Electric Rate Relief & Reforms a Reality for Illinois Consumers

Source: AARP.org | September 28, 2007

The public outcry, town hall meetings, rallies at the Capitol, and consumer protests over soaring electric bills were finally heard. AARP pressed for electric rate relief and reform and now a new law will deliver on both - providing significant reforms and immediate, but modest, rate relief for consumers.

In January 2007, a 10-year electric rate freeze expired, exposing thousands of Illinois residents to huge increases in their electric bills. Consumers were sacrificing their personal and financial well-being just to keep their lights on and AARP Illinois worked to bring electric rate relief to all Illinois consumers.

On August 28, Governor Blagojevich signed (Senate Bill 1592), providing $1 billion in rate relief to Illinois consumers. More importantly, the law establishes an independent Illinois Power Agency that will be responsible for planning and purchasing electricity at the lowest possible price for consumers. This will replace the flawed "reverse auction" process that originally contributed to skyrocketing rates in Illinois. Long term planning was an essential component of the bill and will help to ensure that Illinois does not face another electric rate crisis in the years to come. This is the kind of long term solution that Illinois citizens need and deserve.

Consumers in Ameren and ComEd territories will see a roll-back in their electric rates and will receive refunds and credits for a portion of the exorbitant bills received since January 1, 2007. All customers will see a 40-50% roll back in their 2007 electric rates. In addition, customers will receive a lump sum payment for a percentage of overages paid since January and credits for the remainder of 2007. Ameren customers will receive waivers for non-payment and payment assistance. Customers residing in all-electric homes will see those discounts restored. The bill also prohibits companies from shutting off power to all-electric customers from December 1 through March 31 of each year. With the harsh Midwest winter weather, it is imperative that consumers are able to keep their heat running during the winter months.

AARP fought hard to make electric rate relief a reality this year and we commend the efforts of the General Assembly and Governor Blagojevich for coming together to address the needs of Illinois consumers hit hard by high electric rates. AARP will continue to keep watch on this issue and stand up for the rights of Illinois consumers.