By Meredith Colias
The Illinois Senate voted today to override Gov. Pat Quinn’s veto on Senate Bill 9, moving one step closer to reversing a decision by the Illinois Commerce Commission on the smart grid law.
The vote was 44 to 11, with 1 voting present. The House will also need to vote to override the governor’s veto for the measure to become law. The original bill passed in that chamber with a veto-proof majority.
The bill puts “profits of big utilities ahead of families and businesses,” Quinn spokesman Dave Blanchette said. “It really sends Illinois in the wrong direction.” The Illinois Commerce Commission is a regulatory body in charge of approving electric rate increases. It also is overseeing the smart grid implementation.
Proponents of Senate Bill 9 have said that the Commerce Commission ruling misinterpreted the intent of the original bill.
In a statement, Senate President John Cullerton said the legislation was “understood to be clear and unambiguous.”
If lawmakers override Quinn’s veto, it would roll back the ICC decision that Commonwealth Edison says would cost the electric utility $100 million annually. Ameren, the other large electric utility in the state, was ordered to reduce its rates by $50 million under the same ruling. But utility companies want the money back, plus interest from their customers.
Lawmakers voted to allow electric companies like ComEd and Ameren to raise their customers' rates to create a ‘smart grid’ electrical system that will do such things as deal with power outages more efficiently. In return, the companies are required to create jobs. But both utilities have said the ICC ruling slowed job creation. (For more on smart grid, see Illinois Issues July/August.)
Interest groups opposing the bill say it may give Commonwealth Edison and Ameren justification to raise electric rates without knowing whether the smart grid system will eventually save money for consumers.
“We were not comfortable with the way ComEd was proposing to pay for those upgrades,” said Jim Chilsen, communications director for the Citizens Utility Board.
“I think the focus now is to make sure that Illinois consumers don’t just get stuck with the bill.” Chilsen said ComEd was now obligated to “build a smart grid that actually benefits consumers.” Estimates for how much the smart grid implementation would actually increase electric bills have ranged from $.80 to a few dollars per customer.
AARP lobbyist Scott Musser said he is concerned the Illinois Commerce Commission could become a “rubber stamp” because of the way the utilities were able to circumvent the ruling of the commission. Musser said the episode set a poor example for those looking to the regulatory commission to protect consumers.
Potentially, he said, “there’s almost no point for any group to intervene anymore in the process because it’s a done deal. We’ve opened up Pandora’s box.” He said utilities could come to the General Assembly and “get much better treatment than they would if you went through the regular process of the Commerce Commission.”
Showing posts with label Illinois Commerce Commission. Show all posts
Showing posts with label Illinois Commerce Commission. Show all posts
Tuesday, May 21, 2013
Thursday, March 21, 2013
Utility rate increases headed to Quinn
By Jamey Dunn
The Illinois House sent a bill to Gov. Pat Quinn today that could mean rate hikes for customers of the state’s two largest utility companies.
Senate Bill 9 would essentially overrule a decision from the Illinois Commerce Commission, a regulatory body that approves rate increases and is overseeing the implementation of the smart grid plan, which became law in 2011. Lawmakers say the ICC misinterpreted the law. They say the resulting ruling could cost Commonwealth Edison an estimated $100 million annually and forced Ameren to reduce its rates by just under $50 million. The utilities want the money back, plus interest.
Under the smart grid legislation, which became law after legislators voted to override a veto from Gov. Pat Quinn, Ameren and Commonwealth Edison committed to investing more than $3 billion in the state’s electrical grid over 10 years. Under the law, ComEd is required to create 2,000 new jobs, and Ameren is required to create 450 jobs over the same period. ComEd has already created 700 new jobs under the plan. The utility has also installed 500 “smart switches” that help to prevent power outages and completed 500 projects to strengthen the grid against storm damage. But the utility companies claim that they cannot move ahead with the investments and further job growth unless the ICC ruling is reversed. “ComEd is proceeding with a portion of the core grid modernization programs, while postponing the deployment of the remainder and all smart meters until 2015. SB 9 would allow us to get the Smart Grid program — and the related job creation — back on track,” said Anne Pramaggiore, ComEd president and CEO.
Unions are supporting the bill, hoping to see the job growth continue. “On behalf of the 6,300 hard-working men and women of northern Illinois who make up IBEW Local 15, we enthusiastically support this legislation because it allows utilities to invest in their systems, grow the local economy and create thousands of new jobs — something our state needs badly,” said Dean Apple, president and business manager of IBEW Local 15. “If we don’t find a solution to deploy ComEd’s Smart Grid program as planned, our state will face a great setback. We believe SB 9 is that solution.”
The rate increases are expected to be small, likely less than $1 for most customers. However, opponents say it is unfair to charge customers more for power that they have already paid for. “They’re getting the retroactive rate hikes with interest,” said Scott Musser, associate state director for AARP. “People are going to be paying for service that they have already used.” He said that the move is part of a disturbing trend of utility companies coming to the legislature for relief when the ICC issues an unfavorable ruling. ComEd appealed the ICC ruling, and the ICC issued another ruling after that appeal. The utility is also in court with a lawsuit over the ruling. “They didn’t like what the commission did. The commission’s decision was based on the law.” Musser said, adding that the court case should be allowed to play out. “The issue hasn’t been resolved through the appropriate legal channels. If they don’t like in the end what the court decided and they want to come back to and tweak the law, fine.”
The House approved the measure with little floor debate today, and no lawmakers spoke out against the bill. Musser said that illustrates how much sway the utility companies, which spend millions each year to lobby lawmakers, hold in the state. “In the House and the Senate, a lot of it’s the clout the utility companies have. I think it’s unfortunate nobody’s getting up on the floor and speaking about it. You’re seeing people voting against it, but you’re not getting an actual dialogue.”
A spokesperson for Gov. Pat Quinn said he plans to “thoroughly review the bill.” A representative of the governor filed as an opponent to the bill at a House committee hearing Wednesday.
For more on Smart grid see Illinois Issues July/August 2011.
The Illinois House sent a bill to Gov. Pat Quinn today that could mean rate hikes for customers of the state’s two largest utility companies.
Senate Bill 9 would essentially overrule a decision from the Illinois Commerce Commission, a regulatory body that approves rate increases and is overseeing the implementation of the smart grid plan, which became law in 2011. Lawmakers say the ICC misinterpreted the law. They say the resulting ruling could cost Commonwealth Edison an estimated $100 million annually and forced Ameren to reduce its rates by just under $50 million. The utilities want the money back, plus interest.
Under the smart grid legislation, which became law after legislators voted to override a veto from Gov. Pat Quinn, Ameren and Commonwealth Edison committed to investing more than $3 billion in the state’s electrical grid over 10 years. Under the law, ComEd is required to create 2,000 new jobs, and Ameren is required to create 450 jobs over the same period. ComEd has already created 700 new jobs under the plan. The utility has also installed 500 “smart switches” that help to prevent power outages and completed 500 projects to strengthen the grid against storm damage. But the utility companies claim that they cannot move ahead with the investments and further job growth unless the ICC ruling is reversed. “ComEd is proceeding with a portion of the core grid modernization programs, while postponing the deployment of the remainder and all smart meters until 2015. SB 9 would allow us to get the Smart Grid program — and the related job creation — back on track,” said Anne Pramaggiore, ComEd president and CEO.
Unions are supporting the bill, hoping to see the job growth continue. “On behalf of the 6,300 hard-working men and women of northern Illinois who make up IBEW Local 15, we enthusiastically support this legislation because it allows utilities to invest in their systems, grow the local economy and create thousands of new jobs — something our state needs badly,” said Dean Apple, president and business manager of IBEW Local 15. “If we don’t find a solution to deploy ComEd’s Smart Grid program as planned, our state will face a great setback. We believe SB 9 is that solution.”
The rate increases are expected to be small, likely less than $1 for most customers. However, opponents say it is unfair to charge customers more for power that they have already paid for. “They’re getting the retroactive rate hikes with interest,” said Scott Musser, associate state director for AARP. “People are going to be paying for service that they have already used.” He said that the move is part of a disturbing trend of utility companies coming to the legislature for relief when the ICC issues an unfavorable ruling. ComEd appealed the ICC ruling, and the ICC issued another ruling after that appeal. The utility is also in court with a lawsuit over the ruling. “They didn’t like what the commission did. The commission’s decision was based on the law.” Musser said, adding that the court case should be allowed to play out. “The issue hasn’t been resolved through the appropriate legal channels. If they don’t like in the end what the court decided and they want to come back to and tweak the law, fine.”
The House approved the measure with little floor debate today, and no lawmakers spoke out against the bill. Musser said that illustrates how much sway the utility companies, which spend millions each year to lobby lawmakers, hold in the state. “In the House and the Senate, a lot of it’s the clout the utility companies have. I think it’s unfortunate nobody’s getting up on the floor and speaking about it. You’re seeing people voting against it, but you’re not getting an actual dialogue.”
A spokesperson for Gov. Pat Quinn said he plans to “thoroughly review the bill.” A representative of the governor filed as an opponent to the bill at a House committee hearing Wednesday.
For more on Smart grid see Illinois Issues July/August 2011.
Wednesday, February 13, 2013
Utilities look to lawmakers to settle regulation dispute
By Jamey Dunn
Utility customers across Illinois could see a spike in their bills if a measure that a Senate committee approved today becomes law.
Senate Bill 9 would essentially override a ruling from the Illinois Commerce Commission because lawmakers say that the commission misunderstood some of the details in the smart grid legislation, which became law in 2011 when the legislature overrode Gov. Pat Quinn's veto. “It was felt by many in the General Assembly that we had a clear piece of legislation, and yet the ICC misinterpreted it,” said Senate President John Cullerton, who sponsored the bill. “It’s just reenacting the bill that we intended to enact in the first place.” The ICC ruling could cost Commonwealth Edison an estimated $100 million annually, and Ameren was ordered to reduce its rates by just under $50 million. The utilities want the money back, plus interest. And they say that they would have to downsize their plans to invest in the state’s power infrastructure without it. “We find ourselves at a point where we need some clarification in order to continue on,” said Anne Pramaggiore, chief operating officer of ComEd.
Ameren and ComEd are committed to investing more than $3 billion in the grid over 10 years as part of the smart grid plan. Under the law, ComEd is required to create 2,000 new jobs, and Ameren is required to create 450 jobs over the same time period. Pramaggiore said that ComEd has already created 700 new jobs under the plan. The utility has also installed 500 “smart switches” that help to prevent power outages and completed 500 projects to strengthen the grid against storm damage. But she says the money that the ICC denied the utility would hurt its efforts to upgrade the power system. “Without it, we are stalled in these programs. We can’t proceed forward and continue on and ramp them up as we intended.”
Richard Mark, president and chief executive officer of Ameren, agreed. He said that Ameren has reduced its capital spending by $30 million and has put off hiring 100 additional workers.
‘‘In this instance, the commission went forward with some decisions that apparently were not what the General Assembly intended for that language to say. And today they are taking action to begin to correct that and to make modifications to get that implementation down to what they had originally intended,” said ICC Executive Director Jonathan Feipel. He said the ICC’s role is to interpret the law as it is sent to the commission. “The commission in deciding these cases went through literally thousands and thousands of pages of evidence and legal briefs, and interpreting very complex statute is what the commission does. So these commission orders were then absolutely based on record evidence and legal briefs and the state of the law at the time.”
Proponents of SB 9 say it will allow the utilities to make upgrades, which are intended to create savings for customers in the long run. But opponents say those savings are an unknown, and the immediate result would be higher bills with no real benefits for customers.
“The people on the line to pick up the cost of this drafting error is the Illinois consumers. What were looking at is both a retroactive rate increase... and it applies interest, as well,” said David Vinkler, associate state director for AARP Illinois. He said that if the bill is approved, the cost to consumers may not be that great, but he said it adds up when considered along with other rising utility costs, especially for seniors on fixed incomes. “It may not end up being a whole lot per bill. You may be talking $2 to $5 per bill. The problem is that there are people that $2 to $5 is too much. You’ve got this sort of death by a thousand cuts.” Vinkler said that the Ameren and ComEd’s appeal to lawmakers undermines the regulatory role of the ICC. “We have a Commerce Commission for a reason. They’re doing their job. [Ameren and ComEd] keep on running back the to General Assembly because it’s a better venue for them.”
For more on smart grid, see Illinois Issues July/August 2011.
Utility customers across Illinois could see a spike in their bills if a measure that a Senate committee approved today becomes law.
Senate Bill 9 would essentially override a ruling from the Illinois Commerce Commission because lawmakers say that the commission misunderstood some of the details in the smart grid legislation, which became law in 2011 when the legislature overrode Gov. Pat Quinn's veto. “It was felt by many in the General Assembly that we had a clear piece of legislation, and yet the ICC misinterpreted it,” said Senate President John Cullerton, who sponsored the bill. “It’s just reenacting the bill that we intended to enact in the first place.” The ICC ruling could cost Commonwealth Edison an estimated $100 million annually, and Ameren was ordered to reduce its rates by just under $50 million. The utilities want the money back, plus interest. And they say that they would have to downsize their plans to invest in the state’s power infrastructure without it. “We find ourselves at a point where we need some clarification in order to continue on,” said Anne Pramaggiore, chief operating officer of ComEd.
Ameren and ComEd are committed to investing more than $3 billion in the grid over 10 years as part of the smart grid plan. Under the law, ComEd is required to create 2,000 new jobs, and Ameren is required to create 450 jobs over the same time period. Pramaggiore said that ComEd has already created 700 new jobs under the plan. The utility has also installed 500 “smart switches” that help to prevent power outages and completed 500 projects to strengthen the grid against storm damage. But she says the money that the ICC denied the utility would hurt its efforts to upgrade the power system. “Without it, we are stalled in these programs. We can’t proceed forward and continue on and ramp them up as we intended.”
Richard Mark, president and chief executive officer of Ameren, agreed. He said that Ameren has reduced its capital spending by $30 million and has put off hiring 100 additional workers.
‘‘In this instance, the commission went forward with some decisions that apparently were not what the General Assembly intended for that language to say. And today they are taking action to begin to correct that and to make modifications to get that implementation down to what they had originally intended,” said ICC Executive Director Jonathan Feipel. He said the ICC’s role is to interpret the law as it is sent to the commission. “The commission in deciding these cases went through literally thousands and thousands of pages of evidence and legal briefs, and interpreting very complex statute is what the commission does. So these commission orders were then absolutely based on record evidence and legal briefs and the state of the law at the time.”
Proponents of SB 9 say it will allow the utilities to make upgrades, which are intended to create savings for customers in the long run. But opponents say those savings are an unknown, and the immediate result would be higher bills with no real benefits for customers.
“The people on the line to pick up the cost of this drafting error is the Illinois consumers. What were looking at is both a retroactive rate increase... and it applies interest, as well,” said David Vinkler, associate state director for AARP Illinois. He said that if the bill is approved, the cost to consumers may not be that great, but he said it adds up when considered along with other rising utility costs, especially for seniors on fixed incomes. “It may not end up being a whole lot per bill. You may be talking $2 to $5 per bill. The problem is that there are people that $2 to $5 is too much. You’ve got this sort of death by a thousand cuts.” Vinkler said that the Ameren and ComEd’s appeal to lawmakers undermines the regulatory role of the ICC. “We have a Commerce Commission for a reason. They’re doing their job. [Ameren and ComEd] keep on running back the to General Assembly because it’s a better venue for them.”
For more on smart grid, see Illinois Issues July/August 2011.
Thursday, August 09, 2012
Quinn pushes forward on pension reform
By Jamey Dunn
Gov. Pat Quinn continues to push for pension reform and says he will decide on a controversial energy policy bill tomorrow.
“It shouldn’t take that long really. It’s something that everybody’s talked about all year,” Quinn said. “We just cannot postpone this matter any longer. It isn’t an election calendar that we’re looking at here, I think some members may be in the legislature. But we’re dealing with the bond rating agencies.” He said that if lawmakers don’t pass pension reform soon, the state may face a downgrade of its credit rating. “If we don’t act, we’re asking for trouble.”
Lawmakers are scheduled to return for a special session to address pension reform on August 17. Quinn said the legislative pension working group met Wednesday and plans to hold more meetings leading up to session next week. “We’re pretty close, I think, on what needs to be done.” However, Quinn seems to be the only player in the negotiations who is taking such an optimistic view.
The governor is throwing his support behind legislation sponsored by Northbrook Democrat Rep. Elaine Nekritz, a member of a legislative working group negotiating pension reform. Nekritz filed her plan, House Bill 6209, last week. It is similar to a version of Senate Bill 1673, which was under consideration at the end of the regular legislative session. The major difference is that it would make a shift of pension costs from the state to colleges and school districts outside of Chicago more gradual. Many Democrats believe that schools should pick up the cost for their employees' retirement benefits, but Republicans argue that shifting the expense would mean layoffs and increased property taxes.
However, House Minority Leader Tom Cross continues to oppose the cost shift to schools “The bottom line is that a pension cost shift is exactly that — a cost shift, not reform. We remain in total support of comprehensive pension reform of our pension systems. We have been and are willing to work with the other legislators and the governor to come up with a comprehensive solution as soon as possible,” said a prepared statement from Cross spokeswoman Sara Wojcicki Jimenez.
Quinn said that it is “curious” that Republicans do not support the plan because “ a lot of the interest groups that tend to support the Republican candidates” back Nekritz’s proposal. House Speaker Michael Madigan reportedly plans to call another bill, HB1447, for a vote. The Senate passed the bill on the last day of regular session. It only applies to the General Assembly and state workers, so it dodges the touchy subject of a cost shift altogether. Quinn has continually called for a “comprehensive” plan that applies to all the pension systems in the state. “I think it’s important that we get a good start. ... I think it would be a good thing if the House addresses [HB 1447], but I also want them to address Elaine Nekritz’s bill, which is really a comprehensive bill that will cover everything. It think that’s the best way to go.”
On that issue, Cross and Quinn say they agree. Cross also backs a “comprehensive” solution that would affect all workers, including teachers.
Nekritz has another bill, HB 6210, which she said could be a “companion” to HB 1447. It applies to university workers, community college employees and teachers. The measure also contains a cost shift. As they stand now, Nekritz’s bills cannot be passed in a single day. But Quinn thinks there are other ways to get the job done. “There’s a lot of different parliamentary techniques you can use in order to get a vote done in one day. That may be one of the ways to go.” One option would be to put the language of the legislation into another bill that has already been moved through much of the legislative process. Nekritz said she introduced her measures to start a conversation but is uncertain of the likelihood of their passage. “I think the plan is to put this out for discussion purposes,” she said on Monday.
Both bills have immediate effective dates, so they would require a three-fifths majority to pass in 2012. While Quinn said that he wants reform as soon as possible so the state can start to reduce its pension liability, he conceded that it might not happen. “I would hope to have three-fifths of both houses voting [yes], but if it was a majority, that’s definitely significant progress. We may have to adjust certain of the bills if there’s only a majority available.” If a three-fifths majority cannot be found, the earliest any reforms could go into effect would be June 1, 2013.
Quinn also said he plans to make his decision on Senate Bill 3766 by tomorrow. That measure would override a ruling from the Illinois Commerce Commission and clear the way for the construction of a coal gasification plant on Chicago’s southeast side. Without the bill, Leucadia National Corp., financial backer of the project, says it will not go forward. However, the plant is opposed by several environmental groups and business organizations, who say it will increase the price of natural gas for customers statewide. “I’ve been working on that one. That bill — I have my stuff with me, my files. So tonight, I’ll look at it and make a decision by tomorrow. That’s a complicated matter. You’ve just got to look at it from top to bottom.” Quinn is in an awkward position because the Citizens Utility Board, a consumer watchdog group he founded, opposes the bill, but the governor has backed the Leucadia project in the past.
Gov. Pat Quinn continues to push for pension reform and says he will decide on a controversial energy policy bill tomorrow.
“It shouldn’t take that long really. It’s something that everybody’s talked about all year,” Quinn said. “We just cannot postpone this matter any longer. It isn’t an election calendar that we’re looking at here, I think some members may be in the legislature. But we’re dealing with the bond rating agencies.” He said that if lawmakers don’t pass pension reform soon, the state may face a downgrade of its credit rating. “If we don’t act, we’re asking for trouble.”
Lawmakers are scheduled to return for a special session to address pension reform on August 17. Quinn said the legislative pension working group met Wednesday and plans to hold more meetings leading up to session next week. “We’re pretty close, I think, on what needs to be done.” However, Quinn seems to be the only player in the negotiations who is taking such an optimistic view.
The governor is throwing his support behind legislation sponsored by Northbrook Democrat Rep. Elaine Nekritz, a member of a legislative working group negotiating pension reform. Nekritz filed her plan, House Bill 6209, last week. It is similar to a version of Senate Bill 1673, which was under consideration at the end of the regular legislative session. The major difference is that it would make a shift of pension costs from the state to colleges and school districts outside of Chicago more gradual. Many Democrats believe that schools should pick up the cost for their employees' retirement benefits, but Republicans argue that shifting the expense would mean layoffs and increased property taxes.
However, House Minority Leader Tom Cross continues to oppose the cost shift to schools “The bottom line is that a pension cost shift is exactly that — a cost shift, not reform. We remain in total support of comprehensive pension reform of our pension systems. We have been and are willing to work with the other legislators and the governor to come up with a comprehensive solution as soon as possible,” said a prepared statement from Cross spokeswoman Sara Wojcicki Jimenez.
Quinn said that it is “curious” that Republicans do not support the plan because “ a lot of the interest groups that tend to support the Republican candidates” back Nekritz’s proposal. House Speaker Michael Madigan reportedly plans to call another bill, HB1447, for a vote. The Senate passed the bill on the last day of regular session. It only applies to the General Assembly and state workers, so it dodges the touchy subject of a cost shift altogether. Quinn has continually called for a “comprehensive” plan that applies to all the pension systems in the state. “I think it’s important that we get a good start. ... I think it would be a good thing if the House addresses [HB 1447], but I also want them to address Elaine Nekritz’s bill, which is really a comprehensive bill that will cover everything. It think that’s the best way to go.”
On that issue, Cross and Quinn say they agree. Cross also backs a “comprehensive” solution that would affect all workers, including teachers.
Nekritz has another bill, HB 6210, which she said could be a “companion” to HB 1447. It applies to university workers, community college employees and teachers. The measure also contains a cost shift. As they stand now, Nekritz’s bills cannot be passed in a single day. But Quinn thinks there are other ways to get the job done. “There’s a lot of different parliamentary techniques you can use in order to get a vote done in one day. That may be one of the ways to go.” One option would be to put the language of the legislation into another bill that has already been moved through much of the legislative process. Nekritz said she introduced her measures to start a conversation but is uncertain of the likelihood of their passage. “I think the plan is to put this out for discussion purposes,” she said on Monday.
Both bills have immediate effective dates, so they would require a three-fifths majority to pass in 2012. While Quinn said that he wants reform as soon as possible so the state can start to reduce its pension liability, he conceded that it might not happen. “I would hope to have three-fifths of both houses voting [yes], but if it was a majority, that’s definitely significant progress. We may have to adjust certain of the bills if there’s only a majority available.” If a three-fifths majority cannot be found, the earliest any reforms could go into effect would be June 1, 2013.
Quinn also said he plans to make his decision on Senate Bill 3766 by tomorrow. That measure would override a ruling from the Illinois Commerce Commission and clear the way for the construction of a coal gasification plant on Chicago’s southeast side. Without the bill, Leucadia National Corp., financial backer of the project, says it will not go forward. However, the plant is opposed by several environmental groups and business organizations, who say it will increase the price of natural gas for customers statewide. “I’ve been working on that one. That bill — I have my stuff with me, my files. So tonight, I’ll look at it and make a decision by tomorrow. That’s a complicated matter. You’ve just got to look at it from top to bottom.” Quinn is in an awkward position because the Citizens Utility Board, a consumer watchdog group he founded, opposes the bill, but the governor has backed the Leucadia project in the past.
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