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* I had a piece on this in today’s Capitol Fax, but it turns out Crain’s is also on the story…
Exelon Corp., Ameren Corp. and other power plant owners in Illinois are negotiating with key state senators on a package of up to $150 million to help low-income consumers and others hardest hit by recent electric rate hikes.
Both sides hoped to wrap up talks by late Tuesday or early Wednesday, people familiar with the discussions say. If an agreement is reached, Senate President Emil Jones would not call for a floor vote later this week on legislation that would return Ameren and Commonwealth Edison Co.’s rates to last year’s levels and freeze them there for at least a year, these people say.
But they caution that the discussions may not ultimately lead to a compromise as companies haggle over how much each should give to the effort — or whether to contribute anything at all.
If the package of concessions is finalized, the money would go for rebates to Downstate customers hit with increases of as much as 200% because they use electric heat. Utilities gave those who heat their homes with electricity heavy rebates that expired this year. Others targeted for assistance include low-income users and seniors on fixed incomes.
* The Citizens Utility Board’s blog responds to the story…
But if rate relief is appropriate for a group of customers, why isn’t it appropriate for ALL customers. This proposal kind of reminds me of a bank robber who admits he took the money, but doesn’t give it all back.
* Meanwhile, Speaker Madigan has a new plan…
House Speaker Michael Madigan offered a new twist in the electric rate debate Tuesday, proposing that Illinois get into the electricity business to help cash-strapped consumers.
Madigan, D-Chicago, introduced a measure to create a not-for-profit Illinois Power Authority that could buy, generate or sell electricity. Madigan spokesman Steve Brown says that setup could spur competition to drive down electric rates.
The measure could ratchet up pressure on utilities Ameren and ComEd as they negotiate with state lawmakers on relief for consumers. Brown said it might “change their perspective.”
The full legislation can be found here.
* And rate shock hits the Beverly Arts Center…
Higher electricity costs could bankrupt the Beverly Arts Center, the executive director of the South Side nonprofit told the City Council’s energy committee Tuesday.
Michael Nix said ComEd’s higher rates could more than double the center’s electric bill this year.
“Like everyone else, we anticipated a 24 percent increase, which is what I read about,” Michael Nix said after testifying before the committee.
posted by Rich Miller
Wednesday, Mar 28, 07 @ 8:31 am
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Mr. Madigan has the solution by creating another government agency. Thought Rod was trying to consolidate agencies and reduce state workers.
Comment by Mr. Ethics Wednesday, Mar 28, 07 @ 8:47 am
One year freeze and $150M in reparations does not solve the problem, only postpones it. The companies know this, the ratring services knows this, but that is the way politicians think.
Comment by Truthful James Wednesday, Mar 28, 07 @ 9:16 am
I am looking through the Act now, and I see some things that contradict some of the intent of the Act.
First off, it wants competition to reduce electrical rates, but it requires coal-fire plants to buy Illinois coal. This would drive up the cost of Illinois coal, and eliminate competition for this expense. You can’t have it both ways, Mike!
I will need some time to get through all this, but before we start jumping up and down over the IPA, let’s do some homework first.
This is a big deal.
Comment by VanillaMan Wednesday, Mar 28, 07 @ 9:48 am
In the article Madigan says that the electricity would be sold “at cost.” Just what I want, a bunch of bureacrats determining costs. Just think about this meeting.
“Hey Emil, what fees can we hide in the cost of electricity?” “Well Mike, I really think that we should fully fund the pension now so lets add an pension consolidation fee to cost.” “Excellent idea. What does Rod want now.” “Gentlemen, I was thinking that with us controlling the electric rates we could hide the cost of universal healthcare. We could easily raise this by taxing the coal producing companies. Since the contract has been signed, the “big cat” coal operators can pay all of their profits back to the state. Sorta a win-win for us.”
I could think up a hundred other examples. The state does not need to control my electricity. The legislature complain about Ameren’s maintenance, have you driven down interstates? They can not keep them in shape, why should we trust them with electricity. Even is they are only power brokers, $600 toilet seats anyone? I would rather take my chances with a cheating corporation, then cheating politicians.
Comment by Logical Wednesday, Mar 28, 07 @ 9:52 am
I like the idea of a not-for-profit energy generating company. Especially if it builds nuclear power plants, as that is one of the cleanest and most efficient ways to generate power. Further, if it built enough of them, it could supply IL consumers at “cost” and then sell any excess to other states at market price in order to help fund the government. Of course, the devil is in the details and one has to prevent patronage and other such from interfering with a good idea, but it’s an interesting thought.
Comment by cermak_rd Wednesday, Mar 28, 07 @ 10:35 am
I assume this is another of madigan’s famous bargaining strategies, but if it leads to serious consideration of re-regulating these utilities, more power to him.
Comment by Mr Wizard Wednesday, Mar 28, 07 @ 11:51 am
Look at the how the pension funds have been handled and tell me if you wan tthese people in charge of our power plants.
The state already operates power plants. I am pretty sure the prison in Lincoln (and some others) generate their own power.
Also they bring several semi loads of coal a day to the plant on the corner of Klein and Madison in Spfld. Always amazes me because when it rains the coal washes into the gutter and down into the storm sewers - lets see private company get away with this.
Comment by State Worker w/ MBA Wednesday, Mar 28, 07 @ 9:52 pm
I applaud Speaker Madigan’s move to create a state-owned energy utility.
Comment by Squideshi Friday, Mar 30, 07 @ 11:42 am