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Here’s how loopy Illinois’ energy markets have become.
On average, downstate Illinoisans will pay at least $130 more for electricity over the next year, and the extra cash they’re shelling out in their utility bills will go in part to reduce rates in neighboring Missouri. […]
“It clearly shows there is something deeply wrong with the structure MISO is using for the auction,” said David Kolata, executive director of the Citizens Utility Board, a Chicago-based consumer watchdog. “You have the direct transfer of wealth from Illinois consumers to Missouri consumers in the same utility family.”
Asked whether MISO (pronounced MY-SOH, short for Midcontinent Independent System Operator) thought it appropriate for downstate Illinoisans to be charged more only to have their higher payments used to reduce Missouri rates, a spokesman for the grid operator said that question should be put to Ameren. “Each utility has its own rules to determine how credits are distributed to customers, and MISO does not play a role in that utility-customer relationship,” spokesman Jay Hermacinski wrote in an email.
MISO’s reticence was odd in light of Ameren’s statement that it had no choice but to bid capacity from its Illinois plants into MISO’s zonal auction for downstate Illinois—a fact MISO confirmed.
Go read the rest for the technical details.
Ugh.
posted by Rich Miller
Friday, Jun 12, 15 @ 2:54 pm
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Finally, downstate complaints about “takers” are accurate.
Comment by Precinct Captain Friday, Jun 12, 15 @ 3:00 pm
On the bright side, perhaps this can be used as a talking point to separate Southern Illinois from the rest of the state so that we can become an extension of Missouri.
Comment by John A Logan Friday, Jun 12, 15 @ 3:02 pm
The deal we got on that house in St. Louis County is looking better and better. /s
Comment by Duke Silver's Saxophone Friday, Jun 12, 15 @ 3:05 pm
that’s what I call robbing Peter to pay Paul!!
Comment by ah HA Friday, Jun 12, 15 @ 3:09 pm
The problem here is that politicians get sold a bill of goods on creating “competitive markets” by removing regulation.
But what always ends up happening is that those market players then use the lack of regulation to game the results.
Because you can’t really have a competitive market when your only competition is yourself.
Exelon Dynegy
As long as those two big guys keep out other players from entering the market (renewables, etc.), they will own the market. That is why they have been fighting tooth and nail on this for years.
Comment by okgo Friday, Jun 12, 15 @ 3:14 pm
that’s what I call robbing Peter to pay Paul!!
I’d call it robbing Billy Bob to pay Jim Bob. /s
Comment by Six Degrees of Separation Friday, Jun 12, 15 @ 3:19 pm
Our federal tax dollars aren’t enough, those takers in Missouri want our utility dollars as well?
Unbelievable.
Comment by Anonymous Friday, Jun 12, 15 @ 3:21 pm
As a downstate Ameren customer I will be impacted. I have always been suspicious of the alternate energy companies that would save me 15% to 20%, would guarantee the pricing, and would bill me, but the energy would still be provided and maintained by Ameren.
Maybe I made a mistake - it would not be the first time!
Comment by illini Friday, Jun 12, 15 @ 3:27 pm
Free markets in utilities are an illusion.
Comment by walker Friday, Jun 12, 15 @ 3:28 pm
I hate Ameren so, so much.
Comment by Educated in the Suburbs Friday, Jun 12, 15 @ 3:35 pm
Says a lot for using Solar. Too bad the gov zapped Solar credits. Of course the utilities likely appreciate that move.
Comment by Sunshine Friday, Jun 12, 15 @ 3:41 pm
Some kind of funny business going on here. Deregulation was supposed to lower rates. Maybe we should go back to a regulated system in Illinois.
Comment by DuPage Friday, Jun 12, 15 @ 3:42 pm
“Show Me” the power. oy
Comment by A guy Friday, Jun 12, 15 @ 3:50 pm
First of all Exelon, Dynegy, NRG and other generation companies do compete against other suppliers in regional markets - MISO and PJM which are larger than just IL. All compete without the subsidies provided to wind and renewables. Second, if you have a contract with a alternative supplier for your home chances are you will not be impacted because your contract is probably a fixed price contract. The default customers who did not choose another supplier are the most impacted here and which state agencies could have contracted for capacity in advance and failed to do so this year?
Comment by electric1 Friday, Jun 12, 15 @ 4:14 pm