Reis Seeks Compromise Electric Rate Solution

November 28, 2006

Springfield... While State Representative David Reis voted in favor of the additional three year electric rate freeze he was disappointed that it was the only option that was presented to members of the Illinois House of Representatives.

“I felt if nothing else we needed to stop the hemorrhaging and force the two sides to sit down and talk. We simply cannot allow an increase of 45 to 55 percent for consumers to kick-in in January,” said Reis. “I am extremely frustrated that we were not given the opportunity to debate and discuss the various compromise proposals that would protect consumers while still addressing the very real concerns for potential employee layoffs, rolling black-outs, and brownouts.”

While the sponsor of the rate freeze proposal placed the bill on postponed consideration after it failed to get the required amount of votes, Reis continues to push for a compromise such as HB5855, a measure he introduced earlier this month that would limit the rate hikes to single digit yearly increases and phase them in over a period of three years.

“Here we are meeting in the historic Old State Capitol, under the portrait of George Washington one of the greatest leaders of compromise in our nations history and yet we cannot bring our present day legislators together to find some type of compromise on this very important issue,” stated Reis. “Surveys and phone calls into my office showed nearly unanimous support for some type of compromise bill and it is my hope that we can still push for something in the middle.”

In 1997 the General Assembly enacted an electric deregulation law which lowered electric rates by 20% and held those rates in place for ten years with the hope that deregulation would spur competition and keep rates low. The deregulation law which was supported by the Citizens Utility Board and many others also required the utility companies to sell-off their electricity generating plants. Today the utility companies must purchase power from generating companies.

“There is very real concerns that our power companies could go bankrupt because they must pay the generating companies much more than they are bringing in from electric consumers” said Reis. “But at the same time, it would be difficult for our residents and businesses to absorb a 55% increase all in one year. We need to explore all options and reach consensus on a plan that will provide immediate relief and put a long-term plan in place to ensure continued affordable rates and reliable service.”