In the News

Daily Herald, July 24, 2007

SPRINGFIELD — Suburban residents could see modest reductions in their power bills under a $1 billion relief plan the state’s top Democrats expect to pass this week.

The deal would roll back by 45 percent the rate increase Commonwealth Edison imposed at the beginning of the year. Customers would get a lump-sum credit for the first seven months of the year and monthly discounts from then on as the higher, market rates are phased in over the next three years.

ComEd rates increased, on average, 24 percent with the start of 2007. For someone with a $100 bill that increased to $124 in January, this new deal could save roughly $10 a month. Exact discount will vary by household.

All told, the refunds and credits will tally $1 billion statewide, half for ComEd customers and half for downstate Ameren customers who’ve been screaming for political relief in the wake of power bills that in some cases tripled.

House Speaker Michael Madigan, Senate President Emil Jones Jr., and state Attorney General Lisa Madigan, all Chicago Democrats, flew around the state Monday touting their work. The stops were all in downstate Ameren territory.

A spokeswoman for ComEd declined to comment on the apparent legislative agreement Monday. The company has a news conference scheduled for today.

For many lawmakers, however, this proposal was the first sign of progress in months for what has been a contentious issue.

“I’m extremely pleased that we were able to provide assistance and actually a long-term plan for purchasing electricity, hopefully at a lower, more reasonable rate. I think this is good news for every customer in Illinois,” said state Sen. Susan Garrett, a Lake Forest Democrat.

But many lawmakers remain wary of any power deal until its on their desks ready for a vote.

State Sen. John Millner, a Carol Stream Republican, questioned if ComEd wasn’t paying too much toward a pool of money that’s ultimately go to downstate Ameren customers.

However, if this deal holds, it could clear the way for resolution of numerous other issues, most notably the state budget, which remains stalled. A temporary budget approved last month to keep the state open expires at the end of this month. If there’s not another short-term budget, or a full year budget by then, it would threaten state support of local schools in addition to shuttering state offices and parks.

Downstate lawmakers previously held up other budget plans, saying they’d block any such spending until action was taken on electric rates. One of the leading downstate Democrats on the issue said Monday that he’d not relent until the House and Senate had approved a power bill relief plan.