ComEd pursuing $2 million tax refund

ComEd wants a $2 million refund on last year's property tax bill in DuPage County.

The utility giant is asking for a 90 percent reduction in the assessed value of its property in DuPage.

"We feel our property has been overvalued for taxing purposes," ComEd spokesman Luis Diaz said. "We're appealing on the grounds these properties are mainly rights-of-way and shouldn't be treated as commercial properties that can appreciate in the market."

The electric company is seeking the drastic reduction in the taxable value of 350 of the 500 parcels. A property's assessed value is roughly one-third of its market value.

All ComEd property in DuPage is assessed at $38 million. If ComEd wins its case, it would be entitled to a $2 million refund on last year's property tax bill, said Craig Dovel, DuPage County Supervisor of Assessments.

The utility is seeking similar refunds for the previous three years, Dovel said, plus one from just Milton Township a year prior to that.

The county's board of review -- which handles all property tax disputes -- recently rejected ComEd's case. The company has since filed an appeal with the state property tax appeal board.

"They can't have it both ways," District 1 county board member Paul Fichtner said. "They want to charge more for the power they supply, but they want to claim the property that carries that more expensive power isn't worth more than what they bought it for."

Fichtner said if ComEd is successful, they'll be able to apply the same rules throughout the state and it will cost Illinois property taxpayers millions of dollars because the lost money will have to be made up from somewhere else.

"That's on top of the 26 percent electric rate increase ComEd imposed on those same taxpayers last year," he said. "They're creating a lot of bad will for themselves."

Diaz said the land in question is being taxed like viable development property when it predominantly consists of large transmission and distribution lines.

Kane County went through a similar tussle with ComEd in recent years, and ComEd's pleas were denied all the way up to a state appeals court. Diaz said ComEd has given up on that case.

"There's nothing in the tax code regarding utility rights of way," said Mark Armstrong, Kane County Supervisor of Assessment. "ComEd really needs to go to the legislature if they want a tax cut because they're pursuing a remedy that does not exist."

ComEd officials, Dovel said, were arguing they couldn't sell the land for more than the purchase price, which in some cases was decades ago.

"There's no evidence they have to be held to a different standard when selling the land," he said.

"We're exercising our rights of appeal," Diaz said. "We've paid our taxes on time, and we're seeking a refund."