State lawmakers send electric rate increase bill to Quinn

[August 30, 2011]  CHICAGO (AP) -- Legislation to raise electric rates to help pay to modernize Illinois' power grid was sent Monday to Gov. Pat Quinn, who repeatedly has promised to veto it, while sponsors are confident they can override him if he follows through with his threat.

It's the latest battle over a bill that has raised the hackles of consumer groups because of rate increases they say are overly generous to utility companies. Supporters of the measure contend the increases are needed to finance a modern "Smart Grid" that can monitor energy use and reduce waste. The $3 billion, 10-year plan also would give ComEd and Ameren money for basic infrastructure.

The bill would allow a 2.5 percent annual rate increases for the first three years. ComEd bills are projected to climb about $36 a year, while Ameren customers would pay about $34 more by the project's 10th year.

It's estimated consumers might save $7 to $10 per month by using smart meters.

Quinn has been consistent in his pledge to veto the electric rate bill, and he did so as recently as last week at an event touting the Illinois debut of Nissan's new all-electric car. Illinois Attorney General Lisa Madigan also doesn't like the energy bill.

"I think we're going to veto the bill as soon as it arrives," Quinn said. "What I've done on other bills where we veto it, we lay out a blueprint on how to make it better and I have signed bills after the blueprint was enacted, and I see the same thing happening here with Commonwealth Edison."

Quinn blasted the giant utility for wanting to raise rates at a time when customers have struggled with summer power outages and "their service quality could improve a great deal, frankly," he said.

ComEd continued Monday to call on Quinn to sign the bill.

"A veto ... would deny consumers better reliability and service, the opportunity to save money, and much-needed jobs during these tough economic times. It's the kind of policy that Illinois needs today, and we urge the governor to sign the bill," the company said in a statement.

Democratic Rep. Kevin McCarthy said Smart Grid technology could help utility companies such as ComEd better deal with outages.

[Associated Press]

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