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Electric rate relief bill signed
Governor finally OKs $1 billion deal
By Blackwell Thomas
and Mike Riopell
blackwell.thomas@lee.net
mike.riopell@lee.net
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DuQUOIN — Gov. Rod Blagojevich on Tuesday signed a $1 billion electric rate relief package into law that means Ameren and ComEd customers across Illinois soon will get refunds in the mail.

But in a signing ceremony at the DuQuoin State Fair in Southern Illinois, Blagojevich said the plan negotiated by lawmakers isn’t perfect.

“A billion dollars in rate relief for people is not as good as $2 billion in rate relief for people, but it’s a heck of a lot better than no dollars,” he said. “It’s a step further; but I don’t think it goes far enough.”

The plan guarantees that Ameren will begin sending refund checks to its customers in about two weeks, spokesman Shelley Epstein said.

The legislation comes eight months after Ameren and ComEd customers were hit with rate hikes at the beginning of the year.

That sparked controversy as residents in Central and Southern Illinois hit particularly hard by higher power bills cried out to their lawmakers for help.

“They were sending their bills in, and they were calling,” said state Rep. Bill Mitchell, R-Forsyth. “And they were justifiably upset.”

Though most of the billion-dollar tab in the settlement was paid for by energy giant Exelon, Epstein said Ameren has felt damage to its reputation and will have to work to restore faith.

“The increases were profound and were hard on our customers and hard on our company,” Epstein said.

State Sen. Gary Forby, D-Benton, who shepherded the legislation through the General Assembly and was one of its most vocal supporters there, said he was “tickled to death.”

“It’s been a long time coming,” he said. “My district has people that’s on fixed incomes. They don’t have the money.”

Blagojevich’s criticisms of the legislation are coupled with a chorus of mostly Republican lawmakers who decried the final settlement, saying officials could have squeezed more money from the utility companies.

“To really trumpet that as the best we could do, that’s really hard to swallow,” said state Rep. Roger Eddy, R-Hutsonville.

But the settlement’s key negotiators, Democratic lawmakers and Attorney General Lisa Madigan’s office have defended the final terms as far better than what the companies originally offered.

“I truly believe it was the best that could be negotiated given the conditions that we faced,” said state Rep. Bob Flider, D-Mount Zion.

Blagojevich spent nearly a month reviewing the final deal after lawmakers approved it.

“You’ve got to beware when these big companies are pressing you to sign on the dotted line before you’ve had the chance to look and study a complicated issue like this,” he said.

The governor, who was often criticized for being absent during relief negotiations between utility representatives and legislative leaders, said he knew the system utilities previously used to buy electricity could result in high rates.

“I was, in the words of a Barbara Mandrell song, ‘country before it was cool,’” Blagojevich said. “I saw this coming.”

To replace the former system, the settlement creates a new state agency that will oversee how utilities buy power — a key factor in determining electric rates. But critics of the new agency say that oversight won’t change the free market.

If market electricity prices go up, consumers could have to pay for it. Supporters hope that the agency will at least slow future increases.

“Maybe it won’t,” Eddy said. “And there’s no guarantees.”



What to expect

Gov. Rod Blagojevich on Tuesday signed a $1 billion package to help curb high electric bills.

Ameren

According to the utility, Ameren customers can expect:

-- A check for at least $85 in September, followed by at least $15 more in credits on their bills until the end of 2007. About 40 percent of customers will fit in this category. Others can expect more.

-- Customers with all-electric homes can expect about $400 back this year, starting with a lump-sum check. Officials warned that the $400 figure could vary widely, given that all-electric customers live in everything from small apartments to large houses.

-- Credits would be scaled back for 2008 and 2009, then eliminated.

ComEd

According to the utility, average ComEd customers can expect:

-- A one-time credit on their October bill for about $57, though the credit will vary depending on how much power a customer uses.

-- A similar average customer would get about a $7 credit per month for the rest of 2007. It could range from about $4 to $13.

-- Credits would be scaled back for 2008 and 2009, then eliminated.

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Reader comments on this story - 26 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.

I love Ameren wrote on Aug 29, 2007 9:16 PM:

" You people complain too much. Use of electricity is optional. If you don't like the price, don't use it. I can burn a 13 watt fluorscent bulb 6 hours a day and it will only cost me 2 bits a month (that's 25 cents for you youngsters). Sounds like a pretty good deal to me. In fact, I think I'll write a Thank You letter to Ameren! "

Conserving energy wrote on Aug 29, 2007 6:49 PM:

" This rate relief package is better than nothing. The families and "Mom and Pop" stores have already paid the price and lost everything. The legislatures that are complaining about the deal are the same ones that felt the energy companies needed the incteases last year. Maybe State Rep. Roger Eddy, and others should come clean as to their support for the energy companies last year. "

burns me up wrote on Aug 29, 2007 6:16 PM:

" Rural electric folks were paying high rates many many years ago and nobody cared. Now after paying off the high costs and bonds Corn Belt has lower rates. It burns me up that they care when it affects a lot of folks(votes) but don't give a rip when there are not many voters getting screwed. With come Ed and Ameren getting pinched you can just about bey some of this cost to generate power will be transfered to us country folks "

Digs Deeper wrote on Aug 29, 2007 1:02 PM:

" OH please is $85.00 really a help to anyone? That's right $85 does go a long way when you do not pay for you own transportation let alone your own hair doo. But the real everyday person could walk around town with a garbage bag picking up cans and collect $85.00 everyday. Do I care that ameren has a million customers, nope. That's just a million customers that they have jacked over with their fake increases in cost, while they have record proffits...Time to Offer new classes.. How to by-pass your meter...... "

re:Covserve-ative wrote on Aug 29, 2007 12:36 PM:

" I thought conservative's were proud to waste resources and considered it a badge of honor? "

Wat Tyler wrote on Aug 29, 2007 9:42 AM:

" Yet another government takeover. to quote from the article "To replace the former system, the settlement creates a new state agency that will oversee how utilities buy power — a key factor in determining electric rates. But critics of the new agency say that oversight won’t change the free market." Now w have a bunch of politicians that think they can buy power cheaper than professionals that have doen so all of their professional lives. Good Luck and lets hope that you do better than California, whose rates skyrocketed when Governor Grey Davis appointed his chief fund raising lawyer as the head of the California ISO. "

Covserve-ative wrote on Aug 29, 2007 9:34 AM:

" Still feels to me like we are rewarding those who are wasting electricity. In March, I took efforts to reduce my household's electrical use. I've cut my useage over 40% compared to last year and my most recent bill just barely cracked the $100 mark - not bad for the hottest month of the year. I'll gladly take the $100 - it'll be a refund of about 10% of my annual bill. Not only that, but my convservation efforts will have long-lasting benefits to my bill and the environment. "

WOW! wrote on Aug 29, 2007 9:02 AM:

" We've waited all year for some "relief" and now we get $80 bucks and a $15 credit on our bills?! That's going to help a ton! Thanks Ameren, and Thank you to good ole Rod! "

Normal Guy wrote on Aug 29, 2007 8:53 AM:

" How much is that new, permanent state agency going to cost us?? "

No government wrote on Aug 29, 2007 8:52 AM:

" This is just typical liberal "feel good because we care" action. A deal hatched behind closed doors. Something wrong with that. "

Maxwell wrote on Aug 29, 2007 8:41 AM:

" Glad to see rate relief passed. I dont know about anyone else, but i can sure use the money. "

"Esther" wrote on Aug 29, 2007 8:36 AM:

" Good think they don't log your IP address and display it so we can see the Ameren subnet. "

to Esther: wrote on Aug 29, 2007 8:32 AM:

" I only get about $100 bucks myself and I'm not whining like you accuse Bob and Digs. ThatI S a big joke though, considering how Ameren has screwed us. esad "

Gov. William J. LePetomaine wrote on Aug 29, 2007 8:16 AM:

" Holding up electric rate relief to try to blackmail legislators into passing the budget he wanted? He gets a big "harrumph" from me! "

Glad for the credit wrote on Aug 29, 2007 7:53 AM:

" Honestly, Digs and Bob...you won't be happy until you have power for free. And if you owe them $700, either your house is too big or you are using too much power. Then you can't blame the utility companies for charging you what you owe and you not being able to pay it. My bill is like $90 a month which is manageable. Can't afford it? Scale back. That's just common sense. "

? wrote on Aug 29, 2007 7:42 AM:

" How do we find out how much we'll be getting back? "

crazy wrote on Aug 29, 2007 6:50 AM:

" they call this relief? just adds more stress "

hey Esther! wrote on Aug 29, 2007 6:50 AM:

" Don't get your Amerin check confused with your welfare check! "

This winter wrote on Aug 29, 2007 6:49 AM:

" When the blizzard hits Amerin big shots and Emil will be enjoying themselves down where its warm and comfy in the south enjoying their bonuses. "

YEAH, RIGHT! wrote on Aug 29, 2007 6:31 AM:

" Do you think Ameren will have time to "work to restore faith" after they get back from taking profits to the bank in dump trucks? "

Thank You, Governor Blagojevich wrote on Aug 29, 2007 6:12 AM:

" This is excellent news for Illinois families. Once again, Governor Blagojevich has kept his promise to the people of our state. He stood up to his own party and to the big power companies to see that people throughout Illinois will get a fair shake and will have a little extra money on their pockets. Thank you, Gorvernor Blagojevich! You are truly a servant of the people and for the people in the proudest tradition of Illinois. "

To Esther wrote on Aug 29, 2007 3:52 AM:

" It was you electric heat whiners that cause the whole mess. You whined and whined. Now you are getting big rebates and the rest of us are paying for it. Why should you get electricity for less than it cost to produce just because you use a high volume of electricity? High natural gas users do not get a break. Natural gas has probably tripled in the last ten years but natural gas users aren't getting a rebate or lower rates. Whiner, you should pay for what you use. "

Esther wrote on Aug 28, 2007 11:39 PM:

" Dear Digs and Bob: I'm getting at least $400 back. Can I have yours if you don't want it? Whiners. "

Wow ! wrote on Aug 28, 2007 11:13 PM:

" Governor finally OKs $1 billion deal. Thats like one buffalo nickel per Illinois dumbocrat. "

Digs Deeper wrote on Aug 28, 2007 11:01 PM:

" Wow what a super relief package, a $100.00. Oh.... I have to laugh at that one. First Amer-en installed electronic meter readers as soon as rates went up then next it is a rate hike because it costs more, now it's oh yeah we might of over charged you, but hey shut up here's some hush money a lousy hundred bucks at that, now sit down and be a good little citizen, I see them now, sitting back in their lazy chairs having a good laugh on us....... Seems like everyones in line for a pay hike but the citizens... Going broke paying bills, never felt so good....... "

Bob wrote on Aug 28, 2007 10:48 PM:

" I'm glad to hear I'll get a total of $100 in this rebate from Ameren, that might be 1/7 of what I still owe them. How much did Emil get in his pocket? "
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