ICC's Decision On ComEd Rate Case Still Hurts Consumers' Wallets

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May 24, 2011, 04:04 ET

Disappointing Decision Highlights Need to Defeat Automatic Rate Hike Legislation in Springfield

Statement from AARP Illinois Senior State Director Bob Gallo

SPRINGFIELD, Ill., May 24, 2011 /PRNewswire-USNewswire/ -- "Today's decision by the Illinois Commerce Commission to approve a $156 million delivery service rate increase for ComEd, while a blow to consumers, does highlight the critical role that the current regulatory process plays in negotiating the interests of consumers with that of utility companies, and it underscores the need to defeat House Bill 14 – legislation that would write automated rate increases into law.

ComEd's original rate increase request of $396 million was clearly exorbitant and merely an attempt by the utility giant to ensure higher profits – with consumers picking up the tab for bolstering ComEd's bottom line. However, the Commission's decision to allow a $156 million increase will still burden consumers, many of whom are struggling to afford basic necessities.

Today's decision by the ICC comes at an opportune time – as ComEd is still bent on passing House Bill 14 in the State Capitol. ComEd wants to take the ICC and the voice of the consumer out of the rate-making process and pave the way for even higher profit margins. Today's ICC ruling will raise the average consumer's monthly bill by 7.6%. If passed, House Bill 14 will raise monthly bills an additional 3%. That's a double-whammy for consumers and clearly negates ComEd's claim of a nominal increase. There is nothing nominal about a 10.6% increase.

AARP, Governor Pat Quinn, Attorney General Lisa Madigan, and many other consumer advocate groups oppose ComEd's automatic rate increase proposal – and today is a shining example of why Illinois needs an independent third-party in the rate-making process. The rate increase approved today is not what consumers would have wanted, but without regulatory involvement, ComEd could have run roughshod over consumers. Rate increase decisions should stop with the ICC, not be written into Illinois law.

Utility companies across Illinois are desperate to get even higher rates – whether through legislation or through rate cases pending before the ICC. AARP will continue to monitor developments in Springfield, and keep our 1.7 million Illinois members informed, to ensure that the interests of consumers are protected as ComEd and other utility companies continue to push for higher profits."

SOURCE AARP Illinois