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* Remember last year when ComEd offered the cash-strapped state $500 million in exchange for guaranteed future profits? Well, the company is back again, but this time there’s no $500 million offer…
Commonwealth Edison Co. plans a big legislative push this spring that would allow electric and natural-gas utilities to hike delivery rates each year and would sharply curtail state utility regulators’ power to control the price for power and heat.
The measure, modeled in part on a controversial rate-freeze bill ComEd tried to move through the General Assembly last May, would give the state’s utilities far more certainty about recouping infrastructure investments in a timely way. But consumer advocates warn it would increase utility bills.
In a major change from the previous legislation, the new version would involve all of the state’s gas and power utilities rather than just Chicago-based ComEd. That means ComEd can enlist industry allies and add clout to its lobbying effort.
Under the proposal, utilities that agree to invest in their systems at a specific level would be allowed to automatically change their rates each year based on their costs. That would enable them to avoid the Illinois Commerce Commission’s review process, which often stretches to 11 months. The ICC instead would be given a narrower, after-the-fact review to ensure the costs aren’t egregious. […]
“To the extent the bill looks like the one they introduced last session, that’s not good for consumers,” says David Kolata, executive director of the consumer watchdog group Citizens Utility Board. “It would reduce ComEd’s risk and put it on the backs of consumers. We believe consumers would be stuck with higher rates than they would otherwise.”
* And they’ve got their ducks lined up. From a ComEd press release…
“This is the right time to decide the right way to modernize a major part of Illinois’ infrastructure,” said Kevin A. McCarthy, Illinois State Rep., 37th District. “Similar to how we facilitated the rapid technology boom in the telecom industry and brought countless advantages to customers, we can manage infrastructure investment and keep necessary consumer protections in place while unleashing the full resources needed to make Illinois an economic hub. This would be a win for everyone, and it is the kind of innovative public policy action our state needs right now.”
“ComEd’s proposal to ensure long-term investment in the electric grid would provide thousands of labor jobs for our members in communities throughout northern Illinois,” said Dean Apple, president, I.B.E.W., Local 15. “Many parts of the grid are aging and in need of replacement to ensure system reliability. This plan would include much-needed programmatic upgrade work and minimize the need for emergent repair work.”
Thoughts?
posted by Rich Miller
Friday, Jan 14, 11 @ 2:27 pm
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Wow it looks like this time Com ed isnt even offering dinner and a drink, just screwing the consumer.
Comment by Fed up Friday, Jan 14, 11 @ 2:32 pm
My thoughts are that this could give Quinn a great chance to use his veto power and score some major PR at the same time.
Comment by Small Town Liberal Friday, Jan 14, 11 @ 2:39 pm
Rich maybe you can pin down how Quinn feels about this now. If he states hes against it we then now it will pass and he will sign it.
Comment by Fed up Friday, Jan 14, 11 @ 2:42 pm
Uh oh…..
Comment by Dan Johnson-Weinberger Friday, Jan 14, 11 @ 2:44 pm
Fed up you’re cracking me up as you nail it. I’m reading your one liners and hearing “BOOOM!” in my head.
Cmon people don’t you know…ComEd is just looking out for the best interests of Illinois ratepayers. Everyone hold onto your wallets.
Comment by Chicago Cynic Friday, Jan 14, 11 @ 2:46 pm
ComEd right now also has a $396 million rate increase and a slightly different Alternative Regulation proposal before the Illinois Commerce Commission.
Its not have your cake and eat it too - its we are going to eat everyone’s cake!
Comment by SportShoz Friday, Jan 14, 11 @ 2:48 pm
please see my post from yesterday…it certainly is time to update an antiquated power grid…for an analogy, try selling PC’s to consumers with no internet…if renewables are going to get on the grid, this needs to be done. Of course consumers will pay for it, but the legislature needs to continue to up the RPS ante (renewable portfolio standards) just to keep the utilities honest.
Now that IN has said it will clean up it’s dirty coal plant in MI City, let’s compel Midwwest Generation to do the same with Crawford and Fiske.
While were at it, lets ask Stateline to do it as well…could this be the Green renewable energy economy coming our way at long last?…keeping my fingers crossed…
Comment by Loop Lady Friday, Jan 14, 11 @ 2:51 pm
And I thought after all the action the last couple of weeks, the spring session would be boring.
The only thing more mind-numbing than property tax assessment policy is utility policy. Like many, I just want the lights to come on when I hit the switch.
Considering the lights go out in Northern Illinois every time you get a swift wind, I don’t doubt ComEd has plenty of “deferred” infrastructure needs. But these guys are players, and I don’t trust them.
The $500 million offer last year was like something out of The Sopranos: a juice loan where they give money upfront, then bleed you month after month forever.
Comment by wordslinger Friday, Jan 14, 11 @ 2:53 pm
Hopefully our new state rep will vote against this when it comes up for a vote
Comment by Palatine Friday, Jan 14, 11 @ 3:04 pm
Time to see what the new legislature is made of. If they buy this tale, thenit will be a home run and bonuses all around!
I think I can guess what the think will happen.
Comment by Plutocrat03 Friday, Jan 14, 11 @ 3:12 pm
Lets see
higher property taxes Check
higher income taxes check
expanded sales tax check
still on the to do list higher utility bills.
Boy, K. Mcarthy and the Dems sure now how to help the taxpayer stretch a paycheck.
Comment by Fed up Friday, Jan 14, 11 @ 3:17 pm
I would like to see how much money the various electrical suppliers have invested in system upgrades over the past ten years, and how much they intend to spend in the next ten — if they have been letting it collapse on their own, with no modernization plan in place, then let them go under and be bought by more responsible providers.
I would even recommend that the utilities be held to the same accountability as the General Assembly on revenue increases — you must spend almost all the rate increase on physical system upgrades, or the rate hike disappears.
Comment by Capitol View Friday, Jan 14, 11 @ 3:25 pm
Pat Quinn led the creation of the Citizens Utility Board. This issue offers him an extraordinary opportunity to rebuild his brand and come out swinging on behalf of consumers. ComEd’s parent company, Exelon, is rolling in profits, thanks to the nuclear plants built by Illinois ratepayers. We don’t need to give them even more to lure them into investing in the Illinois power infrastructure.
Comment by soccermom Friday, Jan 14, 11 @ 3:37 pm
soccermom, but he’s also supposed to be the “jobs governor.”
Comment by Rich Miller Friday, Jan 14, 11 @ 3:40 pm
As the old saying goes, “It looks like they’re up to the OLDDDD tricks again,” except THIS time the Legislature should know better–they’ve witnessed this shrouded,lame attempt to hike everyone’s electric bills–as if they don’t have enough “power” (pun intended) and profits already. And here is one instance where the Quinn bashers should instead be thanking God Almighty for his substantial role in the creation of our watchdog CUB eons ago–so as to help protect all of the “little guys and gals” around Illinois who would’nt be capable of seeing through this “smoke n’ mirrors” devious strategy if it was NOT for the CUBs of the world!!!
Comment by Just The Way It Is One Friday, Jan 14, 11 @ 3:43 pm
@ Rich
Please make sure in the future to capitalize J-O-B-S when referring to PQ in the future.
To simply say ‘jobs’ doesn’t give proper reverence to it.
Comment by How Ironic Friday, Jan 14, 11 @ 3:44 pm
Now we know why they were against the Taylorville Energy Center! What a crock.
Comment by He Makes Ryan Look Like a Saint Friday, Jan 14, 11 @ 3:46 pm
higher property taxes Check
expanded sales tax check
Huh? Springfield has not raised property taxes or expanded sales taxes.
Comment by dave Friday, Jan 14, 11 @ 3:49 pm
Comparisons to telecom fall flat. The telecom market is actually competitive where folks have a choice of providers and technologies. Not so much with ComEd/Exelon.
Comment by Anonymous Friday, Jan 14, 11 @ 4:00 pm
- soccermom, but he’s also supposed to be the “jobs governor.” -
You know, I’m all for investing in a modern electricity grid. Quinn even signed legislation that speeds up the process of getting electric transmission lines approved by the ICC, which I support. But I also work in the power utility industry and have for some time now, and especially at my former company, I don’t believe the executives when they say they need the rate increases they’re talking about. There is a pretty large amount of inefficient operation that could be addressed, and when a company like Ameren reduces their initial request by about $100 million a short time after the initial filing, it tells me that the long term strategy hasn’t really been thought out.
Comment by Small Town Liberal Friday, Jan 14, 11 @ 4:01 pm
ComEd is redefining gridlock in Springfield, viz.: “We want a lock on the grid.”
Comment by Dooley Dudright Friday, Jan 14, 11 @ 4:01 pm
Dave,
If your property taxes haven’t gone up good for you I’m willing to bet 90% of Illinois property owners it did. Unless they get represented by Madigan’s law firm.
As far as sales tax expansion read yesterdays Capital Fax it has passed. Internet retailers are planning on leaving Illinois because of it.
Comment by Fed up Friday, Jan 14, 11 @ 4:04 pm
- As far as sales tax expansion read yesterdays Capital Fax it has passed. -
It’s not an expansion, the sales tax remains at the same rate and applies to the same goods. The only thing that changed is that the online companies are going to be required to collect it.
Comment by Small Town Liberal Friday, Jan 14, 11 @ 4:08 pm
Furthermore, Fed up, it seems ironic to me that you’re arguing against the utility companies’ ability to raise rates while complaining that Illinois is too hard on businesses. You do realize utility companies are corporations, not government entities, right?
Comment by Small Town Liberal Friday, Jan 14, 11 @ 4:14 pm
We all know how union friendly Com Ed is, does Dean Apple know something no one else does.
Comment by tobor Friday, Jan 14, 11 @ 4:17 pm
Fed Up -
You are supposed to be paying sales taxes on items bought through the internet anyway. This forces the collection of those taxes.
Comment by Demoralized Friday, Jan 14, 11 @ 4:18 pm
Speaking of “Here we go again”, is SB 001 aimed squarely at Jonathon E. Monken, Acting Director of the ISP, or is there someone else more deserving of this rare sign of bi-partisanship exhibited by the co-sponsorship of the Senate President and Minority Leader?
Comment by Quinn T. Sential Friday, Jan 14, 11 @ 4:18 pm
I’m torn on this one between my disdain of regulations and my abject hatred for ComEd.
Comment by John Bambenek Friday, Jan 14, 11 @ 4:19 pm
QTS, that is a reintroduced bill from last session.
Comment by Rich Miller Friday, Jan 14, 11 @ 4:19 pm
- I’m torn on this one between my disdain of regulations and my abject hatred for ComEd. -
I thought you were in Champaign, shouldn’t you be hating Ameren?
Comment by Small Town Liberal Friday, Jan 14, 11 @ 4:23 pm
On top of the income tax increase, the people in this state are not ready to accept a higher utility rate, even to produce more jobs. My electric bill is already 50% higher than two years ago.
Comment by Wensicia Friday, Jan 14, 11 @ 4:26 pm
I think a proposal of this nature ought to be evaluated by the ICC where the process will be more deliberative and there will be more stakeholder involvement. Let the ICC decide first if the review process should be expedited and then it can make a recommendation to the legislature for any appropriate regulatory changes.
Comment by Going nuclear Friday, Jan 14, 11 @ 4:38 pm
Too bad CUB has lost its teeth, years ago. They limp along, trying to win a few, but the AG does the heavy lifting. CUB sold their soul to Com Ed when they took that $1 million and now the big bad utility is telling them and US to bend over.
Comment by Sorry State Friday, Jan 21, 11 @ 1:49 am