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Governor demanded that ComEd remove
consumer rate increases from legislation
Governor said support for legislation hinged
on no early rate review, reducing job losses, investing in infrastructure
and renewable energy
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[NOV. 19, 2003]
CHICAGO -- As the General
Assembly prepared to convene for the final week of the fall veto
session, Gov. Rod R. Blagojevich said Monday that he would not
support pending legislation that would allow Exelon, parent company
of ComEd, to purchase central Illinois-based Illinois Power unless
the possibility of an early rate review for consumers was removed
from the bill.
See "Governor negotiates changes to Exelon's
acquisition of Illinois Power."
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"Dynegy has made it clear that it wants
to sell Illinois Power, and that if they cannot sell Illinois Power,
they will lay people off and make minimal investments in the energy
infrastructure of central Illinois. It is clear that Dynegy is going
to reduce its investment in Illinois Power in one way or another. It
is also clear that the economy of central Illinois and the stability
of the energy infrastructure in central Illinois and all of Illinois
would benefit if Illinois Power is purchased by a company that is
located in Illinois, produces power in Illinois, sells power in
Illinois and has a proven track record here in Illinois," said
Blagojevich.
"Commonwealth Edison is asking the
legislature for several things before they purchase Illinois Power.
First on their agenda has been a request for an immediate rate
review, not just for the current 700,000 Illinois Power customers,
but for the nearly 3.5 million Commonwealth Edison customers as
well. I will not sign legislation that would expedite a process that
could ultimately lead to a rate increase for consumers. Not for
Commonwealth Edison customers. Not for Illinois Power customers.
Commonwealth Edison, just like any other utility, ought to go
through the Illinois Commerce Commission's ordinary course of rate
review, as established by statute," Blagojevich continued.
Before he would give his support for
the sale of Illinois Power to Exelon, Blagojevich said the following
conditions must be met:
--No special rate increases for
consumers in either the ComEd or Illinois Power networks and no
changes to the way the Illinois Commerce Commission reviews and sets
rates. Both companies would need to adhere to the rate review
schedule contained in current law, which will take place beginning
in 2005 and ending in 2006.
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this article]
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--ComEd must commit to improving the
energy infrastructure of Central Illinois. Illinois Power is
currently ranked in the third quartile by the Edison Electric
Institute, an organization that grades the reliability of the
infrastructure of power companies across the nation. Companies
ranked in the first quartile have strong infrastructures, while
those in the fourth are very vulnerable to blackouts. Com Ed must
commit to making the necessary investment to move Illinois Power
into the second quartile in the next few years and into the first
quartile not long after that.
--ComEd must agree to keep Illinois
Power layoffs to a minimum. Com Ed has signed a memorandum of
understanding with the unions representing Illinois Power workers,
promising not to lay off more than 50 people over a period of
several years. Blagojevich wants the number of cuts to be reduced
further.
--And finally, ComEd must enhance its
investments in renewable energy -- including biogas, wind and solar
generation -- over the next several years.
"Protect
consumers. Improve our infrastructure and reduce the likelihood of
blackouts. Preserve jobs. And help the environment. If Commonwealth
Edison wants my support, that's what it will take," Blagojevich
said.
[News release]
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