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The Illinois House may have delivered on what we and the rest of the state have been asking for the past week by voting to freeze ComEd's rates another three years, but don't count on that actually translating to more cash in your pockets. If we remember correctly, bills also have to pass through the senate to become law, and since the Senate Rules Committee, which decides if bills should be considered, is run by Emil Jones, it doesn't stand a snowball's chance in hell of going to a vote.
Jones is the primary opponent of the rate freeze, having already pushed a bill through the Senate calling for a phase-in of the price increase over three years. He believes a freeze would hurt consumers in the long run because it might push ComEd into bankruptcy, which sounds a lot like what ComEd's Astroturf group C.O.R.E. has been saying. Perhaps that's because Jones is a willing recipient of Exelon/ComEd's largesse, having received $46,000 from them the last time he ran for office, along with $111,500 from other utilities like People's Energy, AT&T, and SBC.
We're not saying Jones doesn't have his constituents' best interests in mind with his plan for a phased rate increase. He could sincerely believe that it will stabilize ComEd and keep the lights on while easing the hit on electric bills. But that concern surely has more cynical inspiration. Such a compromise gives him a lot of wiggle room after all, ultimately giving the generous monopoly just what they wanted while appearing as if he was trying to protect the consumer. In other words, all in a day's work in Springfield.
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I'll add that it's total BS that Emil will not bring it to vote. He is indirectly forcing his opinion on the entire senate and with the controversy this issue has stirred up, we deserve a vote. Send an email to your Senator and the Gov. asap.
Can't G-Rod push this to vote if Emil won't?
Emil Jones: Another Democrat that spews forth mindless drivel about helping poor people, then sells out to big business.
Also, when does the big Democrat 100 hour countdown start? The constitution requires the new congress to convene on Jan. 3 at noon, and its already been 144 hours since then. They said there are important issues facing the country, but apparently they are not important enough they can't wait until the OSU-Florida game is done.
Why are necessities, like electricity and gas, run by non-governmental companies? There should be a way to have a government agency supply electricity and gas to all homes. And have it be included in taxes or something. Sort of like a socialist healthcare system, but for energy.
I'm sure there are pitfalls for this, but, to me, this makes the most sense. Give the people the things they need; have them directly buy the things they want.
I hate the underhandedness of ComEd and the CORE group, and this Emil character is really sleazy, but can anyone explain to me why this bill is really that bad?
Mind you, I'm not arguing FOR it, I'm just scared about playing politics with utility regulation is all. I don't want what's going on in California to come here.
Seriously, I'm a naive babe-in-the-woods here. The CORE group ads have gotten to me and I know there's another side to the story, if anyone can explain it to me.
see, this is why i don't vote. folks say i'm cynical, but i think i'm realistic. it really doesn't matter who you vote for, they all work for the same companies...
I thought the "California-Style Energy Crisis" was a direct result of some illegal practices that Enron employed in the late 90's to coerce California into paying higher rates (as seen on "Enron: The Smartest Guys In The Room). Which is why I thought the C.O.R.E. commercials were propaganda to begin with. I do think there is an actual crisis. Can someone confirm that or debunk it?
I'm still trying to figure out how a company can be expected to keep its prices the same for over 10 years. What am I missing? What else have you people been purchasing that is the same price as it was 10 years ago?
Be nice; I'm not a shill for Com-Ed, I'm just trying to understand the business end of this issue.
"There should be a way to have a government agency supply electricity and gas to all homes."
Well, it's not like gov't agencies aren't prone to poor planning and inefficiency either. Also, there is a law that requires ComEd to make sure that even if they go into bankruptcy, we don't have a situation where the last person out of the building shuts off the lights.
They said there are important issues facing the country, but apparently they are not important enough they can't wait until the OSU-Florida game is done.
Well the Republican 109th was the most absent (and worst) in history so they won't have to show up too much to top them. The bar hasn't just been set low it's been left of the floor. But I agree it sounds like Emil's just another shill.
But erm..yeah anyway isn't this post about ComEd? I wonder who exactly is their competition anyway?
If anyone's interested you can learn a lot about ComEd's actual situation [and lots of other neat things] on the Citizens Utility Board site.
In January, the Illinois Commerce Commission (ICC) voted 5-0 to allow Exelon/ComEd to use an “auction” system to buy power. Read “Fighting Exelon/ComEd’s Auction Plan” to see why this is a bad deal.
Exelon/ComEd’s auction at a glance.
While Exelon/ComEd argues that it needs to raise rates to stay financially healthy, its profits have increased by 320 percent since 1997 and its stock value has shot up 1,500 percent more than the S&P 500, even during a statewide electricity rate freeze. In fact, Exelon/ComEd’s return on equity makes it the nation’s most profitable power company.
Edit: I do not think there is an actual crisis.
In fairness to Emil, Madigan could have just as easily allowed the Senate Bill to come to a vote in the House. The bill that passed in the Senate let them phase in higher rates over three years. Madigan took the all or nothing approach that caused the lack of action in my opinion.
And why isn't anyone talking about the 18% electricity tax rate in Chicago? 13% of that is from the city of Chicago. I believe the state of Illinois brought in almost as much electricity tax revenues as Ameren brought in profit.
Electricity taxes are regressive anyway hitting the poor and families hardest and should be reduced especially at a time when the rates are going up, like is often done with gasoline.
Citizens Utility Board
While Exelon/ComEd argues that it needs to raise rates to stay financially healthy, its profits have increased by 320 percent since 1997 and its stock value has shot up 1,500 percent more than the S&P 500, even during a statewide electricity rate freeze. In fact, Exelon/ComEd’s return on equity makes it the nation’s most profitable power company.
Oh and chicagoist, there seems to be some kind of posting problem (at least for me) hourglassing forever, never posting etc.
Corn. A bushel of corn has cost roughly $3 for the past 30 years.
Why are necessities, like electricity and gas, run by non-governmental companies? There should be a way to have a government agency supply electricity and gas to all homes. And have it be included in taxes or something. Sort of like a socialist healthcare system, but for energy.
--> --> Because free enterprise and free markets = lower prices and higher efficiencies. We aren’t a 3rd world country. Government is not the answer to everything. And this rate hike is much ado about nothing. You can’t keep things the same price for 10 years.
How quickly ComEd forgets...
The state gave them all the land that the power lines sit upon in return for a rate freeze.
Now they cry poor and bore us with threats of bankruptcy, the trib reporter on this story got it right when he said it would be a cold day in hell when ComEd shows up in bankruptcy court as the source of their revenue would be made public.
The irony is that Emperor Evil Emile represents one of the poorest senate districts in the state
But yet because of campaign contributions he is one of the riches senators
That's all well and good, if you have enough players in the market. There aren't exactly hundreds of electricity generators that you can get your electrons from. And there is exactly one supplier that will deliver them to your home or place of business. That's not a free market, its a monopoly.
And commodities, of which electricity is one, can certainly maintain their prices over 10 years. See my corn example above. Technologial improvements in generation and transmission technologies reduce the amounts of raw materials needed to create the same amount of electricity. If this were a free market and there were multiple suppliers, this reduction in generation costs would be passed along to the consumer. But its not, unless mandated by the government. How else has Exelon flourished so dramatically during the evil 10 years of frozen rates?
What will happen with a rate freeze is ComEd will go into bankruptcy protection. Exelon does not have to bail it out. What that will mean is they will stop putting money into the system. They will also will not pour money into repairs when big things happen. Remember the big storm this summer that had people out for 4-5 days. That 4 days would become 2 weeks. ComEd will not pay for 100+ contractor crews to work on overtime like last time. I agree that there is plenty of money in Exelon, but it is the nuke plants that are making the money. That money does not make its way into ComEd. Exelon does not care if they own ComEd or if it goes bankrupt. John Rowe (Exelon CEO) only wants nuclear generation and WILL bankrupt utilities to get that. Trust me on this, I work for these bastards. One way or another, the consumer will end up paying like we always do.
Free markets are definitely not the solution to public utilities. If we left it up to most of these gigantiod corps, every single person that was late paying a bill would be living as if in the 3rd World. Electricity or lack there of would be used as leverage against the poor. Regulation prevents that from happening. I'll add that there isn't going to be a surplus of competition in the utilities market because the cost of infrastructure would be a huge barrier for entering.
name one program or service the Government provides that is efficent and works well.
You are a bunch of far left wingers
This isn't about the government providing a service, dummy, it's about regulating and keeping a multi-billion profitable company from screwing the daylights out of IL residents. Go back to your hole with your supply=demand/guns & butter charts hanging on your wall.
That's all well and good, if you have enough players in the market. There aren't exactly hundreds of electricity generators that you can get your electrons from. And there is exactly one supplier that will deliver them to your home or place of business. That's not a free market, its a monopoly.
Yeah no kidding.
I'm amazed that he'd be disingenuous enough to post libertarian mumbo jumbo in a thread that perfectly illustrates just why it's a bad idea.
Obvisouly none of you remember the utility problems in CA. Either way we pay. And I don't think he was saying complete deregulation.
Actually, the CA energy crisis occured because of deregulation not regulation. It's apples and oranges. You can't compare California to IL so stop it already.
California electricity crisis from wikipedia:
Controversy
While initially the cause of the crisis was defined as being caused either by poorly structured deregulation or by market manipulation, after extensive investigation The Federal Energy Regulatory Commission (FERC) concluded in 2003:[2]
"...supply-demand imbalance, flawed market design and inconsistent rules made possible significant market manipulation as delineated in final investigation report. Without underlying market dysfunction, attempts to manipulate the market would not be successful."
"...many trading strategies employed by Enron and other companies violated the anti-gaming provisions..."
"Electricity prices in California’s spot markets were affected by economic withholding and inflated price bidding, in violation of tariff anti-gaming provisions."
In summary, poorly structured deregulation which relied on active policing by the FERC led to situations where energy companies could manipulate the California energy market with near impunity and reap substantial profits at the expense of California energy consumers and the State.
Does anyone realize the Pandora's Box that is opening by allowing ComEd/Exelon to raise rates this year? They have already expressed that they expect electricity rates to go up again next year. If ComEd really has a problem with the rates it is buying electricity for, why has no one expressed anger over Exelon for charging such a high rate to their own subsidiary? Why doesn't Exelon rework the contract they have with ComEd? They're going to profit at the current rate. All the auction makes Exelon do is provide power just below the second lowest bid, which comes from non-taxpayer supported suppliers. All the money we've given to ComEd over the years to build their infrastructure is now forgotten by Exelon. They have a monopolistic advantage over all others, and will end up charging more than a competitive market will bear, since it is so very expensive to even enter the market and compete.
Oh yeah, don't forget that ComEd has already petitioned to raise its delivery costs next year.
Thank you Emil Jones. Thank you ComEd. Thank you Exelon. The free market doesn't work so well when there is one provider, and no real option for competition to develop.
Damn Jeremy, you took the words out of my mouth and taught me a new one. "Freepers" perfectly captures the zombie-esque creepiness of these free market worshiping automatons. Of course, the market is rarely "free" with the deck stacked in favor of megacorps like Exelon ("I have to charge you more because I'm charging myself more"), but try telling that to the true believer Freepers.