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Pritzker AVs bill, says it will drive up rates for Ameren customers

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Illinois

* Background is here if you need it. From the governor’s latest veto message…

Today, I return House Bill 3445, an energy omnibus bill, with specific recommendations for change. […]

House Bill 3445 contains many useful provisions to advance energy policy in Illinois. However, the right of first refusal language inserted by Senate Amendment 4 will raise costs for rate payers by giving incumbent utility providers in the MISO region a monopoly over new transmission lines. Eliminating competition will cause rates to increase in the MISO region, where there is currently over $3.6 billion in planned transmission construction in the Ameren service territory. Without competition, Ameren ratepayers will pay for these transmission projects at a much higher cost. Competitively bidding transmission construction, instead of giving the utility a monopoly, has been shown to lower costs significantly. My administration is committed to working with stakeholders and our partners in the General Assembly to enact meaningful energy policy, however, I cannot support legislation that puts corporate profits over consumers.

Therefore, pursuant to Article IV, Section 9(e) of the Illinois Constitution of 1970, I hereby return House Bill 3445, entitled, “An Act Concerning State Government,” with the following specific recommendations for change: On Page 217, line 7, delete “and Article XXIII” and delete the entirety of the language added beginning on page 220, line 18 and continuing through page 224, line 17.

With the above changes, House Bill 3445 will have my approval. I respectfully request your concurrence.

Sincerely,
JB Pritzker
Governor, State of Illinois

…Adding… ICJC…

“On behalf consumers and families across the state, the Illinois Clean Jobs Coalition thanks Governor Pritzker for his amendatory veto of legislation that had granted Ameren a monopoly and risked them raising costs on their customers. As written, Ameren’s “Right of First Refusal” legislation (House Bill 3445) would have given a big handout to the big utility without providing any protections for workers or customers. We strongly support investment in new transmission capacity to reach our clean energy goals, but HB3445 could limit our ability to build those projects. We applaud the Governor for taking this action toward expanding transmission and bringing us another step closer to our clean energy future.”

posted by Rich Miller
Wednesday, Aug 16, 23 @ 2:10 pm

Comments

I don’t know about this. Whoever is going to be responsible for upkeep and repair of this line should have some say in the matter. Power companies know among themselves which line builders have done good or bad quality work in the past. Whatever is done should proceed as quickly as possible. I have read some power projects have been delayed back to square one because the low bid companies have had large increases in their costs, as much as 20%. Steel for towers, shipping, wire, cement, insulators, labor, helicopter services, and the cost of borrowing money have all increased significantly in the last couple of years. The low bid companies can’t do the project at the price they bid, and they pull out of the project. The more the project delays, the more it is likely to cost.

Comment by DuPage Wednesday, Aug 16, 23 @ 3:17 pm
Not sure what I would have done. But to focus on the construction cost misses the important detail of who owns the transmission lines once they are built and who will be called in to fix them if they come down. There are real advantages to Ameren being the one to own the infrastructure rather than an out of State low bidder.

Comment by JLW Wednesday, Aug 16, 23 @ 3:20 pm
A most excellent veto. This was outrageous anti-competitive legislation. Competition lowers costs but bizarrely Ameren said monopolies produce cheaper prices which is only true and especially in this industry never. Now the governor needs to sustain this veto in the fall.

Comment by New Day Wednesday, Aug 16, 23 @ 3:40 pm