No decision on Illinois electric rate relief

SPRINGFIELD, Ill. -- In February, Ellie Dorchincez was fighting mad about her soaring electric rates. In July, she's fighting her growing frustration over the lack of response by state officials.

Dorchincez, who owns a small grocery store in Benton, says she and many others in Southern Illinois -- where many saw electric bills more than double when a 10-year rate freeze ended in January -- still hope for some help from lawmakers.

But as legislators continue to argue about how to provide relief and avoid large increases in the future, Dorchincez is skeptical.

"Make a believer out of me," Dorchincez said of lawmakers. "Go ahead and try because I want you to try."

Lawmakers working on the thorny issue understand the frustration, because they're feeling it, too.

They returned to the Capitol this week after several days off for the Fourth of July holiday, where they heard grumbling back home.

"I think people are already receiving it badly," said Sen. Dale Risinger, R-Peoria. "We've taken way too long to get this done."

Sen. James Clayborne, D-Belleville, a key negotiator on the issue, agreed: "I believe that we should have resolved this issue a long time ago, to give people relief, to give people certainty."

But why haven't they? And when will an agreement come?

Legislators and utility executives have met for countless hours in the last few months, trying to strike a deal that provides short-term benefit to consumers and long-term assurances of reliable and affordable electricity.

But they've encountered sticking points in both categories.

Recent talks have centered on about $1 billion in relief for customers over several years, with Ameren, ComEd and the companies that generate power for them providing that cash back.

Consumers could receive refund checks for the higher amounts they've paid this year, or get the money as credits on future bills. Consumers who have paid the largest increases could see the most aid, or it could be spread out more to cover all customers paying higher bills.

Negotiators also are trying to decide how high of a rate increase is acceptable for customers for the rest of this year and beyond.

The real complexity, however, comes in making long-term decisions.

Some lawmakers have suggested passing another rate freeze, ensuring customers pay lower rates over the next few months or years while decision-makers plot out where to go next.

But many say that would only add to Illinois' electric rate problems and result in a long legal battle.

"If we pass a rate freeze and then don't fix the structural problems, then the situation continues on for who knows how long," said Rep. Bob Flider, D-Mt. Zion. "I think it would be better if we could come to some resolution rather than have the decisions rest with the courts."

Negotiators want to replace or at least significantly change the so-called "reverse auction" process used last year to set the new, higher rates. Attorney General Lisa Madigan and other critics argue that auction -- where Ameren and ComEd accepted the lowest bids from companies to supply power -- was set up by the utilities to ensure consumers were saddled with artificially high rates.

There's been much discussion of overhauling the way Illinois regulates the electric industry by creating an Illinois Power Authority.

The authority could be an arm of state government that more closely watches over how power is purchased in Illinois, ensuring consumers get better prices. It even could get into power production, potentially generating cheaper electricity than Illinois could buy on the private market.

Each possibility presents a number of roadblocks, leading to more intense debate of details and hypothetical scenarios.

That's why key legislators say they can't say exactly when they'll finish a deal. But like their constituents, some are losing patience.

Sen. Gary Forby, D-Benton, said he wants an agreement by next week -- or else.

"If not, I'm really going to start screaming [rate] freeze really hard," Forby said Thursday. "Let's get it on the table and let's do it."

Back in Forby's district, Dorchincez has cut back her energy use by closing down freezers and soda machines to keep her costs manageable until there is legislative action.

"I can't believe that it has taken us six months to get where we're at and we have no resolution," Dorchincez said. "They've got to do something."