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Pantagraph EditorialMonday, April 30, 2007 12:33 AM CDT
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Political games in Springfield hurt electric issue
By the Pantagraph Editorial Board
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Years from now, political science classes probably will be studying the Illinois deregulation/rate-setting issue as an example of how not to do something.

But for today's Illinois residents, this is no academic exercise.

The Legislature needs to quit the political maneuvering and address the heart of the issue before electric bills - and tempers - go through the roof when residential customers start needing their air conditioning.

How did we get here?

Let's start with the deregulation legislation, which imposed a rate freeze and forced utilities to separate their generating facilities from their other operations.

The foundation on which this switch was built was the expectation that there would be vigorous competition from electricity suppliers at the end of the rate-freeze period, leading to lower rates for consumers.

That didn't happen. And it was clear it wasn't going to happen long before the rate freeze was about to end.

What did the Legislature and governor do?

Nothing.

The so-called "reverse auction" for deregulated utility companies to purchase electricity and the costs came in higher than expected. At that point, higher electric rates became a certainty.

What did the Legislature and governor do?

Nothing.

Meanwhile, utilities signed contracts to buy electricity at prices set through the reverse auction.That hasn't stopped the Legislature from talking about reinstituting a rate freeze.

But freezing rates after utilities have been locked into contracts for purchasing power means utilities will have to find other places to cut costs. That raises issues of the ability of utilities to perform proper maintenance and emergency repairs and invest in infrastructure improvements to assure reliability.

Customers began receiving higher electric bills in January. For some, the bills were substantially higher. That was particularly true for those who had been under a special rate given to encourage people to have all-electric homes.

What did the Legislature and governor do when those bills started arriving? Nothing.

The rate freeze being considered in the Legislature is just a quick fix that won't solve long-term problems and could make them worse.

Perhaps the Legislature could spend more time seeking real relief if it weren't spending so much time playing political games with the rate-freeze issue.

Senate President Emil Jones, who has been an obstacle throughout this debate, pulled another rabbit out of his hat earlier this month with a parliamentary maneuver that blocked consideration of a measure that would include Ameren and ComEd in a rate freeze.

Although a rate freeze is not a long-term solution, having one person wield this much power - and use it in a way that thwarts the democratic process - is not the answer, either.

Perhaps a power failure of the political kind could trigger a meaningful resolution by having government and utility officials devise a regulated or partially deregulated system that can work for all sides.

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Reader comments on this story - 5 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.

Blynn wrote on May 1, 2007 12:29 PM:

" A reinstatement of an unsuccessful rate freeze is some lawmakers' way of shutting citizens up! It's not a solution ... it didn't work the first 10 years and it's not going to miraculously work this time. IL lawmakers enacted the 1997 rate freeze and it BOMBED. Crucifying the utilitites will not change the cost of electricity. Lawmakers are not our knights in shining armor ... coming in to save the day from the big bad utilities. Just because we had our heads firmly entrenched in the sand for 10 years doesn't mean that the prices didn't soar. It was a GIFT folks and now it's over. Don't let lawmakers and CUB drag us down the same path again!!! "

me wrote on Apr 30, 2007 4:22 PM:

" Political Games in Springfield hurt everything, not just electricity bills. "

Grumplestiltskin wrote on Apr 30, 2007 10:32 AM:

" This Emil Jones character seems to be going out of his way to screw the people of Illinois? Can't we use some of Ameren's windfall profits and pay him to move to Florida? Why does he hate us so much??? "

Wat Tyler wrote on Apr 30, 2007 6:52 AM:

" Saying that the legislature and governor did nothing to address the various aspects of this issue is misleading and does a disservice to the hard working politicians of our fair state. Our politicians were plenty busy. They got out in front of this situation, polling, listening, and eventually positioning themselves for their best political advantage. Speeches were written, forests were cut down to provide newsprint to contain the bloviate they provided. They proactively got out in front of this issue and turned it into a hot-button issue to differentiate themselves from the common rack of wannabes. Now, were they effective? That is a different question. "

orval wrote on Apr 30, 2007 2:25 AM:

" if the voters reelect any of lousy political leaders such as emil jones they deserve what they get i say lets clean house when we vote the next time vote for change "
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