Investors are starting to worry that the court is seeking to seriously financially weaken Commonwealth Edison before it will finally grant rate relief for plants built and financed by investors-a large constituency that represents ”Ma and Pa” investors who are asking only for a fair return. The position taken by the court is frustrating and short-sighted.
Where a company is faced with the prospect of bankruptcy before it can get rate relief, investors will quickly withdraw their support and the company will suffer further financial hardship. Consider that Edison has not raised its dividend since 1983. Further, on a total appreciation basis, Edison shares have been lackluster since that time, compared with most other NYSE-listed companies.
Our courts ought to give serious consideration to where the money is coming from for the nuclear energy we are enjoying and the huge savings the customers have received.
A Jan. 10 research report from watchdog group Regula-tory Research Associates advised investors to sell their shares of Edison stock:
” . . . CWE continues to be blocked in its attempts to achieve rate recog-nition for efficiently constructed plants that have been serving customers since 1987 and 1988. We see the latest chapter as largely the political posturing of a Court that seems reluctant to allow its constituents to pay for what they get. . . .”
If our courts allow the financial integrity of Common-wealth Edison to become impaired, service cuts will surely follow. Investors put up their money in good faith. Now the court should act in good faith to allow fair recoupment of costs.
