Utilities going all out to build 'smart grid' support
The tactics used by two of the state's utilities to build legislative support for controversial "smart-grid" legislation don't pass the smell test.
For the record, the so-called "smart grid" plan contained in legislation pushed by utilities Commonwealth Edison and Ameren in Illinois has merit. But the way the utilities are going about building support for the legislation stinks of traditional pay-to-play politics in Illinois.
The Legislature passed the $3 billion, 10-year plan on May 31 and Gov. Pat Quinn immediately said he would veto the bill. Senate President John Cullerton, a Chicago Democrat, used a legislative move to hold the bill to avoid an immediate veto and buy time to persuade Quinn of the merits of the bill and also build support among legislators for a veto override attempt.
Cullerton released the bill to the governor late in August. Quinn has not backed off on his promise to veto the bill, but sponsors are confident they can muster the votes to override in the fall veto session in October.
The plan would modernize Illinois' power grid by financing a "smart grid" that would monitor energy use and reduce waste. The utilities say they'll be able to respond to outages better because they'll know exactly where the problem is without customers needing to call. Consumers would be able to save money with the system because smart meters would give customers more control over their electricity usage.
So what's the problem?
The legislation would raise electric rates to help pay for the "smart grid," and consumer groups say the rate increases are overly generous and the bill shortens the 11-month time frame for rate hike cases in front of the Illinois Commerce Commission.
The bill would allow 2.5 percent annual rate increases for the first three years. ComEd bills are projected to increase about $36 a year, while Ameren customers would pay about $34 more by the 10th year. Consumers might save $7 to $10 per month by using smart meters.
The bill has encountered some powerful opposition. Besides Quinn, state Attorney General Lisa Madigan and Illinois Commerce Commission Chairman Doug Scott oppose the legislation. The Citizens Utility Board, which Quinn helped found in 1983, says the legislation is unfair to consumers. The AARP called it "awful legislation" that would guarantee a rate of return of more than 10 percent for the utilities.
It's a high-stakes game, and assuming Quinn carries out his veto threat, the battle will move to the Legislature. Quinn says he will wield his amendatory veto to improve the bill, while legislative sponsors think they'll have the votes — 71 in the House and 36 in the Senate — to override the veto, even though the bill didn't pass with a veto-proof majority in either chamber in May.
Here's the part that doesn't pass the smell test. Both Ameren, the downstate utility headquartered in Peoria, and ComEd from Chicago, have contributed colossal sums of money to the election campaigns of state legislators since the smart grid bill passed in May.
So far this year, Ameren has directed more than $320,000 to legislative campaign committees. ComEd also has handed out hundreds of thousands of dollars to legislative campaigns in recent months.
It will be interesting to follow the money in the weeks leading up to the vote. No matter the merits of the bill, the campaign contributions give the appearance of trying to buy votes.
For the most part, the utilities are letting their money do the talking. Ameren has been publicly silent on the legislation, but Commonwealth Edison issued a statement Aug. 29 urging Quinn to sign SB 1652.
"Since its introduction last winter, the bill has undergone significant revisions to address concerns raised by the governor and multiple stakeholders," ComEd said. "It is clear that the benefits provided by the bill greatly exceed its costs and allow Illinois the opportunity to invest in much-needed infrastructure improvements."
Ameren Illinois has installed digital meters in much of their service area. These meters are "smart meters". They all but eliminated the traditional meter readers as they can send instantaneous and monthly data to Ameren when needed.
Ameren needs to start spending some of their millions in current profits in house to improve the grid instead of buying off politicians. But with the success of the laughable "future gen" project and other tax funded programs going down Ameren's greedy gullet, why change now? It's business as usual in the Land of Lincoln.








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