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Players ponder state's power rate debate
By Mike Riopell
mike.riopell@lee.net
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SPRINGFIELD -- It’s been no secret that higher electric bills across Illinois have prompted a months-long Springfield fight among policy makers, regulators and lobbyists.

They’ve spent hours passionately debating. They’ve spent money on lobbying efforts.

Despite all that, little has changed for people who buy electricity from Ameren and ComEd since their rates rose Jan. 1.

Rates were frozen for 10 years after lawmakers deregulated the market in 1997. Some hoped competition would develop among power companies, and the market would keep prices low.

But rates went up following a power auction last year, and the situation sparked a political firestorm that has yet to subside. The proposal causing the most political sparks is one to roll back electric rates for Ameren and ComEd customers to 2006 levels.

Supporters think customers deserve immediate help. But the utilities say lower rates would force them into bankruptcy.

The House declined to vote on the rollback on Friday, and the measure’s sponsor said negotiations could prevent such a move.

With about a month to go before lawmakers are scheduled to adjourn their spring session, here’s a glance at what the major players have done and hope to do.

The utilities

Ameren and ComEd say they’ve offered $152 million in credits to help lower select customers’ bills. There’s one key condition, though: The General Assembly must back off its plan to roll back rates.

“We have listened to our customers. They want action now,” Scott Cisel, president of Ameren’s Illinois utilities, said in a recent statement. “We can provide that assistance when we are assured the Illinois General Assembly will not pass this ill-conceived legislation.”

The offer came after months of talks with several state senators. Ameren has offered $73 million for customers hit hardest by increased prices, such as seniors and people who heat their houses with electricity.

Illinois Commerce Commission

The agency that oversees the state’s electric industry has taken criticism from lawmakers because some say the group has the power to cut bills by themselves.

Instead, the commission is leading hearings to review the process by which the utilities bought electricity last year — a method known as the “reverse auction.” The process may not have forced the utilities to buy the least-expensive power they could find.

In addition, an ICC spokeswoman said the commission approved the auction results last year, so a vote to roll back rates would be a reversal.

“I’ve not heard any discussion of going backward,” spokeswoman Beth Bosch said.

Attorney general

Attorney General Lisa Madigan has filed litigation on several fronts of the electric-rate issue, mostly targeted at last year’s power auction.

“She has challenged the legality of the auction,” said Ben Weinberg, leader of Madigan’s public interest division.

If Madigan wins a challenge, both utility companies would have to “go back to the drawing board” to find a new way to buy power, Weinberg said.

Still, Madigan has lobbied on behalf of a rollback plan. She has said that consumers should have their bills cut as litigation plays out in court.

General Assembly

Lawmakers have engaged in a high-profile and sometimes politically nasty fight over whether electric rates should be rolled back to 2006 levels.

The House has now voted more than once to do so. The Senate voted to cut rates for Ameren customers but declined to do so for ComEd customers behind a tricky political move by Senate President Emil Jones and his allies.

The deadlock has annoyed some lawmakers. State Rep. Keith Sommer, R-Morton, says it’s been frustrating to vote for measures that likely won’t become law.

“It’s been more frustrating for the consumer that’s had to pay for those rate increases,” he said.

Some in the legislature also have been working on changing what they say is the root of the problem: Getting companies to buy less-expensive power.

“Power can be purchased more cheaply for consumers,” said state Rep. Bob Filder, D-Mount Zion.

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Reader comments on this story - 12 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

ThosSpence wrote on Apr 29, 2007 9:37 PM:

" The post-Enron accounting scandals revealed that a wide swath of American big business was indistinguishable from organized crime. Now we have our own major scandal right here in Illinois. Assuming that institutions of our justice system have not been entirely corrupted, the criminal proclivities of corporate America can be dealt with in some meaningful way. More insidious is the propaganda that deregulation serves the public interest. Why do people believe such nonsense? Until that delusion is addressed the social wreckage of market utopianism will carry the day. "

IT'S EASY... wrote on Apr 29, 2007 4:22 PM:

" VOTE OUT THE INCUMBENT. I COULD CARE LESS IF THEY ARE DEMOCRAT OR REPUBLICAN. VOTE YOUR ELECTED OFFICIAL OUT OF OFFICE (JONES, MADIGAN, MITCHELL...ETC). VOTE THEM ALL OUT OF OFFICE AND LET THEM KNOW WHY. THEN I BET THE NEW FACE WILL BE FORCED TO DEAL WITH THIS ISSUE OR LOSE THEIR SEAT. "

Joe wrote on Apr 29, 2007 4:15 PM:

" This is how Enron did it to California. Call Emil Jones and tell him to get out of the way. "

To Anthony: wrote on Apr 29, 2007 1:33 PM:

" You do know that the state politicians received buckets full of money from the utility companies don't you? The only thing they will get off their backsides for is to spend their windfall. Why bother with the citizens? "

SO??? wrote on Apr 29, 2007 1:32 PM:

" Well once again I read an article about AmrenIP and nothing has been solved. My bill has gone up 100%. I am one of those who's house is all electric. I see who did what but nothing solved again. Will I ever see relief from this? I doubt it. I feel sorry for anyone these rates affect not just myself. I know there are a lot of people out there a lot worse off then I am. Guess I am going to have to get a 3rd job just for the power bill. I laugh when they have that spot on the bill to mark if you want to give extra money to help those in need. I am one of those in need. I would fill it out if I had extra money to give others to help them out. Just now I am one of the ones who needs the help. "

Where's Corn Belt customers' help?? wrote on Apr 29, 2007 1:16 PM:

" Where's the Corn Belt customers when you need them? Corn Belt customers have been paying market value rates for many years. Ameren and ComEd rates have just caught up to market value. Why not force Ameren and ComEd into bankrupcy (just like happened in California) so all the taxpayers can chip in to pay for electricity (just like what happened in California). This way the tax paying Corn Belt customers can help pay for low electric rates for Ameren and ComEd customers. "

Hey Bob: wrote on Apr 29, 2007 9:28 AM:

" Not only are they full of lies but it seeems to me like the are commiting blackmail. "

Again wrote on Apr 29, 2007 8:32 AM:

" If they have $152 million in credits to give away they don't need the increase. It's like Amerin is some communist country who seems to think it's their job to collect and spread out who gets what. Go bankrupt Amerin. Cut your management wages and bonuses. It's not like they have any management skills anyway. Maybe then like other power companies they wouldn't send 5 guys and two line trucks to hook up one little ol temporary service for 4 hours. "

Bob wrote on Apr 29, 2007 8:17 AM:

" Need I read this article? Ameren is full of lies. They were for deregulation they bought I.P. and told us it would be cheaper. Now they auction the electricity they produce into a big pool with other providers and now buy the electricity back. We need the government to step in and build highly effecient and renewable power plants. An unreasonable profit by a monopoly is not fair or legal. Were is the competition? Make state farm and other wasteful con artists pay more for their electricity. "

why? wrote on Apr 29, 2007 7:06 AM:

" why is it the one major thing that really matters they can't seem to get us relief? "

anthony wrote on Apr 29, 2007 5:31 AM:

" State Govt. officials should get off their dead backsides and get to work. They didn't waste time getting themselves a 15% raise recently. Additionally with Unit 5 proposing a 100 mil. building increase...........they may just have to wait till electric bills are under control "

OGS Monopolies wrote on Apr 29, 2007 2:52 AM:

" They're all around us and we all know it. Politicians need to react to the obvious and serve the people. "
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