NEWS

from the Illinois General Assembly

State Senator Susan Garrett
State Rep. Elaine Nekritz

FOR IMMEDIATE RELEASE
March 27, 2007

FOR MORE INFORMATION
Susan Garrett (847) 433-2002

NEKRITZ AND GARRETT LISTEN TO ELECTRICITY CONCERNS

DES PLAINES – On Saturday, State Senator Susan Garrett (D-Lake Forest) and State Representative Elaine Nekritz (D-Northbrook) listened to area residents express concern about the recent electric rate increase and its impact on condominium ratepayers. Board members at the Ancient Tree subdivision in Northbrook organized the meeting in response to skyrocketing electric bills for condominium common areas.

After a ten year rate freeze, ComEd’s electric rate increase went into effect in January 2007. Residents are reporting increases on their February and March bills that are much higher, up to 100 percent, than the 20 to 25 percent increase that was promised by the utility.

Residents who use electric heat are seeing increases in rates on top of the wholesale rate increase. Under new billing procedures, ComEd eliminated certain incentives that existed for customers who use electric heat. Many area condominiums were built to accommodate electric heat because of these incentives.

“Condo owners are mad as hell, and they ought to be,” said Senator Garrett. “In a clever, legal maneuver, the Illinois Commerce Commission ramped up condo rates, without any disclosure, communication or transparency.”

Condominium associations have joined the chorus of unhappy ratepayers after learning that associations have been reclassified as commercial ratepayers for electricity used in common areas. Prior to 2007, associations were classified as residential ratepayers and charged a lower rate than commercial ratepayers. The living areas of individual unit owners have remained under a residential classification.

“I am concerned because condominium residents have been hit by electricity deregulation in three different ways, the increase, the elimination of the incentive to use electric heat and the reclassification,” said Representative Nekritz. “These changes are impacting those who can least afford an increase in electric rates. Many of the constituents I have heard from on this issue are senior citizens on fixed incomes.”

The reclassification to commercial rates has resulted in dramatic cost increases for condominium associations. Representative Nekritz reports that one condominium in Des Plaines has seen its bill for electricity in common areas increase almost $7,000, more than 200 percent, when comparing February 2006 costs with February 2007 costs.

The legislators are hopeful that action in the General Assembly will help to address some of the problems expressed by condominium residents. Legislation to retroactively extend the electric rate freeze passed through the House of Representatives. The Senate is currently considering Senate Bill 1592, which would extend the rate freeze for one year. The bill was approved by the Senate Environment and Energy Committee last week and is awaiting a vote in the full Senate.

Representative Nekritz is co-sponsoring House Bill 3391, which would freeze electric rates for three years and address the reclassification problem experienced by condominium associations. “I plan to work closely with my colleagues to make certain that electric service in Illinois is reliable and affordable,” she said.

For additional information on this issue, residents can contact Senator Garrett at (847) 433-2002 or Representative Nekritz at (847) 257-0450.