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Quinn vetoes electricity rate-hike plan

Illinois Gov. Pat Quinn followed through on a promise Monday when he vetoed legislation to raise electric rates that would have helped pay to modernize Illinois' power grid.

“We must stand behind the consumers of Illinois and protect them from any overreaching by big utility companies,” Quinn said, calling the legislation a “nightmare” at a news conference with Illinois Attorney General Lisa Madigan and other consumer advocates.

Quinn and other opponents complained that the bill didn't have enough consumer protections and would have unfairly raised rates for ComEd and Ameren customers. The governor chastised ComEd for its handling of recent power outages, saying the company should provide better service.

ComEd has taken lumps in the suburbs in recent weeks, facing sharp questioning from lawmakers and local homeowners who went for days without power after storms this year.

Supporters contend the legislation is needed to finance a “Smart Grid” that can monitor energy use and reduce waste. The $3 billion, 10-year plan also would have given ComEd and Ameren money for basic infrastructure.

Lawmakers who sponsored the measure have previously said they would find the votes to override Quinn's veto, something Quinn had promised to issue since lawmakers passed the bill in May before they left the Illinois Capitol for summer vacation. Lawmakers held on to the bill to try to convince Quinn of its merits before eventually sending the bill to his desk late last month.

Quinn urged lawmakers Monday to let his veto stand and said everyone should go back to the bargaining table. He said the starting point should be a plan put forth by the Illinois Commerce Commission, which regulates utility rate increases.

The veto could pave the way for negotiations on a new draft of the plan that will better satisfy consumer advocates.

“To be effective, any legislation to modernize the electric grid should contain lower profit margins for utility companies, key protections for those who can least afford rate increases, dedicated revenues for storm response measures, environmental safeguards, and clear evidence that ratepayers will realize future savings from smart meters,” said state Sen. Don Harmon, an Oak Park Democrat.

ComEd said opponents were off base about the legislation known as Senate Bill 1652, or SB1652.

“Despite the rhetoric of the legislation opponents, SB1652 does not guarantee profits, will not result in automatic rates increases and does not strip the authority of the ICC,” ComEd said in a statement. “Illinois customers want more than the status quo. We look forward to working with members of the General Assembly to help make grid modernization and economic growth a reality in Illinois.”

ŸDaily Herald State Government Writer Mike Riopell contributed to this story.