Commonwealth Edison and Ameren Corp. sweetened their relief package for electric customers to $500 million Tuesday as a way to stave off legislation that would freeze rates, a key lawmaker said, but many legislators assailed the offer as too small.
The developments came on a busy day where lawmakers sent the governor bills that ranged from reducing penalties against prostitutes to letting parents check their children’s driving record via the Internet.
Under the terms of the utility offer, ComEd would provide rate relief worth $300 million in credits to its customers, with about half of it coming this year, about $130 million next year and the rest in 2009, according to Sen. James Clayborne (D-Belleville), who helped negotiate the proposal.
Clayborne said Ameren customers in Downstate Illinois would receive credits worth $200 million, with $130 million this year and the balance over the next two years.
Previously, ComEd and Ameren offered a total of $152 million in credits and other relief.
By comparison, the utilities will generate about $2.5 billion per year in new revenues through the higher rates imposed after a decade-long rate freeze ended at the start of the year, lawmakers said.
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The proposal would mean the equivalent of two to three months’ free electricity for some residential customers, Clayborne said.
Clayborne said he thinks the utility companies will continue to “tweak” their offer, but he declined to say how much overall relief he is trying to obtain.
“We still have a little ways to go, but I am confident we can get there,” Clayborne said. “Half a billion dollars is not something we should disregard.”
Even lawmakers who scoffed at the size of the offer said they’re encouraged by the development.
“Sure, it’s progress — they’re upping the ante,” said Rep. John Bradley (D-Marion), co-sponsor of a bill that would roll back electric rates to last year’s levels and freeze them for at least a year. “But the question asked of me is: Is it enough? And no, it’s not enough … not when they’re taking $7.5 billion away from us over three years.”
Sen. Gary Forby (D-Benton), a key sponsor of a freeze bill, said he thinks lawmakers must continue to press power companies until they provide more relief. To spur negotiations, Forby has supported a proposed generator tax, which would allow the state to seek rate relief from affiliates of Ameren and ComEd that produce power.
“It seems like every time they go back they offer more money,” Forby said. “So you know what? We might have to go back another time or two.”
Despite his optimism about the way talks are going, Clayborne said he’s not sure he can sell a majority of other lawmakers on any settlement because so many are committed to a complete rollback. He warned such an approach will lead to a lengthy court fight.
“In this instance, I think the more responsible thing is to get people enough relief so they can afford their bills,” Clayborne said.
Ameren officials confirmed their $200 million offer, but ComEd declined to comment.
In other action, the House sent the governor a measure that would let people charged with felony prostitution avoid having a conviction on their record if they complete two years of probation.
The bill would give prostitutes “one last chance to get out of the life for good,” said Rep. Robert Molaro (D-Chicago). Opponents feared the bill would do little to help prostitutes quit without drug treatment or other therapy.
The House approved higher penalties for those caught with the powerful painkiller fentanyl, which was responsible for more than 250 deaths in Chicago last year, while the Senate added salvia divinorum to the list of controlled substances, making it illegal to use the seeds, extract or other derivatives of the sagelike plant that’s become popular to order over the Internet. Both measures go to the governor.
The Senate also voted 57-0 to approve the measure that would allow parents to review their teen’s driving records online.
Other legislation approved by the Senate would prevent applications for state employment from containing questions about a job seeker’s conviction for non-violent criminal offenses.
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