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Electricity cost likely to play role in '08 elections

Utility rate relief still drawing lines

Utility rate relief still drawing lines
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It's fitting that disagreement over a $1 billion relief package for utility customers would continue even after the package was sent to the governor's desk.

Nothing polarized legislators this year like the problem of electric rate increases.

Prices spiked in January, when a 10-year freeze on electric rates ended. The outcry from angry consumers forced legislators into action, but agreeing on what action took months.

House Speaker Michael Madigan, D-Chicago, pushed for rolling back rates and freezing them again, while Senate President Emil Jones, D-Chicago, wanted to negotiate a rebate from the power companies and was willing to settle for much less than $1 billion.

In the end, the two leaders agreed to make Ameren and ComEd return about half of the increases over four years and to set up a new state agency to negotiate better power prices in the future.

Democrats, utilities and consumer groups look at the bright side. While the relief package doesn't roll back rates as much as they wanted, it did something to deal with consumers' complaints that they were paying too much for power.

"I think most people are positive that something happened and that finally something got done after all this time," said Rep. John Bradley, D-Marion.

Lawmakers on both sides expect the issue will play a role in next year's elections. Supporters will blast the lawmakers who voted against $1 billion in rebates for consumers, and critics will play up consumer disappointment in getting back only part of their rate increases.

The next few months could help determine which side has the advantage.

If consumers can live with the money they get back and rates don't jump much, the "half-full" group will look good. But if rebates don't go smoothly and prices continue to climb, critics will have a better argument.

One top lawmaker predicts both sides will be able to make their case to voters.

"There's an explanation on all sides as to how and why you did what you did," said Senate Minority Leader Frank Watson, R-Greenville.

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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