Recent ComEd Rate Filing Simply the Calm Before the Storm for Consumers

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Nov 09, 2011, 12:22 ET

AARP Sets the Record Straight on ComEd Rate Decrease

CHICAGO, Nov. 9, 2011 /PRNewswire-USNewswire/ -- Statement from AARP Illinois Senior State Director Bob Gallo:

"ComEd's most recent attempt to fool their consumers by claiming a rate reduction as part of their filing with the Illinois Commerce Commission is merely a ploy to temper consumer opposition to their ill-conceived 'smart grid' legislation – Senate Bill 1652. The minimal 0.2% rate reduction will be more than offset by future unfair rate increases as part of Senate Bill 1652 approved two weeks ago by the General Assembly.

"Earlier this year, the ICC approved a $155 million rate increase for ComEd. Their recent rate case request, which includes a $44 million decrease, is indicative of the fact that the original request approved by the ICC in May was too high. Throughout the SB1652 debate, ComEd blasted the regulatory process governed by the ICC as inefficient and outdated. It seems now that very same process provided a much higher rate increase for ComEd then they deserved. In fact, during the case, experts on behalf of the Attorney General's Office and the Citizens Utility Board actually suggested a rate refund of $40 million should be approved.

"This initial filing, which ComEd is touting as a result of SB1652, simply reflects the difference between ComEd's opportunity to earn more than a 10% profit through a normal rate case and what is essentially a guaranteed rate of return that can increase under the new law by shifting all the risk onto consumers. It is also no secret that ComEd – and the lawmakers that voted in favor of Senate Bill 1652 – needed something good to tell consumers after the passage of the controversial and ill-conceived legislation.

"For consumers, this potential rate reduction will provide little relief measured against the much higher annual rate increases that they will face for the next decade as a result of additional costs under SB1652. While the rate reduction is good for consumers, it is simply the calm before the storm. AARP is intervening in this case to encourage the ICC to thoroughly review this and all of ComEd's rate requests. AARP continues to fight against any attempt to unfairly raise utility rates in Illinois."

SOURCE AARP Illinois