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Blagojevich "suspicious" of electric rate relief bill

Posted August 14, 2007 11:00 pm

Doug Finke and Adriana Colindres

Gov. Rod Blagojevich said Wednesday he is going to take his time signing an electric rate relief bill because he is "suspicious" of utility companies that want him to sign it quickly.

The legislation on Blagojevich's desk would provide rate relief to customers of Ameren and Commonwealth Edison. Ameren officials have said the bill needs to be signed quickly to lock in lower electricity costs for customers.

"I'm suspicious when a company like Ameren is telling me there is a deadline for signing the bill," said Blagojevich, who likened it to being pressured by a used-car salesman. "When Ameren is saying you've had the bill for four, five days and sign it by Friday or else, I think it is prudent to be a little suspicious and to take a good look and look at the fine print in the deal. We'll see if we can make the deal better or not."

Under the state Constitution, the governor has 60 days to act on any piece of legislation once it reaches his desk. He formally received the electric rate relief plan on July 31.

The governor's comments Wednesday echoed a written statement he issued Aug. 4, when he re-emphasized his intention to review the $1 billion electric rate relief plan closely before deciding whether to sign it into law.

Part of the relief plan calls for giving Ameren and ComEd customers credits on future power bills to diminish the size of rate increases that took effect this year, after a long-standing rate freeze expired. Ameren customers also could receive rebate checks.

Another part of the legislation calls for long-term contracts aimed at keeping future electricity costs as low as possible for consumers. One of the five-year contracts is between the Ameren Illinois utilities and Ameren Energy Marketing, and the other is between Commonwealth Edison and Exelon. Both concern buying power at locked-in prices.

The Ameren contract already has expired and been renegotiated twice. The latest version is to expire Friday, and it would cost $16 million more than the original one, according to Attorney General Lisa Madigan's office, which helped negotiate the $1 billion relief deal.

The ComEd/Exelon pact has a Sept. 5 expiration date.

Doug Finke can be reached at (217) 788-1527 or doug.finke@sj-r.com. Adriana Colindres can be reached at (217) 782-6292 or adriana.colindres@sj-r.com.

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