(The Center Square) – A consumer watchdog group is applauding rate hike reductions for two Illinois utilities, but said more work is needed.
The Illinois Commerce Commission approved revised grid plans from Commonwealth Edison and Ameren, but considerably slashed the companies rate hike requests.
The ICC approved ComEd’s $1.5 billion in investments and system improvements designed to strengthen power grid reliability and support the ongoing electrification of the state’s power system. The decision cut the utility’s proposed $2 billion in spending by about 25%.
The Commission approved Ameren Illinois’ $83 million in investments and system improvements, cutting the utility’s proposed $333 million in spending by about 75%.
“We are encouraged that state regulators cut wasteful spending by hundreds of millions of dollars for both utilities,” Citizens Utility Board spokesman Jim Chilsen said. “That’s a step in the right direction, but we’re still concerned about the rate hikes and how it will impact customers.”
Chilsen said both utilities were required to refile a grid plan earlier this year after the ICC gave a thumbs down to the utilities’ initial proposals in 2023.
“Both utilities brought grid plans before the ICC with accompanied rate hikes and the ICC rejected those grid plans,” Chilsen said. “One of the reasons they said was they did not prove that the plans are affordable for consumers.”
ComEd is Illinois’ largest electric utility, serving about 3.8 million customers across the state, and Ameren Illinois serves about 1.2 million electric customers in Central and Southern Illinois.
“Our focus remains on modernizing the grid to keep it reliable and resilient in the face of extreme weather events,” said Ameren Illinois Regulatory Policy and Energy Supply Vice President Matt Tomc. “At the same time, we’ll make continued progress in driving the clean energy transition forward.”
The rate hikes will take effect within the next few weeks. CUB said it does not yet have details on how this will impact individual bills.
“After extensive review, the Commission is confident that both ComEd and Ameren have the tools necessary to make needed investments to drive the clean energy transition and continue modernizing Illinois’ electric grid. These plans are a key component to meeting the goals of [the Clean Energy Jobs Act] and represent significant improvement in meeting its requirements,” ICC Chairman Doug Scott said. “The investments approved today will deliver significant benefits to the utilities’ customers in an affordable, cost-effective manner.”
In 2020, federal prosecutors and ComEd reached a deferred prosecution agreement to resolve a federal criminal investigation into a years-long bribery scheme. As part of the agreement, the utility admitted it paid $1.3 million in jobs and contracts to associates of former Illinois House Speaker Michasel Madigan over nine years to influence the former House speaker. ComEd agreed to pay a $200 million fine. A former ComEd official, Fidel Marquez, pleaded guilty to bribery charges in September 2020. A jury convicted four former ComEd lobbyists and executives in a bribery and corruption trial in 2023.
