As a proponent of the benefits of consumer choice in electricity markets, I am compelled to respond to your Oct. 1 editorial “Flip the switch on deregulation.”
CILCO has never advocated a “perfect” bill. We do, however, advocate a bill that is balanced and provides a reasonable time frame for meaningful competition to begin. Senate Bill 55, drafted by attorneys for the two highest-cost utilities in the Midwest, is not balanced and provides the longest transition period to full competition of the eight states that have passed consumer choice legislation.
Perhaps most alarming in the editorial is the notion that this bill should be passed and then the legislature can “make fixes in the future.” Two examples illustrate my alarm:
– Senate Bill 55 provides that utilities can arrange for the issuance of long-term bonds. Proceeds from the bonds would be paid to owners of the utilities to reduce debt and to reduce shareholder risk caused by high-cost assets. The payment of bonds would be assured by a legislatively guaranteed income stream from Illinois consumers (yes, a tax!). How can you “fix” a long-term bond after it has been issued and the proceeds spent? You can’t.
– Senate Bill 55 takes away consumers’ rights under existing laws to avoid paying for utilities’ costly equipment that doesn’t work. The Illinois Commerce Commission now is considering a consumer-led petition based on those very rights. Instead of passing a law that can be “fixed” later, the legislature first should assure that it doesn’t trample consumers’ existing rights with utilities.
A few “fixes” made today will strengthen this bill for consumers and lessen the need for changes in the future. The bill must provide enough benefits to consumers to make competition meaningful, and the transition to full competition must place Illinois in a solid leadership position.
Today Illinoisans pay the highest prices in the Midwest for electricity. If Senate Bill 55 becomes law as drafted, while other competing states–east and west–implement more progressive programs, Illinoisans soon will be paying the highest prices in the nation.
Let’s not pass it and fix it. Let’s fix it and pass it.
