ComEd rate hike plan likely controversial

SPRINGFIELD — The details of ComEd’s plan to pay for major upgrades to the power grid through annual increases in electric rates could be negotiated and altered in the coming months before lawmakers take any votes on it.

But recent history makes one thing clear: Trying to raise Illinois residents’ power bills could cause a lot of contention in Springfield.

“As it stands, I think it’ll be pretty controversial,” said Dave Kolata, executive director of Citizens Utility Board.

Observers don’t need to look far back into history for proof that bigger utility bills can catch the attention of politicians in a hurry.

In 2007, when electric rates rose after a 10-year freeze, the resulting outrage led to Attorney General Lisa Madigan and lawmakers negotiating a $1 billion settlement — paid mostly by ComEd-parent Exelon — that effectively lowered rates for the next several years.

And last year, ComEd offered to give the cash-strapped state $500 million in exchange for four years of rate hikes. That plan died quickly.

Now, utilities need approval from state regulators before they can change what they charge for delivering electricity. ComEd’s proposal would mostly eliminate that process.

Thomas O’Neill, a ComEd senior vice president for regulatory and energy policy, said he knows the company’s plans might evolve via compromises if they’re going to be approved.

“What we want is a dialogue,” he said.

ComEd proposed investing $2.6 billion in the power grid to upgrade it to suit the more plugged-in, gadget-loving lifestyle many of its customers now lead.

“This will improve reliability for our customers in a way our customers are demanding,” O’Neill said.

To do so, the company asked for 10 years of formula-based rate increases to pay for it. ComEd needs to know it can cover its costs before it invests that much money, O’Neill said.

So far, though, the plan has gotten a chilly reception from some officials who deal with the utility industry.

Madigan, who helped negotiate the 2007 settlement and whose opinion carries weight with lawmakers, hasn’t minced words about ComEd’s current proposal.

“We’re strenuously opposed,” said Madigan spokeswoman Robyn Ziegler. “It will seriously harm consumers.”

Discussions of the plan could start in earnest soon, as lawmakers’ annual session continues in the coming months.

“We do expect this to be a hard-fought issue,” Ziegler said.