ComEd gets rate hikes plan based on going to 'Smart Grid'

SPRINGFIELD — Illinois lawmakers on Wednesday gave electric companies the authority to raise rates to produce money for modernizing the state power grid, despite opposition from consumer advocates and an outright veto by Gov. Pat Quinn.

Both Democratically controlled chambers also passed legislation tweaking the plan in an attempt to make it more palatable. It lowers the profits guaranteed to the power companies, toughens the performance standards they must meet and increases the amount they must spend on improving basic infrastructure. Critics dismissed it as window dressing.

Shortly before the votes, the Northwest Municipal Conference — a collection of suburban mayors — removed their opposition after coming to an agreement with ComEd about how to operate and communicate during storms and outages. In a joint statement, ComEd and the suburban mayors said they'd work out the details of the new procedures “in the coming days.” After that, the plans will be filed with state regulators.

The new law authorizes a decade-long $3 billion project, much of which would improve the power companies' delivery systems by installing “smart meters” in all ComEd homes and 60 percent of Ameren Services homes.

ComEd estimates customers would see rates climb about $36 a year, on average. But they say savings created by the smart meters would more than offset the higher costs. The utilities will be able to raise rates without interference from state regulators.

The governor, however, claims that at the end of the 10-year project consumers would pay $408 annually.

Supporters, including major labor groups, say the measure will create jobs and produce a high-tech “Smart Grid” that improves efficiency and helps people conserve energy.

“Illinois can't afford to move into the future on technology stuck in the past,” said Sen. Mike Jacobs, the East Moline Democrat who sponsored the legislation.

Critics — from AARP to the Citizens Utility Board to Attorney General Lisa Madigan — maintain it's a sweetheart deal for power companies ComEd and Ameren Illinois.

Legislators approved the measure earlier this year, but Quinn vetoed it. The Democratic governor emphasized his opposition again Tuesday, calling the bill a “smart greed” plan that utilities pushed through with lobbyists and big donations to campaign funds.

Sen. Kyle McCarter, a Republican from Lebanon, rejected the idea that this is a jobs bill. He said it adds a new burden in a state that already hits businesses with high taxes, fees and workers' compensation costs.

“One of the last good things we've got going in this state for businesses is affordable power,” he said.

The Senate voted 36-19 to override Quinn's veto, the bare minimum needed. The House, without any debate at all, followed a few minutes later with a 74-42 vote. The override votes mean the measure is now law.

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