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A new $500 million rate relief package propoed by Ameren and ComEd may look good on its face, but if you take a glance at the fine print, it’s not so earth-shattering.
Earlier in the 2007 spring legislative session, Ameren and ComEd put a combined $150 million rate-relief plan on the table.
Clayborne said the new proposal is “a little more front-loaded to deal with summer rates.” It also is contingent on the legislature not passing measures that would freeze electric rates or impose a tax on Exelon and other power generators, he said.
The Associated Press has a far better story that breaks it down…
Ameren customers would receive $130 million in aid this year and the remainder in 2008 and 2009, while ComEd customers would see $150 million this year, $130 million next year and $20 million in 2009.
The Tribune offers even more perspective…
By comparison, the utilities will generate about $2.5 billion per year in new revenues through the higher rates imposed after a decade-long rate freeze ended at the start of the year, lawmakers said.
The progress here is that utilities are starting to talk about offering rate relief past this year. But I seriously doubt it’s enough, as this quote clearly shows…
“Sure, it’s progress,” Rep. John Bradley, D-Marion, said of the utility companies’ new proposal. “They’re upping their ante. But the question was asked to me: Is it enough? And my answer to that is: No, it’s not enough.”
Thoughts?
posted by Rich Miller
Wednesday, May 23, 07 @ 9:26 am
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$150 million is a joke considering their profits. I live in Chicago and can afford to pay my bills but, those poor people downstate will suffer.
The utility companies lied about how much the rates would increase. Therefore I have no sympathy for them. Bring back the freeze and just because they lied make the percentage they can increase even small. They will think twice next time they lie.
Comment by Lula May Wednesday, May 23, 07 @ 10:02 am
We need to show Ameren as much mercy as they have shown us. Fortunately for them, we probably won’t make them suffer as much as they have made us suffer.
Stick it to them!
Comment by VanillaMan Wednesday, May 23, 07 @ 10:35 am
ComEd seems way too eager to sign off on this deal. Hold their hooves to the fire longer until they pay at least $1-billion+.
Comment by Mr. CUB Wednesday, May 23, 07 @ 11:05 am
I do not believe in that rates should be frozen, but it is stupid not to take action to curtail the amount of increases. The politicians do not care. They all make enough money not to be troubled by the high costs and they are getting their gifts that make them blind to our needs.
Comment by i d Wednesday, May 23, 07 @ 11:10 am
This huge increase is due to the rate freeze that lasted so long. TANSTAFL and the bill is due now. Unless the auctions were rigged, at which rate this should be a legal issue; I’m not sure what right the leg has to be telling a private supplier of something what rates they should be charging. Now if it were a regulated industry, that would be a different matter, but it’s not anymore. Change that and then the Leg will have a say.
Comment by cermak_rd Wednesday, May 23, 07 @ 11:53 am
Yes, electricity prices should go up modestly, but we need a one-year freeze to rewrite the electricity deregulation law so that the interests of consumers can be better balanced with those of the big power companies. And put somebody different in charge of the legislative negotiations. Sen. Clayborne is too close to ComEd and Ameren.
Comment by fedup downstate dem Wednesday, May 23, 07 @ 1:02 pm
Our lawmakers should re-regulate these Utilities. Part of the deal was–there would be COMPETITION!How is it that if Ameren does not get their way, they always want to take us to Court. I say go ahead and we want a trial by jury. They lied to the our Lawmakers and all of us about how much their increases would be, $1 or $2 a day. This Legislature needs to take care of this mess. The anger is so strong, if they don’t fix it, they will all be looking for a new job.
Comment by Lied to Wednesday, May 23, 07 @ 1:05 pm
I thought all the money from the price increase is passed through by ComEd and they don’t profit from price gouging, so where are they getting the $ from? I don’t get it.
It is the culture of corruption in the power industry, from Enron to now, to pollute and profit at the people’s expense, and lie about it, and buy the votes to pass it.
Comment by ids Wednesday, May 23, 07 @ 1:15 pm
who made the CORE and Com Ed ads and what is
their 10% haul? large bills will come back to
bite those who carry Com Ed’s water.
Comment by amy Wednesday, May 23, 07 @ 6:16 pm
The business needs to be re-regulated. You cannot trust any of these corporate rogues. You will notice their CEO’s crying poor mouth while they STILL collect their excessive salaries and add to their golden parachutes. Then they have the nerve to get indignant when people call for them to cut expenses, such as their perks. They need to show good faith by cutting expenses. Maybe then people will be willing to work with them on this fiasco
Comment by Disgusted Wednesday, May 23, 07 @ 10:23 pm