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Governor's office pooh-poohs rate deal deadline

Posted August 01, 2007 11:00 pm

Adriana Colindres

"Gov. Rod Blagojevich won't be rushed on a decision about whether to sign into law the $1 billion electric rate relief deal that utility companies and some state officials negotiated, an aide said Thursday.

But Attorney General Lisa Madigan says the governor could jeopardize the whole agreement - including credits on power bills and rebate checks to consumers - if he does not act by today (Friday).

Martin Cohen, the governor's director of consumer affairs, brushed aside concerns from Madigan and some lawmakers that Blagojevich must approve the legislation by today because of a deadline concerning five-year contracts to buy power at fixed prices. The idea behind the contracts is to try to keep electricity costs low for consumers, Madigan has said.

"There is no harm that comes to consumers, none whatsoever, from the governor taking the full and appropriate time to review this matter," Cohen said during an 8-1/2-minute "media briefing" outside of Blagojevich's office in the state Capitol.

"The rate relief provided for in the bill remains the same, regardless of when he signs it."

After months of negotiating, representatives from Commonwealth Edison, the Ameren Illinois utilities and some state officials, including Madigan, recently agreed to a $1 billion rate relief plan for customers of ComEd and Ameren. Part of the agreement reduces the size of the rate increases that customers will experience for the next few years, even though they still will be paying more than in 2006.

Lawmakers have been hearing for months from angry constituents about their power bills, which skyrocketed this year because of the expiration of a long-standing rate freeze.

The Illinois Senate and House approved the electricity legislation, Senate Bill 1592, on July 26, and the bill formally was sent to the governor Tuesday.

Whenever the General Assembly passes a bill, the legislature has up to 30 days to send the paperwork to the governor, and he has up to 60 days to decide whether to sign it into law.

"We've had that bill for less than a week, and we are giving it a through review," Cohen said, adding that it has "many complicated elements." The governor is "going to take the time necessary to make sure that this is the best deal that consumers can get."

Madigan spokeswoman Robyn Ziegler said missing today's deadline carries serious implications.

"The long-term contracts are a crucial component of the entire legislative package," she said. "Allowing the Ameren contract to expire puts the entire legislative package at risk."

Ziegler said the attorney general's office earlier had advised the governor's office, which wasn't involved in the electricity negotiations, about the Aug. 3 deadline.

Ameren Illinois President Scott Cisel on Thursday sent a letter to Blagojevich, urging him to sign the bill by the end of business today.

"That date is critical because it is when the financial arrangement allowing our utility companies to secure baseload power for five years expires," Cisel wrote. "These contracts are for around-the-clock power and they are intended to stabilize electric prices in Illinois in the near term."

Tim Fox, a spokesman for Ameren Energy Generating, said the generating company would be willing to renegotiate the long-term contracts if Blagojevich doesn't immediately sign the legislation.

But in another letter sent to the governor Thursday, 37 House Democratic lawmakers noted that power prices have gone up since the Ameren contract was negotiated.

"To re-open negotiations based on current market prices would lead to price increases of hundreds of millions of dollars - another catastrophe for Illinois ratepayers," they wrote. "Ameren customers cannot wait and they will be hardest hit if you do not act."

Earlier in the day, on the floor of the House, lawmakers expressed worries about the Friday deadline and how ignoring it could affect consumers.

"As of (today), the low-cost power contracts, which are an essential part of the deal, are set to expire," said Rep. John Bradley, D-Marion. He called on the governor to sign the legislation quickly "to avoid future turmoil with regard to electric rates."

"The deadline's out there," Bradley added later. "Certainly when the ox is in the ditch, you don't waste any time on something this enormous, on something that is this essential for this rate deal. What could be more important than making sure that you've got that deadline met?"

Adriana Colindres can be reached at (217) 782-6292 or adriana.colindres@sj-r.com.

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