Time to Stop Utilities from Hitting Millions with Higher Rates

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Aug 29, 2011, 12:51 ET

AARP Urges Governor to Veto SB1652

Statement from AARP Illinois Senior State Director Bob Gallo

SPRINGFIELD, Ill., Aug. 29, 2011 /PRNewswire-USNewswire/ -- "As Senate Bill 1652 has finally been released by the Illinois Senate, AARP urges Governor Pat Quinn, on behalf of our 1.7 million Illinois members, to come through on his promises and veto this awful legislation that would allow utility companies like ComEd and Ameren to hit the wallets of millions of consumers with higher rates while guaranteeing their own profits.

SB1652 narrowly passed both chambers in Springfield during the Spring session as ComEd and Ameren heavily lobbied legislators to approve a bill that would allow them to impose nearly automatic electric rate hikes, while securing company profits and diminishing needed regulatory oversight.

Yet SB1652 did not garner a veto proof majority, and Governor Quinn has promised to veto the bill joining with Attorney General Lisa Madigan, AARP, the Citizens Utility Board and many other consumer advocates and watchdogs in their stern opposition to the legislation.

SB1652 is bad news for consumers as it writes utility company profits into state law guaranteeing ComEd and Ameren a return on equity of over 10% or even higher. Additionally, SB1652 creates a formula rate and shortens the rate review process effectively tying the hands of the Illinois Commerce Commission. Through this bill, ComEd and Ameren are taking the voice of the consumer out of the ratemaking process and paving the way for even higher profit margins.

Now that the bill is finally on its way to the Governor's desk, we urge him to step up to the plate again for millions of consumers as he had done so often in the past, and use his veto powers to kill this legislation as he has promised numerous times."

SOURCE AARP Illinois