Utility rate hike request must be rejected

BY STATE REP. JOHN BRADLEY

Southern Illinoisan Editorial 11/26/07

Since January 2006, I, other local citizens, the Citizens Utility Board and AARP have attempted to address the pending and eventual rate crisis - a rate crisis born out of the deregulation of the electric utility industry resulting from legislation drafted in 1997, some six years before I began serving in the General Assembly. Yet our efforts were not enough to stop Ameren's rate hike and the people suffered.

With this suffering in mind, I was shocked when a recent letter sent to this paper suggested that Ameren's customers were not victims of the utility giant. Local utility consumers were, are and will continue to be victims unless the Illinois Commerce Commission (ICC) steps in and rejects Ameren's recent request for a rate increase.

 
The fact that this request comes mere months after Ameren socked its customers with record rate increases is particularly insulting.

During the "power wars" in Springfield and here at home over the last two years, I have argued for the intervention of an independent Illinois Power Agency to regulate the utility industry. After years of catering to the utility giants' desires, including the reverse auction process that resulted in the astronomical rate increases that hit Southern Illinois this year, the Illinois Commerce Commission has established a long history of letting consumers down. It was my opinion that the ICC should be eliminated and replaced with a true watchdog group designed to look out for us.

Though the ICC remains, the creation of the Illinois Power Agency was approved in September. This agency will oversee power purchasing in an effort to keep future costs as low as possible.

Now, the utility companies believe they can get their trusted allies on the ICC to help them boost their profits after an outraged public and state legislature insisted the utilities to impose fairness with their rates. Ameren is now asking for a rate increase of about $247 million - much more than the $150 million it contributed to last summer's $1 billion relief settlement. Ameren's continued arrogance is a slap in the face to Illinois consumers.

In light of this, the only proper and fair course of action by the ICC is to reject and dismiss Ameren's request for a new rate increase. Should the ICC decide to allow consumers to be burdened with yet another rate hike, I am prepared to file legislation that would disband the ICC immediately and shift its powers to the Illinois Power Authority.

Further, I have sent a letter to the ICC requesting that a public hearing on Ameren's rate increase request be held in Southern Illinois prior to the ICC's ruling so the voice of local residents can be heard.

As in our battle with Ameren earlier this year, members of the public and those who represent them must stand united in their efforts to do right by the state's utility customers.

I remain committed to engaging in this battle with my fellow Southern Illinoisans and working to convince the ICC that Ameren's request for a rate increase should be denied.

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