 The state's two largest electricity providers, ComEd and Ameren, are
advocating for a plan to give their delivery systems a $3.6 billion
upgrade during the next 10 years by passing a surcharge on to
customers.ComEd's average customer would see an extra monthly
charge of about $3, while Ameren's average customer would pay an
extra $5 monthly. ComEd's extra charge was calculated to include
savings the new grid would create, while Ameren's was not, according
to representatives for both companies.
Both of these charges would be on top of any normal rate
increases the utility companies would seek during the next decade.
"If we did not enact
House Bill 14, rates will still go up, but Illinois will forgo
smart grid and all its benefits. Three dollars per month buys a
smart grid, and the benefits from the investment more than offset
the costs," Anne Pramaggiore, president of ComEd, said Tuesday
during a joint hearing of the Senate Energy Committee and the House
Public Utilities Committee
Utility companies would recoup their investment in a smart grid
-- an electricity network that uses digital technology to use energy
more efficiently -- by altering the way they make rate changes. The
new system would allow companies to set their rates annually. Those
rates would stand unless a complaint was filed with or by the
Illinois Commerce Commission within 45 days of the rate change.
Currently, companies present any rate increases to the Commerce
Commission, which can then alter the increase to what it determines
is fair.
The change "would provide more timely recovery of cost to serve
our customers and more certainty to investors and lender," said
Craig Nelson, senior vice president of Ameren Illinois.
Attorney General Lisa Madigan's office said the new proposal for
how rate change is approached is akin to an automatic rate hike.
"It is an extreme proposal that will effectively leave the
Commerce Commission, the attorney general and other consumer
advocates on the sidelines as Illinois utilities automatically raise
their rates year in, year out," said Paul Gaynor, chief of the
public interest division in Madigan's office.
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Commerce Commission Executive Director Tim Anderson said that he
too is opposed to the legislation in its current form. The
commission has problems with several areas of the plan in its
current form, including the rate change overhaul, Anderson said.
Nelson and Pramaggiore said the rate-setting system would be
necessary to ensure the companies can get a return on their
investment. Upgraded grids would allow customers to save money in
the long run and make any blackouts short and more infrequent,
according to Nelson.
State Rep. Dave Winters, R-Shirland, is a co-sponsor of the plan.
A ComEd customer, Winters said he is part of a pilot program that
uses some smart grid technology. On average, his bill is 27 percent
lower than that of the average ComEd customer not in the pilot
program, he said.
"On an average bill of say $100 a month, if you're looking at 10
to 15 percent savings, obviously 10 to 15 dollars back in the
customer's pocket in exchange for the $3 in additional cost, I think
that's a great trade-off that's not going to be available if we
don't move to a smart grid for everybody," Winters said.
Modifications to the original proposal are being made to address
some issues brought up Tuesday.
[Illinois
Statehouse News; By ANDREW THOMASON]
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