CUB tells Kane County ComEd plan is “Trojan horse”

After two sessions with ComEd officials about the positives of its $2.6 billion infrastructure plan, Kane County Board members Monday listened to the Citizens Utility Board throw some static on the electric utility’s legislative push.

ComEd has primarily sold the plan as the creation of a “smart grid,” which will provide better information to consumers about their electricity usage. The theory is a more educated consumer will understand and implement proactive measures to cutting his or her electric bills.

Bryan McDaniel, CUB’s senior policy analyst, told the county board’s legislative committee not to be fooled into voting for ComEd’s plan just yet.

“The smart grid is being used as a ‘Trojan horse’ to change the entire regulatory system,” McDaniel said. “It’s pretty much their dream bill. It gets them automatic rate hikes.”

ComEd has told the county board the infrastructure plan would increase electric bills by about $3 per month for the average consumer. But the infrastructure plan pairs with ComEd’s rate increase requests that would increase the average bill by about $5.25.

The utility company has said the infrastructure for electricity is a century old and unequipped to handle the power demands of modern cellphones, computers and electric-powered vehicles. The plan would also create what ComEd officials described as 2,000 mostly permanent jobs in Illinois.

McDaniel said the key aspect of the legislation is retaining government oversight and consumer input on how much profit ComEd really needs. He said ComEd asks the state for a rate increase every year, but it usually takes 11 months to determine if a rate increase is warranted and how much it will be because of the thoroughness of the current process. The $2.6 billion legislation would streamline that process by using a standard formula for rate increases, McDaniel said. Typically, ComEd is looking for an 11 percent or 12 percent rate of return, McDaniel said. CUB fights to lower that return to closer to 9 percent or 10 percent, which equates to millions of dollars in savings for ComEd customers, he said.

“You have to remember ComEd is owned by Exelon,” McDaniel said. “Exelon generates electricity; ComEd distributes electricity. ComEd has no onus to reduce electricity usage. ComEd’s incentives are to watch the meters spin as fast as they can. This bill would not be good for the people of Kane County the way it’s currently written.”

McDaniel said CUB favors both the creation of the smart grid and changes to the regulatory system that oversees ComEd, just not in the forms ComEd currently wants.

Committee members have not yet decided if they will take a position on ComEd’s legislation and forward a recommendation to the full county board for a vote.

In the meantime, changes are expected on ComEd’s proposal as state lawmakers debate the plan.