Court urged to nix market-rate utility hike next year

ILLINOIS - To protect consumers from "billions of dollars" in overcharges, the Illinois attorney general wants the state Supreme Court to stop utilities from charging market-based rates next year.

A petition filed recently asks the court for an expedited review of 11 appeals challenging Illinois Commerce Commission orders allowing ComEd and Ameren to charge market-based rates determined through an annual auction. The petition also asks the court to stay implementation of the orders while the review is pending.

Attorney General Lisa Madigan wants the ICC orders reversed because most ComEd and all Ameren customers take electric service that isn't competitive -- because residential customers have no other choice for buying electricity.

"The financial stakes are enormous," the petition said. If the orders are not reversed, "5 million ComEd and Ameren customers will be required to pay billions of dollars more annually for electric service than they do today -- even though the cost of generating electricity at many Illinois power plants has declined in recent years," the petition said.

As part of a 1997 Illinois deregulation law, electric rates were rolled back 20 percent and frozen. The freeze expires next year. ComEd and Ameren plan to buy electricity through an auction process in September, with new rates to go into effect Jan. 1.

ComEd declined to comment until it had seen the order. The company has said it could go bankrupt if it is not allowed to recover its costs for power after this year.

Madigan said a stay is needed to protect consumers from being hit with a "risk premium" electricity suppliers probably would add to their bids if the auction were to proceed before the appeals are resolved. A stay would also prevent utilities from incurring major costs they could not recover from ratepayers if the orders were overturned on appeal, Madigan said.