AARP Urges House to Reject Senate Bill 1652
Statement from AARP Illinois Senior State Director Bob Gallo
SPRINGFIELD, Ill., May 27, 2011 /PRNewswire-USNewswire/ -- "Today's decision by the House Public Utilities Committee to pass the revamped rate hikes legislation (Senate Bill 1652) is a bad move for Illinois consumers. ComEd and Ameren can give their automatic rate hikes legislation a new name and a new number, but the reality is that Senate Bill 1652 is still about higher electric rates for consumers and more utility company profits.
This legislation writes utility company profits into state law by guaranteeing companies a return on equity of over 10%. The legislation also results in nearly automatic rate increases by allowing utility companies to file rate cases each year for promised extra investments. What other American industry requires and expects its customers to pay in advance for capital expenditures? It is simply poor public policy to guarantee private corporations exorbitant annual increases under Illinois state law.
Senate Bill 1652 also shortens the rate review process - tilting the balance in favor of utility companies. Studies have shown that shorter rate processes result in higher rates for consumers. ComEd and Ameren simply want to take the voice of the consumer out of the ratemaking process and pave the way for even higher profit margins.
This week, the Illinois Commerce Commission approved a $156 million service rate increase for ComEd - $240 million less than ComEd's original $396 million request. While a blow to consumers, this decision highlights 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 Senate Bill 1652.
AARP is extremely disappointed by today's decision by the House Public Utilities Committee and urges lawmakers to reject Senate Bill 1652 on the House floor. We 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
