Citizens Utility Board | Chicago Tribune Letter To The Editor: Electric Grid

Chicago Tribune Letter To The Editor: Electric Grid
By David Kolata, CUB Executive Director

May 23, 2011 — As the General Assembly refines legislation to modernize the state’s electric grid, the Citizens Utility Board (CUB) echoes the Tribune’s fixes for the bill (“Getting Smarter,” May 16, 2011), and we hope to see them reflected in the language of House Bill 14.

CUB is cautiously optimistic that smart-grid technology could lead to revolutionary advances in energy efficiency that save consumers money, but it has to be done right. That’s why we joined Gov. Pat Quinn and Illinois Attorney General Lisa Madigan in opposing the initial version of HB 14, which locked in exorbitant and automatic rate hikes for ComEd and Ameren over the next 10 years.

From what we understand, significant progress has been made in getting smart grid policy right in the legislation, and we urge lawmakers in Springfield to continue in that direction by fashioning a bill that incorporates the three core principles mentioned in the Tribune editorial.

First, the bill must ensure that ComEd and Ameren remain accountable to regulators. Earlier versions all but eliminated the power of regulators to police utility spending practices. We’re encouraged to hear that utilities might be amenable to more oversight, but it needs to be substantial and we need to see it in the legislation.

Second, the bill must lower the return on investment guaranteed ComEd and Ameren. The profit margin set in stone by HB 14 would be more extravagant than the returns that have afforded both companies ample prosperity over the years, even though the bill would actually lower utility risk, not increase it.

Finally, the bill should mandate performance metrics that prevent wasteful utility spending and promote smart-grid improvements that maximize consumer benefits. The word on the street is that the bill already has made progress on that front, but considerable checkbook issues remain.

By fully adopting these three principles, Illinois can begin to formulate smart-grid legislation that actually makes good sense to consumers and promotes economic development.