Illinois board approves two grid plans but slashes rate hike requests
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 [December 21, 2024]
By Kevin Bessler | The Center Square
(The Center Square) – A consumer watchdog group is applauding rate hike
reductions for two Illinois utilities, but said more work is needed.
The Illinois Commerce Commission approved revised grid plans from
Commonwealth Edison and Ameren, but considerably slashed the companies
rate hike requests.
The ICC approved ComEd’s $1.5 billion in investments and system
improvements designed to strengthen power grid reliability and support
the ongoing electrification of the state’s power system. The decision
cut the utility’s proposed $2 billion in spending by about 25%.
The Commission approved Ameren Illinois' $83 million in investments and
system improvements, cutting the utility’s proposed $333 million in
spending by about 75%.
“We are encouraged that state regulators cut wasteful spending by
hundreds of millions of dollars for both utilities,” Citizens Utility
Board spokesman Jim Chilsen said. “That’s a step in the right direction,
but we’re still concerned about the rate hikes and how it will impact
customers.”
Chilsen said both utilities were required to refile a grid plan earlier
this year after the ICC gave a thumbs down to the utilities’ initial
proposals in 2023.
“Both utilities brought grid plans before the ICC with accompanied rate
hikes and the ICC rejected those grid plans,” Chilsen said. “One of the
reasons they said was they did not prove that the plans are affordable
for consumers.”
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ComEd is Illinois’ largest electric utility, serving about 3.8
million customers across the state, and Ameren Illinois serves about
1.2 million electric customers in Central and Southern Illinois.
"Our focus remains on modernizing the grid to keep it reliable and
resilient in the face of extreme weather events," said Ameren
Illinois Regulatory Policy and Energy Supply Vice President Matt
Tomc. "At the same time, we'll make continued progress in driving
the clean energy transition forward."
The rate hikes will take effect within the next few weeks. CUB said
it does not yet have details on how this will impact individual
bills.
“After extensive review, the Commission is confident that both ComEd
and Ameren have the tools necessary to make needed investments to
drive the clean energy transition and continue modernizing Illinois’
electric grid. These plans are a key component to meeting the goals
of [the Clean Energy Jobs Act] and represent significant improvement
in meeting its requirements,” ICC Chairman Doug Scott said. “The
investments approved today will deliver significant benefits to the
utilities’ customers in an affordable, cost-effective manner.”
In 2020, federal prosecutors and ComEd reached a deferred
prosecution agreement to resolve a federal criminal investigation
into a years-long bribery scheme. As part of the agreement, the
utility admitted it paid $1.3 million in jobs and contracts to
associates of former Illinois House Speaker Michasel Madigan over
nine years to influence the former House speaker. ComEd agreed to
pay a $200 million fine. A former ComEd official, Fidel Marquez,
pleaded guilty to bribery charges in September 2020. A jury
convicted four former ComEd lobbyists and executives in a bribery
and corruption trial in 2023. |
