Electric rebate plans goes to governor
SPRINGFIELD -- A plan to give angry consumers $1 billion in relief from surging electricity prices sailed through the Illinois Legislature on Thursday, despite some complaints that it doesn't go nearly far enough.
The Illinois House approved the plan 80-33, and the Senate followed suit 40-13. It now goes to the governor, who hasn't said whether he supports it.
Republican critics argued consumers deserve more after seeing their electric bills spike in January, when a 10-year freeze on rates ended. The relief plan doesn't roll back and freeze rates as some lawmakers wanted, allowing for more rate increases in coming years.
The plan instead gives rebate checks and bill credits that would roughly cut the price increases in half. The money would be spread out over the rest of the year, meaning small amounts for customers who avoided the worst of the prices increases.
"It will be wonderful when they get their $8 and $10 and $12 checks. They'll be so happy," Rep. Mike Bost, R-Murphysboro, said sarcastically. "Shame on all of us."
The plan also would create a new state agency to oversee electricity prices and, in theory, keep future increases to more manageable levels.
"The passage of this bill into law will be a great day for the people of the state of Illinois," said Rep. George Scully, Flossmoor Democrat. "It has been a very long, painful road to get to where we are today."
If the plan becomes law, it would resolve one of the most explosive issues lawmakers have tackled in recent years.
The 10-year rate freeze was supposed to allow time for a competitive electricity market to develop in Illinois. Instead, few companies moved in and prices soared when the freeze ended. Some customers, particularly in central and southern Illinois, saw bills double or even triple -- and they demanded action.
The plan negotiated by Democratic leaders presented a difficult choice for Republicans: Support it despite their reservations and the opportunity to take political shots, or risk the fallout from voting against $1 billion for their angry constituents?
Many lawmakers of both parties had wanted to roll rates back to their old levels and freeze them again. That would have been worth more than $2 billion a year to consumers.
In the end, many Republicans decided to go along with the only deal available.
The agreement phases in rate increases over four years by giving customers discounts that slowly fade away.
Ameren customers will get at least $100 back this year on increases they paid, and many will see hundreds of dollars more. ComEd customers, whose increases weren't as high, will get about $80 back.
"This is going to bring their rates back to a level they can live with, a level that they can do business with," said Sen. John Sullivan, D-Rushville.
The funding comes from Ameren, ComEd and the power generators who provide their electricity.
The deal also scraps the auction process used last year to set the higher rates. A new strategy will be overseen by the new Illinois Power Agency, an independent body whose head is appointed by the governor. It will try to negotiate the lowest possible price for consumers on the market.
A condition of the agreement bars lawmakers from freezing rates for several years and requires Attorney General Lisa Madigan's office to drop several lawsuits against the utilities alleging fraud and collusion against consumers.
Gov. Rod Blagojevich, who took no part in negotiating the relief package, has to review the plan before deciding whether to sign it, said spokeswoman Rebecca Rausch.
Republicans complained that giving up the lawsuits for a relatively small amount of money made no sense.
Some warned that constituents who begged for relief all year will take out their frustrations against Democrats over an unsatisfactory agreement and the ongoing legislative overtime session in next year's elections.
"Failure, failure, failure. This is what your party has come to stand for," said Rep. Ron Stephens, R-Greenville. "There will be a price paid."
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The bill is SB1592.
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On the Net: www.ilga.gov