Dear IndianaDG Readers:
You may think why is this story of interest to us here in Indiana. I think it is important because of the reason that Illinois Governor Pat Quinn gave for vetoing the bill, i.e.
"...he expressed concern about a "very disturbing process" in which ComEd sought relief in the legislature after a disagreement with its regulator, the Illinois Commerce Commission."
Indiana Governor Mike Pence could learn something from his counterpart in Illinois. "Don't let Indiana utilities run to the Indiana General Assembly to fix their problems when they don't get their way with the Indiana Utility Regulatory Commission (IURC)." But unfortunately, Governor Pence allowed the 2013 session of the Indiana General Assembly to meddle with the way the IURC operates by allowing SB 560 to become law. I understand that now after the fact the IURC is not very happy with this legislation and its likely impact on their operations and on ratepayers.
Governor Pence please let the IURC do its job in the future and don't let the utility industry bully them by seeking "quick fixes" at the Indiana General Assembly. If you really want to help, look at ways to increase competition in the energy utility industry not reinforce the monopoly stranglehold they have or allow them to become essentially deregulated monopolies.
I sincerely hope that when you create the Stakeholder group to aid your new state energy office which reports to you to develop a new state energy plan that you keep that in mind. By the way, when are you planning to start the process of developing a new state energy plan for Indiana? Please let us know soon. OK? I want to participate.
Laura Ann Arnold, President, Indiana Distributed Energy Alliance
Click HERE to view video that accompanies the story below >
By Mitch Smith, Tribune reporter, 7:34 a.m. CDT, May 6, 2013
Gov. Pat Quinn vetoed legislation Sunday that would have increased utility bills and helped Commonwealth Edison improve its electrical grid.
But the bill passed the General Assembly by healthy margins, and legislators could override the veto this month.
Quinn, a Democrat, cited practicality and precedent as he slammed the black ink of his veto stamp onto the bill at a news conference in Chicago. The governor said families and businesses can't afford a rate increase, and he expressed concern about a "very disturbing process" in which ComEd sought relief in the legislature after a disagreement with its regulator, the Illinois Commerce Commission.
"We cannot allow big utilities to take over and run roughshod over families and businesses," Quinn said before stamping the bill with so much gusto that he sent a pen on the table tumbling to the floor. "We're not going to let the utilities run Illinois."
ComEd argues that the bill is needed to support its Smart Grid program, a modernization plan that it says would create jobs, reduce the likelihood of outages and give consumers more say over their energy consumption. The utility issued a statement Sunday expressing disappointment with the veto and asking lawmakers to pursue an override. ComEd has said that the average residential customer bill of $82 per month would increase by about 40 cents in 2014 and by about 80 cents in 2017 if the bill were enacted.
Quinn, who faces re-election next year, said utility-price stability is key in attracting businesses to Illinois. The governor helped create the Citizens Utility Board in the 1980s, a consumer advocacy group that vouches for affordable rates.
State Rep. Lou Lang, the Skokie Democrat who sponsored the bill in the House, said "the likelihood of an override is strong." Lang expects the override to be complete by the end of May.
Three-fifths of legislators in each chamber of the legislature must agree in order to override the veto and enact the law over Quinn's objections. The original bill passed with more than 70 percent support in each chamber.
This bill is the most recent chapter in an ongoing spat between ComEd and the Commerce Commission. The two sides disagreed about how a previous law on grid modernization should be applied. The dispute spawned a lawsuit and slowed efforts to improve the grid.
Lang said the Illinois Commerce Commission "misinterpreted" the original act, and that this new legislation is more of a "cleanup bill" that gives precise direction about how to set utility rates.
Quinn, who in his veto letter cited "unprecedented legislative interference," maintains that the General Assembly is overstepping and injecting itself into an issue best handled by industry experts on the commission.
"(If) they vote to override," the governor said Sunday, "they're voting to raise rates on the people of Illinois."
mitsmith@tribune.com
Twitter: @MitchKSmith