no official response yet.==
ComEd - hmmm, let’s see our lobbyists can extract even more out of state government before issuing a response to this question.

Comment by Robert the Bruce Friday, Oct 2, 15 @ 4:19 pm
-AA-

Agreed, Telecom’s a weak spot. Guess the state will have to go to all cell phones if they can get a vendor to deliver.

Comment by RNUG Friday, Oct 2, 15 @ 4:40 pm