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This was not unexpected, considering the governor’s strong ties to ComEd and his unwillingness to challenge Emil Jones, who opposes continuing the rate freeze.
Gov. Rod Blagojevich appears to have abandoned his pledge to force lawmakers into discussion over curbing ComEd’s upcoming rate hike, likely tossing the political hot potato to the spring legislative session.
The lack of action by Blagojevich and lawmakers means Commonwealth Edison can press ahead with the 22 percent rate increase it intends to impose after a nine-year freeze on its rates expires Jan. 1. Rate increases may be much higher for businesses.
The governor threatened to call a special session back in October, releasing a letter which stated in part…
I have and continue to support legislation extending a rate freeze and would like to sign it into law as soon as possible. To this end, I intend to work with you right away to secure sufficient support among lawmakers to pass such legislation. Once we have the votes to pass the legislation, I will immediately call a special session to do so. I have every confidence that members of the legislature will agree that it is necessary to extend the rate freeze and protect consumers from significant electricity rate increases, but if we are unable to reach consensus in the near future, I will call a special session to take up the matter. Such a session will continue for as long as necessary to reach the intended result, even if it is extended through the holiday season.
But now?
Blagojevich aides did not respond to a request for comment Friday. In early December, spokeswoman Abby Ottenhoff refused to acknowledge the governor had promised to force lawmakers into special session.
She said only that a special session was among the “options on the table.â€
Meanwhile, Lt. Gov. Pat Quinn will hold a press conference today to push for an investigation of ComEd’s connection to CORE, an advertiser here. From a press release:
Quinn will discuss the decision by Illinois Commerce Commission Administrative Law Judge Terrence Hilliard ordering the ICC staff to investigate the financial ties between ComEd and its front group, Consumers Organized for Reliable Electricity (CORE).
In a petition to the ICC requesting an emergency investigation, Quinn had asked the Commission to order full disclosure of the millions of dollars the utility company has funneled through CORE to fund deceptive television commercials supporting the utility company’s demand for a 25% rate hike beginning Tuesday, Jan. 2.
In his order, Judge Hilliard stated: “In summary, we conclude that the Commission has the authority to investigate ComEd’s financial support of CORE and its alleged sponsorship of CORE advertisements. Furthermore, the facts alleged in the petition suggest such an investigation is warranted.
“On the basis of the results of this investigation, the Commission may take further action concerning the request that we impose disclosure requirements on ComEd for CORE ads sponsored by ComEd with an underlying commercial purpose.”
posted by Rich Miller
Monday, Dec 18, 06 @ 10:10 am
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Comment by Greg Monday, Dec 18, 06 @ 11:01 am
A continued rate freeze is not sustainable. New bids have gone out for electricity supplies and the best of the bids reflect the increased costs for all energy supplies.
If you told your local gas station that they had to freeze their gas prices at the cost of gas 10 years ago, they would stop selling gas; they would be obliged to because the cost of the product is more than the price at which they are allowed to sell.
The government dreamers pressed by the economically irrational electorate in California did this a few years back to the utilities there and the (predictable) result was that PG&E went bankrupt. The dreamers then decided that THEY would go buy long term supplies. Oh, my. They did. Now the Califoria rate payers are paying to make PG&E whole, and to pay for the foolish contracts that the government dreamers entered into. We all know the story of the Enron schenanigans in California, but the government follies cost the ratepayers far far more - and will continue to cost them for years to come.
If the governor is just pandering to the public with his utility bashing and rate freeze talk, not a problem - just political business as usual. If the Gov gets serious and is successful in continuing a rate freeze, the utilities will be in bankruptcy court very soon and the ratepayers will pay for it all - bid price costs, bankruptcy costs, interest costs etc. Only dreamers believe in flat energy costs when oil at $60 a barrel.
Comment by Dr. Steve Monday, Dec 18, 06 @ 11:12 am
can you say “campaign puffery’?
Comment by anon #1 Monday, Dec 18, 06 @ 11:15 am
Sounds like Quinn and Blago are playing good cop - bad cop. Taxpayers of Illinois deserve this. Who in their right mind would ever believe anything these two say.
Comment by Anonymous Monday, Dec 18, 06 @ 11:19 am
This is only the first of many campaign pledges which will bite the dust. On the other hand, we did let ourselves be lied to–we elected him.
A real leader would have explained why not continuing the freeze is the best choice in the long run, as may well be the case, but our Blago is a pol not a leader.
Let’s hope he keeps that no-tax pledge, Ralph Martire’s whining notwithstanding. We’re gonna need that money to pay our electric bills.
Comment by Cassandra Monday, Dec 18, 06 @ 11:23 am
The Blagojevich part of the story made me think of a Ron Gidwitz commercial from the primary… “… another broken promise. We need a governor who is actually in Springfield ending pay-to-play and not raiding our pensions.” I find it funny he is already breaking campaign promises before starting his second term. Enjoy Illinois.
Comment by Lovie's Leather Monday, Dec 18, 06 @ 11:44 am
A rate freeze would probably cause more trouble than good but the biggest problem is no competition and I don’t know how that can be changed.
Comment by independent downstater Monday, Dec 18, 06 @ 12:06 pm
The Speaker will still pass the freeze extension during the last three days of the 94th Gen. Ass. Then the responsibility goes to the President.
Comment by respectful Monday, Dec 18, 06 @ 12:21 pm
Dear Independent,
The artificially low rates have been frozen for a decade thereby preventing any market participants from enering. (i.e. few want to enter a market with administratively set low rates because they would have to sell at a loss)
When the rates rise, competitors will have room to begin to look for profitable market niches and they will begin to offer alternatives.
Comment by Dr. Steve Monday, Dec 18, 06 @ 12:28 pm
Will Rod also support increasing the state’s payments to community organizations who (while working with the state) will now have to pay those increased utility bills?
Comment by zatoichi Monday, Dec 18, 06 @ 12:43 pm
Howdy-ho!
Governor Hankey strikes again.
Comment by Bubs Monday, Dec 18, 06 @ 1:04 pm
The Governor broke a campaign promise? Big surprise. I still think that the state should take over these utilities, since they can’t seem to provide acceptable service at an acceptable rate.
Comment by Squideshi Monday, Dec 18, 06 @ 1:22 pm
Hey the Gov is going to be at the mansion in Springfield what more do you want.Squid you want to set in the dark and freeze let the state get a hold of these utilities.
Comment by DOWNSTATE Monday, Dec 18, 06 @ 2:16 pm
Dr. Steve: Surprise, surprise, surprise!!! What part of “most people can’t afford their rates now, even before the raise” don’t you understand? Are the elderly on Social Security supposed to freeze or decide between food, medicine or heat?
How cold-hearted can these companies get. And they would have some semblance of credibility if their over-paid CEOs would cut their salaries 55% and lower the divident to stock-holders until they have a better proposal for the general pubic who are their customers. I realize we live in a capitalistic country and money is king but we have to listen to our collective conscience sometime.
Comment by Disgusted Monday, Dec 18, 06 @ 6:39 pm
Dear Disgusted,
Our system is designed on the premise that retired folks should be able to count on the utility companies for reliability of service and for a modest dividend on their quarterly divident. Companies are not cold hearted, they do not have hearts at all. They are not designed to have hearts- they are economic institutions. We count on them to make economically rational decisions so that they can continue to provide electricy and gas. Perhaps you and certainly I do not own any of their stock, however, millions of teachers, government employees and union members do own their stock and expect them to perform their fiscal duties responsibly. If they falter, everyone will dump their stock very quickly (not my PG&E example, their stock collapsed into single digits).
Your point about poor folks - old or young - is a pressing social issues. The richest country in the world has a porous and lousey social safety net. We need basic health care for everyone. We need a system that ensures that no one has their lights or gas shut off. That is a political problem of tremendous proportions. We should put that issue on the TOP of the agenda for every official in Washington. However, pressing this social agenda onto companies will not work.
Part of the reason that our manufacturing has left America is that the government fails to do its basic duty. For example, I have never owned a foreign car, and I intend never to own one. However, with that said, the American car I drive was built in Windsor, Ontario just a few miles from Detroit. Why? Because it costs Ford (and therefore consumers like you and me) $1,500 less to build it in Windsor because the government in Canada pays for health insurance and on this side of the line, we expect Ford to pay for it. That is no problem unless of course you care about poor people struggling to make a living, make car payments and pay their power bills.
It is our government that is failing; and it is failing big time. Imagine our last presidential election: two rich white guys from yale both of whom wanted to stay in Afg. and Iraq, neither of whom was interested in national health insurance or a basic social safety net. I am much more comfortable with corporations because their mission is clear and I know that they do not have a heart.
The systemic change we need is political. We need it now and we need it for the poorest and most vulnerable among us. Power companies and car makers can not do that for us. I agree with ou completely that we need to listen to our collective conscience. The place to listen and to speak is in the political arena.
Comment by Dr. Steve Monday, Dec 18, 06 @ 7:59 pm
I didn’t think I could get any more disgusted with this Governor. I was wrong. He gets more confusing as time goes by.
Comment by Tessa Monday, Dec 18, 06 @ 9:31 pm
Oy Vey. The General Assembly got snookered by the utilities ten years ago and bought something they did not understand. Now they have a problem. Those reverse auction prices still look a lot closer to the price of a peaking generation unit than the average cost of the total generation portfolio. Talk to Mr. Flider he can explain it to you. Well if he will talk.
Comment by Whizbang Tuesday, Dec 19, 06 @ 2:26 am
Bingo Dr. Steve. Corporations are psychopaths. Remember, Illinois has two corporate-sponsored political parties, and a Green Party.
Comment by Squideshi Tuesday, Dec 19, 06 @ 9:10 am
The link to The Corporation in that news article doesn’t work correctly.
Comment by Squideshi Tuesday, Dec 19, 06 @ 9:12 am